This research evaluates the factors that affect the success of Indo-western brands expanding into the West. It discusses the challenges faced by Indian brands while trying to expand their business to Western countries.
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MBA INTERNATIONAL EXPANSION OF INDO- WESTERN BRANDS RISING FROM INDIA
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MBA Table of Contents Table of Contents...................................................................................................................2 Chapter 1 : Introduction..........................................................................................................3 Context to the study............................................................................................................5 Philosophical position.........................................................................................................6 Aim.....................................................................................................................................7 Objectives...........................................................................................................................7 Chapter 2 : Literature Review.................................................................................................8 Overview of the study.........................................................................................................8 Chapter 3 : Research Methodology......................................................................................11 Introduction.......................................................................................................................11 Research Philosophy (Philosophical Position)..................................................................12 Research design...............................................................................................................13 Research strategy.............................................................................................................15 Primary approach.............................................................................................................16 Sampling strategy.............................................................................................................17 Data analysis....................................................................................................................17 Appendix:.............................................................................................................................20 Chapter 4 : Key findings.......................................................................................................23 Key findings from the questionnaire from the FGD...........................................................23 Comparison of findings with literature review....................................................................26 Chapter 5 : Summary and conclusion...................................................................................28
MBA Chapter 1 : Introduction This research evaluates the factors that affect the success of Indo-western brands expanding into the West.According to a report by Keller et al. (2014), the global apparel industry is growing rapidly while at the same time evolving due to a number of factors including changingdemographics,effectofsocialmedia,globalwealthdistribution,customer expectations, and technological advancements. It goes on to state that for brands to succeed, they need to be agile and be able to rapidly adapt the business model to make the most of evolving markets while letting go of traditional practices. East Asian brands have started toexpand toforeign markets with the aimof providing a varietyof both traditional and fusion fashion to their international consumers. However, in spite of anoticeablegrowth, Indian brandshave faced issues such as cultural problems, lack of pricing strategies,etc. This research has tried to show the issues which are faced by Indian designers (with the mainfocuson Indo-Western brands)while trying to expand theirbusiness toWestern countries. Indo-western brands have been trying to expand into the west for quite some time now, however their efforts have not borne much meaningful fruits (Aaker & McLoughlin, 2010). There are various reasons behind this and there are many challenges that the Indo-western brands actually face in their aim to make an entry in western markets. This particular research is going to discuss the topic of why Indo-western brands have not been in a position to successfully expand tothe west, and in doing so certain aspects about Indo-western brands and designs and some market expansion strategies will be looked at. Due to various factors such as changes in technology among others, we’ve seen that the Indo-western brands and designs have been evolving. Fashion has taken a completely different turn and things are not the way they used to be a decade ago. Indo-western brands have done well in various areas
MBA across the globe such as in some developing countries like Kenya, Tanzania among others (Ackerman & Fisher, 2013).There has been a challenge, however, that has been noted, that in the western market, Indo-western brands have not been able to do so well. It is also important to note that this report will focus solely on Indian brands and some of the issues that they have faced. Some of the common challenges noticed were; poor marketing strategies, cultural differences among others. These factors will be discussed later in this write-up. Figure 1: Fashion trends (Source:zaubacorp.com, 2018)
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MBA Context to the study Indian fashion brands have been making a lot of effort to succeed in the western countries. Many areas of the Indian businesses have done welllike its technological field,medicine research and its production and supply andonacademic fields. Evenin the fashion industry Indian designers have worked at being creative and modern in their aesthetics, styles and designs in order to expand their brands in the western countries. However, with this field being highly contemporary and competitive, they have not been very successful in focusing on the demands of their western customers when enlarging their market in those countries (Liu et al. 2016). However, in a globalised economy, there is a lot of opportunities for brands to expand internationally, and Asian and indo-western brands should look to do this if they are to attain the same level of success that western brands have been able to get in the eastern and emerging markets. Indo-western brands should learn to adapt and keep up with the constantly changing fashion industry, be it fast fashion, ecommerce, and e-tailing in the digital race for the upcoming trends. There are a lot of opportunities in the near future. Studies shows that the fashion Industry and its buying power and audience, iand ts target markets are fast shifting from the West to the upcoming Asian and East-Asian markets (Keller et all, 2014). The emerging middle class from developing nations are going through a huge socioeconomic change, and countries like India, China, Indonesia etc. have started to emerge with higher spending power in recent years(Eizenberg and Salvo, 2012). There is also a growing awareness and curiosity among western consumers in Asian cultures and sensibilities, so business from these markets should aim to tap into this new and emerging market segment within the west.
MBA Philosophical position There has always been an argument about whether or not it is true that Indo-western brands have been having a challenge in expanding to the western market. This report aims to ascertain if it is indeed true that there has been a really big challenge in doing so. Various reasons and factors have been attributed to this and this report aims towards establishing some of these factors and how they have contributed the state mentioned therein (Gershon, 2013). The report will aim to outline the various ontological, axiological, and epistemological aspects of the research and elaborate on all of these concerns, and provide justifications for the different research approaches and choices that have been made in the report. Management studies, being a multi-disciplinary field, can be looked at from various different aspects and viewpoints, and the research will approach this in a specific way which is considered to be the most appropriate for achieving the research aims. A reputable research philosophy has the following characteristics as explained by Saunders (2015) - “assumptions about human knowledge (epistemological assumptions), about the realities you encounter in yourresearch (ontological assumptions) and theextent and ways yourownvaluesinfluenceyourresearchprocess(axiologicalassumptions).These assumptions inevitably shape how you understand your research questions, the methods you use and how you interpret your findings”.
MBA Aim To identify and evaluate the factors on the challenges faced by Indian brands while expanding in Western countries. The research willalso highlight the lack of strategic business management by Indian brands in order to expand to the West. Objectives 1)To critically evaluate the existing literature on overseas expansion by the East Asian and Indo-Western brands with the aim of shedding light on the different factors responsible for the growth of these brands in the western fashion market. 2)To apply the qualitative approach method to assess the perspective of the broader target market with the help of focus groups. This is to mainly analyse issues preventing Indian (Indo-Western) brands from expanding to Western countries. 3)TodeveloprecommendationsforIndo-Westernbrandsthataimtoexpand internationally by informing them on how to make their brands sell in the west.
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MBA Chapter 2 : Literature Review Overview of the study The fashion industry is known to be one which is always in flux with the customer’s preferences which is ever changing, and old trends being replaced by new and emerging ones. Within this environment of constant change, designers, and brands must always keep themselves up to date on what consumers want, and how their tastes will change in the near future. This changing landscape creates many opportunities for entrepreneurs to come in and fill in the gaps in the market which are created by being innovative and satisfying demand. With this constant competition in mind and the never ending desire to thrive in such a huge global market, Indo-western brands and business have been attempting their best strategies to tap into the international fashion market. The literature review will aim to evaluate the current state of the fashion industry and discuss the trends and factors which have helped as well as hindered Indian fashion brands to flourish in foreign countries. Moreover, it has analysed major challenges such as cultural diversity, economic status, language barriers etc. which have all been challenges for expanding Indian brands into the Western countries. According to Cayla and Eckhardt (2007), in spite of many challenges, the emergence of Asia as a growing force in the international stage, and it’s recognition in the west, presents a big opportunity for modern Asian brands to find their feet and make a mark in western markets. In order to take advantage of these opportunities, Das (2007) advocates that Indian brands should leverage their existing strengths, and formulate strategies for international expansion by looking at the route which has been followed by brands which have successfully made this transition. India, in the current international market is a known brand ora tagvery much in fashion.
MBA Like everything else in the current worldstageIndian culture has also becomea saleable commodity (Sarulatha, and Sasirekha, 2017). However, in terms of the global market , when it comes to becoming a staple for the average fashion junkie, India has still not produced brands or products ofmuch significance.Being a global manufacturing hub, India has always been production oriented. They are still a developing nation and do not have the sufficient resources to create a sustainable fashion industry. Because of this, its influence in the global fashion industry is also limited. Their factories are mostly used for producing outsourced goods for international brands like Levi’s and Nike. The products of these brands are too expensive for the Indian middle and lower classes, and most of their own markets are flooded with Chinese mass produced goods. The conceptual framework below will explain and help the reader understand the reasons for, and importance of this research, and how it intends to find gaps and opportunities, and bridge out the differences and create platforms, literature support and common grounds for Indo- Western brands’ expansion internationally to the right international markets. According to Hellman (2017), Indians consider both Indian as well as western dresses/outfits on different occasions. Due to this familiarity with both types of fashion and apparel, fusion wear has modernized the Indian fashion industry to a high extent. It is observed that the top- notch brands focus on different elements in their collection. The country still has a long way to go if we consider the market potential for fusion wear in India in the near future. However, in contrast to this, BOF (2018) stated that the ethnic Indian wear genre is used in current trends. It plans to lead the way for women’s wear in India. Indo-western brands have been tracking the dynamics of ethnic fashion in malls, as well as in standalone stores recently. Among the current generation, it is seen that fashion is starting to become a major concern for Indian individuals. Further, fashion is determined by the western dresses via social media
MBA influences and cross-cultural influences. It has also been analysed that India has begun to follow and be influenced by Indo-western culture wherein they consider traditional as well as western ensembles in their culture. Kazi (2018) states that the expansion of Indo-western wear is proving to be a boon for ethnic fashion in India since,customers are willing to consume and experiment products ,and that it could lead to great demand for Indo-Western brands. This is a key reason that ethnic brands are generating a wide range of alternatives that a customer can explore for attending different functions. 2015).
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MBA Chapter 3 : Research Methodology Introduction The research methodology helps the study to collect data and materials which help in the thorough analysis resulting in a successful objective and conclusion. It has been defined as “something that people undertake in order to find things out in a systematic way, thereby increasing their knowledge” (Saunders et al, 2016). The aim is to provide insight into the research process, to help clarify the methodology and choose the method and design which will be most suitable to get relevant information for the topic. This research is based on the qualitative methodology as it is more descriptive, and fits the requirement of the research topic. Qualitative method aims at understanding and providing an explanation of the meaning of the social aspects with limited disruption of the natural setting(Gibbs, 2008;Dowling & Suchet, 2016). By using the qualitative method, the research will help support and explain the factors thatareresponsibleforthegrowthofIndo-westernbrands,anddeterminethebest recommendations for the growth of such brands (Saunders et al, 2016). From the application of the research methodology, we will be able to address a systematic way for the data collection. This in turn will help the research to make a reliable decision within the context of the current issue (Mackey and Gass, 2015). The study being a qualitative method, its descriptive and detailed study will help future students, academics and others understand this topic in discussion better and in depth. Sampling will be purposive as non-probability sample facilitates the selection of the research candidates on behalf of certain factors such as age, gender, experience, region, and education.
MBA A thorough data analysis will be performed with the help of Focus Group Discussion(FGD), and the focus group primary approach is chosen as this helps get accurate, detailed and valid results at the given amount of time. Finally, the validity and reliability of the data will be carried out, andthe ethical issues around the study, and the limitations of the research will also be outlined in the end of this chapter. Research Philosophy (Philosophical Position) According to Houghton, Hunter & Meskell (2012) the research philosophy aims at defining the basis, description and progress of knowledge under the topic of the study. Research philosophy aids in assembling the hypothesis and beliefs of the topic to attain a precise strategy of fact gathering. Houghton, Hunter & Meskell (2012) have identified three different types of philosophies: positivism, interpretivism and realism research philosophies. Based on thecurrentresearchtopicthisstudyhaschosentousetheinterpretivismmethod. Interpretivism philosophy focuses on collecting primary and socially composed data that is significant in assembling accurate, reliable and valid information required for the study (Corbally, 2014). In this research, the interpretivism process is used to interpret the elements of the study since access to reality is usually socially constructed through various ways such as language, shared meanings, and consciousness. It supports interactive, cooperative participation and runs the study on valid grounds to help understand and explain the topic, and to understand the aim of the study in depth. The information that the research acquires from the participants and study are valid, meaningful and helpful to support the topic. This primary method helps to support the methodology further qualitatively. As stated by Nicotera (2017), interpretivism allows the researcher to interpret the factors of study as per his or her observation and interpretation skills supported by the knowledge. This
MBA research philosophy generally focuses more on the meaning of the research subject or phenomenon and will allow this study to apply processes to reflect on various aspects of the research issue. The research, under this philosophy, is able to appreciate the differences betweenthepeople.Thus,astheresearchstudyaimstounderstandthenatureand characteristics of the Indo-Western fashion market, it is important for the researcher to understandandinterprettheperspectives,preferences,anddifferencesbetweenthe consumers that determine the market growth. Research design Research design refers to the blueprint for the study that provides guidance to the data collection and analysis process, and thus deals with majorly fours issues; the research questions, the relevance, the data collection, and analysis. According to Ngulube (2015, p.128) research design is categorized into three major classes: descriptive, casual and exploratory research. In a research, two to three kinds of tools are considered as mentioned above,namelydescriptive,explanatory,andexploratorymethod(Flick,2015).These methods play a diverse role in the accomplishment of any desired goal in the least amount of time and cost. For conducting this study, the research will use descriptive research design method as it facilitates the comprehension of the relationship between two or more variables. As highlighted by Colorafi and Evans (2016), descriptive research design includes scientific process of observing and describing the attitude, behaviour and aptitude of the research subject without influencing it in any manner. There are three types of descriptive research design, namely, observational, case study and survey. Nassaji (2015) pointed out that as this research design allows the researcher to observe the research phenomenon in its unaltered natural environment, the outcome of the analysis would be more accurate. It is less time consuming than quantitative experiments, and highly useful for non-quantifiable research topic.
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MBA By doing this, the research will determine the relation between Indo-western brands and international Western expansion. It can be effective for making a reliable conclusion in the context of thefactors on the challenges faced by Indian brands while expanding to Western countries. The research design once formulated, also uses certain types of methods that are considered, namely inductive approach and deductive approach (Lewis, 2015). For conducting this research which aims to generate meaning, validity and support from the descriptive data collected, the inductive approach will be practiced. The inductive approach is used for collecting the conceptual information towards the specified research matter. It is useful in obtaining information on the factors and challenges faced by Indian brands while expanding in Western countries. This method can be most suitable as compared to the deductive method because the research is subjective in nature. Under inductive research approach, the questions are open-ended and process oriented and it allows the researcher to derive a generalized solution from a specific set of events (Sekaran and Bougie 2016). This approach is useful for exploring the research topic in an untested direction and deriving new findings. A research design is a strategy or rather a technique that is often used to integrate different components of a certain study so as to be in a position to address the research question in a satisfactory manner. As indicated above, the aim of this particular study is to categorically identify as well as evaluate some of the crucial factors that cause challenges to Indian brands as they try to expand in western countries. First and foremost, the literature review shows that this research specifically seeks to review some of the important aspects concerning the issue under study that has already been conducted by other researchers and scholars (Rajaram, 2014). In doing so, this component has highlighted a number of aspects such as statistics that are available regarding the issue of Indian brands expanding into the west among others. Secondly there is the research methodology; the component of this study specifically
MBA focusing on the means and methods of data collection. This study being qualitative in nature, onlythequalitativemethodsofdatacollectionisexplored.Anumberofqualitative techniques of data collection are used such as case studies, use of questionnaires, interviews etc. (Mann & Byun, 2011). It is the main plan and purpose to answering the research questions and meeting the aims and objectives for a discrete and concrete research design (Jones, 2011). This study focuses to determine why Indian brands are not able to establish a presence the western market. The nature of both the European market as well as that of Indian brands have been explained earlier. From the nature of these two variables, a connection is identified and the reasons for the failure of Indian brands to expand into the Western market has been highlighted. The use of questionnaires and interview is however, the main source of information that will be exploited in this particular study. Research strategy This research study has considered many types of strategies to accomplish its aims. These strategies are the survey through questionnaire method, interview method, observation, content analysis, and case study. For systematically accomplishing the aim and objectives of this particular research, the study will use survey through questionnaire method as this allows to collect opinion and views of the research candidates towards the research issue. A survey can be effective for getting reliable and valid information in the context of the current issue (Brinkmann, 2014).Through this method, we will be able to evaluate content for the accomplishment of the research. A research strategy is basically a well arranged plan that is often step-wise that enables one to give a concrete direction of the thoughts to be conveyed by carefully analysing and obtained results from the various methods of data collection such as surveying, use of questionnaires, interviewing, and case studies, among others. For this particular research, questionnaires were prepared, and as mentioned earlier they targeted both
MBA the western population as well as the Indian population. Various questions were designed that enabled one to give very important and circumstantial information regarding the issue under consideration (Mills, Phadke, Wiser, 2011 p.29). Primary approach This primary approach of the research is to take a qualitative approach. It seeks to determine the reasons as to why and some of the factors that have contributed to Indian brands not expanding to western market. In order to understand this, there are various key primary approaches that need to be considered and understood (Chowdhary, 2018).For instance, one should have a clear understanding of the nature of western markets as well as the nature of the Indian brands. This forms the base of this particular research. These two aspects are explained and researched properly so that this research can carry on successfully. In this research, focus group approach has been adopted. The focus group primary approach isuseful and apt for this research. This tool will help the researcher in gaining an in-depth insight about the viewpoints of the certain group or profile of the respondents about this particulartopic (Carey and Asbury 2016). For this chosen study on the international expansion of Indo-Western fashion businesses and brands, it is important for the observer to get an idea of the perspectives of the target market and existing consumers, and hence, the focus group approach is chosen. Five participants have been considered and chosen for the focus group. Open ended questions are asked to the focus group participants to get an idea about their thoughts and attitude towards this research topic. This study will prove useful for marketing research, as the marketers try to gain information about the products, brands, related images, advertisements, symbols or concepts (Hopkins 2016). This helps them to make strategies for the broader market. The questions are made simple and in a manner that the chosen participants provide honest responses.
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MBA The five participants have been chosen through purposive sampling, which is a non- probability sampling. Under the non-probability sampling, each sample does not have equal or random opportunity of being selected and its selection mostly depends on the judgment of the researcher. Hence, by applying this sampling, the chosen fivepeople with shared characteristics are selected for forming the focus group. Sampling strategy There are various western countries that Indian brands are trying to diversify to. For the sampling strategy , a small but effective sample was taken that represented both the countries. Sample size is a subset of the population size that is intended to participate in the research study either through qualitative or quantitative method (Farghaly, 2018). As sampling method helps to select a suitable sample size for conducting this study, we will use a non-probability sampling method, this method is easier to find candidates that fit the sample criteria, which will be most effective(Flick, 2015). As stated by Etikan, Musa and Alkassim (2016), purposive sampling is applied when the observer thinks that the participants have similar characteristics and thereby can provide useful information regarding the research subject. This sampling method is highly effective when only a few or limited number of people can be chosen as primary data sources as per the demands of the research topic, aims and objectives. Hence, few people withchosen expertise can be chosen through this non-probability sampling for serving a specific purpose. Data analysis ****Under this section, I only want you to help me explain how the qualitative data was analysed. You can remove any findings mentioned under data analysis as it only requires explanation of how the qualitative data was analysed.
MBA ***Can you please refer the ApPendix sectionfor the focus group discussion questions and use one or two worthy quotes to Develop a clear Audit trial between the Data and its Interpretaiton? This is very Important(I have cut pasted it below the data analysis paragraph). The data analysis and data collection process is the most important part of the research methodology process as it aids in computing the data. Descriptive and inferential are the commonlyappliedstatisticaldataanalysismethodsusedbyresearchers.Rutbergand Bouikidis (2018) denotes descriptive research as the method that record data from cluster members and summarizes the figures in the system of the group characteristics to enable the derivation of mean; mode, median, standard deviation and use of charts. Fletcher (2016) identifies two common methods used in data collections: primary and secondary information assembling. The primary data gathering aims at directing response from the participants while the secondary data collection method aims to collect data from the past works related to the topic. Based on the research topic and the research method, the best technique is primary data collection that will be majored on the focus group to provide views, beliefs, meanings, insights in regard to the Indo-western designs. Qualitative data analysis starts during the discussion period when rich data is generated from the participants. The stage will be followed by familiarization with the data with an aim to immerse in the details and get the sense of the data, followed by the identification of the thematic framework so as to help the research arrange them accordingly. Focus group discussion (FGD) generally yields qualitative and observational data that requires intensive analysis to have accurate and clear results. Rutberg and Bouikidis (2018) suggest that the best analysis methods used in qualitative research on FGD. Focus Group discussion (FGD) being a part of qualitative research method, it is also characterized by a pre-set semi-structured interview, always conducted by a facilitator to stimulate accurate responses and ignite debate
MBA among the participants. Since the aim of the research is to gain views, factors and personal preconditions on the Indo-Western brands, FGD becomes the best data collection and technique essential in marketing, and thus able to provide better recommendations for market entry of the brands. The focus group will be a mixture of ages from 20 to 60 years since they are a bracket that is much focused on the fashion industry. According to Saunders, Lewis and Thornhill (2016), the recruitment process is very crucial since over-recruitment might bring management challenges while under-recruitment will pose under discussion of the participants; they therefore suggest a range of between 6-8 participants for each meeting for the success of the FGD. The participants finally added up to 5 candidates from within the fashion industry from New-Delhi India and the UK. They were chosen to ensure that the FGD would yield premium results as regard to the research. The participants comprised of people who have travelled internationally and lived abroad, they all work well within the fashion industry as designers, creative director’s and stylists of well known international magazines, and from technical as well as non-technical fields, and this is done through convenience sampling. From this FGD, the research is capable of linking the participant’s perception and their socio-cultural that controls their decision making on the Indo-Western brands. The data obtained from the various interviews conducted both direct and indirect interview wasverysignificant.Thequestionnairesurveyconductedprovidedaconcreteanda significant amount of data that played a very crucial role towards pinning down the research question. First and foremost, it was noted that international market expansion is quite dynamic compared to local and/or domestic market expansion. International market expansion is much more complex and requires a high degree of flexibility and aptitude. Basically, before the
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MBA entry into any foreign market whatsoever, it’s often necessary that one determines the cost- benefit issues that would arise as a result of entry into that particular market. For quite some time now, the Indian culture has proven to be an extremely stable commodity (Milligan & Kirby, 2010).However, it is also important to note that the Indian brand has only broken the international veil in various developing counties but in the western countries the Indian brand has not yet been in a position to provide anything significant. Basically, the Indian brands has been considered as just an average fashion junkie (De, 2018).Various reasons have been attributed to this. It is important to note that India is just another developing country and it does not have the necessary resources required to be in a position to create a much more sustainable fashion industry so as to have an influence into the larger fashion industry. Moreover, the Indian brand is considered to be less superior compared to some other already established western brands such as Nike, Adidas and Levis. Indian brands cannot outdo these already established brands which have been in a position to make an emotional influence to the western market. The customers in the western market therefore see the Indian brand as just an average brand (Khaire & Hall, 2016).The qualitative data collected from the focus group questionnaire is analysed by the Focus group discussion. The qualitative data consists of the non-numeric facts such as the transcripts, the interviews, audio recordings, video, texts and image documents. It begins at the period when the rich data is collected from the participants. The next step is to get immersed in the details and get the meaning of the data. A thematic framework is also present to arrange the research accordingly. The focus group discussion is an appropriate way of gathering people together from common backgrounds in order discuss over a specific subject of interest. The positive points of Focus group discussion depend on the participants to disagree or agree. It provides an in-sight into how a particular group reacts over a specific issue. The focus group questionnaire is attached below.Thematic
MBA analysis has been used. Thematic analysis is one of the most common forms of qualitative analysis. It elaborates the pinpointing, recording the patterns and examining within the data. The questions present six different themes and according to those, the responses were analyzed to get the findings. This approach helps to narrow down the research direction. Appendix: FOCUS GROUP QUESTIONNAIRE: 1stCandidate: 1. What are the different factors responsible for the growth of Indian brands in the western fashion market? I think that the globalisation of fashion trends, as well as the fashion companies have made it more accessible for Indian brands to expand internationally. Western expansion has also made Indian brands and designers very familiar with western fashion trends. 2.What are the issues preventing the overall East Asian brands from expansion to Western countries? The lack of familiarity of eastern fashion among western consumers, and the high cost of running businesses are preventing these brands from expanding to western countries. 3.What are the preferences of Western consumers with regard to Indo-Western brands? Western consumers are more familiar with western style fashion and brands rather than traditional Indian styles. 4.What pricing strategy can be followed by Indo-Western brands to become competitive in the western markets? Indo-Western brands should study the western markets and the target consumers very carefully before setting up a pricing strategy. The pricing should be competitive for the market segment in the area that they are looking to cater to.
MBA 5.Which are the western markets where Indo-Western brands are likely to have success? Indo-Western brands are likely to have success in markets with which there are already strong ties to India, and where there is a significant population of people from Indian heritage and background. 6.What recommendations can be provided to Indo-western designers in order to grow their business in the West? Indo-western designers should look at adapting their designs to cater to the tastes and sensibilities of the western markets in order to grow their business there. 2ndCnadidate: 1.What are the different factors responsible for the growth of Indian brands in the western fashion market? The textile, embroidery work from India is well known. Production and labour cost is cheap. 2.What are the issues preventing the overall East Asian brands from expansion to Western countries? Quality control 3.What are the preferences of Western consumers with regard to Indo-Western brands? They seem to like the thought of Organic, cotton fabrics, bohemian choices. Indian cotton. 4.What pricing strategy can be followed by Indo-Western brands to become competitive in the western markets? Indo-western brands sell cheap, the only issue is the export cost. So I suppose export in larger quantities, so that Pricing can be cheaper in bulk orders. 5.Which are the western markets where Indo-Western brands are likely to have success? It depends on the community too. Example the bigger Indian- western mix community, the better chances at faster brand recognition. 6.What recommendations can be provided to Indo-western designers in order to grow their business in the West? Export in bigger quantities.
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MBA Supply to well known departmental stores/stores. Contact good agents and distributors. Have agents to promote your brand. 3rdCandidate: 1.What are the different factors responsible for the growth of Indian brands in the western fashion market? *Globalization- globalization encourages the expansion of markets across the world, thus the introduction of Indian into the western culture. *Quality – the quality of the yarn from the Indian produce good quality clothes that are attractive to the western people. 2.What are the issues preventing the overall East Asian brands from expansion to Western countries? Cultural differences between the western and East Asian countries are the major factor that is preventing the expansion of the Indian brand. The Indian brands wear full dress both men and women unlike in the western culture that the gender wears are different in both sexes. 3.What are the preferences of Western consumers with regard to Indo-Western brands? XXX 4.What pricing strategy can be followed by Indo-Western brands to become competitive in the western markets? The best pricing strategy for the indo-western brands is the psychology pricing. Through the psychology pricing, the retailers are capable of changing the cultural nature of the western culture to extensively embrace the Indian culture. 5.Which are the western markets where Indo-Western brands are likely to have success? XXX 6.What recommendations can be provided to Indo-western designers in order to grow their business in the West? The indo-Western designers so should understand the taste of the western customers in terms of fashion and this would be achieved through extensive market research.
MBA The designers should develop long-time relationship with the customers to increase the sales; since the best relationship will enable them to determine the best cost of the products. Chapter 4 : Key findings Key findings from the questionnaire from the FGD The following six questions were put forward to the focus group for discussion: 1What are thedifferent factors responsible for the growth of Indian brands in the western fashion market? 2What are the issues preventing East Asian brands from expansion to Western countries? 3What are the preferences of Western consumers with regard to Indo-Western brands? 4What pricing strategy can be followed by Indo-Western brands to become competitive in the western markets? 5Which are the western markets where Indo-Western brands are likely to have success? 6What recommendations can be provided to Indo-western designers in order to grow their business in the West? On the first question from the group about the different factors responsible for the growth of Indian brands in the Western fashion market, the candidates came with the following answers. Candidate 1 said that the globalisation of fashion trends and the fashion companies have made it responsible for the expansion of Indo-western brands. Candidate 2 talked about the exotic textile and embroidery work from India which are well known all over the world, and the cheap labour and production cost that has made it possible for Indian brands to thrive internationally. Candidate 3 and 5 agreed that globalisation encourages the expansion of markets around the world, and that this has been the driving force behind expansion of Indo- Western brands to the west. Candidates 2 and 3 also agreed on the quality of the textile and
MBA yarn that India produces e.g. cotton and silk that are attractive to international consumers, whereas candidate 4 talked about the want to be western mentality of Indians and their brands, and the bigger spending power of developed countries. For this question, the focus group finally arrived to the conclusion that the main factors responsible for the growth of Indo-westernbrandsinternationallyareglobalisation,andtheexistingcapabilityin production and manufacturing. For the second question about the issues preventing the east Asian brands internationally, candidates 1, 3 and 5 agreed on the lack of familiarity of eastern fashion among western consumers, cultural differences between the two markets as the major factors that is preventing the expansion of Indo-western brands. Candidates 1 and 4 talked about the high cost of running businesses and the expenses incurred preventing such aspiring brands from expanding internationally. Candidate 2 talked about quality control and testing of the products, and their associated costs. With this, the group arrived to the conclusion that one of the main issues holding back international expansion are cultural factors between countries, and the export costs and prices. On the third question on the preferences of western consumers with regard to Indo Western brands, all of the candidates had their own opinions. Candidate 2 and 4 agreed on maintaining an Indian element to their brand, while candidate 1 talked about western consumers being more familiar with their own styles of fashion and brands rather that Indo-western brands. Candidate 5 talked about the varying choices of consumers in the western markets. The group arrived to the conclusion that in the end it is all about understanding the trends on the market and the international clientele well, and keeping in mind that Indo-western brands can be of many different types. The fourth question about what pricing strategy can be followed by Indo-western brands to become competitive in the market, candidates 1 and 3 agreed to study the western markets and the target consumers carefully before setting up a pricing strategy, psychology pricing and competitive pricing for the market segment in the area that they are looking to cater to. Candidate 2, 4 and 5 agreed
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MBA that Indo western brands are reasonably priced, just that they should export in large quantities so that pricing can be cheaper for bulk orders. With this the group arrived to the conclusion about understanding their target consumers and market better, and to arrive to a better pricing strategy by selling at competitive rates with the help of bigger orders. The next question on which international markets, Indo-western brands are likely to have success, candidates 1, 2 and 5 agreed that Indo-western brands are likely to have success in markets which have strong ties to India, and a mixed community where they will have a better chance at faster brand recognition. Candidate 4 had the opinion that wherever a business could thrive and the international access is easy, that is where a brand should have success. The group arrived at the conclusion that brand familiarity matters while expanding to international markets. Finally on the last question about recommendations which could be provided to Indo-western designers for international expansion, candidate 1 and 3 spoke that designers and businesses should look at adapting their designs to cater to the taste and sensibilities of the western markets in order to grow their business there. Candidates 1 and 5 agreed on adaptation and a thorough market research in order to grow a business. Candidate 2 and 5 further talked about bigger export quantities, candidate 2 talked about the importance of supply to well-known departmental stores, and having good agents to promote the brands internationally, to which candidate 5 and candidate 1 added that having a local distributor or agent in an international market is a good option to grow the business further. The recommendation of the group was to adapt and cater to the tastes of the market where you intend to expand, have good local agents and distributors, export in bulk to help costing, and a thorough market research. Comparison of findings with literature review The aim of the research study was to evaluate the factors of expansion of the Indo-Western fashion brands in the global market and address the challenges. Primary research was conducted by using a focus group with 5 members. Similarly, an extensive literature review
MBA was also conducted to highlight various aspects of the international brand expansions and factors of growth of the fashion industry in India, in order to prepare the conceptual framework of the study. By comparing the findings of the research study and the content of literature review, some significant inferences can be made. Firstly, it is found from the data analysis, that globalisation is the major factor that helps in the growth of the brands. As per majority of the focus group members, globalization has helped the Indian brands and apparels to reach to a wider international target market. Along with that, cheaper labour and cheaper production cost helped the textile companies in the western market to outsource their manufacturing to India, and thus, the Indian brands are also getting exposure in this way. Moreover, the exotic fabric and product quality of Indian brands have also helped it to reach out to the global market. According to the literature review, it is seen that, the Indian fashion industry has been focusing on the product quality since historical times (Hellman 2017; Roy 2018) and this has helped the Indian fashion industry to establish its name in the international market. The trend is still continuing. Secondly, from the data analysis, it is seen that there is lack of familiarity of the Indian brands in the western market and larger export can be helpful as the production price is lower. This view was existing in the literatures. Srivastava (2016) and BOF (2018) have highlighted that Indian fashion brands initially did not incorporate contemporary in their fashion, and the level of export was also low. Moreover, the Indian brands only focused on producing traditional wear, whichdid not bring popularity among the western market. However, in the recent times, with growing exposure to international fashion and cultural blending in the designs, the situation has been improving. Thirdly, the response data has highlighted that competitive pricing is highly important in brand expansion in the international market, and this view can be supported with the view of Roll (2015). Higher price of unknown brands can turn off the consumers and so, it is
MBA important for the Indian brands to capture the market share by introducing competitive pricing. Finally in conclusion, it can be said that the findings of the focus group data have quite a few similarities with the findings from literature review. Although, the literature review is vast and has addressed many more factors, the focus group data is limited and has focused only on the few main factors, like globalisation, competitive pricing, cheaper production, larger export volume and establishing brand familiarity in the western market.
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MBA Chapter 5 : Summary and conclusion ***Please add approx. 100 words to the conclusion, that makes the conclusion a perfect one. The purpose of the research is to study the international expansion of Indo-western brands rising from India, and thus entails exploration of customer and industry peoples values, perspectives and behaviours towards the fashion changes in India and western regions. The research has used qualitative research approach, through the focus group to collect data. The collected data has then been analysed through a qualitative analytical approach to achieve the objective of the study. The results of the focus group have shown that there is both a risk ,as well as a reward element to Indo-western brands looking to expand globally. While on the one hand, expansion to western markets is challenging for brands, and difficult to get right, there are big opportunities for brands that are able to bridge the gap effectively and become successful. In order for Indo-western fashion brands to become successful, they must ensure that their business strategies are geared towards fulfilling the requirements of their particular market segments. One of the ways that this can be achieved is by studying existing Indo-western brands and finding out what business strategies they have used to successfully expand to foreign fashion markets. Taking an example of the UK, in terms of international expansion,the UK market is becoming increasingly diverse. A recent report showed that minority ethnic groups in the UK now make up 12% of the UK population, and have a significant purchasing power of £300 billion with some of the groups being the most affluent within the UK (Mediatel.co.uk, 2012). To appeal to this market for multi-cultural fashion, entrepreneurs need to implement new business models within this consumer segment which address the wants of these particular customers. Within a marketing perspective, Indo-Western and East meets west
MBA fashion is part of a wider consumer marketing strategy, which needs to be used by businesses in order to appeal to a diverse society in the current day and age. Therefore, from the above discussion it can be concluded that the purpose of the research to study the international expansion of Indo-western brands rising from India, and thus entailing exploration of customer and industry people’ values, perspectives and behaviours towards the fashion changes in India and western regions has been successful. It has been found from the data analysis, that globalisation is the major factor that helps in the growth of the brands. The exotic fabric and product quality of Indian brands have also helped it to reach out to the global market. The response data has highlighted that competitive pricing is highly important in brand expansion in the international market. Thus it can be said that the findings of the focus group data have quite a few similarities with the findings from previous study. However, the topic is vast and cannot be covered in a limited period and requires further study.