(TIỂU LUẬN) REPORT BUSINESS IN PRACTICE 21 22 – SEMESTER 1

Consumer Market Outlook report, the market is expected to recover andgrow at a faster rate, eventually reaching £67 billion by 2026.The development of the outdoor market clothing in the

REPORT BUSINESS IN PRACTICE 21-22 – SEMESTER 1

Name Class Student ID

: : :

Ha Noi, 11/2021

I Introduction

The owner of C.Me Smart Designs Ltd has developed a highlyreflective material that she thinks will have safety benefits that will suitthe outdoor clothing and activities market C.Me Smart Designs Ltdpreferred route to market is to sublicence the material/design to amanufacturer or brand owner Cooperation between the owner of thebusiness and the units that produce products in the clothing or outdoormarket can create special products, reach new customers and drive sales.

As technology advances, the market will also have competitors offeringhighly reflective material to compete with the owner of C.Me SmartDesigns Ltd Along with that, we can predict that, if the owner of C.MeSmart Designs Ltdwants to compete with his competitors, not onlydomestic enterprises but also foreign enterprises, it will be difficult tocompete if the financial potential is limited Mainly, the wide partnernetwork is not yet widespread The owner's preferred route to market is

to sublicence the material/design to a manufacturer or brand owner Thiswill help the brand increase its virality, and at the same time, the owner'swill consume a highly reflective material for that brand, and at the sametime promote their brand through them The following report willresearch the potential markets for the product in the UK by using relevantbusiness models

II Content

1 The challenges faced by the company

According to the report of https://www.statista.com/, the outdoormarket clothing in UK is expected to grow from 27,074.90 GBP (2020)

to 35,547.83 million In 2020, sales in the UK apparel market areestimated to be around £52 billion, around £2 billion less than theprevious year due to the COVID-19 pandemic According to Statista's

Consumer Market Outlook report, the market is expected to recover andgrow at a faster rate, eventually reaching £67 billion by 2026.

The development of the outdoor market clothing in the UK is both anopportunity and a big challenge for the company The utdoor marketclothing market is growing as well as a delicious piece of cake for largecompanies with strong financial potential and experience entering theindustry This will reduce the ability to find the market as well as thecompany to cooperate with the company

With the market saturated – estimates suggest there are now morethan 500 outdoor brands at UK The big challenge for the company washow to reach this broader target market and increase sales withoutjeopardizing their core brand values and unique selling point

2 Analyse and evaluate the market/industry a) Pestel analysis

- Political Factors

The government has the ability to encourage companies to buy fabricslocally, especially if the taxation on imports from other countriesincreases Many more company are buying from companies who createtheir material in the United Kingdom, as opposed to those who ship theirfabrics to be sewn overseas

Government Regulations and Deregulations – The government isadhering to all the rules and regulations under World Trade Organizationnorms There is consistency in both policy making and implementations

of those policies

- Economics factor

GDP Trends & Economic Growth Rate - Increasing GDP growth inthe UK signals increasing demand in the economy Other businesses inthe outdoor clothing and activities market can capitalize on this trend byexpanding product ranges and targeting new customers One way to start

is to closely map changes in - consumer buying behavior and emergingvalue propositions

Household Income Levels and Savings - Consumption Rates andhousehold incomes in the UK have led to sizable credit consumption Ithas become a habit of consumers when buying goods in general.Businesses in the industry always focus on building a marketing strategythat depends on the behavior of Credit purchases

- Social Factors

Demographic trends - Demographic trends are one of the importantfactors in forecasting the demand for any product in the clothing outdoorindustry of an economy For example, as the population of UnitedKindom is aging, the demand for products that primarily cater to thissegment of health protection through sports and outdoor activities willincrease Industry players consider demographic trends before developingnew products and integrating features that cater to this segment As thepopulation is aging, it will demand more health-promoting qualityproducts

- Technology Factors

Acceptance of Mobile Payments and Fintech Services - One of theareas where the United Kingdom is lacking after China is MobilePayments Industry players design the preferred plans of mobile

payments in the local economy and choose a business model based onthat.

Production Costs and Trends - Businesses need to plan the cost ofproduction trends in the economy and how much automation will be.They need to figure out the level of social acceptance of the technologybefore launching a new product

Environmental Factors

Focus & Spending on Renewable Technologies – How much of thebudget is spend on renewable energy sources and how the companies inclothing outdoor industry and activities market can make this investment

as part of its competitive strategy

Per Capita and National Carbon Emission – What is the per capitacarbon emission of the country and what is the overall level of carbonemissions of the country This will help in better predicting theenvironment policy of the country

Influence and Effectiveness of Environmental Agencies – The role ofenvironment standards enforcement agencies is critical in safeguardingnorms But often in emerging countries these agencies delay the process

as a tactic to extract bribes Patagonia Initiative should be aware ofpresence of such practices in a country

Corporate Social Responsibilities Culture – Are Patagonia Initiativepresent CSR efforts applicable in the new market or does it needs to havenew initiative to cater to the prospective market

Environmental Standards and Regulations both at National & LocalLevels – Often the environment policy at national and local level can be

different This can help the companies in clothing outdoor industry andactivities market in numerous decisions such as plant location, productdevelopment, and pricing strategy.

Level of Consumer Activism Regarding Environmental Concerns –Patagonia Initiative needs to know the level of consumer activismregarding environmental concerns is It will help the companíe inclothing outdoor industry and activities marketin both developingenvironmentally friendly products and thwarting promotion stumbleblocks

Waste Management – What is the policy of waste management in theprospective market and how the companies in clothing outdoor industryand activities market can adhere to the waste management requirements

in that market

- Legal factors

Independence of Judiciary and Relative Influence of Government –The judiciary independence often reflect both strength and credibility ofthe institutions in the country

Health & Safety Laws – Different countries have different attitudetowards health and safety so it is better for the companies in clothingoutdoor industry to conduct a thorough research before entering themarket

Consumer Protection Laws – the companies in clothing outdoorindustry needs to know what are the consumer laws, what is the rate ofenforcement, what is the attitude of authorities towards consumer

protection laws, and what is the role activist groups in enforcement of consumer protection laws.

Employment Laws – What are the employment laws in the countryand are they consistent with the business model of the companies inclothing outdoor industry.

Data Protection Laws – The companies in clothing outdoor industryneeds to assess what are the data laws in the country and what it needs to

do to comply with them For example most of EU countries now want the

EU citizen data to be saved in EU countries only

b) Tows analysis of clothing outdoor industry and activities market

The aim of the market analysis is to determine the market size, interms of sales generated for the last five years in order to identify reasonsfor past developments and future predictions and to calculate thepotential market volume.

Strengths (S) Weaknesses (W)

about UK outdoor market, crippled the world

UK is the country which has This health crisis hasthe third market share of all had an unprecedentedEuropean countries In fact, impact on companies

20 per cent of the sales in the clothing

sporting goods in Europe in ensure health through

2014 own to the United the epidemic season,

hiking, climbing and hiking protecting their healthbecame very popular and the through safe outdoordemand led to a wide range activities This still

of outdoor products with a creates opportunitiesstrong focus on the needs of for companies in thecustomers in the United industry

recognized as urban fashionfurther boosting the outdoormarket Today, the outdoormarket is a major and very

clothing market In fact, inthe UK it accounts foralmost a quarter of totalsales and is therefore thehighest grossing sector inthe clothing market as more

and more people tend to

engage in outdoor activities

III Critical analysis of the implications

According to the above analysis, we can see that the growth rate of theoutdoor clothing and activities market is forecasted to have a high andpromising growth rate Even if Asia-Pacific has the highest growth by thisindustry, European countries are also classified as countries with a highnumber of sellers and buyers for this type of clothing Europe, the MiddleEast and Africa have the largest market size for outdoor clothing in 2020

In this case, The owner of C.Me Smart Designs Ltd has developed ahighly reflective material that she thinks will have safety benefits that willsuit the outdoor clothing and activities market The owner's preferred route

to market is to sublicence the material/design to a manufacturer or brandowner In this case, the activity of finding an alliance for mutualdevelopment is good Because she wants to be the one to directly supplymaterials for the companies that produce and distribute those clothes Shehas a direct relationship with her market while also having a huge reach Shejust needs to gather information and do marketing research to make herbusiness better

IV Recommendations

The owner's needs to determine the best ways to create values andstandards when looking for a partner in bringing a highly reflective materialinto the product in the most effective way A thorough review processprepares forecasts, builds business models, assesses risks, and documentsinvestment cases

The owner's needs to target companies in the right market byanalyzing opportunities in the market and identifying potential partners

Building an efficient and convenient transaction process Partnersupport, negotiate and present the owner's preferred marketing method ofpromoting the material/design to the manufacturer or brand owner At thesame time, it is through drafting important documents and testingcollaborative scenarios to add value and security.

Discuss, analyze and support partners to identify in order of priorityissues, specifically the problem of raw materials as well as how to put intoproducts, solving these problems in a timely and effective manner.Monitoring the process and identifying problems early will help partnerssuccessfully put ingredients into products, thereby helping to promote C.MeSmart Designs Ltd product

3 Lecturer of PESTLE analysis, TOWS analysis

4 Outdoor Clothing Market Sales Overview, Trends, Share Value by

2028 Available:

https://tailornpress.com/outdoor-clothing-market-sales-overview-trends-share-value-by-2028/

5 Measure performance and set targets SWOT, PESTLE and other

models for strategic analysis Available:

https://www.nibusinessinfo.co.uk/content/swot-pestle-and-other-models-strategic-analysis

6. Outdoor Clothing Market Global Industry Analysis, Size, Share,

Growth, Trends, and Forecast 2018 – 2026 Available:

https://www.bccresearch.com/partners/transparency/outdoor-clothing- global-industry-analysis-size-share-growth-trends-and-forecast.html