REPORT BUSINESS IN PRACTICE 21 22 – SEMESTER 1

REPORT BUSINESS IN PRACTICE 21-22 – SEMESTER Name : Class : Student ID : Ha Noi, 11/2021 I Introduction The owner of C.Me Smart Designs Ltd has developed a highly reflective material that she thinks will have safety benefits that will suit the outdoor clothing and activities market C.Me Smart Designs Ltd preferred route to market is to sublicence the material/design to a manufacturer or brand owner Cooperation between the owner of the business and the units that produce products in the clothing or outdoor market can create special products, reach new customers and drive sales As technology advances, the market will also have competitors offering highly  reflective material to compete with the owner of C.Me Smart Designs Ltd Along with that, we can predict that, if the owner of C.Me Smart Designs Ltdwants to compete with his competitors, not only domestic enterprises but also foreign enterprises, it will be difficult to compete if the financial potential is limited Mainly, the wide partner network is not yet widespread The owner's preferred route to market is to sublicence the material/design to a manufacturer or brand owner This will help the brand increase its virality, and at the same time, the owner's will consume a highly  reflective material for that brand, and at the same time promote their brand through them The following report will research the potential markets for the product in the UK by using relevant business models II Content The challenges faced by the company According to the report of https://www.statista.com/, the outdoor market clothing in UK is expected to grow from 27,074.90 GBP (2020) to 35,547.83 million In 2020, sales in the UK apparel market are estimated to be around £52 billion, around £2 billion less than the previous year due to the COVID-19 pandemic According to Statista's Consumer Market Outlook report, the market is expected to recover and grow at a faster rate, eventually reaching £67 billion by 2026 The development of the outdoor market clothing in the UK is both an opportunity and a big challenge for the company The utdoor market clothing market is growing as well as a delicious piece of cake for large companies with strong financial potential and experience entering the industry This will reduce the ability to find the market as well as the company to cooperate with the company With the market saturated – estimates suggest there are now more than 500 outdoor brands at UK The big challenge for the company was how to reach this broader target market and increase sales without jeopardizing their core brand values and unique selling point Analyse and evaluate the market/industry a) Pestel analysis - Political Factors The government has the ability to encourage companies to buy fabrics locally, especially if the taxation on imports from other countries increases Many more company are buying from companies who create their material in the United Kingdom, as opposed to those who ship their fabrics to be sewn overseas Government Regulations and Deregulations – The government is adhering to all the rules and regulations under World Trade Organization norms There is consistency in both policy making and implementations of those policies - Economics factor GDP Trends & Economic Growth Rate - Increasing GDP growth in the UK signals increasing demand in the economy Other businesses in the outdoor clothing and activities market can capitalize on this trend by expanding product ranges and targeting new customers One way to start is to closely map changes in - consumer buying behavior and emerging value propositions Household Income Levels and Savings - Consumption Rates and household incomes in the UK have led to sizable credit consumption It has become a habit of consumers when buying goods in general Businesses in the industry always focus on building a marketing strategy that depends on the behavior of Credit purchases - Social Factors Demographic trends - Demographic trends are one of the important factors in forecasting the demand for any product in the clothing outdoor industry of an economy For example, as the population of United Kindom is aging, the demand for products that primarily cater to this segment of health protection through sports and outdoor activities will increase Industry players consider demographic trends before developing new products and integrating features that cater to this segment As the population is aging, it will demand more health-promoting quality products - Technology Factors Acceptance of Mobile Payments and Fintech Services - One of the areas where the United Kingdom is lacking after China is Mobile Payments Industry players design the preferred plans of mobile payments in the local economy and choose a business model based on that Production Costs and Trends - Businesses need to plan the cost of production trends in the economy and how much automation will be They need to figure out the level of social acceptance of the technology before launching a new product Environmental Factors Focus & Spending on Renewable Technologies – How much of the budget is spend on renewable energy sources and how the companies in clothing outdoor industry and activities market can make this investment as part of its competitive strategy Per Capita and National Carbon Emission – What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country This will help in better predicting the environment policy of the country Influence and Effectiveness of Environmental Agencies – The role of environment standards enforcement agencies is critical in safeguarding norms But often in emerging countries these agencies delay the process as a tactic to extract bribes Patagonia Initiative should be aware of presence of such practices in a country Corporate Social Responsibilities Culture – Are Patagonia Initiative present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market Environmental Standards and Regulations both at National & Local Levels – Often the environment policy at national and local level can be different This can help the companies in clothing outdoor industry and activities market in numerous decisions such as plant location, product development, and pricing strategy Level of Consumer Activism Regarding Environmental Concerns – Patagonia Initiative needs to know the level of consumer activism regarding environmental concerns is It will help the companíe in clothing outdoor industry and activities marketin both developing environmentally friendly products and thwarting promotion stumble blocks Waste Management – What is the policy of waste management in the prospective market and how the companies in clothing outdoor industry and activities market can adhere to the waste management requirements in that market - Legal factors Independence of Judiciary and Relative Influence of Government – The judiciary independence often reflect both strength and credibility of the institutions in the country Health & Safety Laws – Different countries have different attitude towards health and safety so it is better for the companies in clothing outdoor industry to conduct a thorough research before entering the market Consumer Protection Laws – the companies in clothing outdoor industry needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws Employment Laws – What are the employment laws in the country and are they consistent with the business model of the companies in clothing outdoor industry Data Protection Laws – The companies in clothing outdoor industry needs to assess what are the data laws in the country and what it needs to to comply with them For example most of EU countries now want the EU citizen data to be saved in EU countries only b) Tows analysis of clothing outdoor industry and activities market The aim of the market analysis is to determine the market size, in terms of sales generated for the last five years in order to identify reasons for past developments and future predictions and to calculate the potential market volume Opportuniti Strengths (S) Weaknesses (W) According to the report of The emergence es (O) https://www.statista.com/ COVID-19 of has about UK outdoor market, crippled the world UK is the country which has This health crisis has the third market share of all had an unprecedented European countries In fact, impact on companies 20 per cent of the sales in generated with the clothing outdoor outdoor industry To sporting goods in Europe in ensure health through 2014 own to the United the epidemic season, Kingdom market people raise Outdoor activities, such as awareness their of hiking, climbing and hiking protecting their health became very popular and the through safe outdoor demand led to a wide range activities This still of outdoor products with a creates opportunities strong focus on the needs of for companies in the customers in the United industry Kingdom outdoor In addition, apparel became recognized as urban fashion further boosting the outdoor market Today, the outdoor market is a major and very important part of the clothing market In fact, in the UK it accounts for almost a quarter of total sales and is therefore the highest grossing sector in the clothing market as more and more people tend to III Critical analysis of the implications According to the above analysis, we can see that the growth rate of the outdoor clothing and activities market is forecasted to have a high and promising growth rate Even if Asia-Pacific has the highest growth by this industry, European countries are also classified as countries with a high number of sellers and buyers for this type of clothing Europe, the Middle East and Africa have the largest market size for outdoor clothing in 2020 In this case, The owner of C.Me Smart Designs Ltd has developed a highly  reflective material that she thinks will have safety benefits that will suit the outdoor clothing and activities market The owner's preferred route to market is to sublicence the material/design to a manufacturer or brand owner In this case, the activity of finding an alliance for mutual development is good Because she wants to be the one to directly supply materials for the companies that produce and distribute those clothes She has a direct relationship with her market while also having a huge reach She just needs to gather information and marketing research to make her business better IV Recommendations The owner's needs to determine the best ways to create values and standards when looking for a partner in bringing a highly  reflective material into the product in the most effective way A thorough review process prepares forecasts, builds business models, assesses risks, and documents investment cases The owner's needs to target companies in the right market by analyzing opportunities in the market and identifying potential partners Building an efficient and convenient transaction process Partner support, negotiate and present the owner's preferred marketing method of promoting the material/design to the manufacturer or brand owner At the same time, it is through drafting important documents and testing collaborative scenarios to add value and security Discuss, analyze and support partners to identify in order of priority issues, specifically the problem of raw materials as well as how to put into products, solving these problems in a timely and effective manner Monitoring the process and identifying problems early will help partners successfully put ingredients into products, thereby helping to promote C.Me Smart Designs Ltd product REFERENCES Outdoor Clothing Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2026 Availablle: https://www.prnewswire.com/news-releases/outdoor-clothing-market global-industry-analysis-size-share-growth-trends-and-forecast-2018 2026-300783039.html Apparel market in the United Kingdom (UK) - statistics & facts Available: https://www.statista.com/topics/3348/apparel-market-in-the-uk/ Lecturer of PESTLE analysis, TOWS analysis Outdoor Clothing Market Sales Overview, Trends, Share Value by 2028 Available: https://tailornpress.com/outdoor-clothing-market-sales- overview-trends-share-value-by-2028/ Measure performance and set targets SWOT, PESTLE and other models for strategic analysis Available: https://www.nibusinessinfo.co.uk/content/swot-pestle-and-other-modelsstrategic-analysis Outdoor Clothing Market Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2026 Available: https://www.bccresearch.com/partners/transparency/outdoor-clothingmarket-global-industry-analysis-size-share-growth-trends-and-forecast.html ... Growth Rate - Increasing GDP growth in the UK signals increasing demand in the economy Other businesses in the outdoor clothing and activities market can capitalize on this trend by expanding product... household incomes in the UK have led to sizable credit consumption It has become a habit of consumers when buying goods in general Businesses in the industry always focus on building a marketing strategy... the product in the UK by using relevant business models II Content The challenges faced by the company According to the report of https://www.statista.com/, the outdoor market clothing in UK is