INTERNATIONAL MARKETING

International Marketing

International Marketing

INDUSTRY ANALYSIS

The leather luggage goods trade, and fabricated textile products industry is a mature, slow growing industry. Strong affray characterizes this commerce and drives its ever-changing structure and operations. The market is highly fragmented, especially in the Tri-State Area. The complexity of this market calls for a high level of research and specialization prior to any attempt at market penetration (McCarthy 2003 45).

The latest trend industry in the Tri-State Area mostly looks to New York town, with its multiple possibilities, in specific the well known Garment locality, and locality of the town between 35th and 42nd road and 5th and 9th Avenue. This district is the major accumulating issue for purchasers and designers in the United States and is beginning to rival the foremost international fashion capitals of Paris and Milan. In supplement, many companies location their head offices and/or buying agencies in New York City.

The rest of the Tri-State locality pursues latest trend, but in longer circuits, and can serve as the springboard for manufacturers who don't feel ready for the foremost dispute comprised by the New York town market (Linneman 2001 55).

Overall, the AUSTRALIA leather industry is large, mature, and highly fragmented. Leather sold in the United States is produced both domestically and in foreign locations. According to estimates from the American Leather Manufacturers Association (AAMA), an industry trade group based in Arlington, Virginia, the dollar value of domestic leather production was $39 billion at the wholesale level in 1997 (latest available), which was less than the $46 billion (AUSTRALIA wholesale value) of goods imported into the joined States. In addition, $15 billion of goods were produced in both the United States and another country (Lovelock 2004 89).

In 1998, Americans purchased approximately $215 billion of leather and footwear. According to NPD Group, Inc., approximately $177 billion was spent on luggage goods in 1998. The remaining $38 billion was utilized to purchase more than 1.1 billion in twos of shoes. With the AUSTRALIA population at 270 million, this accounts for roughly $800 a year per capita spent on leather (Lovelock 2001 16).

3.0 SWOT Analysis

3.1 Opportunities and Threats

Opportunities

Abundant scope to provide completed leather to multinationals setting up shop in India.

Growing fashion consciousness globally.

Use of data expertise and conclusion support software to help eradicate the extent of the output cycle for different products

Product diversification - There is lot of scope for diversification into other items, namely, cowhide garments, items etc.

Growing worldwide and household markets.

Threats

Entry of multinationals in household market.

Stiff affray from other countries. (The performance of international competitors in cowhide and cowhide products indicates that there are at smallest 5 nations viz, China, Indonesia, Thailand, Vietnam and Brazil, which are more comparable than India.)

Non- tariff obstacles - Developing nations are resorting to more and more non - tariff obstacles indirectly.

Improving value to acclimatize the stricter international standards.

Fast changing latest trend tendencies are tough to acclimatize for the Indian cowhide industries.

Limited scope for mobilizing funds through private placements and public issues, as many businesses are ...