Furthermore, there are lots of substitute goods for G2000’s products where in addition spending of apparel or clothing just creates a small proportion of most consumers’ total expenditure while the frequency of buying clothes is low. c. Apart from this, the development and advancement of technology enables consumers to compare the price, quality and style of products easily. For example, consumers may check for the price and style of products of G2000 and other brands such as Esprit, Zara and the like before they visit to the outlet shops of G2000.
They may decide whether want to buy G2000’s products before they leave their home. (3) Bargaining Power of Suppliers a. Bargaining power of suppliers is low as G2000 won’t depend on single or two suppliers. G2000 has a lot of suppliers and it has its own designer. All the suppliers and designers are from Hong Kong headquarter. Moreover, it’s quite easy for G2000 to switch to other suppliers as the cost of switching is not too expensive. (4) Substitutes a. As G2000 is main in selling formal attire for office ladies or men, semi-formal attire or casual wear may become the most threaten substitutes to G2000.
Since semi-formal attire become more and more popular among the office working group nowadays, consumers may easily switch their taste and habit on types of working attire to be wore. For instance, the brand Baleno and Giordano are now introducing more semi-formal wear which may induce consumers to change their style and switch to spend on their products instead of buying G2000‘s formal attire. (5) Rivalry a. Padini — First established in year 1971. Comprises 8 district brand and each brand represents different fashion philosophy.
The Research paper on The Motivational Reasons behind Consumer Choice in Branded Coffee Shops Abstract
The coffee-shop industry has been undergoing substantial change during the latter part of the twentieth and early part of the twenty-first century, reflected by continuous changes in consumer behaviour. The aim of this study is to improve the understanding of the motivational reasons behind customer choice in branded coffee shops, both international and local. A quantitative data collection of 300 ...
The eight sub-brands allow consumers to have more options on style and design of apparel. The eight brands are PDI, Seed, P&Co, Vincci, Mikki, Padini Authentics, Padini and Padini Concept Store. Besides, Padini also apply the ‘fashion’ concept in food industry. Padini has tapped synergy between shopping and eating by establishing the Seed Cafe. The first Seed Cafe was set up in June 2000 with its first outlet at One Utama. Such innovative enabling Padini to spread its brand wider to the consumers and the cafe serves to strengthen branding image of Padini.
On the other hands, Padini frequently held clearances fair which allow consumers to buy its products at lower price. The price is as low as RM6. This will definitely attract more consumers to purchase its products and thus expand the market. b. Crocodile — First established in late 1940’s. The brand has sufficient power to compete with G2000 as it is a long-established brand in apparel market and it may already have created brand-consciousness to certain group of consumers. Those particular customers will not easily switch to other brands such as G2000 because of their loyalty to the Crocodile brand.
PESTEL Analysis (1)Political Factors a. Mainland China executed the ‘individual visit scheme’ beginning in year 2003 in order to encourage more people from Mainland China to visit to southern region of the country such as Hong Kong and Macau on individual basis. Prior to the commencement of this scheme, people from Mainland China can only make visit to Hong Kong with business visa or join in travel tours. With the execution of the scheme, amount of visitors who visit to Hong Kong is increased drastically in which 61. 1% of total Mainland China visitors arrive under the Individual Visit Scheme.
Such aggrandizement indirectly increase the number of consumers visit and spend on G2000’s products. b. On the other hands, Mainland China has also been executing ‘One Child Policy’ since year 1979. As a result of this, population of China is controlled to prevent overflow. Such policy hinder the number of birth and this will affect business of G2000 in long term as demand for G2000’s products will have to confront atrophy of demand in the future time. (2) Economic Factors a. The economic growth of China resulted to a greater market in the fashion industry.
The Term Paper on Influence of Brand Loyalty on Consumer Sportswear
We owe a debt of gratitude to (professors name), for the vision and foresight which inspired us to conceive this research project on topic Influence of Brand Loyalty on Consumer Sportswear as for providing necessary information regarding the project & also for her support in completing the project. We would like to express our gratitude towards member of (institute name) for their kind co- ...
Since Hong Kong is part of Mainland China, such growth will definitely influence the development and growth of G2000 whose main headquarters is in Hong Kong because as the purchasing power of consumers in China increases, the more the income to buy apparel or other clothings. b. Exchange rate for China’s currency becomes higher and higher and this may make exporting of G2000 products more difficult as it may raise the price of products in terms of foreign currency. For example, the Yuan currency becomes stronger and this may increase the cost price of products when it is imported to Malaysia. . Inflation caused by the meteorically surge of oil price will definitely raise the transportation fees and thus augment the cost price of product. This makes the selling price of products higher and this may cause loss of certain group of consumers. d. On the other hand, rise of price of other goods may also evoke higher wage demand from employees. Thus it will again raise the cost price. For example, if G2000 Limited decided to increase approximate HK$2,000(rm 200) a month for their graduate management trainees. e. Labour cost in Hong Kong is relatively cheaper than other countries.
For example, the starting salaries for frontline salespeople is around HK$9,000(RM900) inclusive of commission and allowances while for young designers, the salaries ranging from HK$9,000(RM900) to HK$10,000(RM1000) per month. Most of the staff are directly recruited from Hong Kong local institute of higher learning who are fresh tertiary education graduates without any working experience. (3) Social Factors a. Higher education level which fosters more professional people nowadays may increase demand for formal attire.
The Review on Impact of Product Price and Brand Name on Quality Perception
In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency (For commodities, they are expressed as currency per unit weight of the commodity, e.g. Tshs per kilogram.) Although prices could be quoted as quantities of other goods or services ...
This is because the higher the educational level, the more the people working in the office for their professional careers such as accountants, designers, lawyers and the like. This is because they may require wearing formal attire and thus G2000’s products may become one of their options. b. Growing population of young people will increase the demand for newest trends. This will expand the market of G2000’s products as most of the clothing design aim for people between the age of 20 and 40. (4) Technological Factors a.
New technology such as bar coding and computer aided design may enhance the quality of products and lead to innovation and creativity. This will benefit both the consumers as well as G2000. The bar coding system allows G2000 to check for its stock accurately and rapidly while it also conveniences the selling process. Computer aided design may also attract more consumers to spend on the fashion goods. For example, G2000 is one of the customers to Lectra Hong Kong Ltd which main in rendering solution of computer-aided design (CAD).
b. G2000 also introduces the online application for job vacancy and franchise programme.
Such facilities have made the application process become easier and thus it may also save the production cost because there is less labour cost and paperwork incurred. This shows the advantages of development of information technology. c. Furthermore, G2000 publishes its catalogue highlighting new collections of every season on its official website. This may facilitate consumers to search and check for the latest trends by surfing the internet. This implements an alternative method of providing information and services to consumers by G2000. 5) Environmental Factors a. As Hong Kong undergoing four seasons a year, G2000 has to design and create different style of products to cater the demand of consumers in different seasons. For example, the main design of G2000 is divided into two collections, one is Spring/Summer collection and the other one is Fall/Winter collection. (6) Legal & Law Factors a. The firm has to comply and follow different rules & regulations when exporting goods to foreign countries as different countries may have different laws(mainly in terms of religion).
The Business plan on Intro To Business Businesses Product Consumers
Introduction to Business Business plays a major role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society. By satisfying the needs and wants people cannot satisfy themselves, businesses improve the quality of life for people and create a higher standard of living. It is a way for individuals to provide goods and services to ...
For example, some of G2000 products’ design which is sexy may not be allowed to be imported to some Muslim countries. b. The firm has to be aware of the pattern right ownership and trademark infringement. In year 2006, G2000 was sued by a plaintiff, Mr. Zhao Hua for violating the registered trademark ‘2000’ for selling garments and accessories which were registered in year 1997 and were then transferred to Mr. Zhao Hua in year 2005. G2000 was ordered by court to pay a total of 20 Million Yuan to the plaintiff for damages.
