Succeeding In Tomorrow’s Global Fashion Market, Research Paper Example

Vanity Voice Fashion Brand International Branding Strategy

Introduction

Vanity Voice is a designer collection and a fashion label in Russia. Well known among the upper class of the urban population of the country, it offers a unique, European style, unique design, and refined forms. The fashion items of the brand are completely wearable, however, the company has not expanded to international markets yet. The below paper will outline the company’s proposed international branding strategy to move into the high streets of Europe, in particular: Switzerland.

Literature Review

Porter published a review on nations’ competitive advantage on international markets. The author (Porter, 90), companies need to “globalize to tap selective advantages in other nations”. However, the author also states that companies should preserve their unique national features, and highlight them within their marketing communication on the new market. There are several market entry strategies mentioned by the study, for example using alliances, welcoming domestic rivalry, and establishing early warning systems. Knowing the market and the competitors well is an essential aspect of succeeding on the new marketplace.

Brand Review

The company is extremely popular in Russia, and its national Facebook page has almost 5000 likes. The company posts in Russian and creates regular updates about the new collection and how the creations are born. The website of Vanity Voice features the latest collection and the location of the designer showroom. Overall, the current brand image of the company is sophisticated, refined, bold, and urban. Using natural colors and materials, the brand appeals to those who can afford quality and style, and are looking for a way of standing out of the crowd.

The founder and chief designer of the company, Irina Volkovka has been focusing on the luxury market since 2007. She personally inspects  the quality of each item, and selects the material. Using plenty of fur combined with modern materials, the collections emphasize the wearer’s social status and prosperity (Open Russian Fashion)

The company does not have a YouTube channel, however, it is likely that it would be popular among fashionistas in Europe.

Product: high quality luxury fashion

Price: high for status statement

Place: Sold in Russia

Promotion: Social media, physical store

People: world-reknowned designer

Process: Buying in store

Physical Evidence: quality checked soft materials, good performance at fashion shows

SWOT Analysis

Fashion Market in Switzerland

The luxury fashion market in Switzerland it likely to be growing at a high rate in the next few years, according to McKinsey & Company. It will also grow faster than economy fashion lines’ sales. This means that the number of people with a high amount of disposable income in cities is on the rise. Bold brands that appeal to middle-aged professionals can make a success in the prosperous cities, such as Zurich or Geneva. Zurich is one of the European capitals of fashion, and several designers are present in the high street. Further, the Zurich Fashion Week attracts tens of thousands of industry professionals and retailers each year.

According to a recent Huffington Post article, the “Swiss Style” is unique, stylish, sophisticated, and comfortable. Swiss women prefer items that make a statement without compromising on the wearability of the apparel. Switzerland today stands on the third place in Europe based on GDP, and this indicates that the country’s residents have a high proportion of disposable income to spend on luxury fashion items. The GDP of Switzerland is more than two times higher than the one of the UK.

Entry Strategies

According to Porter’s article, companies need to create a competitive advantage that is considered to be an advantage on the global market, as well as on the national one. Innovation is one of the most successful ways of creating this advantage. As the fashion brand Vanity Voice has a new collection each season, which is easily recognizable, unique, and trendy, the company should use this strength to enter the market and position the brand in Switzerland/.

Social Media

The company already has a sophisticated Instagram feed. According to the article created by McKinsey & Company, “Up to 35 percent of consumers indicate that they rely on recommendations from social networks”. This means that through images, the company could increase the brand awareness on the global market. Posting photos of new collections, trends, interviews, fashion shows, and models would certainly increase brand popularity and allow the designer to communicate its identity: bold, sophisticated, European, unique, and exclusive.

Retail Partners

Seeking large designer store chains’ support to feature the company’s collection would be an easy way of entering the marketplace. Buyers who visit these exclusive shops of Zurich or Geneva are already prepared to spend money on luxury fashion items. However, it is likely that these stores would require investment and securities from the company, and would set conditions for selling the items. A commission would need to be paid, and the branding impact would be lower than it could be when opening a Vanity Voice showroom featuring only items from the same designers.

Brand Showroom in Zurich

While this is the market entry method that requires the highest amount of investment, it is also important to note that having a showroom and outlet in one of the European capitals of fashion would send out a positive message to shoppers who are currently unfamiliar with the label. Their brand perception would be based on the assumption that the designer fashion label is reliable, sophisticated, daring, and confident. As the items are unique enough, still European, they could attract customers who are looking for items that stand out, but are at the same time urban and modern.

Branding Through Video Marketing

The company should engage in video marketing as soon as it has launched in the country. McKinsey & Company’s article also states that there is a need for creating awareness of the collection before launching, and this is true for opening the shop. Press releases, videos, and interviews should be featured on the company’s international channel before the launch of Vanity Voice in Switzerland. Porter also suggests that establishing early-warning systems is important for success. Providing customers with incentives and first-mover advantages would mean that those who are considered to be trend-setters would discover the brand quicker, and recommend the items through word of mouth advertising, social media shares, and even their own blog.

Exclusive Deals with Online Retailers

The most cost effective way of entering the market would be to sign a deal with Swiss online retailers to sell the items. However, this would mean that the company would need to pay a commission for each sale, take care of logistic agreements, and compete with other brands listed in the internet outlet. The impact of branding would be moderate, however, combining this market entry strategy with social media campaigns could result in a strong brand awareness in the target country. It is important that –  as Vanity Voice is an exclusive and luxury brand – the company selects one retailer that already has customers who would be likely to connect with the brand identity on the emotional level. Featuring the product on multiple websites would make it appear easily accessible, common, and cheap.

Own Brand Online Retail Store for Vanity Voice

The Russian company could also decide to launch its own Swiss site that features articles, interviews, photos, and videos about the brand. This would certainly improve brand awareness, and this market entry strategy could later lead to building up a loyal customer base that would visit the physical store once it is opened. This international branding method carries fewer risks, and if it is combined with public relations and social media campaigns, it is likely that it can be really successful in the Swiss luxury fashion market.

Brand Image

There is no need to change the brand image and identity when moving to Switzerland. According to Porter (90), “identifying sophisticated buyers in other countries helps companies understand different needs”, therefore, it supports innovation. The current brand image of Vanity Voice is: bold, sophisticated, elegant, exclusive, and urban. This brand image is appealing to both prosperous Swiss and Russian shoppers.

Branding Strategies – Recommendations

Based on the above review, the author would recommend the following market entry and branding strategies:

• Social media campaign; creating a Swiss Facebook page, Instagram account, YouTube channel, creating awareness of the launch
• Creating an online store that uses social media as a marketing channel, and press releases, interviews, and videos as corporate communication channels to connect with potential buyers
• After the successful launch of the online store, it is recommended that the company opens a showroom in the fashion high street of Zurich or Geneva, featuring exclusively Vanity Voice items.

Works Cited

Europe GDP Guide. http://www.globalpropertyguide.com/Europe/gdp-per-capita 2014. Web.

McKinsey & Company. Succeeding in tomorrow’s global fashion market. 2014. Web.

Open Russian Fashion. Vanity Voice. 2014. Web.

Polla, A. What is Swiss Style Huffington Post. 2014. Web.

Porter, M. The Competitive Advantage of Nations. Harvard Business Review. March-April 1990. Print.

Vanity Voice. Website. http://www.vanity-voice.ru/