Wednesday, November 30, 2011

Basic Situation Analysis Report Chapter 4 - 5


Chapter 4: Consumers and Stakeholders
4.1 Current Consumer's Characteristic
4.1.1 Demographics
·         Age                                        : 15 - 40 years old
·         Gender                                 : Both gender
·         Education                            :  Secondary School and above
·         Occupation                                    : Student to Working Adults
·         Income Range                   : RM 400 - RM 4000
·         Race & Ethnicity                 : All races
·         Geographical Location   : Urban and Sub-urban Areas
4.1.2 Psychographics
·         Perception                           : Prioritize simple, comfortable , expressive and                                              yet stylish appearances.
·         Learning                               : Friends, family and internet.
·         Motivation & Needs          : Comfortable, good quality, and stylish                                                           colourful clothes and accessories at                                                               affordable prices.
·         Attitude & Personality       : Positive, happy, wise money spender, like to                                                appear simple but still remain attractive.
·         Lifestyle                                  : Active, stylish, economic, modern lifestyle.
4.2 Stakeholders Characteristics
F.O.S do not have joint venture partners or stakeholders. The company is private limited company, fully run by Optimum Global Resources Sdn. Bhd.


Chapter 5: Industry and Market Place
5.1 The Industry
5.1.1 Definition of the Retail Industry
Retailing is a business of selling goods to important customers for personal, family and household use. Retailers are business firms which involves in offering goods and services directly to consumers.
The function of overlooking the wholesale and retail sector falls under the supervision of the Ministry of Domestic Trade and Consumer Affairs (MDTCA) through the Committee on Wholesale and Retail Trade. The Committee was born in 1995 to control the industry, including foreign participation in the sector. Authorization for foreign companies to set up or opening wholesale or retail operations locally or relocate the branches is needed from the Committee.
5.1.2 Shape of the Industry
The retail environment  in Malaysia has been through a continuous changes in the past 10 years. The retail division in Malaysia contains a complicated blend of many changing forms of economic behaviour and organization apparent such as hawkers, street traders, small family business, wet and dry markets, night markets, bazaars and supermarkets.
But the retailing in Malaysia was growing to be more mature. Retailing industry is expanding as retailers with growing retail brands in Malaysia offering a wider choices to consumers in both brands and styles.
The Malaysian retail industry is floating with strong retail growth of 12.8% in 2007,the highest since 1992 while private consumption spending grew at 11.7%. With slowdown economy and the increasing prices of basic products, the consumers begin to limit their spending as they facing financial difficulties.
5.1.3 Development of the Industry
After the recession hits the economy of Malaysia in year 2008 and 2009, 2010 finally has witnessed economic recovery. The purchasing power is slowly growing of both local and international consumers due to spending from pent-up, restricted, suppressed demand and increasing tourist arrivals. Retailing had a healthy growth in 2010. But with many uncertainties shadowing global economy, economic environment still remained challenging. Thus, retailers resumed their proceed their expansion plans in a moderate way, while consumers spent cautiously.
Foreign retailers getting stronger reputation as the consumers demanding more choices from retailing and getting more international tastes. This has made the retailing in Malaysia more competitive and saturated. GCH Retail, Tesco Stores, AEON Co and Carrefour Magnificent Diagraph foreign retailers are rapidly growing in Malaysia and replacing many local leading players in retailing. In 2010, The Store Corp, Econsave Cash & Carry, Parkson Corp were the only three local players who in the top 10 list of value share.
5.2 The Marketplace
5.2.1 Current Market Condition
Women's apparel is one of the most competitive market place in Malaysia. Majority of the foreign or international brands for women's apparel market has established the business for very long time compared to some of the local brands in Malaysia. This is a problem to local fashion retail market when the foreign or international brands have entered Malaysia's market.
The biggest fashion market in Malaysia is Bukit Bintang area as there are several shopping centres located there and frequently visited. Zara, GAP, Charles and Keith, Aldo, G2000, Topshop, MNG, Padini, Forever 21, Pull and Bear, F.O.S, ESPIRIT and many more well known fashion retailers are located in that area which is a busy consumer's traffic.
Other than that, popular huge shopping complexes like Mid Valley Megamall, One Utama, KLCC, Sunway Pyramid, The Gardens, The Curve, IOI mall are good market place for the fashion industry. The majority of the stores in the shopping malls are fashion retailer and outlets and these malls are always packed with people during the weekends and public holidays.

5.2.2 Changes in the Market Place
As the technology and electric media develop further,  Malaysians are slowly becoming more conscious about their appearances as fashion trends is introduced to them easily by the advance technology and surrounded by media in urban areas. 

No comments:

Post a Comment