Market Screening for Clothing
product.
• Introduction
• Region and Country Identification
• Preliminary Screening
•
•
•
•
Demographic & Physical Environment
Political Environment:
Economic Environment:
Social/Cultural Environment:
• In depth screening
•
•
•
•
Market Analysis:
Market Value and Growth:
Competitive intensity
Distribution and Intermediary:
• Final selection
• Product
• Location
• Competitive Expertise
• Private labeling
• Industry Growth
• Western European region
• international fashion hub
• Selection of countries
Countries
Population
size
Population
Growth
(2010 est.)
Population
Density
Urban
Population
Shipping
distance
(From KHI
to nearest
Port in
nautical
milnes)
Mobile Users
Telephone Users
Internet Users
% Internet Users
Demographic & Physical Environment:
France
64,768,389
0.53%
119.64
77%
(2008)
4,347
60,950,00
0
36,431,
000
45,262,000
70
Germany
82,282,988
-0.06%
229
74%
(2008)
6,354
105,000,0
00
48,700,
000
65,125,000
79
Italy
58,090,681
-0.08%
200.31
68%
4,262
90,613,00
0
21,300,
000
29,235,000
50
Spain
46,505,963
0.49%
93.01
77%
4430
50,991,00
0
20,057,
000
28,119,000
60
Sweden
9,074,055
0.16%
20.82
85%
6,053
11,426,00
0
5,146,0
00
8,398,000
93
United
kingdom
62,348,447
0.56%
253.42
90%
6,826
80,375,00
0
32,117,
000
51,444,000
83
Physical distribution and communication network
Political Environment
Countries
France
Germany
Italy
Spain
Sweden
United kingdom
1.
System of government
republic
federal republic
Political stability
(Congo (DRC)
Review 2009)1
Trade Restrictions
Tariff and Non Tariff Barriers2
0.53
4
0.92
4
Republic
0.31
parliamentary monarchy
0.54
constitutional monarchy
1.38
constitutional monarchy and
Commonwealth realm
4
4
4
4
0.77
Measured on a scale of -2.5 to 2.5, with the higher scores indicating better governance and lower scores indicated
poor governance. Data is for the year 2004
2. On the scale 0 - 5 ( 5 being the loweset)
Countries
Overall economic
freedom1
France
64.6
Economic Environment
Consumer Price
Economic growth
Index
2000-100
GDP
GDP
(Purshasing Power
(Real Growth
Year 2009
Parity)
Rate)
$2.16 trillion (2010
est.)
1.6% (2010 est.)
117.1
Germany
71.8
$2.951 trillion
(2010 est.)
3.3% (2010 est.)
115.9
60.3
$1.782 trillion
(2010 est.)
1.1% (2010 est.)
121.9
70.2
$1.374 trillion
(2010 est.)
-0.4% (2010 est.)
126
71.9
$354 billion (2010
est.)
4.1% (2010 est.)
114.9
74.5
$2.189 trillion
(2010 est.)
1.6% (2010 est.)
128.6
Italy
Spain
Sweden
United kingdom
1
Values from 2011 Index of Economic Freedom
Foreign Trade
Trade Balance
Unemployment rate
Exports
Imports
$508.7
billion
(2010
est.)
$577.7 billion
(2010 est.)
$ -69 Billion (2010
est.)
9.5% (2010 est.)
$1.12 trillion
(2010 est.)
$ 22 Billion (2010 est.)
7.1% (2010 est.)
$459.7 billion
(2010 est.)
$ 1.3 Billion (2010
est.)
8.4% (2010 est.)
$324.6 billion
(2010 est.)
$ -56 Billion (2010
est.)
20% (2010 est.)
$158.6 billion
(2010 est.)
$ 4 Billion (2010 est.)
8.3% (2010 est.)
$546.5 billion
(2010 est.)
$ -141 Billion (2010
est.)
7.9% (2010 est.)
$1.337
trillion
(2010
est.)
$458.4
billion
(2010
est.)
$268.3
billion
(2010
est.)
$162.6
billion
(2010
est.)
$405.6
billion
(2010
est.)
• Acceptance of a product
• Existence of denim brands in Target Market
• Rich textiles in home country
• Market Analysis:
• Apparel retail sector
• Market Value and Growth
Country
Market Value
(2009)
Market Growth (CAGR)
(2005-2009)
Forecast
Market Value
(by 2014)
Forecast
Growth rate
(2009-2014)
Germany
US$ 75 Billion
0.8%
US$ 76.7 Billion
0.5%
Italy
US$ 67 Billion
-0.8%
US$ 65.7 Billion
-0.4%
UK
US$ 63 Billion
1.9%
US$ 67.5 Billion
1.3%
France
US$ 49 Billion
0.6%
US$ 50.3 Billion
0.6%
Spain
US$ 23.7 Billion
-0.4%
US$ 21 Billion
-2.3%
Sweden
US$ 8 Billion
3.7%
US$ 9.4 Billion
3.4%
• Competitive intensity
•
•
•
•
Fairly Fragmented
Poor industry performance intensifies rivalry.
Supplier power is decreased
Supplier switching costs for retailers is not very high.
• Distribution
Major Exporters
7.2, 10%
3.3, 5%
8, 11%
13.3, 18%
41, 56%
China
Turkey
India
Bangladesh
Tunisia
• Limitations in the final selection of foreign markets which are
company’s objectives, strategies and resources.
• High Potential
• Market Size, Growth and Entry barrier.
• Economic Growth
• Over economic freedom, trade balance, GDP
• Selection
1. Germany
2. Italy
3. UK