GLOBAL MARKETING OPPORTUNITY ANALYSIS FOR COTTON ON

Executive Summary

The Cotton On brand has been popular among all the other apparel brands of Australia. It occupies the country’s one of the largest GDP. Besides, it is a huge worldwide retailer, known for its unique style, design, quality clothing and distribution. However, to allow this brand to enter the Indian market, the study assesses its current market and potential future strategy that will help them to succeed in the Indian market. Being established around 2020 and holding 1500 stores in 18 nations, it holds a wide scope of improvement. They have skilled and professional individuals across seven brands of approximately 21000. The subsidiaries are Cotton On, Cotton On Kids, Cotton On Body, Factories, Typo, Rubi, Supre, and Cotton On Foundation. This report focuses on the preparation of a situational analysis for Cotton On’s entry into the Indian market to determine a strategic fit for future expansion.

Table of Content

1. Introduction

Global marketing opportunity analysis is the process of identifying potential growth opportunities for a company in global markets. Cotton On Group is an Australian retail company that has rapidly expanded globally, operating in over 20 countries worldwide. The report will conduct a global marketing opportunity analysis of Cotton On Group, focusing on the potential for market growth and expansion opportunities in selected global markets. The main purpose of this report is by analyzing the global market environment and identifying key trends and consumer preferences, and how the company will expand its business opportunities in India.

Figure 1: Cotton fabric exports in India

(Source: Similar web official)

2. Company Structure, Capabilities and Resources

2.1. Company structure

The Cotton On Group was founded in 1991 by Nigel Austin in Geelong, Australia (Cotton On, 2023). The company initially started as a single store selling denim products but has since expanded rapidly and now operates in over 20 countries worldwide. The company has a flat organizational structure, with a CEO and executive team at the top, followed by department managers and then team members. The company has a strong focus on collaboration and communication, with open-plan offices and regular team meetings. The Cotton On Group has a multi-brand strategy, with several brands under its umbrella, including Cotton On, Cotton On Body, Rubi Shoes, Typo, and Supré. Each brand has its team responsible for product design, sourcing, and marketing, and works collaboratively with other teams within the company (Cotton on official, 2023). The company has a strong focus on sustainability and ethical practices and has a dedicated team responsible for these initiatives.

2.2. Capabilities and Resources

Cotton On Group has a few critical capacities and resources that have added to its prosperity. The organization has areas of strength for an on plan and item improvement, with in-house groups liable for making and obtaining new items. The organization likewise has a powerful store network and coordinated operations framework, taking into consideration the proficient and compelling circulation of items around the world. Cotton On Group has additionally put resources into cutting-edge innovation and computerized promoting, considering consistent internet shopping encounters for its clients (Arsalan, 2019). What’s more, the organization has a devoted group zeroed in on manageability and moral practices, which has assisted with fortifying its image notoriety and appeal to socially cognizant customers.

3. Products/ Markets/ Distribution & Supply

3.1. Products

Cotton On is a popular brand in Australia that offers a wide variety of products ranging from clothing, accessories, home decor and lifestyle products. The brand offers an extensive selection of women’s clothing such as dresses, skirts, tops, jumpsuits, denim and more. The men’s section features items such as shirts, jeans, chinos and shorts. Accessories include jewellery, bags, wallets, hats and scarves. Cotton On also offers a range of home decor items such as bedding, cushions, rugs, mirrors and wall art (Cotton on official, 2023). For the active lifestyle, the brand stocks a range of sports apparel including shorts, sports bras, t-shirts and leggings. Other lifestyle products include stationery, travel accessories, books, toys and tech accessories. With something for everyone, Cotton On is a great choice for shopping in Australia.

3.2. Market

Cotton On has grown rapidly in Australia since its inception in 1991 and has become a household name for affordable, stylish fashion. The brand has expanded to over 1,400 stores around the world and offers apparel, accessories, and footwear for men, women, and children. In the Australian market, Cotton On is known for its trend-driven collections, innovative designs, and quality products (Cotton on official, 2023). The retailer has been successful in creating a loyal customer base by offering unique collections and products at affordable prices. Many of Cotton On’s Australian stores are located in shopping centres and are often filled with customers looking for the latest fashion trends.

3.3. Distribution & Supply

Cotton On sources its products from a range of suppliers and manufacturers around the world. The company has an extensive supply chain network, which enables it to source products from different countries and ensures they are delivered to its stores on time (Cotton on official, 2023). Cotton On also has an extensive network of third-party distributors and wholesalers, who help to ensure that the company’s products are available in stores across Australia.

Figure 2: Global supply chain of Cotton On

Source: Camille Bligh

4. Competitive Environment, Industry Situation

4.1. Industry environment

The Cotton On brand has a strong presence in the Australian market and has been a mainstay of the retail industry for many years. The brand is seen as a leader in terms of providing quality and affordable clothing that appeals to a broad range of consumers. This strong presence has been achieved through an effective combination of marketing, product design and the use of technology (Arsalan, 2019). The Australian retail sector is highly competitive, with many different brands vying for the attention of the public. This competition has led to Cotton On having to work to stay ahead of the curve and innovate to remain relevant and attractive to consumers. To do this, the brand has invested heavily in developing an online presence and in staying up to date with the latest fashion trends (Robertson, 2022). The brand has also been able to capitalize on the growth of the shopping mall industry in Australia, with many stores located in prime retail locations. Furthermore, Cotton On has a strong corporate culture which focuses on customer service and creating a positive shopping experience (Cotton on official, 2023). This has enabled the brand to develop a loyal customer base and remain a major player in the Australian retail market.

4.2. Competitor analysis

Cotton On is a well-established Australian fashion retailer that has been around since 1991. Their main competitors in the Australian market are Zara, H&M and Forever 21, Supre. They offer a wide range of clothing, accessories, and homeware products that appeal to a broad range of ages and demographics (Zippia official, 2022). Cotton On regularly updates its product offerings and offers competitive prices to stay competitive. They also offer frequent discounts and promotions, which draw in customers (Cotton on official, 2023). Cotton On also has a presence on social media, which helps them to remain in touch with their customer base and keep up with the latest trends.

5. Synthesis of Strength

Cotton On Group has several key strengths that could potentially be leveraged to successfully expand its business in India. One of the company’s core strengths is its ability to adapt to changing consumer trends and preferences. By keeping a close eye on emerging trends and customer feedback, Cotton On Group has been able to create products that resonate with its target market. This adaptability will be crucial for the company to succeed in the highly diverse and complex Indian market, where consumer preferences can vary significantly across different regions (Cotton on official, 2023). Another strength of Cotton On Group is its expertise in supply chain and logistics management. The company has a well-established global supply chain, which would be critical for ensuring the smooth and efficient distribution of its products in India. The company’s in-house logistics and warehousing capabilities could also help to minimize costs and improve operational efficiency.

Cotton On Group’s multi-brand strategy is another strength that could potentially help it succeed in India. By offering a diverse range of products across different brands, the company can cater to the diverse needs and preferences of Indian consumers. For example, the company’s Cotton On Body brand could appeal to India’s growing health and wellness market, while its Typo brand could tap into the country’s vibrant arts and culture scene. Finally, Cotton On Group’s commitment to sustainability and ethical practices is a significant strength that could help the company differentiate itself in the Indian market. India is a country with a strong focus on sustainability and social responsibility, and companies that prioritize these values are likely to be well-received by consumers. Cotton On Group’s dedicated sustainability team could help the company navigate the complex regulatory and cultural landscape of India’s sustainability practices and strengthen its brand reputation in the country. Overall, Cotton On Group’s strengths in product design, supply chain and logistics management, multi-brand strategy, and sustainability practices make it well-positioned to successfully expand its business in India. However, the company will need to carefully navigate the unique challenges of the Indian market, including cultural differences, regulatory complexities, and intense competition, to ensure that its strengths are effectively leveraged.

Figure 3: SWOT analysis of Cotton On for business expansion in India

Source: (Self-Generated)

6. Strategic Fit Evaluation

Cotton On Group is an Australian retail company that sells a wide range of apparel and accessories for men, women, and children. With its expansion into India, the company needs to evaluate its strategic fit to ensure that its business objectives align with the new market. One of the key strengths of Cotton On Group is its strong brand recognition in Australia and other international markets (Arsalan, 2019). This could provide an advantage in India, where the market for fast fashion is growing rapidly. Additionally, the company’s experience in retail and supply chain management can be leveraged to establish an efficient and effective distribution network in India. However, there are also challenges that the company must consider. One potential weakness is the level of competition in the Indian market, with several established domestic and international players already operating in the country. Additionally, the cultural differences and regulatory environment in India can pose significant challenges for foreign companies. To evaluate the strategic fit of Cotton On Group in India, the company should consider factors such as market size, consumer behaviour, supply chain logistics, and local regulations. The company should conduct thorough market research to understand the preferences and needs of Indian consumers and adapt its product offerings and marketing strategies accordingly (Cotton On Group, 2023). Overall, the expansion into India presents a significant growth opportunity for Cotton On Group, but the company must carefully assess the market dynamics and tailor its strategy to the local context to ensure a successful entry into the new market.

7. Conclusion

The report has successfully its aim of demonstrating global Marketing Opportunity Analysis for Cotton On. Overall, India provides a wealth of opportunities for Cotton On to expand their global market presence. With the size of India’s population, the growth potential for Cotton On is huge. Additionally, the country’s favourable economic conditions, strong consumer demand, and government support make it a great target market for Cotton On. With the right strategy and resources, Cotton On can have great success in India.

8. Reference

Arsalan (2019) Analytical report – ‘strategies of cotton on group.’ Available at: https://academic-master.com/analytical-report-strategies-of-cotton-on-group/ (Accessed: February 21, 2023).

Cotton On Group (2023) Cotton On Group: Retail, Pos, inventory management systems: Retail Directions, Home. Available at: https://www.retaildirections.com/retail-case-studies/cotton-on-group (Accessed: February 21, 2023).

Cotton on official (2023) From Australia to the world, Cotton on Group. Available at: https://cottonongroup.com.au/from-australia-to-the-world/ (Accessed: February 21, 2023).

Cutton On (2023) From Australia to the world, Cotton on Group. Available at: https://cottonongroup.com.au/from-australia-to-the-world/ (Accessed: February 21, 2023).

Robertson, L. (2022) How ethical is Cotton On?, Good On You. Available at: https://goodonyou.eco/how-ethical-is-cotton-on/ (Accessed: February 21, 2023).

Zippia official (2022) Get the job you really want, Zippia. Available at: https://www.zippia.com/cotton-on-usa-careers-1557198 / (Accessed: February 21, 2023).

Similar web Offical (2022) Cottonon.com Traffic Analytics & Market Share | similarweb, shop stylish women’s, men’s, kid’s, baby clothes, accessories & more. free shipping . Available at: https://www.similarweb.com/website/cottonon.com/ (Accessed: February 21, 2023).