International Marketing Analysis: Supreme's India Market Entry

This report analyzes the viability of the clothing brand Supreme in the Indian international market. It examines the external environment through a PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors. The report highlights India's large consumer market, improving digital infrastructure, and favorable company tax rates as opportunities for Supreme. Social factors like the diverse consumer groups and the influence of foreign labels are also discussed. Internal analysis using a SWOT analysis assesses Supreme's strengths (unique collection, brand image), weaknesses (high prices, limited inventory), opportunities (international expansion, affordable range), and threats (competition). The conclusion emphasizes the importance of adapting to political, environmental, and cultural factors, and suggests building an affordable clothing category to reach a wider Indian population. The report references relevant sources to support its findings and recommendations.

Running head: INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
PESTLE Analysis of India for Supreme:...............................................................................2
Political Factors:.................................................................................................................2
Economic Factors:..............................................................................................................2
Social Factors:....................................................................................................................3
Technological Factors:.......................................................................................................4
Legal Factors:.....................................................................................................................5
Environmental Factors:......................................................................................................5
SWOT Analysis of Supreme:.................................................................................................5
Conclusion..................................................................................................................................6

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Introduction
The purpose of the paper is to reflect the viability of a clothing brand, Supreme in the
international market. The international market selected for business expansion in India. The
viability will be measured based on analyzing the external environment with the help of the
PESTLE framework and internal analysis with the help of SWOT analysis.
Discussion
PESTLE Analysis of India for Supreme:
Political Factors:
The political nature of India is majorly influenced by aspects like ideologies based on
various political parties, politician parties' interests and governmental policies. The influence
results in affecting the business environment of India from multivariate forms of institutions.
India is also the prey of corruption due to the presence of multiple political parties.
The presence of corruption can enhance the cost of setting up the business operations
for Supreme but with growing awareness and governmental policies, challenges regarding
corruption on businesses in lessening.
Economic Factors:
India is considered one of the biggest economies in the globe based on nominal GDP.
The GDP of India in the year 2019 was 3.202 trillion dollars, which increased from last
year's GDP 2.72 trillion. The company tax rate of India has decreased posing a great
advantage for new and international businesses. The current company tax rate in India is
25.17 percent. Although, the consumer demand shifts based on the purchasing power created
from the vulnerable position of employment but India from last the last decade have been
welcoming the investment of foreign investments and multinational companies for increasing

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employment and business opportunities. India has maintained a strong trade relationship with
Canada and the USA.
Although the economic environment of India is majorly dependent on political
stability and employability with the improving GDP rate, strong trade relations, and attractive
company rate tax, Supreme can utilize the opportunity of investing in the vast market of
India.
Fig.: Company Tax Rate in India
(Source: Tradingeconomics.com, 2020)
Social Factors:
The most attractive factor which influences the decision of national and international
investors is the size of the consumer market in India with a population of 1,387,297,452.
India also offers affordable labor and operational cost. The multi-cultured and multi-ethnic
consumer groups allow businesses both national and international to flourish with their
product offerings. The living standard has improved drastically with decreasing
unemployment rate to 2.55 percent in 2019 from 2.73 percent in 2016. Although a vast rate of

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the population still falls under the poverty range, the preferences of the upper class and
upper-middle class are highly influenced by foreign labels.
Fig: An unemployment rate of India
(Source: Statista.com, 2020)
Supreme can utilize the opportunity of addressing the demand of the vast and diverse
population by its wide range of clothing and accessories. Supreme can also integrate an
affordable clothing section directed towards the younger population, college-goers for
targeting the majority of the population (Kotler et al., 2018).
Technological Factors:
In 2019, India established itself in the 44th position in terms of improvement in digital
media and technology from the position of 57th in 2018 (Economictimes.indiatimes.com,
2019). Almost all the businesses in India is supported by the infrastructure of digital and

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technological media. Even the government of India established the project of ‘Digital India’
for integrating efficiency and promptness in business activities and reach.
Thus, Supreme can benefit from the established technological structure in India for
maintaining its operations from the U.S. and Canada and integrate Salesforce and CRM for
better operational opportunities.
Legal Factors:
India has various laws and institutions dedicated to the rights of laborers, consumers
and setting standards for companies. Labour laws like Disputes Act 1947 offers protection of
the workers (Singh et al., 2017). Sale of Goods Act 1930 and Consumer Protection Act 1986
is associated with product offerings. Advertising Standards Council of India regulates
advertisements.
These legal practices will regulate the functioning of the Supreme and will monitor its
efficiency regularly.
Environmental Factors:
India has improved its environmental conditions but still experiences challenges like
water, air and land pollution with the challenge of overutilization of resources. With the
increasing awareness of the Indian population and organizations, the environmental effects of
companies are closely monitored (Gore, 2020).
Thus, Supreme needs to be careful in its influence over resource utilization and waste
production for operating ethically in India.
SWOT Analysis of Supreme:
Strengths:
 Unique collection and positioning
Weaknesses:
 High prices target specific groups, not

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 Integrating celebrity and influencer
involvement in advertising product
ranges
 Reputation brand image
 Followed by a strong consumer group
preferring streetwear fashion
a vast population
 Higher prices set by resellers due to
exclusivity
 Limited inventory in online platforms
Opportunities:
 Expanding the brand in the
international market
 Integrate affordable range for
targeting a vast population with
street-style fashion
 Investment in an advertisement
campaign and increasing digital
presence
Threats:
 High competition from national and
international clothing brands,
Primark, Urban Outfitters
 Risk of losing identity of
underground roots by targeting a vast
population
Conclusion
Therefore, it can be concluded from the paper that, Supreme will especially be
affected by the political, environmental and cultural factors. The brand is well-known
internationally, for targeting India as the next destination, Supreme needs to build a separate
category for affordable clothing for reaching the vast population and various consumer
groups of India.

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References:
Economictimes.indiatimes.com (2019). India rises 4 places to 44th rank in world digital
competitiveness rankings. The Economic Times. [Online] Retrieved from
https://economictimes.indiatimes.com/tech/internet/india-rises-4-places-to-44th-rank-
in-world-digital-competitiveness-rankings/articleshow/71312837.cms?from=mdr.
Gore, M. (2020). Environmental Security: A pre-condition for Sustainable Development in
India. Our Heritage, 68(13), 273-279.
Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing
management: an Asian perspective. Pearson.
Singh, J., Das, D. K., Kukreja, P., & Abhishek, K. (2017). Law, skills and the creation of jobs
as ‘contract’work in India: exploring survey data to make inferences for labour law
reform. The Indian Journal of Labour Economics, 60(4), 549-570.
Statista.com (2020). Unemployment rate in India 2007-2018 | Statista. Statista. [Online]
Retrieved from https://www.statista.com/statistics/271330/unemployment-rate-in-india/.
Tradingeconomics.com (2020) India Corporate Tax Rate | 1997-2020 Data | 2021-2022
Forecast | Historical | Chart. Tradingeconomics.com. (2020). [Online] Retrieved
from https://tradingeconomics.com/india/corporate-tax-rate.