Business Strategy for Fashion Launch in Malaysia
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Business Strategy for Fashion Launch in Malaysia
- 1. Launch Analysis By: Clement Ihimekpen Nexford University June 2021 MyGaya Nordstrom New Brand
- 2. Table of Content 1. Cultural Analysis - Hofstede Research on Malaysia 2. Leadership Style - The characteristics of our Branch’s leader at Malaysia 3. The Strategic Plan – Also covers PESTLE Analysis of Malaysia & Our Mission 4. Summary - Competitive Advantages of our brand in Malaysia 5. References - Evidence based Analysis
- 4. Power Distance • 100 • Restricted Freedom of Subordinate. • Challenges to Leadership is not welcomed (Hofstede Insights, 2018) Individualism • 20 • Malaysia is a collectivistic society. • Major religions emphasize on collective wellbeing • Groups are more recognised than individuals Masculinity • 50 • Malaysian cultures value relationships and selflessness • Low masculinity and high femininity Uncertainty Avoidance • 36 • Malays value relationships more than wealth. • Low preference for avoiding uncertainty. Long-Term Orientation • 41 • Great respect for tradition. • Small propensity to save for the future • Malays focus on achieving quick result Indulgence • 57 • Cherish enjoying life and having fun • Act as they please • Spend money as they wish Hofstede Cultural Analysis in Malaysia
- 6. The Branch leader • Transactional leadership style • Autocratic • Visionary • RiskTaker • Flexible • Able to learn and respect people Culture
- 8. Political • Politically Stable • Neutral and Peaceful foreign policies • High corruption rate Economic • Middle income economy . • Progressing to High Income Economy. • Low unemployment Social • 32.6 Million people (World meter, 2021) • Main religion is ISLAM • Affluent Lifestyle • Low Income tax • FreeWelfare System Legal • British common law for non- Muslim • Sharia law for Muslims • Constitution is Supreme. • Patent protection Environmental • GreatTourist Centre • Stunning Beaches • Beautiful Holiday Destination • Air Pollution PESTLE Analysis of Malaysia
- 10. At Nordstrom we are all committed to earning the trust of ALL Malaysians through delivery of quality and affordable fashion experience. MISSION STATEMENT
- 11. OUR PRODUCTS Casual Dresses with Hijab quarter 1 Face Masks quarter 1 Formal Dresses quarter 2 Men Suits quarter 3 Sport Cloths quarter 4 Beach Wears quarter 4
- 12. Our International Business Strategy • Transnational business strategy • High integration Pacesetting products from the USA Experience of our US Marketing Experience Uphold our Quality Standard • High responsiveness Leverage on our PESTLE & Culture study Optimise the use of technology – MYGAYA Mobile App Customised Fashion Design Islamic Fashion product
- 13. Our Brand Analysis in Malaysia High quality and Pacesetting products from the USA Experience of our US Organization and Marketing Experience Our robust PESTLE & Culture study Optimised use of technology – MYGAYA MobileApp Customised Fashion Design Islamic Fashion product
- 14. Reference • Corporate Finance Institute. (2015). Hofstede’s Cultural Dimensions Theory. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/knowledge/other/hofstedes-cultural-dimensions-theory/ • Hofstede Insights. (2018). Country Comparison - Hofstede Insights. Hofstede Insights. https://www.hofstede-insights.com/country-comparison/malaysia/ • Malaysia country profile. (2018, May 10). BBC News. https://www.bbc.com/news/world-asia-pacific-15356257 • Structure of Malaysia’s legal framework for investors. (2016, June 23). Oxford Business Group. https://oxfordbusinessgroup.com/overview/freeing-trade- greater-opportunities-foreign-investment-and-trade-light-trans-pacific-partnership • ThemeGrill. (2018, October 23). International Business Strategy EXPLAINED with EXAMPLES | B2U. B2U - Business-To-You.com. https://www.business- to-you.com/international-business-strategy/
- 15. Thank you
Notes de l'éditeur
- Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management researcher, Geert Hofstede. The aim of the study was to determine the dimensions in which cultures vary. It is used to understand the differences in culture across countries and to discern the ways that business is done across different cultures. (Corporate Finance Institute, 2015)
- How Hofstede Cultural Analysis will impact our business in Malaysia? 1. Power Distance: We could leverage on this by building relationship with leaders, citizens in the high class group. Once we can get them to accept and use our product , citizens in the lower class would easily follow. 2. Individualism: Malaysia is a collectivistic society. Even the major religions there emphasize on collective wellbeing over individuals. In Malaysia people tend to work as a team. Thus our marketing plan would target prominent groups in Malaysia especially the leaders. Our commercials shall feature our outfits designs for group or ceremonies where different groups are present and distinguished by their outfit. 3. Masculinity: People in Malaysia focus on achievements, they also, interested in how to live comfortable life. The are characterized with high femininity. Thus our commercials will feature our trendy and colourful designs and also target female fashion. Our commercial shall appeal to using our product as gift items as Malaysian are caring. We shall also consider women for key organizational position. 4. Uncertainty Avoidance: Malaysian are willing to take risk and accept changes. We shall be leveraging on these to rollout some of our new designs from the USA as a competitive advantage over local designs and at the same venture into special designs initiated by Malysians. We shall recho this in our commercials and customer service. Giving our customer the opportunity of customising their fashion outfit in both local and foreign fabrics. 5. Long-Term Orientation: We shall leverage on their short term orientation by offering seasonal discount. More frequent rollout of New Designs and design shall be less durable but trendy, colourful, functional and affordable. 6. Indulgence: We shall be leveraging on their high indulgence in rolling out our fashionable and trendy designs. We shall be optmising their high demand for luxury in our marketing plan and customer service. Our app shall provide the opportunity to customise their fashion for better fulfilment and satisfaction
- Global leadership organizational Behaviour effectiveness (GLOBE) is a research program that was conceived in 1991 by Robert J House. It focused on analysing the culture of several countries using the various culture dimension and grouping these countries in culture clusters based on their culture similarities. The Globe model also identify suitable leadership style for each of these culture. The globe model is one of the best reference point when trying to identify suitable leadership style for a host country culture. (Nexford, 2021).
- Reference to the GLOBE and analysis of the culture dimension of Malaysia Has informed our decision that the characteristics of Malaysia's branch leader should be Transactional and Autocratic, similar to that of Steve Jobs. He should be a visionary, strong decision taker at the same time flexible to learn and adapt to peoples culture.
- A PESTLE analysis is a framework to analyze the key factors (Political, Economic, Sociological, Technological, Legal and Environmental) influencing an organization or business initiative from the outside. It offers people professionals insight into the external factors impacting their organization. The impact of all PESTLE Analysis aspects in our business in Malaysia: Political: Malaysia is politically stable, The prime minister is the head of government, who is monarch elected by the sultans of the nine Malay Kingdoms. A position that is rotated every five years. (BBC, 2020). Her foreign policies are developed and implemented under the principle of peace and neutrality which will suit well for the entry of our new brand. Corruption is also a concern, According to Transparency International’s Corruption Perceptions Index in 2020, Malaysia is ranked 57th out of 180 countries far below Singapore and Hong Kong. We shall be keeping a close watch on this when rolling out our designs and marketing plan. Economic: The Malaysia is middle income economy that is gradually progressing into a High income economy. It also has low unemployment rate(Trading Economics, 2019). The fashion market revenue in Malaysia expected to be 1,831 million US$ in 2021, with an annual growth rate of 18%. (Statista,2021). This underpin our timely expansion to Malaysia. Social: According to World meter 2021, the country population is 32.6million. People in Malaysia live a far more affluent lifestyle relative to their counterparts in other upper-middle income countries. This is as result of some factors such as low national income tax, almost free health care system, social welfare system and a low cost food, fuel and household products. (M Rahman, 2019). When you have fewer expenses, then you have a lot of money to spend. This is a huge market for our new fashion brand. We shall also consider Islamic outfit in our design and commercials for better social acceptance. Technological: Approximately, 91% of Malaysian residents used the Internet in 2019 and the rate is expected to reach around 97% by the end of 2025 (Wolff, 2020). Most utilized social media in the country include Facebook, Twitter, Pinterest, Instagram and YouTube (Shaw, 2020). This underpin the competitive advantage our online store will bring for our new brand in Malaysia MYGAYA. We shall also be creating our profile and extend our marketing across all of the commonly used social media in Malaysia. We shall also consider a mobile app for our new brand. MYGAYA Legal: We shall be registering our brand the Companies Commission of Malaysia (“SSM”), to guarantee protection of our company rights and our brand before it becomes accessible to customers (Legal,2020). Environmental: Malaysia has delicious food, dynamic cities, stunning beaches, weather and the people are friendly. It is a beautiful holiday destination and attracts lots of tourist. In 2019, about 26.1 million tourist visited the country (Hirschmann, 2020). However, Malaysia is also facing some environmental challenges which include Escalating carbon dioxide emissions, air pollution, excessive waste production, river pollution, deforestation and natural disasters (M Rahman, 2019). W e shall be targeting fashion that suit such holiday centers while we turn the air pollution to an advantage by designing face mask and sponsor environmental campaigns. It shall be an added reputational advantage if our brand is also associated with cleaner environment. References:
- Meaning My Style: Combination of English “My” and Malay “Gaya” meaning “Style”. Consistent with the social lifestyle in Malaysia.
- Meaning My Style: Combination of English “My” and Malay “Gaya” meaning “Style”. Consistent with the social lifestyle in Malaysia.
- We shall develop a product launch plan that leverage on the Cultural analysis of Malysia. (High femininity & Indulgence) Our launch plan shall involve rolling out new high quality and affordable fashion products quarterly. First we start with casual fashion designs coupled with hijabs to demonstrate our respect for their Islamic religion. We shall also add matching face mask to our products, portraying style with protection against the ravaging covid-19. Then we shall move to the corporate, by launching formal fashion products for offices, Seminars, interviews, etc. That is taking MyGaya fashion products from home to office. We do same for the Men in Quarter 4. Also giving them the opportunity of customising their suite We then move from office to the track and field by rolling out fashion products for athletic, sport teams etc. In same quarter we shall leverage on the stunning beaches and holiday destination of Malaysia to rollout beach outfits. That taking MYGAYA from home to office to Sports and finally to the beach consistent with our mission statement.
- Due to the difference in Culture between host country and home country and to drive Nordstrom customer service mission as well as deal with local competition in the fashion industry; we shall be Adopting the Transnational Business Strategy in which we shall be maintaining a high Integration and High local responsiveness. That is leveraging on our success in USA and gains from our robust analysis of the culture, economy and politics of Malaysia.
- High quality and Pacesetting products from the USA We shall bring in our high quality and successful fashion product from the USA as an edge over local competitors Experience of our US Organization and Marketing Experience With the huge experience of our top marketers from US in conjunction with our local marketer in Malaysia, we shall be giving our Malaysian customers an experience like no other. A competitive advantage over our local competitors Optimised use of technology – MYGAYA Mobile App Leveraging on the high level of technology in Malaysia we shall reduce cost and achieve a more impactful and far reaching marketing of our product. We shall be out weighing our competitors by providing Malaysians a Realtime platform to customise their outfit through our Mobile app. Islamic Fashion product Our strategic design of Islamic fashion product demonstrate our respect for religion and culture which shall translate to maximum social influence and customer loyalty.