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International Fashion Management Insights

Chapter 3 discusses international fashion management, focusing on the motivations, strategies, and challenges of internationalization in the fashion industry. It emphasizes the importance of understanding cultural influences, market dynamics, and strategic adaptations for successful global expansion. Key considerations include the push and pull factors for market entry, the role of brand origin, and the significance of strategic portfolio management.

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0% found this document useful (0 votes)
2 views21 pages

International Fashion Management Insights

Chapter 3 discusses international fashion management, focusing on the motivations, strategies, and challenges of internationalization in the fashion industry. It emphasizes the importance of understanding cultural influences, market dynamics, and strategic adaptations for successful global expansion. Key considerations include the push and pull factors for market entry, the role of brand origin, and the significance of strategic portfolio management.

Uploaded by

emilykspretz
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Chapter 3:

International
Fashion
Management
by Ana Roncha & Liz Gee
Learning objectives
After studying this chapter, you should be able to understand:
• Why international development underpins many fashion strategies
• The risks and opportunities of international strategy
• The different approaches to international strategy
• Strategic adaptations when entering and developing markets
• The meaning of place and origin in relation to international fashion
strategies
• The concept of strategic portfolio management for large global
fashion organizations
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
International market development
Internationalization tends to occur in waves, driven by changes in:
• Political conditions
• Economic conditions
• Cost and demand dynamics
Research highlights key motivations for buinternational expansion
(Alexander & Doherty, 2009; Moen, 2015)
Two main types of motivational factors:
• Push factors: Pressure in home markets, force brands to seek new international
markets
• Pull factors: Attractions leading brands to enter new international markets
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Push & Pull Factors

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Internationalization
• Internationalization occurs when companies expand
across geo-political boundaries (Hollensen, 2007)
• It is a strategic decision to:
• Access new markets
• Add value
• Drive long-term growth
• Brands can choose from different marketing entry
strategies.
• Each market demands careful evaluation of:
• investment and management commitment
• brand risk and control
• profit potential

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
What to consider? Internationalization
The 6 W’s Framework
• Why? Maintaining and driving brand growth
• Where? Identifying and selecting attractive marketings with minimal
resistance.
• What? Choosing suitable brands or product lines for global market(s).
• Who? Deciding on partners and people.
• When? Planning a realistic timescale.
• How? Selecting the appropriate market entry strategy.

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Other Considerations:
Internationalization
• Fashion brands can use different business models to enter new international
markets:
• direct online selling and e-commerce
• wholesaling and licensing
• Concessions and e-concessions
• Franchising and joint venture (JV)
• Direct investment into permanent or temporary stores.
• Effective international expansion requires evaluating:
• External and internal partners
• Level of control
• Pace of international expansion
• These factors, taken together, guide the preferred business model.
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Globalization & Strategic Challenges
• Before entering a new market, fashion brands must analyze:
• The business environment (PESTEL)
• The fashion industry landscape (competitive forces
analysis)
• Distance matters: It affects market attractiveness and
accessibility
• CAGE Analysis (Cultural, Administrative, Geographic,
Economic):
• Assesses the impact of distance on international
strategy
• Identifies pull factors
• Highlights challenes that may weaken market potential

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
CAGE factors characterizing distance considerations
for successful internationalization

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
CAGE factors characterizing distance considerations
for successful internationalization

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Internationalism vs. Globalization
Internationalization Globalization
Aspect
(Strategic Response) (Shapes the Industry)

Expanding business operations Integration and interdependence of


Definition
across national borders markets and cultures worldwide
Entering and operating in multiple Creating a unified global market
Scope
individual countries and culture
Adapting products and strategies to Standardizing products and
Focus
each specific country strategies globally
Often involves country-specific Centralized control with global
Control
control and decisions coordination
Market expansion and Global efficiency, scale economies,
Motivation
diversification and cultural exchange
Zara opening stores in specific Fast fashion trends spreading
Examples
countries rapidly worldwide
Approach More tailored and localized More standardized and integrated

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
International Market Development
Strategies
• Definition: International marketing =
selling goods/services in more than one
country (Cateora and Graham, 2007:
9).
• Key Focus: Culture shapes consumer
behavior and brand success
• Tool: 12C Analysis Model > evaluates
market attractiveness and guides
strategy.
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Global → Global (Standardized)
• Two main approaches to international strategy:
• Standardized: same strategy across all markets
• Localized: adapts strategy for each market
• Standardization benefits:
• Economies of scale > lower costs and faster rollout
• Works when cultures share similar tastes and trends
• Objective and analytical approach, often from an “outside” view of the
culture
• Common in vertically integrated companies or private label fashion to protect
brand identity
• Example Michael Kors, Chanel, Levi’s
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Global → Local (Unique)
• Localized (Multinational) Strategy: adapt products, branding, and marketing for
each market
• Focus on cultural variations, norms, and values
• Each country has a unique “national character”
• Subjective and experiential approach: understand culture as experienced by
“insiders”
• Products or positioning may be modified to match local tastes
• Marketing reflects local language, trends, and cultural preferences

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Global → Glocal (Standard + Local)

• Glocalization: compromise between global standardization and local adaptation


• Standardize core brand elements, localize products, messaging, or promotions
• Product or service is developed and distributed globally, but tailored to local
markets
• Adaptations ensure compliance with local laws, customer preferences, and cultural
norms
• Products or services that are effectively glocalized are more appealing to end users

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
The Role of Culture
• Culture shapes a brand’s values, identity, and
universe
• Brands can reflect culture and communicate
it to consumers
• Culture explains the “how” and “why” of
consumer behavior
• Culture is shared mental programming
influenced by education, life experiences,
and social environment
• Understanding culture is key to creating
relevant and resonant fashion products and
campaigns
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
The Role of Culture
• Culture has invisible and visible elements
(iceberg metaphor):
• Visible: Dress, language, food, rituals,
architecture, behaviour
• Invisible: values, beliefs, assumptions,
thought patterns, communication
• Levels of culture:
• National Culture: shared language, laws,
values
• Subculture: variations within society
(ethnicity, youth culture, religion)
• Corporate culture: shared values and norms
within an organization
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Brand and Country of Origin (COO)
Effect
• Country of origin (COO) is one of the most thoroughly researched areas in international
consumer behavior.
• Associating a brand with its country of origin taps into national stereotypes, cultural
beliefs, past experiences, and specific imagery (Chattalas et al., 2008).
• Anholt (2007) argues that brands can shape national image and even influence how a
country’s culture is perceived.
• Brand origin is often defined as “the overall perception consumers form of products from
a particular country, based on their prior perceptions of the country’s production and
marketing strengths and weaknesses” (Roth & Romeo, 1992: 480).
• More recent research defines it more simply as “the country from which a brand
originates” (Samiee & Chabowski, 2021), or “the location from which a brand originated”
(Cho & Hwang, 2020).
© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,
Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
The Role of a Parent Company
• Support international brands with resources, expertise, and risk management
• Act as:
• Coordinator across multiple businesses
• Portfolio manager of brands
• Pool of financial resources for investments and expansion
• Talent and knowledge sharing across brands
• Adds value in strategy formulation, monitoring, and performance management
• Portfolio approach helps balance growth opportunities and international risks.

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)
Parent Company examples
Chapter 3 Concluding thoughts
Key points:
• Fashion brands are constantly seeking opportunities, responding to growth drivers, and
navigating international market complexity
• Global marketing strategies are crucial for success, product appeal, and differentiation
across markets
• The motivation to internationalize (why) must be balanced with the resources required
(how)
• Success depends on choosing the right market (where) and aligning the brand offering to
it
• Building networks and partnerships (who) strengthens global capability
• Timing of entry and development (when) requires planning and patience

© Rosemary Varley, Ana Roncha, Natascha Radclyffe-Thomas and Liz Gee,


Fashion Management: A Strategic Approach (Bloomsbury, 2024, 2nd edition)

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