...Globalization Impact on Fashion Industry Globalization is a word that has many different definitions. All together, it is a process of cultural integration, comprising with global labor division, production resources, as well as the removal of borders between cultures of various countries and tariffs. Fashions connection to globalization has significantly expanded within the last decade, with its evolvement several more designers have become universally accepted for their high-end designs soaring into popularity. Global fashion designers such as Dolce & Gabbana, Christian Dior, Versace, and Roberto Cavalli have in a way united people through clothes: fashion. Each of these designers come from a range of different backgrounds, cultural, and practices helping express several different styles in their clothing lines, appealing to a larger audience than intended. By acknowledging these well renowned designers, we look into deciphering the impacts and effects that fashion takes on the world. For global retailers, it is important to understand globalization affect on the fashion industry and its impact on cultural views and the consumption patterns gathered from different countries (Daye et al., 2008). Clothing is manufactured in nearly every country throughout the globe, mainly in developing nations. Because of globalization the production process has changed entirely with no plans of going back. Its changes include the location of where things are being made, sold and as well...
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...Japan, and identify the current phenomena in the market. Luxury is a business model of LV in accelerating Japanese consumers. It is followed by great execution of marketing principles in term of Product, Distribution, Promotion, and Price. However, the modern life of consumers has created change in their behavior. It has become a serious issue that challenges LV’s success in the future. In constructing this paper, a review of relevant journal, newspaper, academic publications, and online resources were used. Consumer behavior change is identified as a significant influence that challenges future performance of LV in the market. LV must seriously think on how to strategically maintain its competitive advantages in the market. This paper recommends LV to enhance its luxury existence in the heart of potential customers. It can be done through extensively enhancing customer relationship, and the main concept that should be implement is strategic alignment between its current marketing programs and Research & Design functions to support high quality production, which accommodate consumers’ expectations. Table of Contents EXECUTIVE SUMMARY………………………………………………………………………....i 1.Introduction ..................................................................................................................... 1 2.Business model strategy: Luxury as a business model ..................
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...Globalization for Businesses Sahar Aziz Critical Thinking and Decision Making in Business - 320 Monday, May 18th, 2015 Professor Jim Scholes Globalization for Businesses Globalization has been taking its course in the world for many, many years. It can be dated back to the times of Genghis Khan and the Silk Road. Trading has been occurring for hundreds of years, even though some may say that globalization didn’t exist until the last few decades. Whichever way or view one decides to look at it, globalization is inevitable, however, the positivity and growth that come with the implementation of globalization far outweigh any negative effects, for both businesses and consumers. (1, Premise) Globalization comes with a wide variety of positive effects. (1, Conclusion) It offers increased competition amongst businesses, thus leading to a better quality production of products and services. It offers improvements in organizations, goods and services. (2, Premise) Worldwide trading gives companies and businesses the opportunity to outsource their employees in other countries. (2, Conclusion) In turn, this assists in providing a vast amount of better job opportunities in developing countries, while cutting the costs of their businesses at the same time. Competition (3, Premise) Due to globalization, the widespread competition amongst businesses has increased...
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...Faust 1994). Brand recognition is very much linked with these two elements. But we can observe that companies limit the features of attractive brand labeling (Kohli & Labahn 2002). Products are getting globalization and this is another issue because customers rely in international branded products and there is variation among the customers’ perceptions regarding the impact of brand name and brand logo. Further, brand names that are both exposed to auditory and visual senses imply greater attention. There is a study wherein consumers relate the pitch, sound and meaning of brand names to the products (Kohli & Labahn 2002). This is especially crucial when a company launches a new product in the market wherein a peculiar sound or meaning of a newly heard brand name would fail to catch the interest of customers. They may be seeking much to replace their current brand and the initial request is to create a connection between the name and the product in question. There is little interest in brand logos of commodities that are consumed in a regular and continuous basis. Brand names seemed to be enough. On the other hand, brand logo is prominent in cars. Embedding brand names seemed to be an exaggeration of the price of the particular luxury item. Whatever the reason behind the companies' decision to indicate either brand name or logo in the commodity it is less significant in our study. The study is intended for Muslim and foreign...
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...MKT 2240- BUYER BEHAVIOUR THE BEHAVIOUR OF THE YOUNG TOWARDS LUXURY PRODUCTS WORD COUNT 1709 Submitted on: 2nd Sept 2013 Module Coordinator: John Sutton Content Introduction 3 *Luxury Background 3 *Today’s Youth 4 Consumer Behaviour 4 Self Concept Theory 4 The ‘A B C’ Attitude model 6 Conclusion 8 References List 9 Introduction "Luxury is a necessity where necessity ends." Coco Chanel The main purpose of this research is to find out what creates a spark in the youth of today when it comes to buying luxury products. For some it may be status and recognition for the others it may be comfort and quality, it may vary from people to people due to their personality. Today’s...
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...market and therefore is subject to the whims of the economy. The luxury retail market can be especially volatile because it usually depends on the spending of discretionary funds. The numerous companies which make up the LVMH, conglomerate are all luxury brands and all face this issue. Realizing this situation the LVMH, conglomerate has to plan to a degree to work around this issue and be successful. The success of any strategy in regards to business deals with the scanning of both internal and external environment to evaluate which factors most greatly affect the business. Companies should also examine their management styles from development to execution in order to develop proper planning strategy. As we know companies employ these strategies to gain advantages or protect their place in their specific market. LVMH is no different in this manor, as policy and actions show which goals they have and which strategies are to be put into place to implement them. We are going to examine some possible issues and strategies and the justification for those strategies in the near future for this company. The LVMH Group is one of the dominant forces in the Luxury Brand industries. Considering where LVMH is in consideration to the other brands in the Luxury Market the only real issue for the company lays in their end goal. The end goal which can be seen by the vision statement is to become the largest and most successful luxury brand distributor. In my estimation this is too wide spread of...
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...of Cultural Differences on Global Marketing Popa Cristina-Adelina IEBA, 1-st year * SUMMARY * Origins of the company * Marketing Globalization * L’Oreal Marketing Strategy in India * INCREASING THE CUSTOMER BASE * SEGMENTING MARKETING * L’OREAL MARKETING STRATEGY IN CHINA, JAPAN * L’OREAL MARKETING STRATEGY IN NETHERLANDS * L’OREAL MARETING STRATEGY IN USA * WHY L’OREAL NEEDS TO UNDERSTAND CULTURAL DIFFERENCES? * CONCLUSION * Origins of the company L’Oreal, which was started in 1909 by a French chemist named Eugéne Schueller and now is the largest cosmetic and beauty company in the whole world. With 100 years of proficiency in cosmetics, the company has 23 global brands in 130 countries around the world and 649 patents in 2009. The company has made its presence in all major markets in the world. The company’s main focus is on hair insignia, skin care, protection from sun, perfumes, etc. This company is more vigorous in dermatology and pharmacy fields and is leading patent holder in nanotechnology in USA. The company accounts for 50% sales outside Europe and has acquired brands in those countries. Not only to women, but the company offers beauty products to even men. The brands of the company are grouped by the particular markets like mass, professional brands, luxury products and active cosmetics. The “Consumer products” are high technology ones at aggressive costs through mass-marketing trade channels. The “Professional...
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...heart is the aim to promote local foods and centuries-old traditions of gastronomy and food production. Conversely, this means an opposition to fast food, industrial food production and globalization. Since 1986, the Slow Food movement has expanded to over 100,000 members with branches in over 150 countries, including the United States, the United Kingdom, Switzerland and Japan. With its “Good, clean and fair” motto, the Slow Food movement is striving to preserve traditional and regional cuisine and encourages farming of plants, seeds and livestock characteristic of the local ecosystem (Slow Food International). Through these means they hope to create a better, more sustainable and healthier planet for everyone. While the Slow Food movement began with modest, local minded roots, it has since expanded to become potentially the most effective attempt to guide the direction of globalization. Globalization has to ability to harm as well as help. On one hand, Globalization “homogenizes” and allows multinational corporations to extend their grasp to every corner of the world. Simultaneously, globalization can also spread local cultures allowing small farmers and artisans to reach places they have never dreamt of touching. Slow Food believes they can obtain their goal of “virtuous globalization” through their main...
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...December10, 2010 MGT 4600 Final Chapter 1: Increase in expansion of technology because the more advanced and available technology is to the developing world; the more competitive they are allowed to become. Growing consumer pressures because global discretionary has risen to the point that there is now widespread demand for products and services that would have been considered luxuries in the past. Increased global competition because incomes have grown globally and more consumers have satisfied their needs. So companies must develop what they believe customers will want. Changing political situations is major reason for growth because of the end of the schism between most Communist and non-Communist countries. Chapter 2: Cultural collisions that happen between international businesses and the countries that they attempt to start their businesses in. A company implements practices that work less well than intended. Social Stratification Systems because every culture values some things and people differently than other regions of the earth do. Information and task processing is important because some cultures tend to focus on the whole and then on the parts, whereas others do the opposite. Chapter 3: Individualism is important because it describes which refers to the primacy of the rights and role of the individual. Many western cultures follow this ideology which makes it difficult to transition to different places that clash with this characteristic. Collectivism...
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...The impact of globalization in India has been major, especially due to the call centers that have been outsourced there. The call centre jobs require the young Indian service providers to assume a different identity. They take on a western name, learn to talk with an accent, learn about western cultures to help them deal with western clients. This is forcing Indians to live fake western lives while physically being a part of the Indian reality. What is now emerging is a new dominant culture that is taking over that has changed ways of dressing, speaking, and thinking and has injected a new urban culture with the values of the modernized West. Indians are conforming to the processes of globalization in the name of progress. The cost is losing their identity, culture, heritage and traditions. Some of these cultural changes are reflected in values and religious practices, social interaction and roles and spending patterns. These changes also affect the US companies that have chosen to align or outsource with companies in India. Indians traditionally value peaceful co-existence, spirituality, respect for elders, nature, art, seeking prosperity, strong family ties and hospitality. It is highly collective in terms of society and family and less importance given to individualism. Indian myths, legends and stories stress that good human beings think of the welfare of others before their own. With the impact of call centers, globalization with its emphasis on individualism and secularism...
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...Cruises is a small ship company that specializes in active and luxury adventures that are designed to provide unique experiences and bring you up close and personal with destinations. With two upscale yachts that hold 35 guests each, cruising with Adventure Cruises is a truly intimate experience. The experience is active and full of adventure, yet in relaxed luxury. Destinations include the Mediterranean, Northern Europe, Tahiti and South America. The small yachts will bring customers to some of the most desirable destinations around the world, including big cities and hidden gems. And internal and external SWOTT analysis will be conducted to determine the factors that have an impact on the success of the company. SWOTT is an acronym for strength, weakness, opportunities, threat, and critical threat. The analysis is used to evaluate and then improve a company’s current situation. Internal features are examined to see the different strengths and weaknesses, and opportunities and threats are examined to reveal external factors facing the business. Once the analysis is complete, it will help Adventure Cruises determine what they can do to stay competitive and successful in the industry. The SWOTT Analysis involves Adventure Cruises answering numerous questions regarding their strengths and weaknesses as well as any threats and trends of the company. There will be assessments of influences that affect revenue and losses which will be vital in the effectiveness of...
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...Morals Philosophy 201 February 7, 2016 Chelby Apel Ethics have become an organizational priority. In the 21st century, ethics is neither a luxury nor an option. There is a growing impatience within society with selfish and irresponsible actions that impoverish some, while enriching the crafty. Hewlett Packard demonstrated its commitment to ethical integrity under the leadership of Carly Fiorina. The former CEO of Hewlett-Packard said of her six-year tenure, “Some of the most important choices I ever made were firing people who weren't conducting themselves with integrity” (Weil, 2007). In contrast, R. J. Reynolds Tobacco Company was caught covering up knowledge about the addictiveness of nicotine. Tolerating bad behavior to improve the bottom line and justifying it as “not really illegal” creates a climate that ultimately becomes corrosive. In addition to social responsibility, there are other compelling motivations for 21st century organizations to make ethical values a priority. More than simply a legal or moral responsibility, ethics need to become an organizational priority. Organizational leaders have a lot on their minds in today’s highly competitive world. They must keep abreast of rapid technological advancements, competitor’s products and services, the effects of globalization, and opportunities and threats within their own industry, to name the most obvious. Leaders must also keep a constant eye on the mission, vision, values, culture, strategy...
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...Ethics have become an organizational priority. In the 21st century, ethics is neither a luxury nor an option. There is a growing impatience within society with selfish and irresponsible actions that impoverish some, while enriching the crafty. Hewlett Packard demonstrated its commitment to ethical integrity under the leadership of Carly Fiorina. The former CEO of Hewlett-Packard said of her six-year tenure, “Some of the most important choices I ever made were firing people who weren't conducting themselves with integrity” (Weil, 2007). In contrast, R. J. Reynolds Tobacco Company was caught covering up knowledge about the addictiveness of nicotine. Tolerating bad behavior to improve the bottom line and justifying it as “not really illegal” creates a climate that ultimately becomes corrosive. In addition to social responsibility, there are other compelling motivations for 21st century organizations to make ethical values a priority. More than simply a legal or moral responsibility, ethics need to become an organizational priority. Organizational leaders have a lot on their minds in today’s highly competitive world. They must keep abreast of rapid technological advancements, competitor’s products and services, the effects of globalization, and opportunities and threats within their own industry, to name the most obvious. Leaders must also keep a constant eye on the mission, vision, values, culture, strategy and goals of their own organizations. In the midst...
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...Question 01: How do consumers culture, social, personal and psychological characteristics affect their cosmetics shopping behavior? Answer: The behavior that the cosmetic consumers display in searching, purchasing, using, evaluating and disposing a product that they expect will satisfy their needs is very important to create a market. It mainly focuses on how individuals make decisions to spend their time, money and effort on that cosmetic. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose it. 1. Cultural Factors: Culture has a profound influence on all aspects of human behavior. Culture is a pervasive influence which underlies all facets of social behavior and interaction. It is embodied in the objects used in everyday life and in modes of communication in society. Different cultures react differently to a new product, as the meanings, values, ideas and beliefs of a social group are articulated through various cultural artifacts. One’s own personal culture guides the selection of cosmetics. The language and the symbols used on the package influences the selection of cosmetics and the ritual which we perform has an effect on the use of cosmetics too. While selecting cosmetics, culture influences their selection. For example, complexion of Asians is darker than Europeans...
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...The Overconsumption of Luxury Items in China Introduction Chinese luxury goods market has grown dramatically over the past decades. According to a report released by Bain & Company (2012), currently, Chinese consumers occupy about 50% of the luxury purchases in Asia, and nearly 33% of those in Europe. Globally, one in four purchases of individual luxury goods comes from Chinese customers. Therefore, overconsumption of luxury items in China is a problem which should be given attention to. This problem will lead to a series of negative impacts on economy, society and environment, such as bustling counterfeit markets, distorted values, and damaged environment which could present significant challenges for China even all over the world. The purchase of luxury goods by Chinese consumers may be motivated by different factors from the aspects of economy, society and culture. This report will identify the impacts, analyze the causes, and consider possible solutions of this problem. Impacts Three aspects could be affected by the overconsumption of luxury items in China: economy, society and environment. To begin with, the overconsumption of luxury items would result in thriving counterfeit markets and threatened domestic businesses. Due to the demand for luxury goods, a bustling counterfeit market has been established, with counterfeiters offering replicas of luxuries at much cheaper prices than the authentic counterparts. For a country as a whole, this counterfeit market...
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