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27/27SELLINGTANGSUITTOU.S.APrepareforPeterJohnson,ChiefOperatingOfficerNovember27,2010CONTENTSPAGEIntroduction..…..………………….1FeaturesandUsesofTangSuit.…………………2TypeofTangSuit..………………….…………..2Whatfabrictomakeatangsuit?2FeaturesofTangSuit……………….…………..2MarketAnalysisandDevelopmentStrategy………………….3Location…..………………….3SalesStrategy……………….3Development………………..4MarketPrice………………...4HighTariffsoftheAmerica………5DataoftheTariffs……………….5WaytoSolvetheTariffProblem……………..5ConsumerPreferencesforTangSuit…………..6WhyTangSuitpopularintheAmerica?6LawsandregulationsAboutSellingOverseas……………….7LawsandregulationsabouttextileimportinAmerica…...7LawsandregulationsoftextileexportinChina……………7ConclusionsandRecommendations……………..…………….8

SELLINGTANGSUITTOU.S.AINTRODUCTIONInthe2001ShanghaiAPECmeeting,apictureofformerpresidentBushintheTangSuithasarousedmuchattentionthroughouttheU.S.Americanisnotonlyattractedbythesuitbutratherthanthenamebehindtheclothesitrepresents:China.Previously,commercials‘madeinChina’aremostwelcomeinU.Smarketfortheircheapprice.Presently,moreattentionispaidtothiscountryforitssuccessineconomicaccomplishment.U.ScitizensareeagertolearnmoreaboutChina.AnitemnotonlymadeinChinabuttellingthestoryofChinawillwinmorehearts.PeoplewillbeproudofpossessingacollectionofChinesetraditionalclothessuchastheTangSuit.Therefore,sellingtheTangSuittoU.Smustbeabusinessopportunity.Inordertoproveit,thisreportattemptstoconductacomprehensiveanalysisofTangSuit,includingthefeatureofthesuit,themarketpredictionandtargetingpotentialcostumersetc.ThisreportwillhelpinvestorstoachievetheirbusinessgoalofsellingTangSuitbyillustratingtheperfectlocationinU.Smarketwheremoreeyeswoulddrawtothesuit.Meanwhile,thesalestrategyandthepriceanalysiscouldhelpcompaniestoassesstherevenueandcostratiobeforestartingtherealbusiness.ThereisonestatisticdisplayrevealthedevelopmentofTangSuitsalesinU.Stoensuretheconfidenceoftheinvestors.ThereportwillnotonlydemonstratetheopportunityoftheTangSuitbusinessbutitusesamajorparttonarratetheproblemscompaniesmightconfront.Thetariffandlawregulationswouldbethecrucialpart.Intermsofthetariff,wecouldonlyusedatatodisplaytheactualfact.Itisnotourmainfocustoreachaconcretesolutiontothisissue.However,wedoprovidesometechniquestoavoidthehightariffwouldendangertherevenue,butitisnotassured.WesuggesttheguestshouldreadanotherpartonwhyinvestintheU.Smarket.Inthispart,thereportfullyelaboratesthemarketpotentialandtendencyofthesalesinthefuture.Comparingtotheriskthecompaniesmightface,thehighprofitandhugemarketshouldinfluencemoreonthefinaldecision.FEATURESANDUSESOFTANGSUITTangsuitcontainsfivedistinguishing:collar,jointsleeve,breasted,rectangularbuttons,fabric(brocade,silk).Itusedtobeworninceremoniesandfestivaloccasions.Mainlyusedforceremonialclothingandfestivalclothing.However,presently,newelementssuchastheweststylehaveaddedtothetangsuit,whichmakesthetangsuitcanbeworeindailylife.TypeofTangSuitTherearethreedifferenttypesofTangSuit:Narrow-sleevedjacketorskirt;HuDress;andthewomanstyle.WhatFabrictoMakeaTangSuit?Mostgarmentsaremadefromnaturalfabricssuchasbrocade,silk,cotton,butwiththeprogressofthetimes,butnow,anewmaterialcanbefoundintheTangSuitmarket:leather.Thecombinationofleatherandcostumenotonlytoretaintheelegantcostume,atthesametime,tangsuitlooksdifferfrombefore.Thisisagoodideatoexpandthemarket.Now,tangsuithasattacknewfactorsinit,itmakestangsuittobeoutoftheceremonialclothing,dailylife,holidaycanweartangsuit.FeaturesofTangSuitInfact,todaytheTangSuitwearewearingdoesnotcomefromoriginalone.Nowthe"tangsuit"fromtheManchuisacombinationoftraditionalandmodernmaterials.ItdrawsontheQingdynastytraditionalclothingwhileusingtheWesternclothing’stechniquecut.Forexample,theChineseclothingwithrarelyusedlongsleeves,sincethereisnoclothingwithlongsleevesisequivalentnowaist.TangsuitisverypopularamongtheupperlevelpeopleinHongKong,Macauandwhoretunedformforeigncountries.Today,ithasbecomepopulartopicaroundforeignpeople.Sincethat,in2001,APECleadersmakea"tangsuit”debut,peopletosetoff"theChinesepeopletoweartheirownclothes,"thefeelings.Today,tangsuitwearsverygeneral,inChina,peoplewearstangsuitinwedding,italsowearsinimportantfestival,forexample:springfestival,DragonBoatFestivalandsoon.inaword,itisaformalwear.MARKETANALYSISANDDEVELOPMENTSTRATEGYTangsuitintheU.S.marketisverypromising,forinsomeaspects,suchasfuturedevelopment,marketpricing,localselection,marketingstrategy,wehavetodoadeepinvestigation,fromwhichweconcludethat,someofthefollowingsituation.LocationInNewYork’sChinatown,peoplewilloftenfindseveralsecretlypointshere,likeweoftengotoChinatown,neartheSOHOloftmainlytopreparefortouristsandforeignerssuchasusoverseas"Chinese".SincethennotdifficulttoseealotofpeopleintheUnitedStatesareexposedtothecostumeinChinatown,thechoiceofthislocationislimited,wethinkthatweshouldadheretosomecitiesintheUnitedStatestosetupsalesshop,butifyouwantmoreAmericansunderstandthatcostume,orevenbuyacostume,notonlyinbigcities,butalsoinsomevillagesinadvertising,etc.,sothatpeoplecostumetolove,sothatwecanhopetofullyopentheU.S.market,inthemainareawewillestablishedshops,suchasNewYork,Chicago,LosAngelesdowntownarea.SalesStrategyTangsuitthewayinthebusiness,eitherpurchaseonlyfrommanufacturers,soldchangedhandsmakethedifference;alsotheirproduction,processingandsaleof"through-train",thecostumedesign,development,innovationandproductionandmarketingbusiness"takesall".Incostumedesignanddevelopmentofculturalcontentonitshouldbecombinedwithmodernconsumptionhabits,itisnecessarytoreflecttheculturaltastesoftheChineseTangDynastyera,butalsototakecareofpeople'sconsumptionofmodernpsychologicalandaesthetictendencies.Tailor-madefortheguestscouldalsobeconsidered,sothateachguest'sconsumptiondemandcanbemet.Inthecostumeofthebrandstrategy,webelievethatbythetimetheshoworthefestivalofChinesemartialartsperformances,reflectingthecostumehasgonedeepintoourlivesalittlebit.Inaddition,wealsothinkwecanandeveryChineserestaurantorChinesegoodssalespitch,andreachedacooperationagreement.Mainlybythenumberofsalespeopletoselldressedincostume,soyoucanmoredirectlytotheAmericanssomevisualsenseofthecordialfeelingbettercostume.DevelopmentTangsuitonthemarketandtheTangDynasty'scostumeisnotthesame,oneinshape,hasbeenshapedtotheTangDynastywhentheundercovershapedgown;Secondismaterialfromthepastintoasilkwool,acrylicandsilkblend.Thiscanreducethecostofrawmaterialsandsellingprices,affordabletomorepeople.AChineseGarmentIndustryAssociationstatisticsshowthatasthepropensitytoconsume,socialandculturalvalueandtheeraofdiversification,coupledwiththeeleganceoftheTangsuit,gorgeousanddeepculturalconnotation,costumeconsumptionisalsogrowingyearbyyear.Since2000,theannualgrowthrateinmorethan10%andthistrendwillcontinue,therefore,regardedasabusinessventureTangsuitstheroad.Tangsuitsthecultureanduseofinfluence,wecanuseadvertisingandotherpublicitymeansalottoexpandthedevelopmentofcostume.MarketPriceIntheinputs:Rentafrontagepavementareaof20squaremeters,themonthlyrentof2,000Yuan,theannualrent24,000Yuan;9,000storedecoration,3-yearassessmentiscompleted,annualamortization3,000;Purchaseofbusinessequipmentand3,000Yuan,3-yearamortizationiscompleted,assessed1,000Yuanperyear;Employeeswhoworkamonthlysalaryof1,000Yuan,theannual1.2million;otherexpenses5,000/year.Annualoffixedoperatingcostsis4.5million.Theoutputs:theTangsuitaremanydifferentspecifications,highorlowsalesprices,cheappiecesoflessthan100Yuaneach,whiletheexpensive700Yuaneach.Accordingtoanaverageof400Yuan/piece,theaveragedailysalesofthree,withsales1200Yuan,annualsales430,000Yuan,anaverageof30%ofthegrossmargincalculations,grossprofitof129,000Yuanmaybe.Netof4.5millionoffixedoperatingcosts,maybemorethan8millionnetprofits.Tangsuit’smarketisnowpricing30to60dollars,costumealsoreflectsthefashion,tradition,andnationalcharacteristicssuchasstyle,manypeoplearenowthefirstchoiceforclothing.HIGHTARIFFSOFTHEAMERICAToexportTangSuittoAmerica,themostimportantproblemweneedtofaceisthehightariffsoftheclothesinAmerica.Americanlaborforceisveryexpensive,butChineselaborforceismuchcheaper,sotheclothesthatmadeinChinaarealsocheaperthanwhicharemadeinUS.Inordertoprotecttheirownclothingindustry,theAmericangovernmentmakesthetariffsofimportclothesveryhigh.Theproblemishowwereducethecoststopaythehightariffsorimproveourproducts'qualitytosellthemwithahigherprice.DataoftheTariffFromthewebsiteoftheUnitedStatesInternationalTradeCommission,IfindthetariffoftheTangSuitisabout15.9%,itmeansifwesellourTangSuit100dollarseach,weneedtopay15.9dollarstotheUnitedStatesgovernment.WaytoTariffsProblemTosolvethetariffsproblem,weneedtoimprovethecompany'saccountingsystem,bydoingthiswillmakeourcompanymoreinternational,andthentheUnitedStatescustomerwillbemorelikelytobuyourproduct.CONSUMERPREFERENCESFORTANGSUITSincetraditionalChinesecultureandKungFupromoteintheword,leadtomoreAmericansliketheChinesetraditionalclothing.AlsomanypeoplefallinlovewiththeartisticmovementsofKungFuandtheChineseculture.SoourTangsuitwilljointheKungFuofthedesignelements.WhyTangSuitpopularintheAmerica?ThefollowingarethereasonsforwhyTangSuitpopularintheAmerica.■AsiaandPacificeconomiesleaderswearTangsuitinAPECmeeting.AmericanpresidentandsuperstarsarewearingaTangSuittoattendsomeimportantoccasionsinAmerica.ThisledtomoreyoungAmericanslikeTangsuit.■ChinesemoviesofKungFuareverypopularintheUnitedStates.BruceLee,JackieChanandJetLihavealotoffansintheUnitedStates.ThesefansareusuallyliketraditionalChineseculture,suchasTangsuit.BecauseofthesemoviestarsofKungFuarewearingTangsuit.■From2006to2008,theoverseasChineseincreasedapproximately5millionpeopleinUnitedStates’populationeveryyear.In2007,thenumberofChinesepopulationis3.54million.MostoverseasChineseliketowearTangsuit.Canbeseen,thereisagreatmarket.TheU.S.Governmenthastakensomemeasures.Suchastaxcuts.TheU.S.consumer'spersonaleconomicconditionsaregood.Consumerswillspendmoremoneytobuydailynecessities,notclothing.60%ofconsumersbuyclothesatadiscount,37%ofconsumersplantobuythenextthreemonthsthepreviousquarterlessclothing.Sowewillreducethecostofrawmaterialsandsellingprices.InU.S.,cheapsupermarketisthemostpopularretailoutlets,accountingfor31%oftheshare.Therefore,ourcostumewillbesaleintheU.S.supermarket.SomeAmericanslikesimplestyle,comfortableclothing.Fromfabrics,Tangsuitmainlyusesbrocadefabric,it’sacomfortablefabric.LAWSANDREGULATIONSABOUTSELLINGOVERSEASThelaws,regulationsandstandardsaboutsellingoverseasareincludingbothChinaandAmerica.Theyhaveadetailsseriesoflaws,regulationsorstandardsabouttextileandapparellabelingtolimittheinputsandoutputsinthecountry.InordertoconfirmourtangsuitcanbesellingtoAmericasuccessfully,allproductsmustbeproducecorrectlywiththelaws,regulationsandstandard.LawsandregulationsoftextileexportinChinaInordertostandardizethemanagementofpassivequotasoftextilestomaintaintheoperatingorderofthetextileexporttotherestrictioncountry,andaimedattheproblemofexporttextilestotherestrictioncountry,therelativeDepartmentdevelopeda"NationalTextileExportLicenseManagementSystemForPassiveQuotaNorms".Wewillorganizeourrelativeorganizationstolearnthetextilequotamanagementrequirementstofamiliarwithandcompliantitconsciously.LawsandregulationsabouttextileimportinAmericaInAmerica,thepartoflawsandregulationsoftextileabouttangsuitarecategoriesbycategoryasfollows:TextilecomponentsMaintenancetabFlammabilityCountryoforiginManufacturers,importersanddistributors.ApparelsizingIn2008,attheworkshopofSino-UStextileandapparelsafetyproblem,TheUnitedStatesintroducedtwolegislationstostrengthenthequalitycontroloftextiles.Thequalityoftextilesisveryimportantinsellingoverseas.TheproblemofsellingoverseasaboutlawsandregulationsweshouldbeattentionisweshouldmakesurethequalityofTangSuitwemadeisperfectanduptothemustard.

CONCLUTIONSANDRECOMMENDATIONSTangSuit’sstylescanbedividedintothreecategories:narrow-sleevedjacket,skirt,hudressandthewoman.Itsmainmaterialissilkandcotton.Itusedtobeworninceremoniesandfestivaloccasions.ManyoverseasChineseliveinUnitedStates.Therefore,inthispartofthecostumewillbeagreatmarket.KungfumoviesareverypopularintheUnitedStates,alotofpeoplefallinlovewithKungFu.SoourTangsuitwilljointheKungFuofthedesignelements.ThetariffsofexportTangsuittoAmericaisveryhigh,itwillincreaseourcostandforceustoraiseourTangSuit'sprice.SomeAmericanslikesimplestyle,comfortableclothing.Fromfabrics,Tangsuitmainlyusesbrocadefabric.TangSuitisagreatdevelopmentprospectsinthefuture,nowthereisabigproblemintheU.S.market,primarilyoperationsandmanagement,strategyandifyoucandoverydetailedmarketresearchandobjective,thentherearetheU.S.marketc

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