Draft report No Sweat
Looking for new markets
In the last management team meeting at No Sweat, one of the employees had to come up with the solution for No Sweat’s other issue: looking for new markets. But he failed to come up with any results due to lack of time. However, he did make a pre-selection of interesting markets. There should be made a choice between Denmark, Germany and Belgium. Because the job is far from completed No Sweat has hired yet again students to finish the work. No Sweat was very pleased with the work that has been finished on the new supplier. In this new case, we will look for a new exporting market for No Sweat and a new distribution channel in this market.
Table of contents
Chapter 6: List of sources
No Sweat wants to sell clothes on a new market. Sasja Schaap has gathered information and made a pre-selection of three interesting markets, namely Belgium, Germany and Denmark. These three countries offer the biggest potential to start exporting to. This is based on facts and figures about the market, trends and other factors. Each market has its pros and cons. However, the most interesting market is not clear yet. To make the decision, more information and analyses are needed. It is the job of the students to gather more information and analyze it and then choose the most interesting market for No Sweat. When a country is chosen, the next step is to choose a distribution channel. Also here Sasja Schaap has gathered information about the different distribution channels. Again, the students need to choose the most interesting channel.
We made a list of criteria that need to be looked at when deciding which market No Sweat has to choose and which distribution channel. With each criterion we can give the country a certain weight factor so we can see which one will have the highest score in the end. These weight factors are multiplied with the scores we gave each country. We put these data in an Excel model. We have compared the results of each country with each other. Based on these results, we could decide which market offers the biggest potential to start exporting to and which distribution channel would be the best option for No Sweat. We also compared the outcome of the criteria. Last we can give advice about the best option.
A list of criteria was made to choose the best country. We only chose the most important criteria to work with, the less important criteria are left out.
1. Demand for product/Potential sales
With this criterion we measure the demand for product and the potential sales for No Sweat. If a country has a high demand for No Sweat’s clothes, they score high in this criterion.
The share of clothing in consumer spending remains high in Belgium despite the economic downturn. Unsurprisingly, the sales of the sector are driven by women’s clothing. According to the trade press, 48% of the clothing sold the same year was women’s clothing. This represents a steady increase of around 5% per year since 2006. Although men’s outerwear has the same growth rate during this period, sales of men’s clothing represents 30% of the market while children’s clothing only account for 22%.
The overall share of clothing & textile expenses in private German household expenditures has constantly decreased over the last few year, now representing approximately 4 – 5 percent of the total budget.
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