BA595- retail Management Final Grad Presentation

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WORLD
RETAILING
United States
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Current Population
303,026,362
50 States
More Women
than Men
Top 5 US Retailers
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Wal-Mart
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Home Depot
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Kroger
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Target
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Costco
My City: Corvallis, OR
Popular Retailers
Fred Meyer
Bed Bath & Beyond
Safeway
Small Boutiques: Urban Laundry, Kaari K, Zooey’s
Melhalfs, Miss Meers, Footwise
Inkwell
Dollar Store
Ross Dress for Less
Starbucks
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Popular Brands
*
The 100 Top Brands of 2006,
According to Business Week
1 CocaColaU.S.
2 MicrosoftU.S.
3 IBMU.S.
4 GEU.S.
5 IntelU.S.
6 NokiaFinland
7 ToyotaJapan
8 DisneyU.S.
9 McDonald’sU.S.
10 Mercedes-BenzGermany
Our Popular Brands
•Nike
•Adidas
•Levi’s
•Apple
•Gap
•Starbucks
•L’Oreal
•Estee Lauder
•Johnson & Johnson
Average Costs
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T-shirt =Average price of an imported T-shirt:
1996: $2.14
2000: $1.93
2004: $1.69
2005: $1.59
2006: $1.51
Average Retail Price : About $12.95
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Jeans = From Regular to Designer, average is from $25
to $400, Most people who buy regular spend about $30,
most people who buy designer spend about $90.
Milk = $2.59 per gallon
Bread = $1.80 a loaf
Store Layout & Design
E-Tailing / Internet Shopping
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A U.S. Department of Commerce survey has found that more
than half the U.S. population is now connected to the Internet.
In addition, 39 percent of Internet users are making purchases
online.
Most Popular users are 25 to 44 years old.
TOP 5 Retailing Sites for the week ending 10/20/2007
1. www.amazon.com
2. www.half.ebay.com
3. www.walmart.com
4. www.target.com
5. shopping.yahoo.com
Future of Retailing
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Lifestyle Centers
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Popularity of Fast Fashion
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Increase in Internet Shopping
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Increase in Destination Shopping
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Convenience Retailing
Clothing retailers in China
Di, Wu
Kai, Wang
Clothing retailing store density
retailers
Favorite retailers
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Metersbonwe Group is China's leading casualwear apparel company. Metersbonwe
opened their first store in Wenzhou on April 22nd, 1995. By the beginning of 2007, the company
operates around 1,800 stores across China and has over 5,000 employees. In 2006 the Group's
retail sales exceeded RMB 4 billion, making Metersbonwe the largest casualwear retail brand in the
country. The company targets 18-25 year old male and female consumers. Their corporate slogan
is "Be Different".
Metersbonwe was created by President and Founder, Mr Zhou Chengjian. In the early 1990s he
ventured to Wenzhou after borrowing 200,000 yuan (US$24,691). He worked everyday selling
clothes in the daytime and tailoring clothes in the evening. In 1992 he tailored thousands of
winter coats for other factories and started to make enough to build his own brand.
By using franchisees and building a strong team of French and local designers, the company grew
by more than 30% every year. The brand quickly catered to the needs of a young and increasingly
fashion conscious consumer base. By focusing on good quality and reasonable prices, the
company gained increasing popularity.
The company invited TaiWan star Jay Chou to become the brand's image ambassador in 2003. As
a result, MetersBonwe became the best selling brand for the year 2004, evaluated by the China
National Garments Association. In 2005 its annual earnings with the sale of the brand's clothes
netted some 3 billion yuan (US$370 million).
In its new Shanghai Headquarters, opened in late 2005, the company opened a fashion museum
for the public. In the museum, there are ancient and ethnic costumes and accessories, many not
even found in national museums. Some parts of the collection will now be relocated to a new
store opening up in late 2007 on Nanjing Road in Shanghai.
Favorite retailers (cont.)
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Giordano is a Hong Kong retailer of affordable casual wear for men,
women and children. Founded in 1981 by Jimmy Lai (who no longer owns
the company), it has 8,000 employees in 1500 stores operating in 31 countries
worldwide.
Its current chairman and CEO since 1996 is Peter Lau, a Canadian Chinese.
Giordano is based in Bermuda (with principal operations in Hong Kong) and
trades on the Hong Kong Stock Exchange as 709.HK.
Giordano specializes in merchandising economic quality clothes ranging from
T-Shirts, Long Sleeve Shirts and denim jeans. Giordano is well known for
being the pioneer in customer service in Asia apparel retailing.
Giordano Ladies, a sub-brand established in 1996, has been instrumental to
upgrading the unisex brand from a budget image to a more fashion oriented
apparel retailer similar to The Gap.
Favorite retailers (cont.)
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Esprit Holdings Limited is a publicly owned manufacturer of apparel, footwear,
accessories, jewellery, and housewares, under the ESPRIT label. The company is
headquartered and managed from Kowloon, Hong Kong and Ratingen, Germany. The
company has stores in more than forty countries. The ESPRIT brand name is also
licensed to other manufacturers. In addition, the Group owns the Red Earth cosmetics
brand. The brand was particularly popular in the 1980s (Especially with suburban
teenagers). It still remains quite popular with people of the middle income classes, due
to its purified and classy image, especially in Germany, which is the biggest single
market for the brand.
The company was started in San Francisco in the 1960s by Susie Russell (now Susie
Tompkins Buell) and her then-husband, Douglas Tompkins, the founder of The
North Face. They were joined in 1971 by Michael Ying. The couple divorced in 1989,
and Mr. Tompkins sold his shares in 1990. Later, the Esprit Far East Group bought
the other divisions and formed Esprit Holdings Limited in Hong Kong. The company
acquired Red Earth in 2001.
Ex-president Michael Ying stepped down Executive director in 2002 and subsequently
resigned as the Chairman in 2006.
The company is listed on the Hong Kong Stock Exchange and is a component of the
Hang Seng Index. It has been a listed company in Hong Kong since 1993 and has had
a secondary listing on the London Stock Exchange since December 1998.
Market target
Targeted at ages
18 through 22
adult
Targeted at ages
20 through 30
teenage
kid
Price
Metersbonwe
T-shirt:$10~15; Jeans:$25; Outerwear:$40~60
Giordano
T-shirt:$10~20; Jeans:$25~30; Outerwear:$60~80
Esprit
T-shirt:$20~30; Jeans:$60~100; Outerwear:$80~300
Per capita income list by the International Monetary Fund (2006):
China mainland $7,722
Hong Kong $38,714
U.S $43,223
Types of store: Chain store
Department store ShoppingMall
E-tailing
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http://www.espritshop.com/index_us_GG1_A
1.htm
http://hk.e-giordano.com/?cluture=zhhk&lang=SC
http://www.amazon.cn/
http://www.eachnet.com/
Future
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Quality First
Great variety
Comprehensive Design Principle
Selling on-trend product
At mess price
E-tailing
Korea
• 99600 ㎢ (Oregon
state: 251000 ㎢)
• Population: 48.3
million (2006)
• GDP: 786 billion
dollars (2005)
Korean Retailing
• Department stores
• Private branded hive type stores (PBH)
• Discount stores -> Hypermarkets
• Supermarkets
• Convenient Stores
(CVS)
• Traditional markets
• Online & home
shopping
Top 5 retailers (2003)
LG Corp – LG Supermarket, LG
Convenient Store
$ 7,499
Shinsegae – E-Mart / Shinsegae
Department Store
$5,804
Lotte Shopping Co Ltd. – Lotte
Market, Lotte
Department Store
$3,330
Samsung Tesco – Home Plus
$2,817
Samsung Cheil Industries
$2,086
Changes in the number of stores
in each retail business category
from 1996 to 2005
Hyundai Department Store
(My city: Seoul)
Popular Brands
The 100 Top Global Brands 2006
• Apparel Brands We buy
(BusinessWeek)
Ranking
Brand
20
Samsung
75
Hyundai
94
LG
- Ralph Lauren
- Theory, Juicy Couture..
- Korean brands
- Premium Jeans
- Luxury brands
Average Costs
T-shirt
$ 30
$100
$ 80
$ 300450
Jeans
Milk
$ 1.30 (500 ml)
Bread
$ 3.00
Store layout / design
Department store
Store layout / design
Department store
Store layout / design
Discount store
Online Shopping
• Apparel: Small & Unknown brands
- Owned by individuals
• G-market ( = Amazon.com), Wizwid.com
• http://www.giordano.co.kr/newindex.asp?mart_id=gior
dano
• http://www.liphop.co.kr
Conclusions
• Growth of discount stores
• Growth of online shopping
• Luxury brands continue to be popular
Presented By
Mohammad Touhid Hossain
Country Overview
• Came into existence late in 1971
after a nine-month long war of
Independence against Pakistan
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Population : about 150 Million
2006 est.)
(July
Area: 143,998 sq km (55,598 sq miles)
Capital and largest city: Dhaka
National Language: Bangla/ Bengali,
English
State Religion: Muslim 83%, Hindu
16%, other 1% (1998)
GNI per capita: US $470 (World Bank,
2006)
Life expectancy: 62 years
years (women) (UN)
(men),
63
Source: BBC News Country profile: Bangladesh
Country Overview Cont.
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In Southern Asia, bordering the Bay
of Bengal, between Burma and
India
Slightly smaller than Iowa / slightly
greater than the state of New York.
Bangladesh's capital city: Dhaka located in the central part of the
country.
Agriculture and labor-intensive
manufacturing remain the 2 major
pillars of the Bangladeshi national
economy
Bangladesh is best placed in the
region for textiles and garments
industry due to cheap labor and
favorable trade status with the EU
Analyzing two cultures with Hofstede:
USA and Bangladesh
Region/Country
USA
Bangladesh
( ranked based on
India, Pakistan)
IndividualismCollectivism
Power/
Distance
Uncertainty/
Avoidance
Masculinity- Femininity
High
Individualism
Low
Low/Medium
Feminine
Collectivism
High
High
Masculine
•Large degree of Power Distance (Bangladesh)- People accept a higher degree of unequally
distributed power, privileges and status symbols are normal and Popular
•Collectivism (Bangladesh) - “WE” instead of “ I ”, group goals are more important than personal goals.
•Large degree of Masculinity (Bangladesh) - Oriented towards values such as the importance of
showing off; achieving something visible, or making money predominate
•High degree in uncertainty avoidance (Bangladesh)- need for structure, clearly defined rules,
consensus, harmony and security.
• Significant
differences
between
American and
Bangladeshi
people’s
expectations
Need comparison:
USA and Bangladesh
•The 31th largest
economy in the world
as measured by
purchasing power
parity (PPP)
UNITED STATES # 3
BANGLADESH # 31
•Quality-of-life index
2005
UNITED STATES # 13
BANGLADESH # 77
My city Dhaka – The capital
- Center of political, cultural and economic life in Bangladesh
- Dhaka “ currently the world's 11th-largest city with 12.3 million
people”
My city Dhaka – The capital
Most Expensive Cities in the World
1
2
28
121
122
Oslo, Norway
Tokyo, Japan
New York
Dhaka, Bangladesh
New Delhi, India
Global City GDP Rankings 2005
GDP in US $ bn
1 Tokyo Japan
1191
2 New York USA
1133
82 Dhaka Bangladesh
52
Top Retailers and Shopping malls
Bashundhara City Complex – The Biggest Shopping Mall in
South Asia ( 2500 shops, a massive 20-storey complex)
Top Retailers and Shopping malls cont.
• Up to 25,000 people a day have been visiting the first Westernstyle shopping mall in Dhaka
• It took six years to build
Top Retailers and Shopping mall cont.
Store
Layout
and
Design
• The Biggest Shopping Mall in Bangladesh is comprised of
Supermarket, Multi Screen Cinemas,Theme Park, Fitness
Centre, Swimming pool ,Food Court ,Offices and Business
centre
Top Retailers and Shopping mall cont.
Store Layout and Design
• Bashundhara City (12th biggest in the world) has been built in
the center of Bangladesh's capital at a cost of more than $100m
• Never forget to visit it while being in Dhaka
Top Retailers and Shopping malls cont.
AARONG
•Leading fashion house that has revived the traditional arts
and crafts of Bangladesh
•Huge range of exciting products- from traditional and
western attire to household goods to shoes and bags, jewelry
and personal accessories
Top Retailers and Shopping malls cont.
Dhaka New Market
•No matter what you are
looking for ,
you will find here
Top Retailers and Shopping malls cont.
Shopping malls in Dhaka
Navana Tower
Metro Shopping Complex
Top Retailers and Shopping malls cont.
Shopping
plazas
everywhere
popping up
-
all over the
Dhaka city
Top Retailers and Shopping mall cont.
Aarong in Dhaka
Aarong store in UK
•Local Mecca for deshi handicraft
•The women Aarong employs are among the country’s most
disadvantaged
Trends and Fashion in Dhaka
Trends and Fashion in Dhaka cont.
• Sari or saree is the traditional female
garment in Bangladesh
Trends and Fashion in Dhaka cont.
•Salwar kameez is a traditional dress worn by women in
Bangladesh
Shopping culture
•Typical street shopping area
• We usually buy from traders on
the streets and shops in other
parts of Dhaka
Shopping culture Cont.
• Typical street shopping area in Dhaka, Bangladesh
Shopping culture cont.
•Typical street shopping area in Dhaka,
Bangladesh
E-Tailing / Internet Shopping
• E-Commerce is a much talked issue for last ten years in Bangladesh.
However, it is still in the infant stage
• Possible reasons:
-Lack of government initiative to adopt IT, lack of infrastructure,
government policies, lack of awareness about information technology
- Poverty, Education
• Thus creating awareness among the Bangladeshi traders regarding ecommerce is essential
Examples ( E-commerce sites) :
•Bangladesh Gift : online gift sending service for Bangladesh
www.bangladeshigift.com
•Sonar E-commerce, the largest shopping mall and E-commerce site of
Bangladesh http://www.banglashop.com/
E-Tailing / Internet Shopping (Future)
Internet users 2007
USA # 3
Bangladesh # 89
Internet users ranking of
countries is based on
figures from the 2007 CIA
world factbook
•Multichannel approach can attract new or infrequent distant
customers that normally would not be prepared to travel to the
store’s location
•More richness in information, more reach to customers
Average prices for some common goods
Examples of prices for some common goods are:
• 1 liter milk
• 12 eggs
• Loaf of bread
• 250 grams coffee (range between)
• 1 bottle of Soda- Coke / Pepsi (250ml)
• 20 cigarettes (range between)
• 500 grams beef (range between)
• Average price of an export quality T-shirt
(range between)
• Average retail price of quality Jeans
(per piece range between)
US$ 0.50
US$ 0.60
US$ 0.35
US$ 0.60 – 2.00
US$ 0.20
US$ 1.00 – 2.00
US$ 0.80 – 1.50
US$ 0.80 – 3.00
US $5.00 – $12
Thank You For Your Attention
Questions/ Comments?
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