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Hwayo Apparel Manufacturers Company Marketing Essay

The company is currently exporting the clothes to countries such as Bahrain, Brunei, Cambodia, Egypt, Indonesia, Myanmar, Oman, Pakistan, Philippines, Saudi Arabia, Syria, and United Arab Emirates and today to determine its empire to Thailand.

The company setup its base strongly in various geographical areas which involves high rate of population such as Pakistan, Indonesia, and United Arab Emirates. The framework of such a filled country enhances the sales rate of the company. The company's aim for base (inhabitants) enables the company to be self-confident in expanding the business enterprise. A huge population definitely is a serious factor in causing plenty of profit.

Besides Padini's outlets can be found at proper location whereby, the customers can get it easily. Padini's shops are usually set up in big shopping complexes that happen to be a prominent destination to attract the customers. These even enables the Padini to trim cost, because setting up the stores in a mall is much a lot more cheaper than building a totally new building to market their product. This is cheaper yet an effective way to trim cost.

Not only is that, Padini's clothes more to formal attires. These is an extremely big gain to the business because most buyer's or customers are those professional worker's who look for new designs of formal wear in line with the latest craze which Padini clearly provides. Which means this simple technique will not let Padini down instead uplifts the position and acceptance of the business for producing more formal wears.

Therefore, Padini is a versatile company which may also flourish in country like Thailand if the business expands its empire to Thailand. A best leading company (Padini) will succeed everywhere regardless of where it sets up its business. Actually to create the business in an inexpensive country is an excellent way to set-up awareness in the sight of open public.

2. 0 Analysis

2. 1 Gainings

Thailand is a genuine emerging market recently, which is also known as "Asian Tiger" (Martcher, 2010). Thailand is rolling out very fast after 1997 Asian Crises, however the Bangkok has shown the most significant development among the list of locations in Thailand (Hutchinson, 2012). Thailand has well-developed infrastructure and pro-investment regulations (Martcher, 2010). Thailand has shown improvement and development in travel facilities, upgrading marketing communications tools as well since it networks (Siameastern, 2006). Padini able deliver its product to retail store by using good transportation facilities, for example railway, river vehicles and street, to increase efficiency and lower the cost of business. Besides that, Padini can certainly get information such as investment information, monetary information and politic situation from internet, so can change plan quickly to match the external environment changes.

Thailand is considered a gateway to Southeast Asia and the higher Mekong sub-region, and it trade handily with China, India, and the countries of ASEAN (Siameastern, 2006). Thailand provides more convenient transportation which connects to South Asian countries, and China, for example river transport and coastal shippping. (Rungfapaisarn, 2012). Padini can export product to China, India, and those South Asian countries conveniently and no need to invest a whole lot of unnecessary move fees, for example Padini can make a cheaper river move or railway rather than using flight to deliver its product. Padini product can be sold in a cheaper price to increase its competiveness.

Thailand is one of the users of ASEAN and has performed an important role for building the ASEAN Free Trade Area (AFTA) (Siameastern, 2006). Thaksin Shinawatra, former Thailand Perfect Minister, has generated free market financial development (Hutchinson, 2012). Padini can trade with ASEAN member countries without any obstacles, and improve efficiency. Padini also increase its reputation from exporting its product to ASEAN countries, such as Indonesia, Cambodia, and Philippines, where the market Padini hasn't inserted before. Padini can enjoy free market system in Thailand which is low limitation from rules and regulations, hence Padini has more liberty to manufacture its product, and Padini has lower down cost of business.

Thailand has lower labor costs compare to other Southeast Parts of asia and China. It really is a great advantages from involvement in China-centered source chain (Martcher, 2010). Padini can utilize cheap labor from local, to be able to lower manufacturing cost. Besides that, Padini provide a great work opportunity for local people, hence, Padini can increase its reputation in neighborhood.

In the long-term aspect, Thailand's economic growth is incredibly good. In an outcome, their exporting business has consisted 60% of GDP after suffered from Asian problems. Thailand is participating in a concealed role on two of the best emerging market of worlds, which are China and India. Thailand is a significant investor with China and India, and will benefit a whole lot from their progress (Cole, n. d). Since Thailand export too much to China and India, Padini can export its product from Thailand to China and India, therefore, Padini can gain more from China and India market.

2. 2 Shortcomings

Foreign Business Action 1999 has replaced Alien Business Rules 1971; however it creates more limitation to enter Thailand market compare with previous act. Overseas company can buy the certificate from the other existing overseas company and enter Thailand market; however, it might have limitation on moving the ownership of permit (Chaninat & Leeds Co. , Ltd. , n. d). Padini has some difficulty to get the Foreign Business Permit which is under Foreign Business Function, but Padini might pay a lot of money to have the license from existing international company, or Padini might pay a lot of grievance money to authorities in order to get the license. Generally, Thailand is a country that recognize bribe from related people, and it is problematic for any politician to point who accepted bribe (TravelinAisa, 2012).

In Thailand, migrant personnel have only loved little protection by labor legislations, those migrant employees are via Burma, Cambodia, and Laos, and they have been abused by local law enforcement, civil servants, and employers. For some reported cases, feminine migrants been facing sexual assault and labor trafficking, and male migrants were facing extreme labor exploitation (World article 2012, 2012). Padini must get over these issues critically if Padini made a decision to recruit migrant employees in manufacturing division, often Padini will lost its reputation in conditions of managing its individuals.

In 1992, Thailand shows efficiency to bolster intellectual property legislation. However, it shows some problems on enforcement on Intellectual Property Legislations. For example, right owners may exercise their directly on Section 66 of the Copyright Take action, so that they in a position to sue infringer to judge. In this stage, right owner can threaten infringer, so that right owner can demand a lot of money from infringer to be able to avoid prosecution. However, this sum of money more than amount of fine from the court docket, and people think about this exercise as misuse of power. Other thing is for those using hallmark and copyright for personal use, are not considered as infringer and will not generate to court (Vannasaeng, Tankarnjananurak, n. d). Padini may easily induce the chance if the look is similar with other brand, Padini has to pay a amount of cash to avoid prosecution, in order to ensure the product continue are present in the market. Other than that, Padini cannot sue someone who use structure and design of Padini for personal use, Padini should avoid this issues significantly, Padini may face other competition imitate its routine and design. Padini will eventually lose its uniqueness of clothes on the market.

3. 0 Recommendations

In order to overcome the difficulty to get the Foreign Business License under Foreign Business Act in Thailand, we recommend Padini to form relationship with local partner. Partnership can help Padini to reach Thailand market and buyers in most effective and useful way. For example, partnership with local fashion agent or distributors, Padini can accomplish and expedite market access with partners' intensive market knowledge and founded sociable network. The social relationships are essential factor to success the business enterprise transactions according to the business culture of Thailand. (STATE, 2010) Spouse with existing local marketers and agency may possibly also assist Padini to have better understanding towards local market. Besides, Padini could decrease the production cost by writing manufacture cost with other fashion manufacturers. Strategic alliance allows Padini to stand independently and separate from its lovers yet still can get gain from the partnership through writing bases. (Suwannarat & Pornlapas, 2012) In other hands, corresponding to Lothar Katz (2008), Thailand business culture has expecting those investment and trade things to do in "their way" plus they might allow bribe from related gatherings to make the business process going properly. (Katz, 2008) Thailand is a country that acknowledge bribe from related get-togethers, and it is difficult for any politician to point out who accepted the bribe (TravelinAisa, 2012). The Thai people value sustained and trusting personal marriage, they expect creating strong bonds prior to closing business offers. When facing the transaction or working with Thailand administration, partner with proven relationship may help Padini to "resolve" a few of the license problems. Thus, corruption might be another method for Padini to get the Foreign Business Permit. If Thailand admit bribe from Padini, both of them form positive romance interconnection. Padini would provide business opportunity such as occupation in Thailand. In addition, when Padini earn more income, tax repayment in Thailand will increase as well. This called shared benefit. The huge benefits gain by this strategic alliance could contribute to Padini competitive advantages.

In order to overcome issues like personnel being abused by employers, Padini should set up a code of do or code of ethics which is a formal statement of your organization's beliefs on certain ethical and public issues. After that, Padini should implement Ethics TRAINING CURRICULUM to its employees monthly. This program would provide assistance to professionals and employees to react ethically. For instance, Ethics Training category that coach employees know their own privileges in work place while management groups being train to know the results of mistreatment employees. US Sarbanes-Oxley Action 2002 made compulsory codes for U. S. publically-traded companies' directors and mature officials as well as their stated companies. This was a huge impact for global companies to adopt codes of conduct (Lunday, 2010). Codes of do is one of the very most widely adopted devices within the diverse group of management musical instruments for monitoring and rousing human's responsible action. 38% of the most notable 100 organizations in holland utilizing a code of do while 65% of the most notable 500 organizations in Spain (Mel, et al. , 2000). The U. S. has had 78% while Canada has had 85% within the top 1000 organizations are drawn up a code of ethics (Kaptein et al. , 2000). A highly effective code enhances cultural responsibility. It also clarifies the norms and beliefs the organization desires to embrace. It is visionary and transformational, providing direction in difficult circumstances (Stevens, 2008).

Shortcomings also explained that Padini may easily result in the chance of pattern protection under the law. Thus, we recommend Padini to create apparels with original and difficult to imitate designs to avoid backup from others design as well to be copy design from others. Padini could have customization service for customers to design their own private apparel predicated on their own personal preferences such as colors and style. Customization product is unique and hard to imitate. It could be a weapon for Padini's competitive edge. Nowadays, technology progress allows developing to modify product with low cost as well. The information technology improvement in Thailand permits Padini to carry the trade and business in more competitive way. Besides that, due to the introduction of Internet, we recommend Padini to improve their business by setup non-physical stores. For example, set up the official trading website and receive order across the country. The craze for nowadays is people choose online shopping. Internet is a low cost medium. E-commerce permits Padini to reach wide target market and allow product customization online. Customer can usage of their website 24/7 (a day weekly). This strategy might even reduce their procedure cost because no preset cost (local rental) needed. Internet contributes for easier distribution process as well. For instance, order received from established website, products will be delivering by the nearest distribution centers in each area; as the orders from other countries will be deliver by Bangkok distribution center. (Wattanasupachoke, 2012)

Lastly, a recommendation for Padini is to improve their business operating. International Creation strategy suggested utilizing for Padini procedure have to be infrastructure in proper composition, regroup and summarized to avoid some overlapping issues. Padini should have sufficient international resource/demand management which displays the entire order process with inventory replenishment and development decisions in the international environment. All the factors regarding need to be considered and disperse balanced internationally, such as: capacity usage, inventory goal and planning and customer services. Padini getting into Thailand market not merely to expand the market development, it also considers the international making which move the production and developing facilities to Thailand. Processing strategy has referred to exploiting some of the manufacturing function in targeted country to get the competitive advantages. Processing strategies is procedure management which mainly focusing on the strategic implications of investment at operational level. (Meijboom & Vos, 1997)

4. 0 Conclusion

Being one of the fashion leading companies in Asia, Padini gets the positive energy distributed by Thailand to advertise its product in Thailand. That is due to high solutions which are readily available in Thailand yet with low labour cost as well as low raw materials cost compare to Malaysia. Padini setting up its company in Thailand will interrelated facilitate a good and harmonious relationship with Thailand. In future, Padini might in a position to go into China and India market because of the good trading relationship between Thailand, China and India.

In order to maintain competitive on the market or market, Padini should either come out with new strategies or improve on existing ones to adjust to the environment every once in awhile. The macro environment is not at all something that Padini can transform; however, business marketing strategy can be changed to suit the environment. Therefore, it is vital to truly have a good online marketing strategy so that everything can be included and Padini can perform its organizational mission and vision. The strategies and recommendations should consider and implemented correctly. Continuous improvement necessary to uphold or more thrust the idea of Padini in Thailand.

Last however, not least, Padini's patent privileges and trademarks must be amply trained with the legal system in Thailand to be able to safeguard its intellectual properties.

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