BUS219 Assignment 1 PDF

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Project Brief This proposal focuses on local based fashion company, Love, Bonito expansion into Australia. Company Description Love, Bonito is an online and retail platform in Singapore that offers a wide range of accessories and fashion items. The website displays a variety of ‘in-trend’ accessories and clothing that are specially made and designed according to customer’s needs ("PitchBook", 2020). Furthermore, starting out as a blogshop based in Singapore, the company has already opened 3 retail stores in Singapore and expanded their company in Malaysia, Indonesia, Cambodia and Hong Kong ("Find a Store Near You | Love, Bonito | Women's Fashion", 2020). This company was founded by home grown Singaporeans, Rachel Lim, Viola Tan and Velda Tan ("Rachel Lim, Founder Of Love, Bonito, Shares How She Made Her Mark In Fashion E-Commerce", 2019) . Their mission is ‘to empower women’s confidence through helping them dress with well and right’(Yeo, 2016). Love. Bonito is a privately held company, hence they have a small number of shareholders and may not offer trading of company stocks or shares with the general public on stock market exchanges ("Privately Held Company - Guide to Understanding Private Companies", 2020). Product Factors Love, Bonito drives to understand and solve customer’s wants and needs, hence, the company tailors and designs their clothing and accessories accordingly (Yeo, 2016). Love, Bonito is considered as a niche fashion company in Singapore, which make competition with other retailers and blogshops high. In addition, Love, Bonito currently does international shipping to 16 countries. Environmental Factors Swot Analysis

Strengths

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Unique design – based on customer’s requirement Large customer base Customer Connection and Engagement Strong Brand Image

Weaknesses

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Opportunities

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Growth of Online Retail Unsaturated Market

Unethical due to the concept of fast fashion, sustainable fashion intrend

Threats

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Highly competitive industry (H&M, Cotton On, Zara etc.) Effects of ‘fast fashion’

Competitive Situation Falling under the fashion industry, the competition is considered to be rather aggressive especially since there various fashion retailers that offer similar products. However, Love, Bonito managed to make their mark and earn a strong brand image due to being a local based company in Singapore that started out as a small blogshop, making use of e-commerce platforms to share their designs (Salim, 2017). PESTLE Analysis

Political

Economic

Social-Cultural

Technological

Legal

Environmental

Australia is a democratic country and has a stable political situation. The Australian system emphasizes on religious and racial tolerance as well as freedom of speech and association. Furthermore, the Australian government believes in honesty and transparency. Hence, corruption is rare and of low level. In addition, Australia is competitive internationally which ensures that they continue to have pollical stability ("Australian politics and government | National Library of Australia", n.d.) Australia’s economy has taken a significant hit in recent years due to multiple reason. Firstly due to the China-Trump trade war. This has impacted Australia as demand for exports in china has decreased ("Measuring the impact of the trade war", 2019). Secondly, the bushfire that began in 2019 further worsen the economy. The bushfire has increased employment rates and wages, however this tend to lead to instability in the local labour market (Ecosystem Workforce Program, n.d.) . Lastly, the recent outbreak of the Wuhan Coronavirus has been said to affect the already fragile Australian economy rapidly. The tourism and education sector are estimated to be affected of billions in dollars of damage (Butler, 2020) . The Asian population in Australia has been constantly growing over the years. As of 1995, the total population of Asian was 743,500 ("Asian Immigration – Parliament of Australia", n.d.) . As of 2016, the percentage has grown from 32.9% to 39.7% of Asians born in Australia and over 19.5% that moved to Australia from Asia ("What “Asian” really means in the Census", 2016). Australia is a developed country, hence is technological advanced. The Australian legal system states that everyone should be treated equally despite nationality ("Australia’s Legal System", n.d.). This means that all internationals and domestics are treated the same in the eyes of the law. All Australian court follow the ‘adversarial’ system that consists of two parties presenting a case in front of a third party. In addition, Australia’s first institution of law is the Commonwealth Law ("Australia’s Legal System", n.d.). Sustainability and ethical fashion has been a trending topic of discussion all over the world. In Australia, clothing brands that adhere to the above characteristics are well-known as well as market leaders. The idea of fast fashion has begun to be frown upon,

however not completely eliminated.

Business Strategies Love, Bonito was specially designed and tailored to satisfy the needs of Asian women. Australia being a western country that consists a high percentage of Asian as well as a huge amount people buying from there, makes the outlook of the expansion more positive (Tang, 2017). Additionally, Love, Bonito will need to cater to the body and needs of Australian and/or western women too, this would help broaden the target audience of the brand as well as increase brand exposure. The main issue that the company will face is in regards to ethics. Love, Bonito will need to figure out a way to move away from fast fashion into a more sustainable and eco-friendly line, in order to compete with companies that have already become sustainable, such as Farm to Hanger, Good Studios and many more (Mckay, 2020). The company could consider using recycled materials or fabrics for their clothing. Furthermore, they could give away vouchers to customers who provide unwanted clothes, which could in turn be used as recycled material. Financial Planning Despite Australia’s suffering economy, their purchasing power parity remains strong. Hence, Australians will be able and willing to purchase from the company. As of 2018, Australia’s PPP spiked from 1.3 LCU per international dollars to 1.4 LCU per international dollars. This shows an increase of 0.55% average annual rate ("Australia Purchasing power parity, 19602018 - knoema.com", n.d.). Management Considerations 1. Culture It is crucial to take cultural differences into account as it can make or break a business. If the products delivered do not satisfy the needs or provide value to the local market, the company will suffer losses. However, as Australia and Singapore do not have much of a culture difference, it makes it easier to move into the Australian market (Abner, 2015). 2. Law and Regulations Before entering a foreign market, the company must be able to adhere to the local laws and regulation guideline. This includes reviewing aspects carefully, such as seeking overseas legal counsel to identify any potential risks or issues (Abner, 2015).

Evidence of how the group is going to be organised to complete the project -

meet up to choose which company should be done delegated task according to strengths and understanding

References Abner, B. (2015). https://www.bizjournals.com/bizjournals/how-to/growthstrategies/2015/02/considerations-for-taking-your-business-global.html Asian Immigration – Parliament of Australia. https://www.aph.gov.au/sitecore/content/Home/About_Parliament/Parliamentary_Department s/Parliamentary_Library/Publications_Archive/CIB/CIB9697/97cib16#TABLE1 Australia Purchasing power parity, 1960-2018 - knoema.com. https://knoema.com/atlas/Australia/topics/Economy/Inflation-and-Prices/Purchasing-powerparity Australia’s Legal System. https://www.lawteacher.net/free-law-essays/australianlaw/australias-legal-system.php Australian politics and government | National Library of Australia. https://www.nla.gov.au/research-guides/australian-politics-and-government\ Butler, B. (2020). Coronavirus threatens Australian economy reeling from drought and fires. https://www.theguardian.com/business/2020/feb/05/coronavirus-threatens-australianeconomy-reeling-from-drought-and-fires Ecosystem Workforce Program. The Economic Impacts of Large Wildfires | Ecosystem Workforce Program. https://ewp.uoregon.edu/largefires/content Find a Store Near You | Love, Bonito | Women's Fashion. (2020). https://www.lovebonito.com/sg/sg-stores Mckay, R. (2020). 10 Sustainable & Ethical Clothing Brands In Australia. https://www.newidea.com.au/10-sustainable-ethical-clothing-brands-in-australia Measuring the impact of the trade war. (2019). https://corporate.amp.com.au/newsroom/2019/may/amp-economics-us-china-trade-warimpact-australia PitchBook. (2020). https://pitchbook.com/profiles/company/17904970https://pitchbook.com/profiles/company/179049-70 Privately Held Company - Guide to Understanding Private Companies. (2020). https://corporatefinanceinstitute.com/resources/knowledge/finance/privately-held-company/ Rachel Lim, Founder Of Love, Bonito, Shares How She Made Her Mark In Fashion ECommerce. (2019). https://www.herworld.com/women/women-now/rachel-lim-love-bonitoentrepreneur/ Salim, Z. (2017). Built On Just $500, This S'pore Brand Has Now Grown Into A MultiMillion Fashion Powerhouse. https://vulcanpost.com/628312/love-bonito-turned-500-intomulti-million-fashion-powerhouse/

Tang, A. (2017). Love, Bonito's Rachel Lim reveals there's more in store for the brand. https://www.prestigeonline.com/sg/people-events/love-bonitos-rachel-lim-reveals-theresstore-brand/ What “Asian” really means in the Census. (2016). https://www.news.com.au/national/howasian-are-we-really-what-australias-census-2016-showed-us/newsstory/2f055e32e74cbe4341953006379b6394 Yeo, J. (2016). Love Bonito's Rachel Lim: Connecting With Customers | LadyBoss. http://ladyboss.asia/love-bonito-rachel-lim-believes-in-connecting-with-customers/...