Kathmandu Enter Into Chinese Market

Topics: People's Republic of China, Han Chinese, China Pages: 9 (2962 words) Published: August 27, 2013
Expanding Kathmandu from Australia to China
A comprehensive study

Nan Peng

TABLE OF CONTENTS

1.INTRODUCTION1
2. BACKGROUND ABOUT KATHMANDU COMPANY1
3. OPPORTUNITIES OF CHINESE OUTDOOR MARKET1
3.1 Outdoor sport in China1
3.2 Situation of Chinese outdoor market2
3.3 Competitors in Chinese outdoor market2
3.4 Chinese economic situation3
4. STRENGTHS AND WEAKNESSES OF KATHMANDU IN CHINA3
5. HOW TO ENTER INTO CHINESE OUTDOOR MARKET4
5.1 Selection of the entry modes4
5.2 Selection of the Chinese partner5
6. CONCLUSION6
7. REFERENCES8

1. INTRODUCTION
With the rapid development of economy and society, Chinese market has attracted a great number of attentions from foreign companies. Therefore, how to enter into Chinese market and how to be a successful company in China has become a realistic issue faced by business managers, entrepreneurs and consultants. This essay will focus on introducing one Australian local brand “Kathmandu” which is an outdoor sport equipment company into Chinese market. Thus, a detailed analysis of the current situation of the Chinese market and this foreign company is indispensable. Firstly, this paper will analyze the current situation of the Chinese outdoor sport market and the Chinese economy, and then identify the strengths and weakness of the Kathmandu Company when entering into Chinese market. Subsequently, selection of entry modes and partner and recommendations will be provided to deal with or to reduce the risks when enter into the Chinese outdoor sport market. 2. BACKGROUND ABOUT KATHMANDU COMPANY

Kathmandu Holdings Limited was established by John Pawson and Jan Cameron in 1987. The company started off as a small outdoor apparel shop in New Zealand and in 25 years has grown to a multi-national brand primarily producing outdoor sport clothing and equipment which combine with the advanced technology, high quality and high comfort level. Such as, tents and shelters, packs and luggage, sleeping gear, outdoor clothing, footwear and other accessories of outdoor. In 2006, one Australasian private equity company fully acquired Kathmandu for NZ$275 million. Currently Kathmandu does the business in Australia, New Zealand and England. The company slogan aims to capture young and adventurous individuals and the marketing strategy has been built around this notion (Kathmandu, 2012). 3. OPPORTUNITIES OF CHINESE OUTDOOR MARKET

3.1 Outdoor sport in China
Along with the development of economy and living stander, outdoor sport becomes increasingly popular in China. In China, outdoor sport was started at Beijing, Shenzhen and Shanghai in 1999(Chinese News, 2011). Currently, combing with pressure reducing, such sport increase quite fast and become one kind of society fashion. There are four outdoor sport activities which include High Mountain, exploration, rock climbing and bicycling in China (Chinese outdoor Sport Association, 2012). The outdoor sport is an professional sport activity not only require a good physical quality but also good clothing and equipment to resist the bad environment. Therefore, fast increase of the outdoor sport contributes to sharp augment on demand of outdoor sport clothing and equipment. As reporting by China Outdoor Sport Association, the number of annual sales from existing manufactories of outdoor equipment was 800 million RMB in 2010, while the number of that in 2000 was 60 million RMB, and the number of Chinese participation in the outdoor sport has reached one hundred million (China Outdoor Sport Association, 2012). Hence, along with the unbelievable development of the outdoor sport and the higher demand of outdoor products, obviously, the potential of the Chinese outdoor sport market is quite considerable.

3.2 Situation of Chinese outdoor market
Basic the market research, currently, there are approximately 200 Chinese local outdoor sport brands and around 1100 outdoor clothing and equipment stores. Although the outdoor...

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