MADE5006 Strategic Markets: Yellow Fashion's UK Market Entry Report

This report provides an analysis of Yellow Fashion's potential entry into a new international market, focusing on the UK. It begins with an introduction to the Yellow fashion brand, highlighting its mission, vision, and market offerings. The report includes a SWOT analysis, identifying the brand's strengths, weaknesses, opportunities, and threats. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing the market. Porter’s Five Forces model is applied to assess the competitive intensity of the fashion industry. The report concludes with recommendations for Yellow Fashion, including increased advertising, occasional discounts, and expanding the number of outlets in other countries to capture more customers. The document includes references to support the analysis and is available on Desklib, a platform offering study tools for students.

NEW INTERNATIONAL MARKET
Yellow Fashion clothing brand

Introduction
• Yellow” is a Bangladesh fashion brand
which was introduced in 2004
headquartered in Beximco Industrial Park,
Dhaka, Bangladesh, founded by Salman F
Rahman (Yellow, 2018).
• It has also planned to spread its outlets in
Dubai, New York and Toronto.
• Yellow prefer to scale their products
preferably from yellow to mustard colors.
• It has 15 outlets spread across Bangladesh
and Pakistan and also aimed at providing
the services of online platform 24*7
• It aims at contributing to innovations by
designing comfortable clothes.
• Yellow brand aims at manufacturing
comfortable clothes driving with quality
factor.

Mission and Vision of the company
• Yellow is a full service vendor with the mission of adding values and
benefiting common wealth of the society.
• They aim at building a strong bond between employees, customers,
shareholders, business partners and fellow mates.
• Gain market leadership in high value added apparel in USA, UK & Europe
• Use “Innovation” & “Speed” as prime drivers, rather than cotton & cheap
labor

Market Offerings:
They deal in providing the wide varieties of clothing for all sex i.e. men, women and children.
Yellow Men
Casual shirts
Formal shirts
Polos
Tees
Punjabi
Jackets and Blazers
Sweaters
Hoodies
Denim Casual pants
Yellow Women
Ethnic tops
Fashion tops and shirts
Tees
Denim and Trousers
Jackets and Blazers
Sweaters
Lawn
Saree

• Yellow also provides huge number of product line comprised of
Fragrances, home decoration products, avant-garde ceramic
items, paintings, books and others (Islam, 2017).

• Yellow has around 1,095,624 fans
by the 24th of April, 2016.
• The growth rate of total fans was
10k on average per week and
around 40k per month. The
maximum change of fans per week
was 15k for Yellow Facebook Page
which indicates the smooth growth
of fan base (Aaker &
Joachimsthaler, 2012).

Yellow deals in providing the wide varieties of clothing for all sex i.e. men, women and
children (Islam, 2017). As 65% of the consumers go for clothing as it is the core
work of the company. Other 26% the consumers go for other things sold by the
company such as fragrances, home decor products, paintings and others.
Rest 9% of the consumers purchased the books and novels sold by
the company.

Internal Environment:
• Follows divisional structure.
• Yellow designing has been divided in two parts
that is male and female clothing.

SWOT Analysis
Strengths
• They have plenty of designers.
Luxury designs are designed in
Pakistan, Modest designs in UK
and Saree from Satya Paul.
• According to Mintel, 68 percent of
all U.K. Internet users buy clothing
and footwear online. Yellow also
have a strong digital platform.
Weakness
• There is lack of marketing and
promotion of the brand which
make communication narrow.
• As compared to other reputed
brands in UK like New look, H&M
which has already captured the
market, it is difficult to establish its
image in UK (Mintel, 2017).

SWOT Analysis
Threat
• Online platforms in UK such as
Amazon and Boohoo are well
performing in the market which
become threat for the Yellow brand
(Mintel, 2017).
• The brand Current ratio in year
2010 and 2011 was 0.65 and 1.50
which shows that the brand has
faced bad situation (Hossain, 2015).
Opportunity
• They must make contracts with
Ecommerce sites such as Bikroy.com,
Bagdom.com, CellBazar.com to reach
their potential customers (Parker, 2011).
• According to the British Fashion
council, it has been found that U.K.
fashion industry contributed 28 billion
pounds in 2016 which creates an
opportunity for yellow to promote their
brand in UK as well.

PESTLE Analysis
Political Factor
• There are lots of challenges faced
by the brand to enter the new
market such as UK.
• The policies involved in trading of
products and services from one
country to another country is quite
difficult. Moreover political shift
in UK is also tough.
Environmental Factor
• It managed to earn gross margin
of 18%in 2010 and then it
took a high shift up to 63% in
2011 (Hossain, 2015).

Social Factor
• Yellow should aim at targeting
the Women in UK who aged
between 16-44 because these
women are more fashion
focused (Mintel, 2017).
Technological Factor
• Social media is one of the
leading factor in UK which will
help Yellow to promote its
brand on Internet and increase
efficiency in sales and
marketing