Tagline as a Chinese brand has an important market resource advantages with its garment production capacity and low labor cost. Experienced also in this kind of business unit for several year, high growth rate with the profitability and revenue, the company built a stand brand image value by a quiet professional marketing strategy. The implementation of the loyal customer project focus on the graduate customer gives more value to the brand. The company has a great integration management control from upstream to downstream of the brand and products. Economy of scale is determinant point in the clothing industry which favorites tagline to it competitors.
Research and development is one of the problems for tagline even do they have some French designer but still they have to improve the diversity of their designers. Also tagline brand communication is more focus on only monotonous celebrity advertisements, which are not sufficient to enter into a new market. Tagline has only focused in the local Chinese market and has no international experience compare it s competitor.
The growing economy in Romania will have a great impact in the clothing market as the GDP per capita is high ($8420) which is upper middle income. More the consumer earns, more they spend. The urbanization of the country gives a chance for the market growth that will benefit to Tagline. In Romania, the online shopping is gaining margin that has to be taking into account for the future. The growing demand of casual clothes in Romania that target the vibrant groups with more vitality and demanding a high quality of life will increase Tagline success.
High competition in this market such as H&M, GAP, ZARA, New Yorker and many more who is entering the markets won t make thing easier for Tagline. The rising of labor cost in china and the cost of raw materials are another negative aspect of maintaining the low price of the product for the...
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