Toms
1. Justification of India
As TOMS is a well known brand for selling shoes from USA, they have potential to enter in the India market through the market evaluation of the twelve Cs.
Firstly, India is a country that which has a high population of 1.27 billion and there is a significant growing GDP in this few years. Nowadays, as the living standards of Indians are increasing, their behaviors are willing to spend money on consuming. Also, Indians have fashion sense and started to follow the trend. TOMS can get the opportunity to enter in India market to raise it sales.
In addition, TOMS shoes are made by pig suede . The lightweight canvas top and leather insole is very high quality on breathable and comfortable, it exactly suitable for Indians to wearing in India with the extremely hot weather. (Openweather, 2013)
Besides, Licensing is the suitable market entry method for TOMS to enter in India. TOMS can licensing its product to Red Tape and M&B, the two largest retail stores in India. It can build up its own brand image in India without any operation costs.
2.Marketing environment (PEST)
Political
According to the open trading system of World Trade Organization (WTO), India government amends its Export and Import policy (EXIM policy) to be more flexible in recent years. (BUSINESS.GOV.IN, 2013) It facilitates the sustained growth in imports of India to achieve larger percentage share in the global merchandise trade. Moreover, India’s customs tariff rates have been declining since 1991. The “peak” rate has come down from 150% in 1991 and 1992 to 40% in 1997 and 1998. The downward momentum was reversed the next year with the imposition of a surcharge. This momentum has resumed with the reduction of the “peak” rate to 35% in 2001 and 2002 and 30% in 2002 to 2003. (Custom-duty, 2012) As the India’s import tariff is decreased, it attracts many investors to enter in India retail market. Economic
Retail is one of the important pillars of the
As TOMS is a well known brand for selling shoes from USA, they have potential to enter in the India market through the market evaluation of the twelve Cs.
Firstly, India is a country that which has a high population of 1.27 billion and there is a significant growing GDP in this few years. Nowadays, as the living standards of Indians are increasing, their behaviors are willing to spend money on consuming. Also, Indians have fashion sense and started to follow the trend. TOMS can get the opportunity to enter in India market to raise it sales.
In addition, TOMS shoes are made by pig suede . The lightweight canvas top and leather insole is very high quality on breathable and comfortable, it exactly suitable for Indians to wearing in India with the extremely hot weather. (Openweather, 2013)
Besides, Licensing is the suitable market entry method for TOMS to enter in India. TOMS can licensing its product to Red Tape and M&B, the two largest retail stores in India. It can build up its own brand image in India without any operation costs.
2.Marketing environment (PEST)
Political
According to the open trading system of World Trade Organization (WTO), India government amends its Export and Import policy (EXIM policy) to be more flexible in recent years. (BUSINESS.GOV.IN, 2013) It facilitates the sustained growth in imports of India to achieve larger percentage share in the global merchandise trade. Moreover, India’s customs tariff rates have been declining since 1991. The “peak” rate has come down from 150% in 1991 and 1992 to 40% in 1997 and 1998. The downward momentum was reversed the next year with the imposition of a surcharge. This momentum has resumed with the reduction of the “peak” rate to 35% in 2001 and 2002 and 30% in 2002 to 2003. (Custom-duty, 2012) As the India’s import tariff is decreased, it attracts many investors to enter in India retail market. Economic
Retail is one of the important pillars of the
References: Asia Times (2005) Why Indians love America so much. Available at http://www.atimes.com/atimes/South_Asia/GG07Df02.html [Accessed 10th April 2013] BUSINESS.GOV.IN (2013) EXIM Policy. Available at http://business.gov.in/growing_business/exim_policys.php [Accessed 2nd April 2013] Custom-duty (2012) Import Duty in India Diiso (2012) The reasons why TOMS classics are so popular. Available at http://xiaoyaoo000.diiso.com/2012/11/19/the-reasons-why-toms-classics-are-so-popular/ [Accessed 8th April 2013] eHow (2013) Definition of Licensing & Franchising [Accessed 26th March 2013] Fabric (2013) Organic cotton fabrics Maps of India (2010) Top shoes brand in India. Available at http://business.mapsofindia.com/top-brands-india/top-shoe-brands-in-india.html [Accessed 6th April 2013] Mystore411 (2012) TOMS shoes location. Available at http://www.mystore411.com/store/listing/955/Hong%20Kong%20SAR%20China/Toms-Shoes-store-locations [Accessed 26th March 2013] Openweather (2013) Hot weather in India Ryan. P, (2009) Toms Shoes Founder Blake Mycoskie. Available at http://ryanplesko.com/2009/02/bil-2009-toms-shoes-founder-blakemycoskie/ [Accessed 24th March 2013] S Small Business (2013) What Are the Advantages of Having Distributors?. Available at http://smallbusiness.chron.com/advantages-having-distributors-13553.html [Accessed 27th March 2013] TOMS (2012) TOMS customer service. Available at http://www.toms.com/faq/ [Accessed 8th April 2013] TOMS (2012) TOMS return service. Available at http://www.toms.com/faq#returns [Accessed 10th April 2013]