A CEO of a successful US clothing store that sells men’s and women’s athletic wear is considering expanding to markets outside the USA. The company is well established in the US and most popular with teenagers and young adults between the ages of 20-38. The company has a differentiation strategy encompassing fashion forward, trendy designs and colors. The products command higher prices due to their unique patterns and perception of high quality and style. The goods are sold in stand-alone stores as well as integrated into A level department stores and boutiques.
The company is unusual since all the design, manufacturing and, of course, distribution is done in the USA.
For a couple of years, sales have remained steady. The CEO has been thinking about expanding into international markets to increase sales or perhaps outsource some of the production processes to reduce costs and has decided to hire a consultant – YOU, to help make these decisions.
The CEO is considering Brazil, Russia, India or China as locations for new markets or production. Which of these countries would you recommend and why? Perhaps you would choose a different country: which one and why? What are some of the potential opportunities and challenges the CEO needs to be aware of?
A. Share your advice on selecting markets for new sales
B. Share your advice on selecting locations for production.