Clothes giant plans female only store in Saudi Arabia

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David Robertson in Sharm el Sheikh / The Times /May 23, 2008

© Copyright 2008 Times Newspapers Ltd

Summary

H&M, the Swedish retailer, will open the first women-only department store in Saudi Arabia as part of moves to bring more women into the country’s workforce.

The store, which will be H&M’s first in the country, will be staffed entirely by women in what is understood to be a landmark concession by the Saudi Government. Saudi Arabia has strict laws that prohibit the public interaction of women with men other than their husbands. These extend to restrictions on working and driving. As the store will be staffed by women, the Government has insisted that only females will be able to shop there.

Small female-run stores already exist in Saudi Arabia but H&M, otherwise known as Hennes & Mauritz, will be the first major retail outlet to be staffed by women. It will open in a shopping mall in Riyadh this year and will be operated by the Alshaya Group, a retail company based in Kuwait.

Opinion

H&M is known for their cheap prices and good quality of their clothes, shoes etc. This brand is one of major SPA (specialty retailer of private label apparel) in the clothing industry. There are it could be really big challenge for people in Saudi Arabia, especially the government to accept this kind of big shops. Also, making all employees who is going to woke for H&M are women. H&M is embarking on an innovative development to open a store with women working in it. It shows that they are doing their business by understanding the local. They have to do it as a part of their social responsibility to women in Saudi Arabia.

Localization marketing is good for global companies like McDonald’s, Starbucks and so on. Because this kind of brand can be defended by people who do not want giant group in their country. Having good reputations and sound relationship with public and governments can decrease the unwelcome from them.

Student ID # 20500018

Entry # 13

Korea fashion industry stands at crossroads

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Summary
Korea’s textile and fashion was important role in economic growth during 1970 and 80s, however it has limitation. It didn’t have production of quality and design, so it lost market in overseas as Europe and America because it appeared competition such as India and China that has cheaper labor.
Recently, Korea market has confidence because it has tried to have technology develop and market trends and creative designs. However, experts say that it’s not enough so Korean companies should try to strength their technology, quality, and design rather than low cost to win against Asian competitors. Enhancing brand values and strengthening marketing strategies is also important factor to Korean market. But many companies still didn’t recognize that.
The market has undergone big changes and many consumers pursue unique style and value now. There are two characters in Korean market: primarily domestically produced market and high level designer brands.
Korean customers are affected by imported brand names and higher prices with superior quality because they want to show their social status and wealth through wearing luxury brands.

Opinion
The Korean fiber market has been important role to draw economic development for last 20 years. However it focused only low price through cheap labor so it couldn’t read trend and fail to meet the situation, I think it was the biggest mistake for losing market.
Korean cloth business get bigger and rapidly grower both online and offline.

To win the competitors such as china, we should develop new high-tech material. Because we can’t win competitors as low prices, so we focus on quality and design. Korea national name value is also important role for it. In fact our products are treated low value even though it has good quality because of lack of name value, I think.
For example, world people think Japan’s products are excellent and select them without hesitation. Like this, Korean fiber market strength its brand image and notify our excellent product. It is good way to hold international events regularly to hold spotlight.
Above all, local companies have to recognize importance about marketing strategy for their products. To success it, they can cooperate with local communities in various ways. It can give benefit to local company and community at once. And marketing strategy need to be more specific development through professional management mind.
# 20300194 - Entry 13
(Ref: Koreaherald / by Cho chun-un (christory@heraldm.com) / May 30, 2008

http://www.koreatimes.co.kr/www/news/biz/2008/05/123_24982.html

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Summary

The new CEO of Woori Financial Holding, Lee Pal-seung CEO of Seoul Philharmonic Orchestra, has promised to accelerate privatization and enhance its non-banking sector. At a press conference, he clearly mentioned the first priority of speeding up the privatization of the group and increasing its competitiveness. Also, he suggested it be a worldwide bank and M&A is a new alternative in achieving that goal. He knew its weakness of non-banking sector and will try to boosting securities and insurance.
He said it can make it through a unity between subsidiaries and he can help them derive best effiency. Moreover, he graduated Korea University where President Lee also did. He began with a banker at Hanil Bank and was at Woori Investment & Securities and then moved to the Seoul Philharmonic Orchestra in 2005.

Opinion

Woori Bank is the third biggest financial group(behind KB and Shinhan) in the market value. A heavy mission is given to the new CEO Lee Pal-seung due to complicated economic situation. We can summarize two strategies in his comment.
The first one is the privatization. In fact, Woori Financial Holdings is the sum of previous various banks and securities; for example Hanil Bank, Hanbit Bank, and LG Investment Securities. Therefore, the CEO should express their subsidaries' merits with the unity of them. But M&A can harm the unity so he will react this very carefully because M&A costs considerably and the effect on firm is very excessive.
And the second thing, non-banking sector, is very good because 자통법(Captial Market Integration Law) is executed in Feb 2009. Then, the Korean JP Morgan will be born and many financail group is preparing for this situation. Woori's Commercial Bank is very strong(1st place in Korea) so it has an enviornment expanding non-banking area.
Woori is very large and it can be bigger and bigger with CEO's sound business. We will notify the new CEO of Woori react this market situation.

(Source : KRX)

#20300576 - Entry 12
(Source: Koreatimes, By Kim Jae-kyoung(Staff Reporter), 2008/05/29)

At best buy, Marketing goes Micro

20700011 entry#13

At best buy, Marketing goes Micro

Article

http://www.businessweek.com/magazine/content/08_21/b4085052698079.htm?chan=innovation_branding_top+stories

In this article, best buy segments their customers specifically. Best buy is the biggest electronic company in U.S.A. and they sell all kinds of electronic products. They are targeting on sailors who are on the boat for their job. Best buy thought they could sell their products to them because sailors are willing to buy products like ipod or laptop while they are in the other countries. purchasing the stuff like laptop or ipot while they are on abroad has big advantage for them because of the reasonable price without the tax. targeting on specific group of people could be a kind of big risk for the company but they decided to segment through a big chellenge.

In my opinion, segmentaion is a good marketing stratdgy even though it has a big risk for the company. They could provide various products of one specific category for the customers who are interested in that category. customers will remeber that company as a specialist which sells that product. In these days, it is not smart to sell all kinds of products in one mall. They better focus on one kind of product and segment their customers specifically.

20700011 entry#13

Authentic Relationship -

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Summary
Today, market is full of products. Consumers face the over abundancy of products in all market and services. So many executives ask, "how to differentiate themselves with others." Today, it is important to create authentic relationship with customers.
Today, many companies use different strategy to do marketing for their products, from media to Internet advertising. The more advertisement people see, many loose their trust in the product/service or company itself. Apporaching customers became easier, however to gain their trust is not as easy. 21st century copany should work for authenticity, that can connect the firm and the consumers.
Before advertising nd sending our products, companies need to look back and see who theircustomers are, at te time. And think in a customers' point of view, if the product has any connection with them. Customers seek for connection and relationship.

My Opinion
I definitely agree that it is very important for a company to create true relationship with its customers. When we look back at our markets today, we have great abundancy of all products and services all over the world. If not available in one country, we can bring any product or service from other countries very easily. People today aren't seeking for the product and service itself, but for the value and connection it has with the company.
Personal service is very important. I, as a customer myself look for places where I feel comfortable and familiar with. When entering a service company, I see if I am recognized. Recognition plays a very important role, when the customer himself/herself feels that they are a loyal customer. For a product serving company, it is important for the company to bring the right products to the right customers.
Products and services are limited, however it creates great value when the have surpassed the expectation the consumer holds.
As we have learned in class, a loyal customer is better than a few new customer. So creating relationship with the right customers should be considered a great marketing strategy, especially in a market like we have today.

Entry #13
20600770
(Source: Business Week "How to Stand Out? Try Authenticity" May 28, 2008

Product Advertisements in TV Dramas Go Subtle

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(Reference: The Korea Times/By Jane HanStaff Reporter /05-29-2008)
Summary
BMW sedan and Infiniti coupe sale have increased because they have attracted customer’s attention through television drama. Nowadays, however, that kind of advertisements not only includes luxury goods like car but also is focusing on other small goods. In recently ended drama “On Air,” the main actor used espresso coffee machine. Since it exposures on TV frequently, the coffee machine sales jumped about 20 percent. And Daewoo Lucoms’ computer products have also increased their sale through TV drama. Among PPL advertisement, mobile phone is the most popular item. In 2004, Pantench & Curitel mobile phone sold their products more than 50,000 sets a month through SBS drama “Lovers in Pairs” And then their competitor such as LG and Samsung have used PPL like P&C. According to this article, television shows and dramas get about 40 percent of their production costs through PPL advertisement.
My Opinion
Nowadays, we live around lots of advertisement’s exposures. There are not only direct advertisements through TV and newspaper, but also indirect advertisement like PPL - we have seen in this article. Actually I am interested in automobile, but since I saw BMW car on TV drama “All in” as PPL, I like BMW sedan. And Samsung showed their products on the movie “Spider man” and “Matrix” Therefore, I think that they could enhance their value of brand.
I think PPL is Win-Win strategy because it is good for producer and advertiser. Producers are be able to make better quality film or drama through that kind of investment, and advertiser can inform their products directly or indirectly. Therefore, they can get many positive effects for their products through attractive characters on TV or a movie. However, indiscreet PPL advertisements lead to negative effects for their goods and programs. Many people blamed the movie which Jun ji hyeon appeared because they showed too many products. Therefore, I think PPL has pros and cons but if customers recognize that PPL is direct advertisement due to a rash use, PPL’s merit will be offset and it will be returned as drawback.

#20400251 Entry #13