THE FACTORS THAT AFFECT THE SUCCESS OF THE INTERNATIONALIZATION OF A FASHION BRAND| |
BY CHISHIMBA TAMBULE|
2.0 STATEMENT OF THE PROBLEM4
6.1 Market Entrance6
6.2 Market Selection8
6.3 Motivation to Internationalize10
6.4 Marketing Mix11
THE FACTORS THAT AFFECT THE SUCCESS OF THE INTERNATIONALIZATION OF A FASHION BRAND
Globalization can be defined as the openness, integration and interdependence of various economies. In this scenario economic activities, products, services, capital, intellectual properties and properties move across borders (www.freewebs.com/suaraanum/0310b02.htm). In other words, the world becomes one entity in terms of trade. The world is moving towards globalization with the removal of quota and tariffs such as the multi-fibre arrangement (MFA), and the establishment of the World Trade Organization (WTO), the world is being opened up to trade with each other. Because of globalization, many corporations are expanding into new international markets that were not possible in the past because of trade restrictions that had been imposed. In the fashion business entities are taking advantage of this through the process of internationalization. Internationalization can be defined as the pursuit of business activities across national borders (http://mpra.ub.uni-muenchen.de/18568/1/MPRA_paper_18568.pdf). In Malaysia the presence of international fashion brands such as Banana Republic, Versace, Gucci, Bvlgari, Chanel, Marks and Spencer, and Jimmy Choo among others, can be noticed in the shopping malls. Brown and Burt (1992) state that international retailing is the transfer of a retail brand with its associated image across national borders. Therefore these brands from the United States of America, Italy, France, the United Kingdom, and other parts of the world transfer their retail brand and everything associated with it to international markets including Malaysia. The purpose of this academic piece of writing is to analyze the factors that precipitate the success of the internationalization of a fashion brand. 2.0 STATEMENT OF THE PROBLEM
The purpose of this study is to find out the factors that lead to the success of internationalizing a fashion brand. Success in this paper can be defined as achieving high profit returns and being in the international market for more than three years. The research attempts to answer the question: how can a fashion brand survive in the international market. This is an important question because there are some international brands such as Marks and Spencer that have failed in some of the international markets it has entered, while there are brands such as Indetex that have achieved phenomenal success in the international market. The research attempts to fill in the gap of research that has been done in retail internationalization(RI) which has concentrated on other retail businesses such as hypermarkets. These findings cannot be generalized to fashion because there are other factors that differentiate the fashion business from other business sectors. The fashion business has to consider factors such as culture and psychological factors which a hypermarket does not have to consider. 2.0 OBJECTIVES
The objective of this study is to find out the factors that are necessary for the success of the internationalization of a fashion brand.
The desktop method was used in this investigation. Ten journals were reviewed, hence secondary data was used. In these journals different methodologies such as in-depth interviews, postal questionnaires, semi-structured interviews and others were employed by the...