Ports Design Limited - strategic management

Résumé du document

Ports Design Limited is a vertically integrated, international fashion company engaged in the design, manufacture and retail of high-end ladies and men's fashion garments and accessories. Ports global operations include North America and Asia. Ports demonstrates an ability to generate stable growth and to catch opportunities in order to keep its leading position in the chinese market. The diversification of its product are, Ports 1961, Ports International, and BMW, together with the strengthening of its retail distribution platform, which allows the group to face the coming of international luxury brands, such as LVMH and Gucci group. The fact that Ports wants to enter the European market is justified by the expansion plan of the corporation and would comply with it multi-brand portfolio objective.

Extraits

[...] It was in a position to definitely allow the company to go ahead with its strategy of expansion and its multi-brand portfolio objective. IV. The European Market A strong obstacle to consider across the European continent compared to the first market of PORTS, is the cultural aspect of the consumer behavior. It should be noted that there is a huge difference between the European and the Chinese customer. For Chinese customers it is easy to accept a new brand since their tastes and habits are constantly evolving. [...]

[...] The feminine collection is designed by Tia Cibani. It should be noted that this business segment is a tailor made product line catering only to the Chinese market. Across the Chinese boundary it has a total of over 400 stores. As for PORTS 1961, there is a collection for men and women. The items have been very well adapted to the Chinese customer. The other characteristic feature of these garments is that they are actually more classical and are targeted towards older clients. [...]

[...] The main issue is to know whether PORTS Design Limited is able to take advantage of the situation to enter the European market or not. The answer is not obvious. Through the different marketing tools we used to analyze the market, we have noticed that PORTS 1961 is not as profitable as PORTS International and the company would rather get a partnership to maximize its chances. As we said, the strategy will consist in a mutual benefit between PORTS and the partner's interests “fair's fair deal”). [...]

[...] This was mainly due to a strong effort and investment in advertising and the endorsement from Hollywood celebrities. Although it shares the same level of popularity, its average selling price remains at 30% lower than its international competitors such as Max Mara and Hugo Boss. It should be noted that it is still affordable to the Chinese middle and upper-class consumers despite the price margin. But this pricing strategy is balanced by its strong retail business capabilities An 'aggressive' move - The retail chain expansion The first core strategy is concerning the retail expansion. [...]

[...] This could be a great opportunity for PORTS Design Limited, and beneficial for the French company that could improve its situation in the American market and be enhanced in the Chinese market. The agreement chosen can consist in enhancing European brands in the emerging market (i.e China): either manufacturing the partner's products using its strong knowledge on the Chinese market, or including them in the retail distribution platform in PCD network. In terms of manufacturing, the luxury brands that are mostly in-house production are the following: Swatch, Valentino, Hermes and LVMH produce the vast majority of their products in house Those that use outsourcing are the following: Burberry, Bulgari and Gucci (they produce less than one-third of their products in-house and the rest in China). [...]