Project presentation on entry strategy- Apparel Industry - German Market

1. Organic Cotton: an opportunity for trade in Germany

2. Apparel Industry &Our Product Our Product Organic Cotton Apparels Out Going Body Wear Using 95 – 100 % Organic Fiber Using 70 – 94 % Organic Fiber

3. Germany: An importunate environment Fairly stable government, with minimal political risk for international businesses Corruption free Political system is open to international business Investments are encouraged with lower tax rates Foreign regulations

4. Legal Factors EU Organic Certifications EU 2092/91 Third-party certification organizations verify the products GOTS approved certification bodies can also certify the organic textile products Sample of correct label application

5. Economic Factors Ease of doing business rank is 22 Population 82 million Largest in Europe Gross National Income Per Capita is 31780 Euros

6. Social factors There is a significant change in the life style of German people they are becoming increasing health conscious 3800 Euros spend per person yearly on healthcare.

7. Technical environment German companies have been at the forefront of the development of the market for ecological textiles. Demand for Naturtextilien(natural textiles) was fuelled in the early 1990s by concerns about skin allergies caused by textile dyes and clothing accessories, and by a strong movement of ‘green’ consumers.

8. Environmental factors The conventional cultivation of cotton leads to massive environmental and health problem Cotton covers 2.5% of the world's cultivated land yet uses 16% of the world's insecticides A sustainable alternative is the certified organic cotton Organic farming methods use natural fertilizers, like compost and animal manure, that recycles the nitrogen already in the soil rather than adding more, which reduces both pollution and N2O emissions

9. Strategic AllianceWithHennes & Mauritz Swedish retail clothing company Known for its fast-fashion clothing offerings for women, men, teenagers and children Started Operations in Germany in 1980 and Generates 30% revenue from Germany

11. Market Segment Our Target Group: Female (All Age Group) Kids Infants

12. Contd… Population of Online customers

13. Pricing Pricing Objective Pricing of the product on the basis of perceived value by the customer. Prices will be kept lower than the Competitors price Increase Market Share Increase Market Size

14. Positioning We will position our self as a Brand which offers Value for Money. Apparels are priced less than other organic cotton made products Lasts longer than conventional cotton made products Our USP for our customer is the Health Benefits which they derive from our product. Product quality is finer in terms of softness More breathable than high-tech synthetic materials Disinfectants free, as the natural pesticides are used, which makes it more skin friendly Also the dyes used contains less harmful chemicals.

16. Prizes- discount coupons.

17. Free publicity in print media

18. Best dressed baby Contest in collaboration with playschools.

20. In-Store Promotions

21. Future Vision……. Expansion H&M has 2200 stores spread across 38 markets With net turnover of 16.4 billion SEK

23. OTA

24. Wikipedia

25. H&M website

26. CIA Fact Book

27. Centre for Promotion of Imports From Developing Countries