1. Justification of India
As TOMS is a well known brand for selling shoes from USA, they have potential to enter in the India market through the market evaluation of the twelve Cs. Firstly, India is a country that which has a high population of 1.27 billion and there is a significant growing GDP in this few years. Nowadays, as the living standards of Indians are increasing, their behaviors are willing to spend money on consuming. Also, Indians have fashion sense and started to follow the trend. TOMS can get the opportunity to enter in India market to raise it sales.
In addition, TOMS shoes are made by pig suede . The lightweight canvas top and leather insole is very high quality on breathable and comfortable, it exactly suitable for Indians to wearing in India with the extremely hot weather. (Openweather, 2013)
Besides, Licensing is the suitable market entry method for TOMS to enter in India. TOMS can licensing its product to Red Tape and M&B, the two largest retail stores in India. It can build up its own brand image in India without any operation costs.
2.Marketing environment (PEST)
According to the open trading system of World Trade Organization (WTO), India government amends its Export and Import policy (EXIM policy) to be more flexible in recent years. (BUSINESS.GOV.IN, 2013) It facilitates the sustained growth in imports of India to achieve larger percentage share in the global merchandise trade. Moreover, India’s customs tariff rates have been declining since 1991. The “peak” rate has come down from 150% in 1991 and 1992 to 40% in 1997 and 1998. The downward momentum was reversed the next year with the imposition of a surcharge. This momentum has resumed with the reduction of the “peak” rate to 35% in 2001 and 2002 and 30% in 2002 to 2003. (Custom-duty, 2012) As the India’s import tariff is decreased, it attracts many investors to enter in India retail market.
Retail is one of the important pillars of the Indian economy and accounts, there is 14-15% of its gross domestic product (GDP). Also, Indian retail sales are increased as well as the market is estimated at $ 45 billion, its economic value is one of the five largest retail markets in the world. As India has a high population with 120 million people, it becomes the world fastest growing retail market. An improving labor market is also a contributor to boosted spending. It indicated that Indian economy has marvelous growth in this few years and Indian has a high consuming level. (Indian Yellow Pages, 2009)
Recently, Indians are likely to understand the fashion trend and brand name, even Men in India started to aware of the higher prices. They are willing to spend large sums of money moving up the brand ladder in the quest for sartorial elegance and the best personal presentation. (HKTDC, 2012) It stated that more and more Indians can afford to buy 30-45 U.S. dollars a pair of expensive footwear. In addition, people are willing to accept various types of shoes in the innovative Indian retail market. A wide range of Branded footwear sales to India seems very potential. (HKTDC, 2006) Hence, some of the top shoe brands had already enter in India like Reebok, Nike, and Adidas etc. It has been predicted in a study that the Indian footwear industry will become worth INR 38,500 crore in 2015, considering the increasing levels of awareness regarding fashion and trends among common people. (Maps of India, 2010)
According to the India shopping census by eBay, it indicated that the number of Internet users in India will be rising dramatically in the next five years. In 2000, the Internet usage in India accounted for only 5% of the country but it increased to 36% rapidly in last year. At present, India has about 10% of households connected to the Internet, of which two-thirds of Indians using the Internet access device. The increase in the number of Indians to participate in online shopping is...
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