Heritage Fashion Pvt. Ltd. is a Nepalese manufacturer and exporter of ready-made garments looking to expand its export market. It currently produces 3000-3500 dozen items per month for customers in the USA and Germany. An analysis of potential new export markets in countries in the EU found that France would be the best target market due to its political stability, competitive economy, high disposable income, and ease of communication. The company plans to open a branded store in the UK and partner with wholesalers and retailers to enter the French market, employing a marketing mix focused on customized products, quality design, proper packaging, value pricing, and trade fairs.

1. Expansion
Garment Industry
Heritage Fashion Pvt.
Ltd. (HFPL)
Presented By: Kanzen
Suraj Bansal (12304)
Ujjwal Chand (12310)
Monika Maheshwari (12319)
Subrina Shrestha (12331)
Shivshankar Yadav (12336)

2. Company Introduction
Name of Company Heritage Fashion Private Limited
Brief Description Manufacturer and Exporter of RMG
Production Capacity 3000 to 3500 dozens per month
Order As per demand/order basis
Minimum-Style/color 200 dozen/style
Products Apparel for men, women and children. Cashmere products
Major Customers USA and Germany
Affiliation Executive member of GAN
Founder member: European Economic Chamber of Trade, Commerce &
Industry Nepal Executive member of Trade Fair Committee-FNCCI, Nepal
Latest Achievement Awarded third largest exporter by GAN in 2012

3. Methodology
Create pool of POTENTIAL MARKETS

5. Project
Findings

6. Porter’s Five Forces
Competitive
Rivalry within
Industry
Bargaining
Power of
Customer
Threat of
New
Entrants
Threat of
Substitute
Products
Bargaining
Power of
Suppliers
High
-Many
Substitutes
Medium
-Large
Investment
-Low govt.
intervention
Low
-Generic prod
-Difference in
RM only
High
-RM import
from India,
China,
Thailand
-No Domestic
RM
High
-Int. & National
Competitors

7. SWOT Analysis
Strength
-Flexible Environment
-Quality Products
-Skilled & Cheap Labor
-R & D Culture
Weakness
-Centralized Structure
-No use of local RM
-Few suppliers
Threats
-Political Instability
-Foreign Competitors
-Transportation Gridlock
-New Entrants
Opportunities
-Expand in other
Countries
-Expand in Local Market

8. Country Analysis
 Scanning
Israel Increase in enquiries for Nepalese RMG
EU Special Preference to Nepalese Garment Industry
Japan Duty free and quota free
Canada Duty free and quota free
India Removal of additional custom duties
Australia Seen as potential market in 2012
South Africa Seen as potential market in 2012

9. Country Analysis
 First Level Analysis
Countries/Regions Accepted EU, Japan, Canada
Countries Rejected India, South Africa, Australia,
Israel
 Second Level Analysis
Countries/Regions Accepted EU
Countries Rejected Japan, Canada

10. Country Analysis
 Third Level Analysis
Environment
Factor
Sub-Factor First Second Third
Politico-Legal Political stability France UK Spain
Trade Freedom UK,
Spain
- France
Economic Competitive Economy UK France Spain
Disposable Income France UK Spain
Ability to cushion
Exchange Rate Shocks
France,
Spain
- UK
Employment Rate UK France Spain
Socio-Cultural Ease of Communication UK France Spain
Technology No Significant Influence - -

11. Export Strategy

12. Marketing Mix
Place
-Branded store of UK
-Wholesalers
- Retailers
Product
-Customized Product
-Quality
-Design
Physical Environment
-Proper packaging
- Directions
Price
-Value Pricing
-Competitive Pricing
Promotion
-Trade Fairs
-Direct Marketing
-Website/Social Media
-Networking
People
-Skilled Labor
-Diversified Workforce
-Corporate Culture
Process
-Supply Chain management
-Maintain Quality
Target Market

13. Recommendations
Maintain core competency
Client relationship
Expand social network
Efficient supply chain management
Collective shipment

14. References
 Business Standard Banking & Finance. (2012,
December 25). Retrieved from Business Standard:
http://www.business-
standard.com/india/news/pound-drops-to-8-month-
low-versus-euro-as-uk-house-prices-fall/496730/
 Education First. (2012). Retrieved from Education First
English Proficiency Index: http://www.ef.com/epi/