American Apparel (AA) is a well-known United States clothing brand that has gained recognition among the retail industry. American Apparel headquarters is located in Los Angles, California where it manufactures and distributes its clothing products. It is known in today’s society, to be sweatshop free and has a strong belief of workers’ rights. However, American Apparel has had a downfall in the retail industry losing revenue. This research of American Appeal will provide feasible reasons why the company should enter China international market to improve on sales revenue. Companies such as American Apparel can operate in a certain environment that has a formulation and implementation of a strong business strategy that can avoid restricted environmental factors. This will determine the decision making of financial considerations, promotion strategy, organizational structure, and the management style. The environmental awareness is the starting point of environmental analysis. American Apparel has to take in consideration that there are two environmental factors of the internal and external environments. These factors affect the employees, customers, management, supply and demand. The environment has a direct impact on American Apparel business. China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.
Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its
China considered one of the largest economies in the world, it also has a vast emerging
On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.
American Apparel (AA) is a well-known United States clothing brand that has gained recognition among the retail industry. American Apparel headquarters is located in Los Angles, California where it manufactures and distributes its clothing products. It is known in today’s society, to be sweatshop free and has a strong belief of workers’ rights. However, American Apparel has had a downfall in the retail industry losing revenue. This research of American Appeal will provide feasible reasons why the company should enter China international market to improve on sales revenue.
Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):
Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s
China may be an attractive country for US firms who are seeking to expand their business and enter the Global Market for import and experts of goods and services. Also, China has a cheaper and large workforce that is attractive to firms who want to raise their revenues by expanding productions abroad. The details in this report will provide feedback on the important impacts of doing business in China. The overview will address the following categories: Geographic considerations, demographics, political system, economy, cultural issues, communication, transportation and technology, a brief overview of the military, transnational issues and labor considerations.
China as an economy has change rapidly over the past few decades. It has gone from a war struck country prior 1978, in which the economy was greatly effect, to one of the largest
With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
Today’s China is the most populous country in the world and is so one of the most important political and economical forces in the world.
Henninger, et al., (2016), assessments found that large, fast fashion firms are primarily responsible for disseminating the company’s core message and information on it’s sustainability initiatives. In spite of, many argued small progress still creates greater change, an owner-manager states: "If I'm 100% ethical and I have 5,000 customers and a [large retailer] is like 0.05% ethical and has 5 million customers they're actually reaching more, doing and making better change, even though what they do in entirety isn't great” (Henninger et al., 2016 p. 411-414). Nonetheless, the efficiency towards fast fashion sustainability is increasing. Women’s Wear Daily (2017), reported that brands such as, Reformation are becoming the leading pioneers in
UNIQLO is the abbreviation of “Unique Clothing Warehouse”, a Japanese casual wear designer, manufacturer and retailer which provides consumers with the business philosophy of " low price, quality assurance ", and achieved remarkable results as world's top apparel retailer. UNIQLO plans to have 100 fresh stores annually in China while many other retailers have retarded store openings on account of China's slowing economic growth (Doland, 2015). This report, therefore, will set out to evaluate UNIQLO's marketing strategies in China, with a particular focus on the importance of pricing, development of product and the need for precise positioning.
There are a large amount of social and environmental problems within the global apparel industry.
This paper was prepared for GD530 Economics and the International System, taught by Professor Snow