(TIỂU LUẬN) ANALYSIS OF INTERNATIONAL BUSINESS OPPORTUNITIES OF FOREVER 21, INC IN VIETNAM

FOREIGN TRADE UNIVERSITY Faculty of Economics and International Business ANALYSIS OF INTERNATIONAL BUSINESS OPPORTUNITIES OF FOREVER 21, INC IN VIETNAM Group Assignment for International Business Class: KDOE307(2-1718).1_LT Lecturer: MA Nguyễn Hồng Trà My Group members: Nguyễn Ngọc Ánh Đỗ Thu Giang Đoàn Nguyễn Thị Diệu Linh Hoàng Thị Thảo My Vũ Thị Hồng Ngân Đỗ Thị Thảo Nguyên Võ Thị Phương Thảo Hanoi, May 2018 1517150021 1516150036 1511150074 1511150089 1511150092 1515150097 1511150119 TABLE OF CONTENT INTRODUCTION 1 Purpose Overview of FOREVER 21, Inc PART 2: THEORETICAL FRAMEWORK Overview: Location Decisions Affecting International Operations .3 Scanning versus Detailed Analysis 3 Future change in prime locations PART 2: MARKET SELECTION PROCESS Identifying business opportunities of Forever 21 in Vietnam Analyzing business opportunities of Forever 21 in Vietnam 2.1 Political and Legal factors 2.2 Economic factors 14 2.3 Social factors 15 2.4 Technological factors 18 Assessment of business opportunities of Forever 21 in Vietnam 19 3.1 Market potentialities .19 3.2 The business environment risk 22 3.3 Competition: H&M and Zara 23 3.4 Competitive advantage of F21 24 PART 3: RECOMMENDATIONS 26 Mode of entry and targeted locations 26 1.1 Mode of entry .26 1.2 Locations 27 Strategies 29 2.1 Business and corporation strategies 29 2.2 Marketing strategies 29 CONCLUSION 31 REFERENCES 32 INTRODUCTION Purpose In international business, because all companies have limited resources, they must be careful in their decision-making process, especially when deciding on in which countries to locate sales, production, and administrative and auxiliary services; the sequence for entering a new market; and the amount of resources and efforts to allocate to the country where they operate Vietnam has been one of the fastest growing emerging markets in the world for more than a decade, which is very attractive to foreign investments In recent years, Vietnam has seen a boom in the apparel industry, with the development of domestic brands as well as the entries of many fashion moguls such as H&M, Zara and incoming is Uniqlo, etc Considering the current potentialities of Vietnam, Forever 21, as one of the most popular fast fashion retailers, shall take the opportunities to enter the market before the competition gets fiercer with the invasion of more international brands In this report, we will discuss in depth the international business opportunities of Forever 21, Inc in Vietnam by identifying, analyzing and evaluating the business environment factors of Vietnam to, therefore, draw our own suggestions for their entry into the Vietnamese market We would like to thank our lecturer, MA Nguyen Hong Tra My, who has provided us a foundation of knowledge related to this topic and have been very dedicated to giving us informative and practical lectures about international business so that we can finalize this assignment Overview of FOREVER 21, Inc Forever 21 is an American retail chain that is #122 in Forbes biggest private companies list of USA With headquarters in Los Angeles, California, the company has 480 branches all over the world and has notched up sales of $3.7 billion in 2013 One of America’s most preferred retailers, Forever 21 was established as Fashion 21 in April 21, 1984 by Korean immigrant husband and wife, Do Won Chang and Jin Sook Chang in a small 900 sq feet space The store is located at 5637 N Figueroa Street in the Highland Park district of Los Angeles and is still in operation, bearing the chain's original name Originally, Forever 21 only sold clothes for women and designs similar to those seen in South Korea were sold and targeted to the Los Angeles Korean American community But now most Forever 21 stores sell accessories, beauty products, home goods, and clothing for women, men, and girls, including plus size clothing for women On their website, they also sell girls clothing and home/lifestyle products Forever 21 is known for its trendy offerings and low pricing More than 60% of its apparel is made in China and the average store size is 38,000 square feet (3,500 m2), the largest is approximately 162,000 square feet In 1977, there were 40 F21 stores Today Forever21 has many different brands within the company like Forever 21, Forever XXI, For Love 21, Gadzooks The company’s mission statement is to provide customers with an unprecedented selection of today’s fashion with affordable price They are known as “always changing and always in style” PART 2: THEORETICAL FRAMEWORK Overview: Location Decisions Affecting International Operations Scanning versus Detailed Analysis a) Importance of scanning: Without scanning, a company may:  Overlook opportunities and risks  Examine too many or too few possibilities b) Information in scanning:  Opportunities  Sales Expansion  Resource Acquisition Transportation (contain Labor, and Communications, Disincentives)  Risks  Factors to Consider in Analyzing Risk Infrastructure, Ease Government Incentives of and  Companies and their managers differ in their perceptions of what is risky  One company’s risk may be another’s opportunity  There are means by which companies may reduce their risks other than avoiding locations  There are trade-offs among risks  Types of risks  Political Risk  Analyzing Past Patterns  Analyzing Opinions  Examining Social and Economic Conditions, including: Obsolescence and leapfrogging of products, Prices, Income elasticity, Substitution, Income Inequality, Cultural Factors and Trading Blocs  Monetary Risk  Exchange Rate Changes: Differences in the exchange rates can create gains or losses  Mobility of Funds: Liquidity among countries varies  Competitive Risk  Making Operations Compatible  Spreading Risk  Following Competitors of Customers  Heading Off Competition c) Collecting and Analyzing Data  Information is needed at all levels of control  Companies should compare the cost of information with its value d) Problems with Research Results and Data  Limited Resources  Misleading Data  Reliance on Legally Reported Market Activities  Poor Research Methodology  Non-comparable Information: Most companies examine proposals one at a time and accept them only if they meet minimum threshold criteria e) External Sources of Information  Individualized Reports  Specialized Studies  Service Companies  Government Agencies  International Organizations and Agencies  Trade Associations f) Country Comparison Tools  Grids  May depict acceptable or unacceptable conditions  Rank countries by important variables  Matrices allow companies to  Decide on indicators and weight them  Evaluate each country on the weighted indicators g) Allocating Among Locations  Alternative Gradual Commitments: Companies may reduce risks from the liability of foreignness by  Going first to countries with characteristics similar to those of their home countries  Having experienced intermediaries handle operations for them  Operating in formats requiring commitment of fewer resources abroad  Moving initially to one or a few, rather than many, foreign countries  Geographic Diversification versus Concentration  Growth rate in each market  Sales stability in each market  Competitive lead time  Spillover Effects  Need for product, communication, and distribution adaptation  Program control requirements  Reinvestment and Harvesting  FDI-financial and human capital invested abroad  Depending on the success of the investment, the company may reinvest or consider using the capital elsewhere Future change in prime locations  Future growth rates will have implications for locations of markets and labor forces  Technological innovation allows for new trends in urbanization as more people are able to work from locations of their choosing PART 2: MARKET SELECTION PROCESS Identifying business opportunities of Forever 21 in Vietnam Vietnam has been one of the fastest growing emerging markets in the world for more than a decade until 2018 It is a rapidly developing country with a young population of more than 89.71 million, with the median age of 29.2, and a per capita GDP of USD 1,902, as of 2013 It has also been a major attraction for foreign direct investment (FDI) from around the world Regarding economic developments, Vietnam’s growth rate has averaged 6.4% per year for the last decade, but it has begun to slow recently In 2013, the nominal GDP reached US$174.4 billion, growing at 5.4% and is projected to flatten in 2014 Although the economic growth remains moderate and below its potential, Vietnam managed to improve its macroeconomic stabilization Headline inflation fell from a peak of 23% in August 2011 to about 4.2% in August 2014 Despite these negative elements like language barriers, different business cultures, inadequate and inaccurate information, etc., the potential of the Vietnamese market remains strong and the country is predicted to continue growing at an annual rate of about 5% in the coming years According to the 2012/13 ASEAN Business Outlook Survey by AmCham Singapore and US Chamber of Commerce, Vietnam remains the most popular location for expansion within the ASEAN region by a wide margin Thailand is ranked second, followed by Singapore and the Philippines In January 2007, Vietnam became a member of the World Trade Organization (WTO), over a decade after it first applied for membership This completes Vietnam’s efforts to become a full member of the world trading system Prior to joining the WTO, Vietnam had begun a process of trade liberalization, reducing its tariffs in accordance with its obligations as a member of the Association of South East Asian Nations (ASEAN) Analyzing business opportunities of Forever 21 in Vietnam 2.1 Political and Legal factors a Political factors Vietnam is a socialist country operating under the leadership of the Communist Party A national congress of Vietnam's Communist Party is held every five years determining the country's orientation and strategies and adopting its chief policies on solutions for socio-economic development For politics, Vietnam is adopting a mixed economy and government still plays a big role in planning and governing When investing in Vietnam, there are several significant political aspects that need to be concerned  Strengths The Communist Party government appears committed to market-oriented reforms necessary to double 2000's GDP per capita by 2010, as targeted Internet users per 100 inhabitants (Ministry of Information and Communications 2014) Easy internet connection and broader coverage has made online services in some industries much easier and more convenient An increasing number of banks offer online banking to their customers, with account balance, money transfer and online payment of utility bills The increasing proportion of households with a broadbandenabled computer shows the potential demand for online retail The majority of those buying online are well-educated, and they tend to buy products such as books and technology from Amazon.com or eBay With a sharp increase in internet use, and further increases forecast, Vietnam is a promising potential market for online retail and e-commerce Assessment of business opportunities of Forever 21 in Vietnam 3.1 Market potentialities a All-in-all trend In late 2016, in a trade promotion event, nine Japanese companies with 14 fashion brands came to Vietnam to look for franchisees The CEO of a company said Vietnam has become very attractive because of its young population, developing economy and improved income A survey by Statistics Portal from Germany predicted that revenue from fashion products of the Vietnamese market may reach $358 million in 2017, while the CAGR would be 22.5 percent in 2017-2022, which means revenue would be $998 million by 2022 The market analysis firm found that clothing is the biggest segment of the fashion market with estimated value of $245 million in 2017 According to Nielsen, Vietnamese spending on clothes is now the third priority, after spending on food and savings Another report of the market analysis firm showed that Vietnam ranks third in the world in number of people fond of branded goods The No and No positions belong to China and India, respectively Q&Me, which conducted a market survey in early 2017 on customers aged 1839, found that 52 percent of polled people buy fashion products (clothes, footwear) more than once a month According to the Vietnam Retailers Association chair Dinh Thi My Loan, there are over 200 foreign fashion brands in Vietnam She said foreign brands show big interest in Vietnam because of the high average growth rate of 15-20 percent The representative of H&M said H&M spent two years to learn about the Vietnamese market before deciding to open the first shop in HCMC and the second in Hanoi He said Vietnam is a market with great potential “Vietnamese are always catching up with the latest trends in the world.” In September 2017, the opening of Swedish giant H&M’s first store in Saigon attracted around 4,000 shoppers The firm has already opened its second outlet in Hanoi on November 11, 2017, same with Zara’s opening b Market segmentation  Gender & Age group: Male and female Age 18-35 Target audience is all young and dynamic people, catching up with updated international fashion  Income: In a survey which had conducted 500 male & female in 20-39 years old, the average spending for the fashion in a month among the respondents are 550,000 VND However, there are increasing number of people who are keen on spending on fashion 10% of our survey respondents spend more than 1,500,000 VND per month for fashion item  Place: The low-middle income spenders tend to buy the clothes at local shop and supermarket to look for the affordable fashion items that would fit their needs The top spenders tend to buy at shopping mall or department store much more frequently But the top spenders are not so many Even though HCM has 9M population and Hanoi does nearly 8M, those who could afford buying branded fashion items account for a part of them only, which makes it difficult to market effectively Therefore, shopping malls or departments in the big cities likes Hanoi, HCM is most suitable for operating the store  Shopping habits: According to data collected, Vietnamese consumers have the highest purchasing habit of 2-3 times/month, then once a month The level of consumer shopping does not differ too much  Consumer spending: The average Vietnamese consumer will spend about Million VND for the purchase of clothes in a month Low cost products, in the range of 100-300 thousand most selected It is followed by the price of 300-500 thousand Customers aged 30-39 are the most bought  Lifestyle: The fashion style of Vietnamese youth is diverse and updated with the world Modern dynamic and youthful Highly influenced by Korean, Japanese and American fashion According to a recent survey by the Business Association, a year ago online shopping accounted for only 0.9%, only after one year, 2018 survey results show that the number of customers who choose to buy online has tripled (2.7%) Vietnamese customers order large brands such as Zara, H & M increased strongly Age increases from 18-24 to 18-35 Foreign brands are no longer too familiar with the Vietnamese youth c Market trends  Demand: In Vietnam, local people's spending on clothes is the third biggest, only after food and savings, global marketing research firm Nielsen said A report from Epinion, a Danish market survey firm, showed that two-thirds of Vietnamese population are psychologically ready to spend more money in 2017 than in previous years as their confidence has been restored  The demand is believed to be especially high from young consumers, who can earn money and want high-quality brand name goods  Tastes: A survey conducted by Nielsen on 29,000 people from 58 countries found that Vietnamese like branded products at the third highest level in the world (after China and India) and 56 percent of Vietnamese polled said they were willing to spend big money on branded goods  Market share: Incomplete statistics from the Association of Vietnam Retailers show that over 200 foreign fashion brands are now available in Vietnam, holding a market share of over 60 percent  Consumer Spending: According to a report released today, in the second quarter of 2017 Nielsen, consumers in Vietnam are willing to spend more on fashion (36%)  Specifically, after paying for essential living expenses, about one in three Vietnamese consumers are willing to spend on tourism (38%), shopping for new clothes (36%), public goods new technology (31%), home repair (30%) and external entertainment services (29%) 3.2 - The business environment risk From the attractive urge of the market  The growing of the Vietnamese foreign fashion market is a potentiality but also a risk to F21  Major fashion brands in the world are very interested in Vietnam because of its high annual average market growth rate of between 15 to 20 per cent  More than 200 foreign fashion brands present in the country occupying more than 60 per cent of the market share  To join in this “battle” will somehow create a lot of difficulties to F21, but as long as we have a straight strategy and competitive advantage, F21 will sure have a stable place in the market - From domestic fashion market  Fueled by the growing middle class, the fashion and garment industries are booming in Vietnam There is a fierce competition between local and foreign companies  The numerous factories in Vietnam producing for large international brands also enable them to serve the Vietnamese market and provide high quality clothes, shoes and accessories at low prices  Competing against global brands and local discount markets, Vietnamese producers are also developing their own brands to distribute in the country, creating a very diverse offer for the Vietnamese consumers  The emergence of more international brands would compel domestic companies to diversify their products in all market segments  The continuous stream of foreign brands entering Vietnam’s fashion markets will have some impact on the domestic fashion industry, but are viewed as shortterm impacts  In the long run, the competition will be a good dose of reality for the country’s fashion market It will help alter people’s shopping habits towards branded products instead of non-branded ones  The looming presence of the foreign brands will also help customers compare domestic and global fashion products, and understand that prestigious Vietnamese brands are not inferior  The price is a barrier for the foreign brands, as “affordable” in developed countries may not be really “affordable” in a developing country like Vietnam, although people’s incomes are gradually enhanced, increasing the demand for clothing  Therefore, there is still room for Vietnamese fashion brands if they understand Vietnamese taste and offer products at more reasonable prices Besides, spending more on advertising to grab the attention of customers may go a long way to accelerating brand awareness 3.3 Competition: H&M and Zara The opening of Zara and H&M in Hanoi after their success in HCM City has shown the thirst for international brands among Vietnamese people, especially young people In early February, H&M Vietnam has announced opening its first store in Hanoi The recruitment advertisement revealed that the store has an area of 2,000 square meters and will need about 100 employees who will be trained abroad for three to five months before officially starting in Vietnam H&M also scheduled to recruit in Ho Chi Minh City for its second showroom, which will be located in Vincom Thao Dien (District 2) H&M’s upcoming arrival was predictable, as they have been preceded by most brands of the same tier In September 2016, fast fashion brand Zara opened its first store in Vietnam with an area of over 2,400 square meters in Vincom Dong Khoi (Ho Chi Minh City) Zara reported a revenue of VND5.5 billion ($241,000) on the first day opening As living standards in urban areas are improving, so is the demand for clothing picking up Additionally, young people are quick to catch up to the newest trends, which may mean good prospect for the brands 3.4 Competitive advantage of F21 Forever21 has successfully open the store chain in many Asian countries The LA-based fashion company was founded by a Korean couple in 1984 and says that “the products have a slight Asian feel and touch to them.” It’s an advantage of the company to feel no strange to Asian market, as well as Vietnam market  Forever 21 is faster and cheaper — It uses the fast fashion model, getting new fashion trends to stores as quickly as it possibly can, then selling at a low price Traditional retailers try to establish a brand with a signature look, so it's very unlikely that others will try to copy Forever 21 after spending so much time and effort building their own brands And it simply sells clothing for less than its rivals Forever 21 sells jeans for as low as 350,000VND, where other retailers generally start at 700,000VND for this important category It’s a very reasonable price as Forever21 targeting Vietnamese teenagers – compare to the monthly allowance of them  Forever 21 expands its customer base in Vietnam — Forever 21 plan to become fashion department store that caters to all members of the family — not just teens That means a broader set of customers are being gobbled up by the retailer as it releases new lines targeting men and older demographics Yet, at its core, Forever 21 still has a similar target as the big teen and young adult clothing retailers - 18- to 35-year-olds  Customer Savvy — Forever 21 is one of the country’s most customerfriendly brands Designers who work with the brand vouch that most of their designs come from the customers themselves and the company has a very storing system for recording the voice of the customer and ensuring that feedback is translated into reality in all their designs The company does not look at high and spends but focuses more on getting feedback from customers and implementing it at the earliest possible instance This is a plus for Forever21, because customer service is important for Vietnamese people PART 3: RECOMMENDATIONS Thanks to its popularity among young people, F21, as a global fast fashion brand, can directly enter the Vietnamese market without going through third agencies Nevertheless, it still needs some appropriate and effective policies to remain competitive in this segment, as well as maintain a highly efficient internal operation to meet the requirements of the industry Therefore, we would suggest some of the most outstanding recommendations in accordance with our research on F21, which are detailed as follows: Mode of entry and targeted locations 1.1 Mode of entry Vietnam is, as a country with dense population (92.7 million in 2016) and increasing income leading to increasing demand, a large and competitive market It is also a country attracting a lot of fashion retailers recently (for example H&M, Zara, Uniquilo, Topshop, Mango, etc.) and with high potentials for this industry Therefore, one of the suitable modes of entry that F21 may consider is joint venture This is a co-operative strategy in which the manufacturing facilities and know-how of the local company are combined with the expertise of the foreign firm in the market, especially in large, competitive markets where it is difficult to acquire property to set up retail outlets or where there are other kinds of obstacles that require co-operation with a local company Apparently, joint venture mode of entry brings a lot of advantages for F21, among which we would like to mention the most outstanding ones Firstly, it helps F21 benefit from Vietnamese partner’s knowledge Entering a foreign market requires certain ranges of knowledge about the market to maximize its potentials and cope with any difficulty arising inside the targeted country Therefore, once F21 applies joint venture, it can make the process of achieving its goals on the new market much faster and easier Secondly, with this mode of entry, F21 can share the costs and risks with the Vietnamese partner Besides, reducing political risks is also an undeniable advantage that joint venture can bring to our chosen firm Tariff barriers, unstable tax regimes, license denials and unfavorable government policies remain some of the major political threats to international business Some governments pursue policies that require foreign companies to cede significant shareholding stakes to state agencies and local populations Investors are deregistered and lose operating licenses when they fail to comply with the indigenization requirements However, joint venture enables F21 to strike deals with local businesses in Vietnam to avoid such state-sponsored shareholding and licensing restrictions On the other hand, the main concerns that F21 has while entering into the Vietnamese market were Demography and cultural concerns Speaking of demography Vietnam has a population of about 92.7 million as mentioned above and the target market would be no doubt wide than what is expected As the income become larger in Vietnam, there will be more demand in the quality and fashionable clothing Another kind of concerns is Cultural ones: it is the major concern that has to be given tremendous attention when entering into a foreign market It must accept the perspectives and beliefs of the role of culture in influence In order to effectively achieve their goals, F21 should pursue a strategy of selling a variety of its local clothing lines and international clothing lines, but maintaining F21 as the primary brand in Vietnam F21 should also target the larger positions including either the first or second positions in the Vietnamese market of clothing lines Any of these positions would be sufficient enough for F21 to create an outstanding level with regards to manufacturing, marketing and distribution These positions can set up a stage from which F21 can sell their clothing lines and other special fashion products 1.2 Locations Location is the foremost critical requirement when operating in fast-fashion, both for retail stores and proximity to distribution centers In order to capitalize on the benefit of operating within these industry retailers must secure locations for their retail stores that are both highly visible and densely populated, while distribution and fulfillment centers require central location to serve the maximum number of retail locations as quickly as possible At the same time, Vietnam has become a magnet for international fast fashion brands thanks to its huge youth population and rapidly increasing income The distribution of population in Vietnam is shown in the table: Ranking City/Province Ho Chi Minh City Hanoi Hai Phong Can Tho Da Nang Population 7.081.900 (2014) 7.095.900 (2014) 1.946.000 (2014) 1.238.300 (2014) 1.007.700 (2014) Besides, when it comes to deciding the locations for F21 to expand to Vietnam, their management board have to consider not only the high population but also the development of each city or province in the country The development is the cornerstone to boost the access of customers to a foreign apparel brand And fortunately, these cities and provinces all meet the “development expectation” of F21 when they are among the 10 richest countries/provinces in Vietnam H&M and Zara, F21’s biggest competitors, also began their expansion in our country with the destinations of Hanoi and Ho Chi Minh City However, we would discuss about further recommendations for gaining advantages in the competition later in the next sections Therefore, to be in short, the most potential cities for F21 are Ho Chi Minh City, Hanoi, Hai Phong, Can Tho and Da Nang More specifically, F21 should aim at these cities’ biggest shopping centers, which are Vincom Centers and Lotte Marts The reason lies in that these places are located in the centers of the cities and become easy-to-have-attention to both the locals and tourists Vietnamese are also used to come to big shopping centers to purchase goods, especially ones from foreign brands As a result, Vincom Centers and Lotte Marts are undeniably the amazing locations in the best cities for F21 to expand in the near future Strategies In our Vietnamese market, there are, of course, not only F21 but also a variety of other fashion retailers serving the same kinds of clothing at similar price points We can name some of the biggest competitors of F21, such as: H&M, Zara, Uniqlo, Topshop As a result, in order to enter this market with flying color and differentiate itself from other brands, F21 should come up with appropriate strategies, especially in marketing and business 2.1 Business and corporation strategies Because F21 is expanding its market globally and making huge profits from that, its corporate strategy in the near future still remains concentration growth By targeting at Vietnamese market, specifically the biggest and most developed cities, F21 is carrying on the strategy that we would like to recommend for them: concentration growth Business strategies also play a crucial role in deciding the success of every firm, including F21 In spite of the fact that F21 is not very strong in designing as it usually duplicates the ideas from other designers, it has the strength of reasonable price that hardly anyone can deny This is definitely an advantage when entering Vietnam due to lower-middle income of Vietnamese people Moreover, F21’s products are generally regarded as for teenagers, who have the low financial statement in comparison to other people at the age of 30 – 50 Therefore, we suggest F21 to perform Focused cost-leadership strategy, with the group of consumers is teenagers from 18 – 24 years old in Vietnam This strategy can be easily applied once the company can drive down the producing costs, which is quite suitable for F21 thanks to its non-requirement for creative designers, quick production and distribution 2.2 Marketing strategies A goal of F21’s is to expand its range of customers by offering a wider variety of styles, but for them to reach these other types of potential customers, they need to use social medias that will fulfill this goal Along with this goal, comes with it the need to expand the notoriety of the company as well as sell more of its products In the case of expansion to Vietnam, to improve their reputation when first comes to Vietnam, there are three things that F21 could in terms of online marketing strategies The first is to build up a website for F21 in Vietnam with carefully designed appearance and bookmarking, harboring Facebook, Twitter, Youtube and other social networks The second is to develop an app for shopping Third, is to use optimized video blog offering merchandise information and creative ways to wear F21’s apparel By doing these, they could increase their sales dramatically Regarding offline marketing, we also would like to suggest for F21 several strategies Firstly, about print media, F21 should put their ads in magazines geared primarily towards their targeted customers, such as: Hoa Hoc Tro Magazine, The gioi phu nu Besides, there is a strategy that has been successful in other markets of F21, which is in-store promotion A new store with nicely decoration, attractive sales to customers and great customer services will definitely boost the sales and interest of all potential customers and therefore increase the revenue and profit for F21 After six months, F21 can evaluate their product and strategies to determine how they have been working and if changes need to be made It is incredibly important for a company in the ever changing fashion world to keep the trend conscious followers fed with the knowledge they crave This is why stability and consistency with all of their marketing techniques are crucial in F21’s success CONCLUSION The assignment has outlined the business environmental factors of Vietnam by using tools such as PESTLE, SWOT analysis to identify and evaluate the opportunities for Forever 21 to enter the market Through the analysis, it is clear that Vietnam appears to be a promising country for the company to expand their apparel business However, risks in terms of differences in national environment can create barriers for Forever 21 to succeed in the new market Therefore, studying carefully about the business opportunities is extremely crucial to develop the strategies towards the success of the project, some of which have been recommended in the last part of our assignment Although the assignment is carefully prepared, we acknowledge of some unavoidable shortcomings due to the limitation of time and lack reliable of data sources Hopefully, this assignment can be an adequate reference for other studies regarding analysis of international business opportunities, especially for those in fast-fashion area REFERENCES ● A Look at Vietnamese Language, Culture, Customs and Etiquette, [online] available at: https://www.commisceo-global.com/resources/country-guides/vietnam-guide ● Daniels, Radebaugh, Sullivan, 2009, International Business Environments and Operations, 12th Edition, Pearson International Edition, Prentice Hall ● Dao Tri Uc, Institute of Developing Economies, 2003, Doing Legal Research in Asian Countries - Vietnam: Basic Information for Legal Research: A Case Study of Vietnam ● DATAMONITOR, 2009, COUNTRY ANALYSIS REPORT: Vietnam In-depth PESTLE Insights ● Dr.Vinh Quoc Nguyen, Kien Trung Trinh, and Phu Thanh Nguyen, Tilleke & Gibbins, November 2017, Doing business in Vietnam, [online] available at: http://ndh.vn/nguyen-lieu-dau-vao-san-xuat-xang-e5-con-gap-nhieu-kho-khan20171018031827991p150c169.news ● Le Bao Dung, LAHTI UNIVERSITY OF APPLIED SCIENCES, 2015, Challenges in entering Vietnamese market for companies in the sharing economy ● MATRADE Trade Commissioner, Vietnam: Market Overview and Opportunities, [online] available at: http://www.massa.net.my/message-from-matrade-trade-commissioner-vietnammarket-overview-and-opportunities/ ● PWC, 2016, Vietnam Doing Business Guide ● Thi Lan Anh Tran, The University of Leeds 2009, Vietnam's Membership of the WTO: An Analysis of the Transformation of a Socialist Economy Into an Open Economy with Special Reference to the TRIPS Regime and the Patent Law ● VNExpress, 2017, Fast fashion competition bursting at the seams in Vietnam, [online] available at: https://e.vnexpress.net/news/business/fast-fashion-competition-bursting-at-theseams-in-vietnam-3659659.html ● World Bank Report 2015 – www.worldbank.org TASK DESCRIPTION Name Evaluation Tasks ( /3)  Creating detailed outline Nguyễn Ngọc Ánh (Leader) Đỗ Thu Giang Đoàn Nguyễn Thị Diệu Linh Hoàng Thị Thảo My  Introduction and Conclusion  Editing and summarizing the report 2.5 and presentation transcript  Presenting #3  Slides  Presenting #2  Overview of Forever 21, Inc  Assessment of market potentialities  Business risks  Competitions and comparative advantages of F21 2  Presenting #1  Identifying opportunities Vũ Thị Hồng Ngân Đỗ Thị Thảo Nguyên Võ Thị Phương Thảo  Analyzing opportunities (environmental factors)  Identifying opportunities  Assessment of market potentialities  Theoretical framework  Recommendations 2 ... the invasion of more international brands In this report, we will discuss in depth the international business opportunities of Forever 21, Inc in Vietnam by identifying, analyzing and evaluating... sharp increase in internet use, and further increases forecast, Vietnam is a promising potential market for online retail and e-commerce Assessment of business opportunities of Forever 21 in Vietnam. .. is improving  Achieving success as a Middle- Income Country : In progress of building rule of law state and democratic society, especially since became a middleincome country, Vietnam introduced