Quote:
Originally Posted by smashy
Thank you for the replies.
I am writing this essay as a part of my management course. I am attempting to find out wheter or not it is beneficial for an European company to expand to Japan. Do you guys have any ideas?
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I gotta say I doubt if you have done enough research on your end. Why even ask us about H&M, Gap, and Zara now? They are all already here in Japan and are doing rather well.
A lot of other European brands are also already here in Japan and more will be coming. Why? Because Japan is where you can sell fashion products for the highest prices in the world. If you succeed in Japan, you have it made in the fashion industry. Right now, the Yen is the currency that you want to be making your profits in.
I used to be in the fashion industry myself (non-clothing, though.). The sales manager of one world-renoun giant French company used to keep telling me how important the Japanese market was to them. He said his company sold about 30% of its products in Japan, which was much more than it sold in France or the U.S. or even those two combined! What's more, if they only calculated the profits instead of the sales, that figure (30%) rose up to nearly 50%. 50% of your profits means......half your existence!
I won't name this company here but people in the European fashion industry know it. That's why they try hard to penetrate the Japanese market.