Ali Page
International Marketing
18 January 2016

1.) Carolina Herrera began in 2000 when fashion designer Carolina Herrera signed a commercial licensing contract with Company Sociedad Textil (STL). STL originated in 1997 in the Spanish market selling different apparel to men in women in the medium-term development of the worldwide market. Carolina Herrera’s business model was to sell to those with a high purchasing power. The quality would be at a high level as well as exclusive design products. STL and CH’s contract would allow for the start up of worldwide expansion of her firm. 305 stores have been opened in 23 countries. STL has a unified, quasi-integrated and global management model, permitting a large degree of verticalization. Technically it is not a “Just-in-time production system”. Instead, it is classified as a quick response system.
2. CH’s internationalization process began in 2002 with the opening of its Miami store. It’s most current important markets are the United States and South America. By 2010, the brand had expanded to 23 countries and the majority of it’s total sales were from international sales. Her fame quickly spread throughout the United States and South American countries due to her nationality and her line dedicated to the fashion capital of the United States, New York.
3. The company changed the management model to facilitate the internationalization process because growth had become limited in the domestic market.
4. Internationalization has been increasing in the clothing and fashion sector. The setting is becoming more and more competitive. A motivating factor CH is brand awareness in foreign countries to create the existence of consumer groups in their demand market. The development of international trade is beginning to abolish barrier to export and import.
5. The first method of entry is its own point of sales or branches.