Market Entry Of Hui Li Shoes Into Singapore Marketing Essay

Market Entry Of Hui Li property Into capital of capital of capital of capital of capital of capital of Singapore trade EssayThe International commercialiseing which is defined as performance of business activities including price, promotions, w atomic number 18 and distribution decision and then the task of food merchandiseing research is to systematically collect data, process it into precious information which is important for getting marketing decision.The information of the host country on political stability, cultural attributes and geographical characteristic are required for sound for foreign markets. Information on economic public data on level of growth, inflation levels, business cycles and the levels of contest in that particular industry. These directly tinge the economic viability of the increase, since some of the factors affect profitability.This report examines possible feasibility of plan for china place corporation Hui Li entering the Singapore market . It indicated that despite previous successes for the company in china market epochal strategic alterations to its target segmentations and marketing mixes as considerably as supply and distribution operations bequeath be necessary for success in entering Singapore. It suggests that the future economic growth of the Singapore market and considering the position of international competitor already operating in the market that it is a critical accusing for the company to enter the market in smart set to maintain long term growth of market2. Background of Hui Li300000876508128399649319422During the 1970s, The Ping Pong model since 1976. By Hui Li brand sneakers were the popular stead in chinaware its bright and clean design a sharp contrast to the drab homogeneity of Communist China. Continuing into the 1980s, the shoe remained a status symbol for Chinese teenagers who were easy-off enough to fag a pair of famous Warrior models Hui Li. But as China opened up economically, so did the marketplace for sneaker brands. when the 50 year-old Hui Li name was still popular in China, it was no longer well-known as one of the premier Chinese brands. Instead, Hui Li shoes became the shoe of the working class cadaverous by poor construction workers, elderly women and rural citizens looking for a pair of cheap, durable shoes, twopenny-halfpenny brand name and mark-up.Fascinated by this story, a graphic design student from China lately released a photography book which features people wearing Warriors in various areas of China. Each copy of restrain of Warriors comes with a pair of Warriors models by Hui Li.The author, Shumeng Ye, wishes to use the Hui Li brand to tell the story behind the shoes and represent a varity side of China. Not either the industrial power and economic power, but the periodic life of a country with its own distinctive sneaker culture.A pair of Hui Li shoes was very(prenominal) expensive at the 1960s, and was popular trendy for young p eople at that time. Nowdays this old Chinese brands to make their comeback.3. Market Entry of Hui Li Shoes into Singapore01300000206900126032684190582The main reason for entering Singapore is to increase sales and profits. Building up a branch in other town, city or state, entering a foreign market is mainly part of the relentless quest for business refinement and growth. Hui Li has a very useful business model and has gained market share in China market, the only way break into more(prenominal) wealth country in Asia.Hui Li targets young people. In Singapore, many young people like to wear designer, including working adults, sportspeople, schooling children, business people and the elderly. nation in Singapore like to spend money on feeling productions, there acquit more dispose income, and they like to try out new products, especially from China, Japan, Korean, the USA and India. Also, there are non many shoes companies from China to Singapore therefore, there is a possibil ity to market this new product brand in Singapore as the consumption size of market is actually growing.There are a range of potential routes by which Hui Li could enter this market. Ideally they bemuse to pursue a strategy of equity investment have all control of its operations within Singapore. Whilst such(prenominal) a strategy carries the greatest risk it also provides the greatest reward and, most crucially, protects the integrity of the business and the brand. Hui Li has the financial resources, expertise and experience to do so and has proficiency in entering competitive market. As the decisions, which they make will directly affect every part of their business for many years in the future to Singapore. but, this is important in the decision-making process as firms assessment of the cost and risk associated with exporting their product into Singapore market. Exporting will be the best entry mode for manufacturers like Hui Li that wants wide awake penetration of Singapore ma rkets will look to direct export channel. Direct export has contained naughtyer startup costs, greater information requirements and juicyer risks. They will choose Singapore agent channel and branch channel. Franchising is a form of licensing in which a company licenses a business system as well as property rights to an independent company or person.4. Problems that could exist in Singapore for Hui LiRivalry is lay in a central role for entering Singapore market. This means that company basically hastocompeting in industry effectively. It is obvious that global and local companies make intense competition for Hui Li. competitor most contest at same level of price and quality for leather shoes industry in Singapore including VANS from USA, TOPMAN from UK. The successful competitors has already got amount of market share and brand allegiance with consumer tastes oer period of time. Hui Li has to be well prepared and well known Singapore market. Otherwise they May lose by those co mpetitors.The market of china is slightly different from Singapore market, so that Hui Lis shoes whitethorn non be preferable for local consumer preferences. Consumer whitethorn only recognize the product which already corroborateed this market over decades. It may take time that makes them to accept new brand like Hui Li. Also brand loyalty has already established by their global and local competitor. It will be more difficult for them to vanquish their favorable brand easily. Moreover the brand reputation in Singapore is not as salutary as other international brand. The consumer may not choose their Hui Li product in outset place even with high quality shoes. As the initial capital required for Hui Li to establish branch in Singapore, it will be huge amount of fixed and operation costs.Culture may influence on consumer behavior. Segmenting in terms of culture factors, Singapore also segment overall bon ton in smaller subcultures. These subcultures division are based on variet y sociocultural and demographic variables. such as nationality, religion, geographic location, race, age and sex. Subcultures may have problem for Hui Li that loss of focus on to market targets. Because Singapore has multi combinations of nationalities like China, India and Malaysia. The Hui Li must determine whether the beliefs and customs shared by members of a specific subculture make them desirable choose for special marketing economic aid. Identification of subculture is complex in segmenting market particularly in countries like Singapore. They only enable to focus on sizable and natural segments as different members of a specific subculture have different preference of Hui Li shoes.5. Environmental analysis of Singapore market5.1 cultural analysesGeographical SettingA. localisation principle southeasterlyern Asia, islands between Malaysia and IndonesiaB. Climate Singapore is broadly hot and humid. Its warm and humid year round, with the temperature almost never droppin g below 20C (68F), even at night, and usually climbing to 30C (86F) during the day.C. Living condition Singapore has a very high standard of living for expatriates and the city has one of the best living conditions in Southeast Asia. Singapore people have more money to buy consumption goods.5.2 Competitive analysis for carmine Dragonfly SWOT factorsStrengths good quality price affordable knowing long lastingWeaknesses not international brand not popularOpportunities new affordable spending power of people in Singapore is high people like to try new things, new designs something exclusiveThreat competition from leading brands price possible copying from others too many other shoe companies in Singapore5.3 PEST FACTORSPolitical Environment Spore govt is very stable No problems with conflicting rulers /parties/groups/government Gets along well with other countries International countries like to promote their products in SingaporeEconomic Environment Spores economy is very stable Ev eryone has a job the great unwashed in Singapore like to spend money dangerous jobs and good income Good education / almost everyone is educated Business-orientedSocial Environment (social activities , social clubs , lifestyle of Singapore people, foreigners, ) People in Spore love clubbing, parties, gatherings Lifestyle is very rich-Many activities in many clubs, community optic Multi-racial , harmony Many foreign alloy of people Mixed society Social media/interaction/very socially connectedTechnological Environment (internet, globalization, modernity, techno, phones, communication) People in Singapore are techno-savvy Internet is uncommitted everywhere Every home has Internet connection Most people use WIFI in style(p) hand-phone / smart phone technology Lots of people use social media eg. Facebook, twitter, etc Use hand-phone for everything internet, communication, discussion, conference, meetings, schools, etcThe milieu that needs further study will be the economic and s ocial environment in Singapore for shoes.6. paygrade of the Marketing Mix (the 4 Ps) for possible adaptationProduct Fashion designed with high technologies touristy in China Good qualityPrice inexpensive price Priced for quality Priced for Brand Affordable for the Singapore marketPromotion Visual merchandising such as entrepot design and layouts throwaway Newspaper advertisements / magazinesPlace-Located their retailer store at orchard road-Main shopping mall-Local partners7. closing curtain of AnalysisI think that Hui Li has perspective future in SG market. According to cultural analysis, we have brief knowledge about Singapore. The living condition of Singapore has a high standard of living. People like to buy more product, Hui Li may possible to entry this market to increase sales. And the humor has indicated that Hui Li need to decide what role of shoes can meet consumer needs in order to weather of generally hot and HUMIND in Singapore.Competitive analysisHui Li will go done external and internal factors. There is no question that the phenomenon makes both opportunities and threats to Hui Li who looking for compete successfully in the international market. There is growing power for developing nations where Singapore presents significant business opportunities for Hui Li in entering. Local people would like to try new brand product with high quality and affordable price, even the brand is not international. However, most of competitors are international brand that Hui Li have to compete with them for market share and consumer loyalty, they need to differentiate their shoes to meet people needs.Finally the decision making mainly depends on an analysis of both external environmental conditions. Pest has provided general ideals that macro environment of Singapore. The factors indicated that economic of Singapore is growing and people have higher disposable income, political environment has back up foreign investment with lower tax rate. Society in Singapore is harmony with multi-racial foreign mixture of people. The macro environment for Singapore hat great impact for Hui Lis entering.The analysis of marketing mix in Singapore market has significant effects on Hui Li entering. And it is reasonable to recommend that a well know brand name has major impact on strategic planning process. All of 4p befriend Hui Li to build their brand successful in Singapore. Hui Li may local their retailer store at Orchard Road and main shopping mall. Orchard Road is main center for peoples attention and shopping around. The brand recognition can increase by locating this market place. The ownership of the Hui Li brand can cooperate with local partners will be able to help them access the Singapore distribution systems more effectively. They may promote main emphasis on visual merchandising such as layouts of store can be necessarily impact on communication tools with consumer and advertising on TV and newspaper. As the price of leather shoes are affordable and the product is well designed with quality one. All of analysis indicted that it is great opportunity for Hui Li to entry this market.8.Strategic Marketing PlanMarketing Plan for Hui Li Shoes12.1.Marketing objectivesA. Target marketB. Expected sales year 20C. Profit expectation year 20D. Market penetration and coverageAdaptationCore fortuneB. Packaging componentC. Support service componentA. Adults, all agesB. 2 million dollarsC. Three cytosine thousand dollarsD. Advertising, lower pricesMain shopping centerSuch as Orchard Road, Bugis.Well-designed shoes with high qualityDelicated packageFeedback3.Promotion mixAdvertisingObjectiveMedia mixMessageCosts gross sales promotionA. ObjectivesB. CouponsC. CostsOther promotional methodsA. Promote productsB. Magazine and TVC. Fashion product and high qualityD. 40000Promote new brandNewspaper Discount for the new buyerC. 50000Poster4Distribution from origin to destinationPort creamOrigin portDestination port2.Mode selectio n AD/DISAir carrierpackingA. Marking and labeling regulationsB. CostsDocumentation requiredA. Bill of clogB. Dock receiptC. Air billD. Commercial invoiceE. Proforma invoiceF. Shippers export declarationG. rumor of origin5.Insurance claimChina portSingapore portA. AD Quick and convenienceDIS may not get permission to entry and quotasA. Shoe boxB. ten thousandAll needs5. 100005Channel of distributionRetailersType and number of retail storesRetail markups for products in each type of retail storeMethods of operation for each type5 center storesB. StoreCash and faith cardScale of operation for each typeImport and exports agentWarehousingA. TypeB. LocationD. LargeA. StoresB. Bugis Orchard Road6Price determination1.Cost of the shipment of goods2.Transportation costs3.Handling expensesA. Loading and drop off charges4.Insurance costs5.Customs duties6.Import taxes and value-added tax7.Wholesale and retail markups and discounts8.companys gross margins9.retail price1. 100002. 15000A.30004 .300005.40006. 7%7. 20%8. 30%9.50-1007Methods of payment1.Cash in advance2.Open accounts3.Consignment sales4.Sight, time or date drafts5.Letters of creditCash in advanceOpen account