关于服装消费市场方面的留学生作业范文参考：The Indonesian consumer market for clot

关于服装消费市场方面的留学生作业范文参考：The Indonesian consumer market for clothing: Institutions, firms and organizational behaviours

 

Clothing marketing networks in Indonesia 

The regulatory framework has resulted in the lion share of international brand garments being manufactured locally. Apart from some global clothing firms such as Adidas and Levi that currently operate through their own subsidiaries in Indonesia, the majority of international brands cooperate with Indonesian firms through licensing in compliance with Indonesian law. In fact, fieldwork evidence suggests that these licensed products and a wide range of Indonesian brands are the two main competitors in the domestic consumer market. This creates distinct commodity chain coordinations that are different from those Indonesian firms serving global markets (see Dicken & Hassler, 2000; Hassler, 2004b for an analysis of these export-oriented firms).印度尼西亚服装市场营销网络

监管框架导致了国际品牌的服装是本地制造的狮子的份额。除了一些全球服装公司如阿迪达斯和利维，目前在印度尼西亚自己的子公司，国际品牌的多数与印尼公司通过符合印尼法律许可。事实上，现场的证据表明，这些特许产品和广泛的印度尼西亚品牌在国内消费市场的两个主要竞争对手。这创造了独特的商品链的协调是不同于那些印尼公司为全球市场提供服务（见狄更斯&哈斯勒，2000；哈斯勒，2004年b的外向型企业分析）。

 

Institutionalized business practices play a significant role in defining the structures in which clothing firms operate in the Indonesian domestic market, on both the supply and the demand sides of the chain. On the supply side, manufacturing has an integral function in all clothing firms dealing with the domestic market, whether licensees or brand-owners. On the demand side, Indonesia is quite unique in the way clothing distribution and retailing are organized. Although franchised retailers have a significant role in distributing imported garments, the retailing of domestically manufactured clothing products is largely organized within the clothing firm's own retail outlets or within department stores (Hassler, 2004c). The case of clothing firms establishing their own retail outlets leads to an entirely integrated clothing commodity chain. The case of retail organization in department stores is only marginally different. Because practically all department stores operate with a consignment-based retail system, the clothing firm remains the owner of the garment until it is finally purchased. The transfer of ownership occurs at the very end of the chain. In this sense, this consignment system leads to a fully integrated clothing firm that owns its manufactured products at both the production and distribution stages of the commodity chain. While these two instances illustrate the claim that national origins of firms and domestic institutional frameworks have a major impact on how commodity chains are coordinated, there are still other differences between firms marketing licensed products and firms marketing products under their own brands.

Brand-name licensing in Indonesia 

 

Brand licensing, the most important way of doing business in Indonesia for international brand-owners, is a form of cooperation between an international brand and a local manufacturer and involves a certain form of risk-sharing in the development and penetration of new markets. The licensor or brand-owner enjoys the advantage of relatively easy and low-investment access to unknown market environments and the Indonesian partner, who has institutional knowledge of the market, organizes distribution and carries all the major investments. Typically, product and marketing specifications are supplied by an international brand-owner while the local partner organizes material procurement, production and marketing management, which in the case of Indonesia includes retail distribution (Figure 2). The Indonesian firm financially compensates its international partner for the use of the brand label, with royalties per garment sold, as well as for its provision of marketing materials – a form of fixed costs irrespective of the volume of final sales. The more garments sold, the lower the relative share of these fixed costs for the licensee. Marketplaces are geographically defined and must not overlap with markets directly served by the brand-owner or other licensees. Branded clothing distributed through this form of licensing in Indonesia includes Nike, Triumph, Kenzo, Arrow, Cerruti, O'Neil and Lee Jeans.

Great River, the company with the longest involvement in licensing within Indonesia, was by 1998 dealing with more than 50 international brands:品牌授权，在印度尼西亚做生意的国际品牌拥有者的最重要的方式，是一种合作的国际品牌和本地制造商和涉及到一定的和新的市场渗透的发展风险分担的形式。许可方或品牌所有者享有相对容易和较低的投资获得未知的市场环境和印尼的合作伙伴的优势，谁的市场制度的知识，组织分布和携带的所有重大投资。通常情况下，产品和营销的规格是由一个国际品牌所有者在当地的合作伙伴组织材料采购，生产和营销管理，这在印度尼西亚的案例包括零售销售（图2）。印尼公司经济补偿的品牌标签的使用它的国际合作伙伴，为服装销售的特许权使用费，以及其营销材料提供–形式的固定成本，不论最终销售量。更多的服装销售，下这些固定成本为被许可方的相对份额。市场的地理位置的确定，不能与市场的品牌拥有者或其他人直接送达重叠。品牌服装通过本许可证形式分布在印度尼西亚的胜利，包括耐克，高田贤三，箭头，切瑞蒂，奥尼尔和牛仔裤。

伟大的河流，在许可在印度尼西亚最长的参与的公司，是由1998个处理超过50个国际品牌：

 

It is easy for them [licensors]. It is just like collecting money for them. They just own the name and manage it. It is good for our licensors to use us for the Indonesian market because the product is always in the same hands – sample making, production, marketing and retailing. The licensor has to deal only with one firm (field interview, Great River, Jakarta, 1998).

 

Operating on this basis since 1976, Great River had emerged as the largest domestic clothing company in Indonesia with a fully integrated production chain and extensive experience in retail distribution, which has made it especially attractive to international brands.

 

As demonstrated in Figure 2, licensees often operate their own retail network. Indeed, Great River has developed and established a significant network of its own retail outlets, also the result of it being the first company to cooperate with licensors and having a favourable position in the 1970s and 1980s to work with international brand-name owners. Its accumulated market expertise left little space for local competitors to find appropriate international partners to serve the Indonesian market in this segment. However, during those two decades, Indonesian clothing companies were mainly interested in penetrating export markets rather than serving the domestic market. Thus, Great River was endowed with an almost monopolistic position as a local provider of international brands and the protective measures for the clothing industry priced imports at the very top end of the market. As the initial competitive pressure in the domestic market was low, the company could afford not only to expand extensively but also to use its well entrenched business networks in international fashion brands to obtain brand-name licenses for other countries, including Singapore, Malaysia, Hong Kong, Japan and Australia. Great River even vertically expanded its own retail distribution network into Singapore and Malaysia exclusively for its manufacturers of licensed branded products.

 

Since the early 1990s, however, several newer market entrants have used a similar strategy for domestic market penetration. In particular, companies belonging to the largest Indonesian clothing manufacturers having established export-manufacturing production networks with brand-owners. While that still remains their key business, the growing potential of the local market increasingly has been a major draw for these licensees.

 

Fieldwork suggests that companies involved in this form of international business have a strong tendency to use local inputs. Raw materials are procured domestically where possible in accordance with licensor specifications. Great River, for example, has established several joint ventures in textile manufacturing to secure supplies of quality inputs. The huge demand for raw materials in the company's internal production chain makes cooperative ventures with Great River very attractive to potential international partners. Therefore, the amount of raw materials procured internationally is rather limited.

 

International licensing cooperation is specified in legal terms between the licensor and the licensee, often for a specific duration. International brands with subsidiaries currently in Indonesia started their market penetration on the basis of licensing. The changing institutional framework for direct investments and the growing domestic market have resulted, for example, in Levi ending the partnership with its Indonesian licensee to take full control of its marketing operation in Indonesia. The licensee had introduced the brand to the market and developed the distribution system. However, Levi saw a great market opportunity to internalize this business at an organizational level, while retaining the ex-licensee as franchised retailer for Levi's products.#p#分页标题#e#

We believe we will do a better job because it is our baby. We own the brand. The licensee pays royalties but they do not own the brand. They care about short-term profits more than they look at the long-term. We have a much longer view and it is simply more profitable if we do it ourselves (field interview, Levi's Indonesia, Jakarta, 1998).

 

Besides the obvious benefits for the licensor, this form of international business cooperation offers great advantages to the licensee. For these Indonesian firms, the use of an internationally recognized brand provides the quickest market access to the high end of the fashion segment.

 

The main problem of the clothing business is that everyone can make the same product, except if you have a brand name. But if you don't have an international brand, it is difficult to have a strong brand. People like to have international brands as a status symbol (field interview, Indonesian licensee for O'Neil and Ocean Pacific; also the brand-owner of Basic Element and Country Fiesta, Jakarta, 1998).

 

While the brand name and marketing material supplied by an international brand-owner facilitates an almost instant visibility in the domestic market, establishing market awareness of a new brand can be very costly and time-consuming. Retail distribution for these licensees is made easier by department stores allowing new entrants prime places, with the expectation that international brands would generate higher sales; for the licensee, the higher potential for quick turnover means early profitability. Meanwhile, newcomers with local brands face serious difficulties in securing prime retail space and, therefore, the danger of slow sales and cash flow problems.

 

Similar to advanced economy consumer markets, the prime marketing channels for promoting licensed products in Indonesia are television and cinema commercials, mass circulation magazines and sponsorships of popular concerts and other events, all aimed at groups who are the key consumers of international branded fashion products. The primary target group comprises young consumers aged 15–20 years, while the secondary target group is young adults aged 21–25 years. Counterfeit merchandise is a constant problem for global brand-name companies. Substandard fakes manufactured in home workshops and sold in local markets are difficult to control and can adversely affect the image of these brands if supply is excessive. The potential loss of sales is not a particular worry for brand-owners because consumers of counterfeit products in Indonesia are generally from social target groups that cannot afford the genuine items anyway.

 

The up market consumers of the urban middle class are strongly international brand and status conscious. However, even licensees acknowledge the attractiveness of actually owning the brand names. Brand-ownership has the potential to achieve higher profitability as there is no demand for royalty payments. Several have therefore started to exploit their expertise to establish their own brands. Companies using this dual market approach can benefit from the design and marketing ideas of their international partners and also capitalize on the internal infrastructure and distribution system that they have developed in aiming for this.