Les 10: Market entry
VIDEO CASE: Kipling
Video was recorded with former global CEO and one of the founders, next week, the video will be
with the actual entrepreneur that started Kipling.
VRAAG 1: How local or global is the industry?
Also look at regional headquarters
Global headquarters: Antwerp; founded in Sint-Niklaas
Why say Antwerp? People who know something of fashion, know that Antwerp was up and
coming in the fashion industry.
Global brand: 1/3 in each continent
Headquarters: hong kong & new york
Autonomous management
Global
Clothing is very global with not really a local part
o Seasons are also ‘going”, because it is staying warmer, so people only buy the
winter clothing in januari when it’s sales
Local
Products are adapted locally, like collaborations with local designers or brands
Local innovation: you sometimes see that products are invented locally, not in the
headquarters
VRAAG 2: What are the roles of a RHQ? How would you choose “Regional Headquarter” (RHQ)
location?
Location? E.g. NY, HK
Fashionable cities (but not as famous as italy)
Sales driven
Ports: logistics
International city important
o Human capital: people want to live in good cities
Customers
Airport
o You sell backpacks and travel bags want to sell to people who travel
o Easy access: when people come to visit, you want it to be easy reachable
Hong Kong is one of the cheapest cities to buy stuff (shops and retail), despite the houses
etc. are very expensive there.
Roles of RHG?
Marketing and sales
Adeption
Existing strategy en production
Market development try to do more!
Les 10 06/12/2022 Pagina 1 van 12
, VRAAG 3: How did Kipling enter Asia + China?
After few attempts in korea and japan, they looked at hong kong and signapore
Hong kong shop till you drop mentality AND hub for travelers.
Hong Kong: geographically: bridge to chinese market. when they started
Department stores and standalone stores
China: partners were essential: complicated regulations
Evolution with taking business back with not so good partners and looking for new partners
VF: used their network and headquarters in shanghai
How did they enter china?
Department stores
Owned stores
Shopping malls
Franchise store “take some business back” unhappy with some of the franchise store
and buy them out
VRAAG 4: Why would you choose own stores or franchising stores?
Very important but difficult question
Example: Starbucks. Filip sent a mail 10 years ago (when there was no starbucks in belgium yet),
to open a franchise in belgium. Answer:
There are other markets that are more interesting
They only look for potential joint-venture partners and licencees
o They don’t do franchises
o They want co-investors want people that have money, who can sign a joint-
venture agreement
(Zie volgende slide)
Different industries have different competitive requirements
Many relevant differences in industry you need to tackle the way in which you enter certain
markets differently.
Industries
Products
Functions (link to regional headquarters)
Les 10 06/12/2022 Pagina 2 van 12
VIDEO CASE: Kipling
Video was recorded with former global CEO and one of the founders, next week, the video will be
with the actual entrepreneur that started Kipling.
VRAAG 1: How local or global is the industry?
Also look at regional headquarters
Global headquarters: Antwerp; founded in Sint-Niklaas
Why say Antwerp? People who know something of fashion, know that Antwerp was up and
coming in the fashion industry.
Global brand: 1/3 in each continent
Headquarters: hong kong & new york
Autonomous management
Global
Clothing is very global with not really a local part
o Seasons are also ‘going”, because it is staying warmer, so people only buy the
winter clothing in januari when it’s sales
Local
Products are adapted locally, like collaborations with local designers or brands
Local innovation: you sometimes see that products are invented locally, not in the
headquarters
VRAAG 2: What are the roles of a RHQ? How would you choose “Regional Headquarter” (RHQ)
location?
Location? E.g. NY, HK
Fashionable cities (but not as famous as italy)
Sales driven
Ports: logistics
International city important
o Human capital: people want to live in good cities
Customers
Airport
o You sell backpacks and travel bags want to sell to people who travel
o Easy access: when people come to visit, you want it to be easy reachable
Hong Kong is one of the cheapest cities to buy stuff (shops and retail), despite the houses
etc. are very expensive there.
Roles of RHG?
Marketing and sales
Adeption
Existing strategy en production
Market development try to do more!
Les 10 06/12/2022 Pagina 1 van 12
, VRAAG 3: How did Kipling enter Asia + China?
After few attempts in korea and japan, they looked at hong kong and signapore
Hong kong shop till you drop mentality AND hub for travelers.
Hong Kong: geographically: bridge to chinese market. when they started
Department stores and standalone stores
China: partners were essential: complicated regulations
Evolution with taking business back with not so good partners and looking for new partners
VF: used their network and headquarters in shanghai
How did they enter china?
Department stores
Owned stores
Shopping malls
Franchise store “take some business back” unhappy with some of the franchise store
and buy them out
VRAAG 4: Why would you choose own stores or franchising stores?
Very important but difficult question
Example: Starbucks. Filip sent a mail 10 years ago (when there was no starbucks in belgium yet),
to open a franchise in belgium. Answer:
There are other markets that are more interesting
They only look for potential joint-venture partners and licencees
o They don’t do franchises
o They want co-investors want people that have money, who can sign a joint-
venture agreement
(Zie volgende slide)
Different industries have different competitive requirements
Many relevant differences in industry you need to tackle the way in which you enter certain
markets differently.
Industries
Products
Functions (link to regional headquarters)
Les 10 06/12/2022 Pagina 2 van 12
