Cross-Cultural Marketing: Analysis of ASOS Expansion into China

This report provides a cross-cultural analysis of ASOS, a British online fashion retailer, as it plans to expand its marketing efforts into China. It compares two techniques of cross-cultural analysis: Hofstede's Cultural Dimensions Model and Schwartz's Culture Theory, highlighting their usefulness in understanding cultural differences between countries. The report then applies Hofstede's model to compare the cultures of the UK and China, focusing on dimensions such as power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, long-term orientation, and indulgence vs. restraint. The analysis identifies potential challenges and opportunities for ASOS in adapting its marketing strategies to the Chinese market, emphasizing the importance of cultural sensitivity for successful internationalization. The report concludes that understanding and addressing cultural nuances are crucial for ASOS to achieve growth and profitability in the new market.

Marketing across
cultures

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Comparison of two techniques of cross cultural analysis...........................................................1
Cross-cultural Analysis of two different countries ....................................................................3
CONCLUSION................................................................................................................................4
References:.......................................................................................................................................6

INTRODUCTION
There is growing trend of globalization and internationalisation in the business world in
order to manifest growth and expansion within the firm. The internationalisation is difficult task
as the business has to enter a new culture for with it very essential to conduct in- depth research
of cross culture for successful internationalization (Martínez-Caro, Cegarra-Navarro and
Alfonso-Ruiz, 2020). Cross- culture analysis is the method to compare the cultures of two
different countries. When an organisation plan to market new product in new market it is very
essential to discover some unknown facts related to people and culture of that country for which
cross cultural analysis is beneficial. The present report is based on ASOS – the British online
fashion and cosmetic retailer. ASOS was originated in 2000 in London and is known for selling
approximately 850 brands on its websites. The company is planning to come up with its clothing,
footwear and other apparels in the market of China. The report will outline comparison of 2
techniques of cross culture analysis and CCA analysis of two countries countries.
Main Body
Comparison of two techniques of cross cultural analysis
When the organisations plan to operate in new market apart from their home country they
come across different cultural aspects of that country. ASOS plc is the online e-commerce
retailer based in UK (Home country) and is planning to market its products and services in China
(International market). While operating in new country the company may face some culture
issues such as language barrier is highly common as every country has different language to
communicate to their employees and customers (Khaksar and et. al., 2020). Organisational
culture, employees reactions in new culture etc. are the issues of culture. Thus, for successful
internationalization the culture plays a crucial role and therefore in understanding the cross
culture aspects there are approaches to analyse the culture. The two techniques of cross culture
analysis are discussed below:
Hofstede cultural dimension model
The hofstede cultural dimension model is useful framework developed by the Geert
Hofstede to understand the differences between the culture of the countries. In order to analyse
or compare the cultures of two different country the hofstede culture dimension model is the
effective frame work for the organisations.
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 Power distance index: this dimension defines the degree of tolerance of inequality and
power with the organisational structure and culture. During the international marketing
the every organisation come across the culture of new market where their can be high or
low degree of power distance index and working as per that culture is important. Individualism and collectivism- Collectivism refers to the situation in which the people
organisation work in a group and there efforts are integrated in one direction.
Individualism is a concept where the importance is given to self goals, everyone in the
organisation is self-centred (Rojo and et. al., 2020). Uncertainty avoidance index- This index suggests the ability of the organisation to deal
with uncertain situations. A high index suggest that the company has low tolerance to
deal with the uncertainties and risks. Masculinity vs femininity- Masculinity refers to the organisation in which the assertive
and materialistic achievement is appreciated. Femininity refers to the characteristics such
as modesty, nurturing and quality of life. Long term orientation Vs short term orientation- Long term orientations refers to the
organisation which focuses on the future and growth prospects of the company. This only
focuses on the long term achievements and ignores the short term gratification. Short
term orientation focuses on dealing with the goals that are needed to be fulfilled in the
period of less than a year. International businesses focuses more on the long term
orientation as this helps them in sustaining for a longer period of time.

Indulgence vs Restraint- Indulgence suggests that society or the culture of business is free
from any kind of restriction (Talalova and Werthschulte, 2020). Restraint indicates that
the need and norms of the people are not fulfilled and they are restricted in some manner.
Schwartz's culture theory/Model
This theory of culture analysis is based on the values of culture and identifies the seven
cultural values and their orientation in the from of disc where the one value is against of another.
In this model the seven values of culture are organised in the three bipolar cultural dimensions in
format of coherent circular structure (Schwartz, 2020). The seven values of culture are discussed
below in relation to international marketing of the ASOS:
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Embeddedness: this refers to the value in which high focus and believe is placed on the status
quo. Under this the key values that useful to be considered by the company during international
marketing are respect for tradition, wisdom, security and obedience.
Autonomy: with this value of the culture the society is viewed as the autonomous. With this
factor the culture of the new country cultivates independent pursuit of ideas, pleasure and
enjoyment in life.
Hierarchy: modesty and self control are the two most significant values that re interlinked with
the hierarchical society and persons of that society are highly socialized to comply with the
responsibilities and roles provided to them in organisation (Ahmad and et. al., 2020).
Egalitarian: the culture with this value involves the social justice and cares of each other
members. Thus, the society with this value in the international marketing sees each individual
equally.
Cross-cultural Analysis of two different countries
When the organisations are planning to operate across their national borders in the new country
they have to experience the new and distinguished culture that differs from the culture of the
home country. Therefore, In order to understand that difference for the better marketing of the
products and for the better organisational culture, dimensions of Hofstede cultural theory are
utilized by the organisations like ASOS PLC. The six dimensions of the Hofstede cultural
dimension approach are discussed below:
 Power distance index: there is huge difference in this dimension of the culture of the
china and UK. As in UK the level of power distance index is low defining a culture
where the inequality between the members of the organisation is not acceptable whereas
in China the score of this dimension is 80 relatively very high defining the culture where
the distribution of unequal power among the employees is acceptable. This defines that
for ASOS plc it will very complex to acquire such environment where the organisational
structure will be hierarchical.
 Collectivism vs. Individualism: in this culture dimension also the culture of China and
UK are just opposite as the score for this factor is very high in UK as there is culture
where the individuals are more individualist and work for their self- centred. Where as in
the China the score is very low as they have team working and collectivism culture and
every one care for each other (Thach and et. al., 2021). This means the ASOS plc to
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internationalize in China market has to work on the strategy to build employees relations
and hire and promote the employees that work as a team.
 Uncertainty avoidance index: this dimension of the culture is also same where equal or
same in china and UK. As in both countries the score of this dimension is low
representing the culture where both the culture are flexible and strong to deal with
ambiguity and uncertain situation. This is advantage for the ASOS plc in operating in the
market of china with this cultural dimension as the company will pertain the employees
that are risk handler.
 Femininity and Masculinity: in UK and China this dimension possess same score thereby
representing the culture where the organisations are more driven by competition, success
and achievements. In china market the for ASOS plc it would be more easy to drive the
aims and objectives that can drive or ensure the success. Also by this company can gain
more sales and profitability by hiring the dedicated and hard working employees.
 Short- term and long term orientation: the china score for this culture dimension is very
high compared to the score of UK. This means in China there is a pragmatic culture
where the people of the china are prepared for the long term success within the
organisation. Where as in UK there is expectation for quick results and short-term goals
showing the normative culture within the ASOS plc.
 Restraint and indulgence: the china score for this cultural dimension is low defining the
culture that is highly restrained means the society and their people does not pay attention
to leisure time or the gratification of their desires. Whereas in UK the society is highly
indulgence and are highly focused on their fun time.
CONCLUSION
It is concluded from the above report that internationalization is a highly popular activity
that businesses are adopting in order to acquire growth. Culture plays an important role in
conducting a productive ad profitable business in new international market. As there are issues
like language, culture sensitivity that are important to be identified and considered in the
business models of the company using appropriate framework of cross culture analysis (CCA)
like Hofstede culture dimension model. This CCA technique is highly effective in analysing the
different dimensions of culture that are useful to company in developing an organisational
culture that supports the culture of new market or country.
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References:
Books and Journals
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Technological Forecasting
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productivity in professional service firms The moderating role of organisational
culture.
Knowledge Management Research & Practice, pp.1-18.
Rojo, J and et. al., 2020. Hofstede's cultural dimensions as the explanatory framework for
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Talalova, L. and Werthschulte, D.K., 2020. Adapting two cultures (a glance through the
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