Introduction
Anthropologie industry as an economic sector is getting a new approach in the 21st century due to the changing lifestyles and the need of the people to experience the various cultural diversity through various aspects such as household items and the apparels.The anthropologie assortments come from different parts of the world hence their diversity and increased customer base forms the basis for the increased entrepreneurship into domestic and the foreign markets.
Summary
Currently the world is experiencing a credit crunch mainly due to the collapse of the major financial institutions where most of individual and institutions and individuals had done their investments in. This has led to economic difficulties in the household effort to cope with their consumption.
The market niche for anthropologie has appealed most entrepreneurs to the extent that most of them ventured into this market.
The nature of financial sector is very much inter-woven that the effects are felt all over the globe. This has resulted in the need of entrepreneurs scanning the environment to determine other possible avenues of market investment one of them being retail anthropologie. Thus anthropologie industry is undergoing revolution in determining other possible market niches. This is evident from the fact that most of the firms operating these enterprises are retail in nature. The size of firms in anthropologie industry as an economic sector is limited with at least 100 firms in the US. Anthropologie as a market niche has not been very vibrant in comparison with the other economic sectors but as an intern in Retail Merchandising, I identified that it is an ideal market that should be considered as a potential destination by entreprenuers.
In the US there is an endorsement of other culture such as the dressing code Russia and China. Research on how to bring a sense of entrepreneurship in merchandising has resulted in determination of how various aspects of anthropology can be innovated in different settings to cope with the dynamic economic environment such as the increased competition for instance the incorporation of new marketing strategies.This will give the firms a competitive advantage.This is due to the increased demand for individuals to change their lifestyle and have an experience of other cultures and anthropologie merchandising presents this uniqueness.
The increased demand for variety of products poses a challenge to the merchants since they need demand products that will give them a new experience over and over and hence the need for greater invention and innovation for the various product lines. It also presents an opportunity for entrepreneurs to exploit the segmentation aspect of marketing and effectively exploit it due to the large size of the market such as basing on gender.This indicates the great potential of expansion of retail industries into other areas with great anthropologie diversity such as Thailand depending on the trend of retail anthropologie.
The expansion of the apparel retail industry depends on the comprehensiveness of the market research conducted and the strategies to be used before venturing into foreign market. The firms should analyze their strengths and weaknesses before venturing by conducting a SWOT analysis to determine the feasibility of venturing into other markets. Such techniques should consider the cost of expansion versus the benefits since entrepreneurship is aimed at attaining profitability i.e. the cost benefit analysis.
In the US anthropologie exists operates as a private firm which means that the government is not much involved in anthropologie business. This means that there is no a well established economic integration agreement between Thailand and US in the forms of trading bloc unlike between Thailand and Australia.
There are a lot of similarities in the consumption behavior of anthropologie products between the two countries. This is a major reason why the anthropologie firms in US prospects expanding their businesses to Thailand. Most of the techniques that are used in merchandising anthropologie product in US are gradually being adopted in Thailand.
The market size for apparel is large across the globe which is the main reason for its expansion. It is also enhanced by the changing trends especially in the consumers lifestyles hence its potential growth.
The increasing competition has resulted into the need for examining the external and internal environment of anthropologie business. This will help in dealing with the increasing market challenges especially during the expansion phase into the foreign market.
From literature review, despite major anthropologie companies venturing into the foreign market there still exists gaps that the US firms can exploit by venturing into this market. This is due to the varied cultural diversity forming a basis for entrepreneurship.
From the review it is evident that globalization has forced firms to consider foreign expansion in order to cope with the challenges from the external environment and also increase the level of profitability. This is only possible after a thorough analysis to determine the feasibility of the decision based on the findings.
In considering Thailand as an investment destination, the firm must develop strategies that will help it penetrate and deal with the challenges of the new market effectively.
Should Anthropologie Expand Its Businesses to Thailand?
From the study conducted to it is advisable for the firms in the anthropologie industry to expand their operation in Thailand. This is due to the fact that the market for anthropologie related products is not very sensitive to the dynamic external environment such as the politics.
The inflation rate in Thailand is not high which makes most of the citizens to be consumers of anthropologie products which are perceived to be expensive and at the same time cater for their household needs. The labor force participation towards the GDP is high which makes Thailand ideal in capital formation.The rate of private expenditure is high hence the chances of increased profitability by the entrant are high.
There is a strong support of the textile industry by Thailand government.Thus the entrant will be able to reduce the cost of obtaining raw materials to be used in production of apparels since they are locally available.
It is also evident that Thailand citizens appreciate different cultural issues which form the basis for growth of the firm and hence their lifestyle is ever changing especially those related with apparels. This presents a good innovation environment for the firm expanding into this market niche which is a major characteristic of the anthropologie market.
The potential of growth in terms of profitability for firms investing in Thailand is high to the economic relationship that exists between the US and Thailand. The bilateral trade between these countries is good in terms of anthropologie related products due to the acceptance of variety of products and the increased demand for experiencing the culture of other people.
The success of expansion is high due to the fact that the firm can incorporate e-commerce in its marketing strategies. The US is more advanced in terms of technology in relation to Thailand. Most of the Thailand citizens have incorporated adopted Visual Merchandising while making decisions related to consumption of anthropologie product. The adoption of on line marketing strategy would increase the customer base for the firm due to its coverage.
The utilization of the e-commerce in marketing would greatly help in the creation of impression of new products in the market due to the ease with which innovation can be made on the homepage in which advertising of anthropologie products is made such as the color used. The e-commerce also decreases chances that the product being supplied will not be preferred in Thailand due to the that it will be easy to conduct market research on the tastes and preferences products on line i.e. chances of obsolescence of the products are reduced.
The consumer base for anthropologie products in Thailand especially those related with apparels is women whose population is high and can easily be segmented so as to ensure these customers are effectively satisfied. Effective segmentation ensures that their tastes and preferences are easily identified. This is similar to the US meaning that the firm will not have difficulty in implementing marketing strategies to help it in penetrating this market thus the US firm will have a competitive advantage in relation to other competitors from other countries such as Australia where anthropologie market is developed.
The firm will also have an advantage in that it can use the already established distribution outlets which enjoy central location within the market.
Considering that Thailand is a developing country, for the US firm seeking expansion of its anthropologie product in this country, there is a rich potential of conducting innovation in this market. Such innovation includes bringing new designs into this market that might have become saturated in the US markets considering the fact that Thailand customers do not concentrate much on the origin of the product but the quality. Through this the firm becomes customer –oriented due to the provision of newness that the customers seek in the anthropologie market. This ultimately leads to development of customer loyalty which is as step towards increased profitability due to the increased brands of particular anthropologie products.
The firms’ investment in market research to determine the most appealing designs to be incorporated into the Thailand market will ensure that the firm do not impose designs that might not be appealing into this new market leading to its failure.
To guarantee it sustainability in operation it is essential for the anthropologie retail firms to consider diversifying their investments by considering foreign direct investment in potential investment destination one of them being Thailand. This is due to the increased economic down turn in the US which has made most of the customers to focus on other issues such as household consumption resulting into reduction in the level of sales for these firms.
By exploring the rich Thailand culture, the chances that the firm can identify antiques that can be an investment alternative in for the US investors is high. These antiques may be of different kinds such as artistic work or ancient musical instruments. These antiques have the characteristic of appreciation in their value although their liquidity is low but their volatility is low in comparison to the financial instruments. This is advantageous to the firm in that by selling these antiques to the investors, its level of revenue is boosted which means that it competitive advantage is increased in that it can be able to obtain capital necessary to enable it penetrate other markets dealing with anthropologie products.
The future of anthropologie market is bright due to the fact the increased number of tourist visiting Thailand to have an experience of the rich and varied culture. This translates into increased foreign exchange reserves for the firm enabling it to conduct its operation.
Most of the consumer of products of anthropologie especially apparels are the youth which forms the largest percentage of the population. They spend a lot of time gathering information on the most recent style in the market before and hence the chances of them becoming loyal customers to anthropologie products is high.
The similarity that exists between the consumers in US and Thailand is also a major contributor to the success of the firm expanding in this market niche. The congruency of the tastes and preferences of the two countries is an indication that the market trend is already set and the only challenge is how to satisfy the customer needs.
Integration of theory and practice
Most of the companies in the fashion industries such as the Urban Outfitters and Athropologie have analyzed the theoretical opportunities for expansion by identifying the market gaps that exist with the objective of capitalizing on them. Studies of various anthropologie companies in the US have depicted instability in terms of profitability but the prospects of growth are high. One such company is Zara Company that has continued to grow steadily in its operation and expansion into the foreign markets by capitalizing on the market gaps. Currently it is operating in 72 countries with 3900 stores but its expansion strategy has been courteous.It utilizes its staff to identify the avenues of innovation resulting from changes in lifestyle and fashion.
Due to increased profitability the Urban Outfitters Incorporation has accumulated reserves that will enable it expand into the foreign market. Despite this Zara Company has not been able to penetrate into the Tokyo market.
In determining whether to enter into Thailand through market research, the anthropologie firm needs to conduct a qualitative analysis to determine the feasibility. One such technique is to use of qualitative interviews. The qualitative analysis will consider in detail the data associated with internal environment that have been obtained from the operation of other firms in the anthropologie industry in Thailand thus enabling a conclusive decision to be arrived at.
The external environment such as political stability, social environment are to be analyzed with the help of experts in anthropologie industry in Thailand. Consideration of internal and external environment through analyzing the operations of other firms while venturing into the foreign market is paramount since it forms the basis on which decisions regarding practical implementation.
Recommendations
For the firm have an increase in the level of sales, it is imperative that it considers the effect of its pricing strategy especially in the current economic down -turn. A market study should be conducted with regard to the price. This is due to the fact that consumers are price sensitive yet they seek to maximize their utility. The perception that anthropologie products are expensive should be analyzed so as to implement a strategy aimed at positively reinforcing the attitude that may be pegged on price factor.
There should be consideration of the anthropologie firm investing in other anthropologie consumer products other than specializing in apparels.Such considerations include innovation of ancient antiques and other artistic work. This means that the firm will be able to establish new markets by identifying thus increasing its profitability level by catering for the different tastes and preferences which may be as a result of variation in personality characteristics. The firm should not only target women as their major customers.
Due to the rampant political instability in Thailand posing an investment risk, the firm may have difficult in venturing into this market by direct investment this instance the firm should find other alternatives such as use of agents and not use the political climate as the only reason for not entering Thailand market.
To cope with the rampant competition in Thailand especially from Australia, the firm should develop strategies aimed at ensuring a favorable trade relationship between Thailand and US. This can be through conventions that are meant to enhance bilateral trade relationship between the two countries. These conventions should be establishment with consideration of the collective bargaining agreement to ensure that there is fairness in conducting merchandising activities relating to anthropologie products.
The firm should highly invest in research so as to cope with the dynamic nature of this market. This is due to the fact that for this market to succeed there is a need to forecast on the possible inclination which may result into changes in the market for its products. The market research team will also be able to identify the potential innovations from that may be made leading to improvement of the product being supplied to the market. This will prevent the chance of the products becoming obsolescent.
The firm should look into its marketing strategies such as advertising option despite the impression that the product quality markets themselves. Through conducting advertising as a sales promotion strategy, the firm will be able to create awareness of its products through these informative campaigns.
Lessons Learnt
The period of internship greatly impacted me with new lessons regarding entrepreneurship especially in the field of retail merchandising resulting from the dynamic nature of the anthropologie firm to implement strategies geared towards developing store loyalty such as changing of the display and design of the products. Through this, I highly appreciated the impact of invention and innovation towards a firm in a competitive industry gaining competitive advantage in its effort to boost profitability.It also presented an opportunity to identify the various investment opportunities by scanning the environment other than relying on the financial sector as the main investment sector despite the challenges that facing it due to its interwoven nature.
Areas of Future Research
In consideration of anthropologie as an entrepreneurial area, there is a great potential for consideration of the ancient art work that has not been fully exploited.Artistic work may include ancient drawings that can be modified and be used in designing various products using the modern technology.It also includes the fine art field such as mosaic work.
There is a rich ancient culture in the music industry such as variation in the music instruments. This is an area that presents a potential of growth if it is exploited considering the growth that has been experienced in the music industry. The market for musical products is already established and the only factor determining its success is invention and innovation which is a major characteristic of the anthropologie market.
Conclusion
The research on anthropologie industry has emerged as a major consideration that needs to be viewed as a major perspective while individuals are considering scanning the environment for business opportunities.
The large size of anthropologie market and the increasing demand for these products is a an incentive that should propagate entrepreneurs not only to consider the domestic market but also seek expansion into the foreign market. This is a major strategy that is aimed at meeting the profit maximization objective of the business. When considering venturing into the foreign market there is need for the domestic firm to carry out a feasibility study to determine the most profitable investment destination in order to minimize the risk of failing resulting into great loss.