Globalization of Business Operations – Range Development for Denmark (Footwear)

Globalization of Business Operations –

Range Development for Denmark (Footwear)

Ashish Chandra

Faculty Member, Footwear Department, FDDI, Raebareli

ABSTRACT

The altitude of participation of firms in international process can be specified by different types of foreign market entry modes. Import and export entry modes are the conventional form of worldwide activities of firms.

As the business environment has increased in uncertainty and complexity, firms must immediately identify the significant changes and respond to them rapidly to continue to exist in the industry. In the present time Customer Relationship Management (CRM) has also became a big marketing strategy for international business. It is gaining drive with the increase of consumerism at international level. To meet the competition globally, we can enter into the country by proper fashion forecasting and appropriate range development in specific fashion categories. Like footwears, handbags, belts wallets etc. This also includes Hardlines & Softlines. 

Range-building in the footwear industry is the seasonal exercise of putting together the sales collection for the coming selling season. The range building starts with gathering the necessary information for fashion aspects such as the total fashion look, colors, textures, material types and what are the basic and special type of footwear expected to be in vogue in the coming season. It also covers the evaluation and interpretation of this information and preparation of a fashion and a technical brief for the own company taking into consideration the company market niche and its technical and commercial capabilities.

1. Introduction

The basic information needed for the range-building process include the following:

a) Fashion colors textiles

b) Fashion colors leather

c) Material types, structures, textures, softness and touch

c) General fashion magazines and specialized shoe magazines and reports

d) General fashion reports

e) Information from fashion and trade shows

f) Information through consultants, suppliers and trend reports

After evaluating the basic information, the person responsible for the range-building will have to make an evaluation of the material obtained and prepare a systematic fashion and technical brief or a guide line for starting the range-building activities. This should include the selection of the following:

a. Lasts

b. Components

c. Basic upper styling trends

d. Upper materials and main colour trend

e. Number of new styles needed

f. Old styles to be modified

g. Target dates for the first presentation of the range

It is important that the range-builder prepares a detailed brief for the fashion and technical aspects for the coming range and there by provides the designers and pattern maker/shoe engineer the framework and guidelines on how the coming sales range will be expected to appear.

Shoe manufacturing is a complicated commercial undertaking and the products, even if manufactured as high fashion items, have to fit into a certain price bracket and are targeted to selected groups of consumers. Therefore the shoe designer needs clear directives and guidance from the marketing/sales director and/or range-builder in order to know what types of footwear are expected to be made by the factory for the season.

2. Role of Range Builder

In companies of a certain size, a special vacancy of range-builder is needed. Hís/Hers job is to translate and complement the marketing department directives and carry out detailed research on new materials, new lasts and components and to liaise between the aesthetic/creative design on the one hand and pattern making, shoe engineering and technical management.

In this way, there is assurance that the range-building can proceed along clear lines and that the team knows what each person has to do in order to carry out the task for the common goal, namely, the creation of a range which will:

a. Meet the market demand

b. Be easily producible within the company capabilities

c. Create revenue for the company

A creative designer of footwear and other leather articles gets his/her inspiration from the general fashion magazines, trend reports, range-building directives, visits to fashion and trade shows. He then interprets the fashion look in his mind to suitable types, styles, colour and material combinations which fit to the prevailing trend.

A copy design is simply copy ing shoe patterns from special footwear magazines, competitor’s sales range, photos or sketches taken from shoe displays or trade fairs etc. Unfortunately it is hardly possible to obtain design protection for a shoe design except in cases where something very special is incorporated in the styling. This is the reason why the most successful shoe factories have trademarks registered and such trade mark may be incorporated as a standard part of the company product range. An example of this is the three stripes of ADIDAS or embossing or otherwise presenting a registered logo as part of the design such as TIMBERLAND, ECCO, BATA, RALLY, CLARKS etc. However, even such trademarks arc copied and these shoes arc sold especially in several Far Eastern countries. This, however, is not copy design but outright piracy.

3. Segmentation

Fashion is divided into several different segments. Consequently, a producer of footwear has to define into which segments his products are to be designed and marketed. In addition, all people have several roles in their daily life. A fashionable lady can have roles as a mother, secretary, sports lady, party hostess, etc. All these different roles require different types of wardrobe including different designs of footwear.

Analyze the fashion

Analyzing the fashion will be two-fold:

a. The international fashion centers.

b. The fashion acceptance and trends in export markets.

The questions to be asked when analyzing the fashion are:

a. How has the fashion changed in this segment?

b. How does it affect the footwear and its components and materials?

c. Where may these trends lead? Will they be long-Iasting?

d. In which stage of acceptance will the trends reach the market in various countries?

The main milestones used to analyze fashion are:

a. Market surveys

b. Fashion forecasts

c. Pre-design

d. Shoe engineering

e. Pathfinders

f. Tooling, etc.

4. Country Details (Denmark)

Denmark is a Scandinavian country in the European Union. The southernmost of the Nordic countries, it is southwest of Sweden and south of Norway, and bordered to the south by Germany. The Kingdom of Denmark is a sovereign state that comprises Denmark proper and two autonomous constituent countries in the North Atlantic Ocean: the Faroe Islands and Greenland. Denmark has an area of 42,924 square kilometers (16,573 sq mi), and a population of 5,707,251 in January 2016. The country consists of a peninsula, Jutland, and an archipelago of 443 named islands, of which around 70 are inhabited. The islands are characterized by flat, arable land and sandy coasts, low elevation and a temperate climate.

Denmark has four distinct seasons of spring, summer, autumn and winter. The spring months of April and May are mild and the summer months of June, July and August are the hottest. Autumn runs from September to November and tends to be rainy and cloudy. The winter months of December to March are normally cold, with frost and snow. The climate in Denmark is pleasant in the summertime (May - August). Typical daytime temperatures in the midsummer are a little more than 20 degrees C. May is a specially charming month, as the spring is at its height. September can often be very rainy.

The winter in Denmark can be quite cold. Temperature falls sometimes until 15 - 30°C below zero. Then the country is ruled by snow, ice and icy winds. Even in April it is still possible to have a snowstorm. In the wintertime the sun rises only little above the horizon and for months (roughly October - March) the days are dark and short.

The Danish weather can go from freezing to broiling and then back again within a few hours, so layers are your best bet. Bring lots of sweaters and at least one waterproof jacket. Most Danes own a whole set of "rain clothes," a sort of waterproof jogging outfit. For winter, you'll need warm scarves and a warm coat - a short one is more practical, since many people get around on their bikes all winter long. (Fur is entirely acceptable in Denmark).

Even for summer, plan on bringing a few sweaters and a solid jacket - leather is ideal. Danish summers are often rainy and cold.

5. Preference of Denmark people about footwear

The Danes on the other hand, have a culture of practical, comfort shoes. ECCO, Dansk and Born are Danish companies that produce and ‘market’ the Danish shoe to consumers world-wide. Kind of bright and definitely rubber soled, these reasonably priced clog type shoes are ubiquitous here.

This culturally makes a lot of sense since much like in the pioneer days, Danish women walk and bike everywhere and their shoes need to endure wind, rain, snow as well as mud paths and the dreaded cobblestone paths.

Trends: Spring Summer 2016

a. NATURAL IMPERFECTION

Recycling and slow living is in. The quest for inner peace and tranquillity is reflected in colors and materials. We embrace imperfection and natural beauty. We value the quality of un-retouched reality and authenticity. We find luxury i in being humble and honest. We want rustic designs crafted with a sense for unique detailing.

b. BOHEMIAN SARTORIALIST

The theme of Nomadism continues in 2016 as an updated, luxury edition inspired by the world travelling bohemian’s encounter with the new arising fashion and art scene across Africa and the colorful Arabian culture. We want highly expressive, electric patterns, varied textures and rich structures. We are attracted to art-full collages and unexpected compositions.

c. BIOMIMICRY

The future belongs to Mother Nature. So, they apply technology inspired by the nature of plants, insects, fish and animals into their designs. Creating new materials, new color schemes and new innovative structures.

   

SEASONAL LOOK & FEEL-

TRANQUIL- Calm, cool colors mixing with natural imperfection. Mindful and rustic. Recycling authentic qualities. Attention to unique detailing.

EXPRESSIVE

Art-full and graphic expressions. Collages with unexpected elements. Patterns and prints in an eclectic mix of street styles and cultures.

FUTURISTIC-

Transforming nature’s tech into innovative designs. Mimicking plants, insects and animals. Monochrome colors. Effect full contrasts.

The color palate of the season range from monochromatic tones to a natural theme consisting of florals, pastels and earthy tones as well as iridescent silver and vibrant hues of orange, plum, blue and green.

In addition to casual and formal shoe styles, ECCO has expanded on their highly successful active lifestyle range – Intrinsic 2, which offers sleek designs of sneakers in various colors for both men and women crafted in knitted textile and leather. For women, the Intrinsic range (Karma) also includes a selection of ballerina flats that are lightweight and durable.

  

COOL SNEAKERS STYLE COLLECTION-

Sneakers are big news this season, and these long-lace leather trainers with a contrasting sole take all the essential design elements and combine them into one quality style. The ECCO Comfort Fiber System ensures that your feet stay cool and fresh, and the anatomically accurate design maximizes all-day comfort.

SIZE DISCRIPTION (FEMALE)

a. EU-35,36,37,38,39,40,41,42,43

b. UK-2.5,3,3.5,4,4.5,5,5.5,6,6.5,7,7.5,8,8.5,9

c. US-4,4.5,5,5.5,6,6.5,7,7.5,8,8.5,9,9.5,10,10.5,11,11.5,12,12.5

d. MM-218,230,237,243,250,257,263,270,277

SIZE DISCRIPTION (MALE)

a. EU-39,40,41,42,43,44,45,46,47

b. UK-6,6.5,7,7.5,8,8.5,9,9.5,10,10.5,11,11.5,12,12.5

c. US-8,8.5,9,9.5,10,10.5,11,11.5,12,12.5,13,13.5

d. MM-250,257,263,270,277,283,290,297,303

7. The task of a shoe designer

1. Production of medium size patterns

2. Fitting trials

3. Modifications

4. Grading trials (large/small)

5. Grading of full range

6. Pre costing

7. Preparation of specifications

8. Tooling

9. Production of sales samples

10. Large scale factory trials

9. Conclusion

The world is comprised of many countries and aggressive markets. Thus entry decisions are the calculated decisions that global companies make most commonly. Since the type of entry strategy can be clearly related to later market success, these decisions need to be based on careful analysis. Although most companies have preferences as to which entry strategy they would pursue, increasingly forms will be adopting a flexible approach. Establishing a sales subsidiary may be the best alternative for entering some countries like Denmark. All our domestic footwear business organizations will be forced to learn to manage with a variety of entry strategies.

References

1. Mercer, David (1996), “Marketing”, Blackwell Publishers Ltd.

2. Rathor, B S, Jani, BM and Rathor, JS (2001), “International Marketing”, Himalya Publishing House

3. Sontakki, C N (2009), “Marketing Management”, Kalyani Publishers.

4. Research reports & articles of “Journal of Commerce & Trade”.

5. Research articles & reports by UNIDO

Internet links

1. www.unido.org

2. mybusiness.co.uk

3. marketingteacher.com

4. wikipedia.org

5. themanagementor.com

6. thewalkingcompany.com