Global 3420 E-Course Phase 1
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Economics
The new revenue for toys and baby segments is projected to reach US$2,398m in 2020; the revenue is expected to reach a growth rate that is annually between 2020 to 2024 of 4.5%, which will result into a market volume that has been projected of U.S. $2,857m on reaching 2024. The user penetration recently is 15.8%, and there is an expectation of reaching 20.9% by 2024. The revenue average for every user is expected to total to the U.S. $296.31, which will most be generated in China around U.S. $113,058m in 2020.
The toy sector by 2022 will have grown to a value of U.S. $318 million since its annual revenue growth is rising to more than 20 percent. Globally, the toy industry has earned the U.S. $153 million in the last year. Behind the overall growth of annual profits and trends is the parent’s age increase as the older they get, the more the level of income and the power for spending. In South Korea 1990, the first marriage age gap was between 24.8 to 27.8 years old for both men and women, while recently it has gone up to between 30.2 to 32.9 years old for both men and women.
Product Lines.
The company specializes in providing baby clothes and toys. There is a variety of lovely children accessories and clothes with a French touch, mainly with colours that are pastel and littlie decorative elements that will have the best quality materials. The product variety will include baby grows and bodysuits, baby toys, cocktail and elegant baby dresses, basic tops, hats, cute socks and even school bags.
The company will mainly specialize in infant clothing, which is the bodysuits and babygrows for babies aged between 0 to 24 months. Despite the clothing industry not having a clear size definition of such age, the company provides size charts per height, weight or both of the children. The baby clothes at offer are modern based on aspects such as ease, mobility and comfort of the child in it.
The cocktail and elegant dresses, basic tops, hats, cute socks and even school bags are those made from eco-friendly materials and organic cotton as a child’s skin is soft and sensitive. The clothes will be for children aged two years and above. The clothes will be mostly made from fibres of bamboo cloth, which are soft to touch and breathable. The company intends to offer attires that use zips instead of the traditional buttons as they are easy and quick to fasten and currently fashionable. The toys offered will be based on construction toys, educational toys, electronic and creative toys, dolls, and executive toys.
Distribution and Manufacturing Strategy.
The plan is the use of direct salespeople, retailers and the online market through the internet as the channels of distribution since they are more appropriate according to the market, decrease the need for capital, and they are reliable and available. The manufacture of the baby attires will take place in South Korea. Toys will be manufactured at first locally and later on in South Korea and the United States. Upon the clothes’ delivery, they will be stored in the consolidated warehouses in Hong Kong, Italy, and the one owned by the company in South Korea. Due to the high level of competition in the clothesline industry, the company has located the production facilities just in South Korea to reduce the costs for outside locations. With the economic improvement of Korean, there has been steady against the U.S. dollar as they won 20% between June 1998 to June 1999. This has led to benefits when clothes get exported from South Korea to Italy and Hong Kong through a minimal one as the currency has remained dormant ever since.
Marketing.
The company uses social media platforms to keep their target customers updated on any new kids trendy clothes or change in prices. It also has online websites that users use to view and even order for their child’s clothes, and it also uses direct salespeople to market the products.
Pricing and Competition.
The company’s ambitious strategy goal is to provide the right quality clothes for children at decreased cost via the use of knowledge in internet shopping and delivery. The main aim is to provide the customers with websites that enable them to shop from the physical stores without travelling there. This will assist the company in competing with other clothing line businesses highly. The company’s pricing strategy is to sell clothes according to their quality. The higher the quality, the higher the price.
Position outside USA Today.
In the past years, the retail sales around the globe for clothes went up to 1.9 trillion U.S. dollars, and there is an expectation of rising to three and above trillion U.S. dollars like a 2030 vision. The clothes industry in South Korea is emerging in its market. The company entails clothing segments for private end customer’s children. It has a 20 percent total revenue outside of the USA with total revenue of 30 billion dollars as the clothes have become more an essential non-food segment within the retail sector of South Korea. In the clothing line industry of South Korea, the market for the company is broken down baby grows and bodysuits, baby toys, cocktail and elegant baby dresses, basic tops, hats, cute socks and even school bags.