Overview
Stylenanda is a well-established fashion company, which operates in Korea. Stylenanda’s core operations entail designing and marketing women’s clothing and accessories. The firm was founded in 2004, and it has gained optimal market recognition in the Korean and Chinese markets.
The Stylenanda brand has gained adequate market recognition, as evidenced by the high rate at which customers are carrying out online searches on the brand. In 2007, over 700,000 online searches on the brand were made at Naver.com within a period of one month. Another website that has ranked Stylenanda amongst the leading brands is Ranky.com (“Stylenanda” par.1).
The firm’s optimal market performance has arisen from its effective strategic management practices. One of the aspects that the firm focuses on in its operations entails product innovation. Stylenanda specialized in different categories of fashion products. Some of the major product categories include tops, bottom, out, dress, and cosmetics.
The firm ensures that its fashion products are based on unique ideas, and this aspect has played a fundamental role in promoting product loyalty amongst its customers. The products are marketed under different product categories, which include Adeen, Karl Alley, Spitfire, Havainas, Grafik Plastic, Lespecs, Greycity, Jeffrey Campbell, Daniel Palilo, KKXX, Gold Dot, and Quay Eyewear (“Stylenanda” par.1)
In 2006, Stylenanda launched a new brand known as ‘Nanda Girl,’ and it was ranked first amongst the most favorite women’s clothing malls. Furthermore, the firm has appreciated the importance of incorporating emerging technologies in an effort to gain optimal performance. For example, the firm integrated an effective distribution ERP system and a Bar Code System in 2007.
Moreover, Stylenanda established integration call centers in an effort to establish a strong level of interaction with its customers. The firm’s commitment to offering customers high-quality products enabled it to attain ISO 9001 certification in 2007. In line with its product development strategy, Stylenanda launched a cosmetic product line in 2008. One of the most renowned cosmetic brands that the firm has established is the ‘3 Concept Eyes’.
Stylenanda intends to attain optimal market dominance in the global fashion industry. In a bid to achieve this goal, the firm has adopted the concept of internationalization as one of its strategic marketing aspects. One of the international markets that the firm has identified is the United States. The firm’s decision to enter the US market is informed by the identification of optimal market potential.
In its quest to enter the US market, it is essential for the firm to focus on developing an adequate competitive advantage. One of the aspects that the firm should consider relates to improving its market position by giving high-quality products to its customers.
Situational analysis
However, the available literature cites the US retail sector as one of the most challenging international markets to enter. The challenging nature of the market arises from its culturally diverse nature and the large size of the market. According to “Statista” (par. 1), the US apparel market has undergone remarkable growth over the years. One of the market segments that have experienced considerable growth relates to women’s apparel.
In 2011, the total volume of sales with regard to women apparels in the US amounted to $ 110.826 billion; however, the volume of sales increased to $116.4 billion in 2013, which represents a 4% growth from the $112.3 billion level in 2012 (“NPD Group” par. 1). Consumers in the US have developed a culture that appreciates the consumption of fashion products. The chart below illustrates the change in sales volume with regard to women apparel between 2013 and 2012.
Source: (“NPD Group” par. 3)
The high market potential has led to the growth in the size of shipments into the US. For example, the total value of apparels shipped into the US in 2011 is estimated to be $ 12.86 billion (“NPD Group” par. 5). Moreover, the volume of trade within the wholesale apparel segment has increased substantially.
For example, the value of apparels imported from China in 2011 is estimated to be $ 29,392.2 million (“Statista” par. 4). Similarly, sales in the retail segment are estimated to amount to $ 182.85 billion, and per capita, retail consumption of apparel in the US is $ 686 (“Statista” par.5).
The growth experienced in the respective primary, secondary, and terminal markets underscores the high market potential in the US apparel industry. Moreover, the high market potential in the US apparel industry has also led to an increment in the number of industry players. By 2013, over 200 individual stores dominated the fashion industry (Harrison par. 8). Some of the major international players that have entered the US market include H&M [Sweden-based], Zara [Spain-based], and Topshop [UK-based] (Harrison par. 12).
Target audience
Market targeting constitutes one of the fundamental marketing elements. Effective target marketing increases an organization’s ability to allocate its resources optimally. In its quest to enter the US fashion market successfully, Stylenanda should undertake effective market segmentation, which can be attained by segmenting the market based on demographic variables such as gender and age. The firm should target female consumers due to the high propensity towards fashion products amongst this group of clients.
In order to improve the probability of maximizing sales revenue in the US market, Stylenanda should target the most fashion-conscious female customers, especially the youth.
Some o the major age groups that the firm should consider include customers aged between 13-18 years. Youths within this age group are characterized by impulse buying of fashion products. The consumption behavior of these customers is greatly influenced by the diverse social influences, especially their friends. Moreover, they usually consider apparel as a way of expressing their identity.
The second category of clients that Stylenanda should target includes youths between 19-25 years [Generation Y]. These customers are characterized by relatively high purchasing power. Moreover, Generation Y is relatively entrepreneurial and optimistic. Fernandez affirms that generation Y is “considered to be an attractive growth market because of its high purchasing power” (81). In addition to the above aspects, Generation Y is remarkably materialistic and self-indulgent.
The consumption behavior of “Generation Y with regard to apparels is influenced by diverse factors such as psychological factors, social influences, individuality, prestige, and functionality” (Fernandez 81). The final customer group that Stylenanda should focus on includes youths between 25-35 years. These customers are considerably conscious of fashion trends. Subsequently, they prefer purchasing emerging fashion products. Targeting these customer groups will improve the Stylenanda’s ability to maximize its sales revenue.
Despite the challenging nature of the US retail sector, Stylenanda can conquer the market through the adoption of effective marketing practices. One of the aspects that Stylenanda should consider relates to technology. Fernandez (81) argues that Information Communication Technology [ICT] has interconnected the world, hence making it one global village.
Additionally, consumers have become aware of global trends. For example, most fashion consumers purchase fashion products through online platforms, hence leading to the development of online consumption culture.
Salonen, Narvanen, and Saarijarvi affirm that online transactions “in web stores are acquiring considerable momentum, and consumers allocate an increasing amount of time to other online activities” (87). According to Harrison (par.13), most fashion firms that have entered the US market have developed different levels of market awareness, as illustrated by the graph below.
In order to market its brands in the US market successfully, it is imperative for Stylenanda to develop a high level of market awareness. Consequently, the firm should increase its investment in market communication. This goal can be attained by integrating emerging marketing communication tools such as social networking platforms.
Moreover, the firm should enhance its digital capability by improving its online marketing processes by establishing an online store. This approach will enable the firm to reach a large number of customers in different regions across the US. Thus, the firm will address the challenge associated with the large size of the market in the US.
SWOT analysis
Stylenanda’s penetration in the US fashion market will be determined by the extent to which it leverages its strengths. Moreover, the firm should identify and address the internal limitations that might affect its market penetration.
Stylenanda should exploit the opportunities available in the US fashion industry in order to maximize the likelihood of attaining an optimal market performance. Furthermore, the firm’s management team should identify the possible threats that might limit its entry and success in the US market. The above aspects can be attained by conducting a SWOT analysis, as illustrated herein.
The market analysis above shows that the US fashion market is characterized by a high potential for growth. Thus, it is imperative for Stylenanda to enter the market in order to maximize its profitability. However, the firm’s ability to maximize its profitability will be subject to the nature of the strategic marketing practices adopted in the US market. Therefore, the firm should base its marketing processes in the US on the prevailing market conditions as a way of gaining a competitive advantage.
Works Cited
Fernandez, Prasanna. “Impact of branding on Gen Y’s choice clothing.” The Journal of the South East Asia Research Centre 1.1 (2009): 79-95. Print.
Harrison, Martin. Entering the US retail market: Best practices for European retailers looking to establish a foothold in America 2014. Web.
NPD Group: The NPD Group reports US women apparel market grew 4% in 2014. Web.
Salonen, Susanna, Elina Marven, and Hannu Saarijarvi. “How do consumers consume fashion online? A practice-theoretical inquiry.” International Journal of Marketing Studies 6.3 (2014): 87-97. Print.
Statista: Statistics and facts on the apparel market in the US. 2014. Web.
Stylenanda: Company history, 2014. Web.