Entering Into an Emerging Market Country

1. Introduction

Ralph Lauren Corporation is luxury clothing and goods brand of the American fashion designer Ralph Lauren. The company specializes in premium quality casual and semi formal clothing in addition to accessories, perfumes, home textiles and linen. India is a fast growing nation with a huge population of people who fall under the category of Ralph Lauren potential buyer, with a strong base of youth, and mixture of business men, along with a strong middle class and upper class buyer, and with the luxury market growing to a aprrox $ 14 billion, it does seem a very lucrative market. What they need to watch is there competitors both international as well a local strong brands. With local brands having the feel for culture ad offering value for money it won't make things very easy. Polo had a strong American brand influence on consumer and with the right product portfolio could expand a lot within the market.

2. Overview

2.1 Current Markets Served

Every local store is run by Ralph Lauren, and globally some of the stores are operated by them; approximately 90 of them are managed by partners that are licensed.

But they have 8 flagship stores which are as stated

New York

Paris

Milan

Tokyo

London

Greenwich

Moscow

Chicago

2.2 Business Segments

Ralph Lauren's operations fall under three primary categories: Wholesale, Retail, and Licensing. The wholesale constitutes for around half of their operations, whereas as 45 percent is done through retail and only 5 percent is licensed to franchisees.

2.3 Mission and Vision

Mission

Ralph Lauren's mission is to redefine American style, provide quality products, create worlds and invite people to take part in our dreams.

Vision

To represent timeless American style with a dash of British elegance and the comfort of natural fibers.

2.4 Goals

Domestic

Polo Ralph Lauren aim to be the top in whatever they do and in their local market they have done well to achieve it. It's a brand desired by and available to the masses. They aim to spread out there reach and open up new outlets hence helping them acquire more shares in the market.

3. Market Analysis

Size of retail trade industry: Around $400 billion

Projection by 2014: $900 billion

Percentage share of organized segment in retail: Just 6 percent

Share in gross domestic product: Around 15 percent (Anonymous, 2011).

In India the market is fuelled by sales promotion. Due to the rising incomes of the middle class the trend of consumers buying from unbranded stores has shifted to big brands as they now perceive the benefits of wearing a brand. Counterfeit products are not seen as a viable option by the consumers as it spoils the appeal of the brand. Consumers of high end brands are exposed to the media and the trends shown in movies and television really impacts the way that they should dress. Outlets are mainly in five star hotel or luxury malls.

Social Media is really growing big in India. India has around 46 million users of this site and viral marketing has been successful in generating cost effective advertisements. An example can be taken of Reliance Silent Indian national ...