Fashion Industry and Globalization

This assignment delves into the profound influence of globalization on the fashion industry. It examines how globalized production processes, international marketing strategies, and evolving consumer preferences shaped by interconnectedness impact various facets of the fashion sector. The analysis covers topics such as manufacturing shifts, brand expansion, cultural influences on fashion trends, and ethical considerations arising from globalized operations.

INTERNATIONAL MARKETING MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................1
GLOBALIZATION...................................................................................................................1
ENVIRONMENTAL ANALYSIS............................................................................................2
COMPETITIVE ADVANTAGE...............................................................................................4
CONCLUSION/INSIGHTS.......................................................................................................5
REFERENCES...........................................................................................................................7

INTRODUCTION
Today, undertaking business is increasingly global due to technological advancements.
Increasingly fast technological lifecycles also enhances the competition among nations. Trade
within nations is beneficial, as they all differ in their relative strengths of economy, i.e. some
have lower costs and some have more advanced technology. Globalization, in last ten years
has become an important part of fashion sector. Global retailers have taken note of
consumption patterns and culture of worldwide buyers. PRADA is the most famous fashion
brand throughout the globe. The organization began in 1913 and continues to stay strong as
well as has potential to steadily grow into 21st century under its innovative and creative leader
Miuccia PRADA. As the apparel industry is globalizing same like world. People throughout
the globe following same fashions. There are some differences on the basis of personal
choices but in general the trend around the globe runs in a swift motion. However, the
company should acknowledge and appreciate local norms and religious trends of different
countries while expanding their business operations on international level. In this regards, the
organization need to have adequate international marketing management to consider different
requirements of global market and design its offerings accordingly. Here, the paper is
briefing about impacts of globalization and environmental factors on PRADA’s international
expansion and characteristics with which the company attains competitive advantage.
GLOBALIZATION
Globalization is a procedure that based on international tactics, goals to expand
operations of business on global level and was precipitated by global communications
facilitation due to political, socio economic, environmental developments and technological
advancements. The globalization goals is to offer companies an excellent competitive
position along with less operating costs for gaining great numbers of customers, services plus
products. At PRADA, global marketing has made known to potential clients the benefits and
existence of its offerings in the market by giving an identity to product. At the same point of
time, the organization sometimes fail to keep in mind every customer needs that are several
and unlimited (Bruce, Moore and Birtwistle, 2004). The following are some advantages and
disadvantages that PRADA faces while moving to international markets:
Advantages
Less marketing costs – Global marketing lowered the marketing cost for company because
there presents a uniformity in products selling.
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Worldwide scope – The global marketing scope is so wide that it turn out to be as unique
experience for the company. The overall credit to technology of modern day, the product
reach and scope of PRADA become extremely large (Cateora, 2008).
Brand image – At present customers are more brand conscious. Global marketing facilitates
to have constant image in all region where commodity exists. It aids the customers who are
very loyal to PRADA in relation to certain apparels.
Efficient and quick use of ideas – In today’s fast-pace world, only international companies
that are capable of designing strategy and using marketing idea to adopt on worldwide scale
can become successful (Cavusgil and et.al., 2014).
Disadvantages
Customer needs inconsistency – While marketing globally, the company has to adopt with
customers’ needs located in distinct nations. This is because the American customers’ needs
would be distinct from clients of South Africa. The company when failure to address such
needs than get bad reputation in the market.
Inconsistency of customer response – Responses of customers are distinct and vary from one
nation to another as well as one buyer to other. Customers of PRADA is one region may react
differently in comparison to clients of other nation (Frankel and Professor, 2008).
Country specific – Japanese may like apparels with traditional touch while Americans may
prefer retro modern looks. In such case, international strategy for identical commodity is
difficult to develop.
The land laws – The host country laws may conflict with policies of organization.
Differences in infrastructure – The facilities of infrastructure is different from one nation to
another. It can hamper the process in one region and accelerate in other. International strategy
of PRADA cannot be constant in this situation (Hines and Bruce, 2007).
ENVIRONMENTAL ANALYSIS
When an organization aims to make its operations international expansion, it is
important for that they carefully study the nation’s environmental factors. It is because
external environment condition of nation where the company operates its business activities
create a very big influence on performance of business and can be the main reason for its
failure and success in undertaking business. The external environment aspects include
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cultural and social climate, technological advancements, economic competition, and
demographics, legal and political climate. Such factors should be given ample and enough
attention specifically in determining practices and policies of company to at least guarantee
success, particularly during global expansion where there is no success assurance in the
worldwide market that is completely different and very hard to handle in comparison to local
scene. Hence, there are various environmental factors required to be considered by PRADA
while expanding internationally (Hoskins, 2014). These are:
Cultural and social environment – One important environment aspect for company is cultural
plus social environment of nations in which expansion is projected to be done. Such factors
comprise but not limited to influences of values, beliefs, market behaviours and social
institutions that should be analysed carefully specifically while strategies formulation (Jeanty,
2016).
Demographic environment – The next thing that must be considered by PRADA is
demographics of potential market, which includes market growth and size, common populace
in relation to target market, education, sex, age, marital stature, gender and several other
demographics that will be relevant in its strategic formulation and business performance.
Technology – This environmental factor must be taken into consideration by company, as it
determine the manner in which production, innovation and distribution of commodities in
global market would be advanced. Also, it can comprise new practices of research and
development as well as advancement that will inevitably improve business activities is
specific international market (Makos, 2016).
Competitive and economic environment – The competitive and economic environment
should also be given emphasis, as they influence the international business operations in great
manner. Some aspects that must be considered by PRADA include employment, inflation,
growth in economy or market, economic condition of nation and new competitors.
Legal and political environment – Another important factors that influence international
expansion of company is legal and political environment. It comprises regulations, laws plus
policies that may impact on marketing practices, pricing strategies and policies of
distribution. While making expansion at global level, more than considering universal laws,
the marketer at PRADA should study their chosen nation local laws, as it will have more
significant influence on its business performance (Peñaloza, Toulouse and Visconti, 2013).
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The all above environmental factors can be supportive to organization in many ways. It
can open many opportunities for the company, like new markets development, facility of long
term credit by suppliers, fall in interest rates and positive policies of government. On the
other side, there are some danger connected with such factors of environment. It comprises
increase in competition, fall in demand, technology being outdates and out of fashion
apparels (Stalker, 2000).
COMPETITIVE ADVANTAGE
As a global empire, PRADA has able to attain competitive edge through its design
quality. Miuccia PRADA, the designer and high profile accumulator of contemporary art has
made a good contribution to the company as well as had played a significant role in leading
the business at right direction to maintain excellent quality standard. PRADA through its
unique designs has an enormous influence on fashion and the apparels designed by Miuccia
have become influential on global level. Facing with luxury sector fierce competition, the
company be notable for its competitive power of international marketing. The store of
PRADA follows clever strategy of marketing in which a big role is played by technology
(White, 2012). Visiting to epicentre store of PRADA, like Los Angeles, New York and San
Francisco in America plus Tokyo in Japan, the buyers will receive unusual experiences. The
dressing places can switch from transparent to radiant when it is occupied and a plasma
screen – magic mirrors invisibly built into the surface of large mirror that enables buyers to
see them from all directions. The worldwide stores of PRADA have landmark buildings plus
reflect the elegant and classical characteristics of company (Atwal and Williams, 2009).
The mains strength of organization lies in the uncompromising quality, design plus
heritage that represent best tradition and culture of Italy with sophisticated elegance plus
unique style. PRADA has huge range of commodities, such as fragrances, leather goods,
footwear, clothing and accessories. Moreover, the organization has created constant
enlargement of capability from launching nylon of special type, new designs innovating and
innovative concepts of store (Fionda and Moore, 2009). The quality standards and innovative
approach of PRADA apply to production and distribution. Also, the company has developed
a powerful network of DOS (directly operated stores) that facilitate a direct relation with
franchise stores and clients, which provides them with opportunity to lessen financial risks
but at the same time carefully control the distribution. The organization be likely to go
beyond conventional solutions for satisfying and anticipating customers’ needs or tastes to
create strong relation with them (Kapferer and Bastien, 2009).
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Moreover, PRADA represented in selected luxury department stores and high-end multi
brand stores that guarantee range of point of sale in prestigious locations in main marketing
plus direct comparison with competition. With regards to production, the products of PRADA
are made in facilities of 11 state of art in Italy and by external sub-contractors network, which
are chosen for their skills of craftsmanship. It enables close control of whole manufacturing
process as well as guarantee high flexibility along with utmost quality (Knight and Young
Kim, 2007). The international marketing strategy of PRADA is also strong, including
innovative plus strong merchandise, fashion show and Epicentres project. Furthermore, the
company has its own E-store and film production has supported it in achieving success at
global level. They put great importance on sponsorship and PR activities as well as strongly
avoid mass marketing. In different periods, the organization has co-operated with distinct
companies plus entered into intra-industrial and inter-industrial alliances. Also, it has well-
known for its collaborations with designers, photographers, and filmmakers and architects
globally (Lloyd and Luk, 2010).
CONCLUSION/INSIGHTS
The above analysis depicts that environmental factors with great influence on business
strategic moves are economic, political and legal environment. It is because they are volatile,
sensitive and unpredictable to worldwide condition. The political aspects is very critical and
have influence on marketing strategy of company, as all elements of marketing mix is subject
to restrictions and laws depend on different nations individual policies. The present of state
and federal laws along with regulatory agencies has a great influence on strategies developed
by PRADA. In this regards, the company is required to consider local regulations and policies
of counties and understand government laws connected with undertaking business in that
specific region (Luo and Tung, 2007). Moreover, the economic condition also has great
influence on strategies formulated by company. Although, strategies developed by company
to trigger growth in selected market and include set of programs plus measures that shall be
executed to market and promote the business. But economic situation is unpredictable as well
as decrease in country’s gross domestic product and change in local’s purchasing power are
utmost consideration for the organization. Due to such economic turmoil, PRADA is forced
to reformulate, redirect and change their marketing strategies to combat modifying economic
environment (Mathews, 2006).
Moreover, the analysis reveals that goal of PRADA should be to become most strong
Italian brand by the year 2017 and to attain high ranking in 100 most famous brands. It would
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give strength to brand equity of company, as disability of fashion brand should be
accompanied by equally strong recognition and appeal. Also, PRADA is required to revitalize
the brand as well as expand its international grip when deepening and preserving its core
values and genuine identity (Phau and Teah, 2009). To increase brand value and re-enforce
customer relations by concentrating on PRADA’s core values, roots and customers interests
(culture, travel, air and fashion) the company should create new value proposition by offering
customer the “Exclusive Prada lifestyle and travel experience” that includes giving
company’s new potential and existing customers with fashion, cultural and luxury travel
related privileges and services all around the globe (Zahra, 2003).
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REFERENCES
Online and Books
Bruce, M., Moore, C. and Birtwistle, G., 2004. International retail marketing: a case study
approach. Routledge.
Cateora, P.R., 2008. International Marketing 13E (Sie). Tata McGraw-Hill Education.
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February 2016].
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Hoskins, T., 2014. Luxury brands: higher standards or just a higher mark-up. [Online].
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<http://www.theguardian.com/sustainable-business/2014/dec/10/luxury-brands-behind-
gloss-same-dirt-ethics-production>. [Accessed on 23 February 2016].
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Stalker, P., 2000. Workers without frontiers: the impact of globalization on international
migration. International Labour Organization.
White, K., 2012. Globalization and its impact on the Fashion Industry. [Online]. Available
through: <https://whiteunt01.wordpress.com/2012/02/02/globalization-and-its-impact-
on-the-fashion-industry/>. [Accessed on 24 February 2016].
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Fionda, A.M. and Moore, C.M., 2009. The anatomy of the luxury fashion brand. Journal of
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marketing upside down. The Journal of Brand Management, 16(5-6), pp.311-322.
Knight, D.K. and Young Kim, E., 2007. Japanese consumers' need for uniqueness: Effects on
brand perceptions and purchase intention. Journal of Fashion Marketing and
Management: An International Journal, 11(2), pp.270-280.
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Lloyd, A.E. and Luk, S.T., 2010. The Devil Wears Prada or Zara: A Revelation into
Customer Perceived Value of Luxury and Mass Fashion Brands*. Journal of Global
Fashion Marketing, 1(3), pp.129-141.
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springboard perspective. Journal of international business studies, 38(4), pp.481-498.
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Phau, I. and Teah, M., 2009. Devil wears (counterfeit) Prada: a study of antecedents and
outcomes of attitudes towards counterfeits of luxury brands. Journal of Consumer
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Zahra, S.A., 2003. International expansion of US manufacturing family businesses: The
effect of ownership and involvement. Journal of business venturing, 18(4), pp.495-512.
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