- May 17, 2020
Export Canada Winter Jacket to Kazakstan or Finland
ExportCanada Winter Jacket to Kazakstan or Finland
ExportCanada Winter Jacket to Kazakstan or Finland
Kazakhstanand Finland are some of the major consumers of winter jacketsglobally. Though their climates are difficult are different withFinland experiences relatively long winters Canadian exporter woulduse different factors to determine the most appropriate market tosell winter Jacket. This paper factors in an analysis of theKazakhstan market and Finland Markey as related to the winterjackets. Analysis of the two markets opens the exporter to some ofthe opportunities in the two countries. Risks are also portrayed andthe probability of venturing in one of the markets forms theconclusion for analysis. The porter model that is critical indetermining market has been factored in analyzing the opportunitiesand risks the exporter is prone too. It will serve to help anypotential export from Canada in coming up with the most appropriatemarket. Reviewing of the competitive environment, substitutes,competitors and emerging trends in the markets of both countries hasbeen considered too.
Competitiveenvironment in Kazakhstan for Canada winter jacket
Canadawinter jackets are heavy and warm which makes them a good wear duringthe winter season in any country. However, the Kazakhstan peopleprefer clothing that is sewed to fit their traditions (Jenish, 2014).Though there is a market for Canada winter Jackets in Kazakhstan thecitizens prefer jackets that can be worn during periods of hotweather as well as cold weather. This calls for exporters to be basedin the Kazakhstan market for them to understand the market dynamics.Canada Jackets are likely to find competition from the traditionalgear won by the Kazak people that that suits both cold winters andhot summers.
Threatof new competitor
ExportingCanada winter jackets to Kazakhstan possess to both local andexternal new competitors. Given that the country does not exportapparels in large quantities it is an indication that the market ispromising. This attracts many sellers who are willing to sellapparels that meet the needs of the market. New competitors fromCanada are expected to enter the market and only order for materialsfor making the jackets. This will ensure that they produce jacketsthat suit the Kazakhstan market with ease thus threatening the marketfor directly exported Canada winter jackets.
Bargainingpower of the buyer
Kazakhstanopens its market to other countries that produce apparels such asChina and Russia. Just like Canada winter jackets they also providewear that fits the citizens market needs. A variety of clothing fromthis countries leads to the flooding of the apparel market. Due tothe availability of alternatives, the buyers can easily shift fromone material to another from a different country (Adams& Ludewig McCanless, 2016). This gives the buyers a higherbargaining power. The presence of traditional gear that suits thecountries climate too works to disadvantage an exporter from sellingCanadian winter jackets. This gives the buyer a more bargaining powercompared to the seller.
Canadawinter jackets have no closer substitute in a foreign market whichplaces suppliers entering the market at a higher position of success.This makes them have a higher bargaining power which is as a resultof lack of a close substitute. However, apparels from other countriessuch as the United States tend to be similar to those from Canada.The influx of imports from the United States to Kazakhstan couldinfluence the bargaining power of sellers from other countries.
Competitiveof Canada exporting winter jackets to Kazakhstan
Kazakhstanremains the largest commercial partner with Canada in central Asiamaking it easy for Canada exporters to enter the market. Informationon the emerging trends and changing cycle of Kazakhstan market isalready available to any potential Canadian exporter to the market.Exporters of winter jacket have a greater chance of being competitivein the market as compared to exporter’s countries that have noclose trade ties with Kazakhstan.
Emergingtrends of winter jacket industry in Kazakhstan
Oneof the notable industry trends is the need for creation of clothingthat can easily transition through several seasons. Consumers thusare aligning themselves with those manufacturers who produce lightwinter jackets that can also be utilized during hot summer evenings.This makes the apparels more convenient to wear in different weather.
Currently,Kazak consumers prefer winter jackets that much their traditionalwear. This calls for industry players to carry out a market researchon different cultures and the need of clothing they may require(Juurmaa& Wilkman,2002). Currently a lot of preference as shifted towinter jackets that factor in a combination of bright colors. Thesetrends are likely to change the way both local and foreign producersdesign wither jackets in the future.
Competitorenvironment for Canada winter jacket in Finland
ManyFinnish companies produce winter jacket given that the country justlike Canada experiences lengthy winter periods. Thus the market forthe winter jackets is relatively high in Finland as compared toKazakhstan which experiences shorter winter period. The Finnishpeople enjoy fashionable clothing and are open to dynamics in theclothing industry. This calls for every market player to remaininnovative to meet the market demands effectively. Due to the natureof the market exporters from Canada and other countries are likely tofind the market friendly. However despite the market being friendlycompetition is a notch higher for the winter jacket and sellers needto employee appropriate strategies for them to remain relevant.
Canadianwinter jackets are likely to face completion from those jacketsproduced in Finland. The cost of producing apparels is lower inCanada than it is in Finland. However, the difficulties in enteringthe Finland markets as an exporter would work to discourage exportersintending to supply apparels in the country (Paasonen,2015).However, major competition is likely to be due to locally establishedindustries producing winter jackets.
Woolenjumpers and dressing in layers are some of the close substitutes toCanada winter jackets in Finland (Avraham& Ketter,2016). Unlike Canada where the winter jackets are seenas a source of prestige and highly fashionable the Finish peoplelikely to buy them to cater for cold winter seasons. Given that otherclothing is also available in the market serving the same purpose anexporter risks operating at a loss in the Finish market since most ofthe products are similar to those produced in Canada.
Buyershave huge bargaining power in Finland and thus exporting winterjacket from Canada is a venture worth undertaking after consideringthis. Most of the Canada winter jackets are bright in color somethingthat makes them unfit for the Finish market. People in Finland oftenprefer dull colors and would purchase them with ease as compared tothe bright colors. The buyer thus determines the market and whatexporters have to offer. For a Canadian firm to gain the heart ofbuyers it will have to offer commodities to the market that are dullin color. This will call for further investment since it is thecomplete opposite of the Canadian market in terms of color.
Supplyingproducts to a foreign market that is flooded with local productswhich are similar is very challenging for any exporting endeavor (Bohjanen,2015). If Canada will have to venture in the Finland market then itwill have to sell at a relatively lower price as compared to theprice it currently retails winter jackets at home. This also risksallegations of dumping which would serve to deteriorate the supplierbargaining power more.
Emergingtrends of winter jackets industry in Finland
Thechanging demand for bright colors is a trend worth watching in theFinland market. Most of the apparel consumers are turning towardsdark color which is dominating majority of the winter jackets sold.Market players have ensured that the winter jacket does not onlyaccomplish its service during the season. They have taken a shift tomaking apparels that are all season suited something that previouslynever was. This arises the need for an exporter to redraft strategiesbefore entering the Finland market which is dynamic in nature.
Thoughboth Kazakhstan and Finland are potential markets for Canadian wintermarkets there are several factors that would discourage a supplier inventuring. It would, however, be easier for Canada to export winterjackets to Kazakhstan since they trade in a variety of commodities.Finland consumers lack a taste for imported winter apparels sincethey have a long time experience with their brands.
Jenish,N. (2014). Export-driven SME Development in Kyrgyzstan: The GarmentManufacturing Sector. Institute of Public Policy and AdministrationWorking Paper, (26).http://www.ucentralasia.org/Content/Downloads/UCA-IPPA-WP26-Garment-Eng.pdf
Juurmaa,K., & Wilkman, G. (2002). Supply operations in ice conditions. InProceedings of the 17th International Symposium on Okhotsk Sea &Sea ice, 24-28 February, Mombetsu, Japan.
Adams,T., & Ludewig McCanless, C. (2016). FABERGÉ COSSACK FIGURESCREATED FROM RUSSIAN GEMSTONES. Gems & Gemology, 52(2).
Avraham,E., & Ketter, E. (2016). Marketing Asian Destinations. In TourismMarketing for Developing Countries (pp. 133-156). Palgrave MacmillanUK.
Norris,L. (2015). The limits of ethicality in international markets:Imported second-hand clothing in India. Geoforum, 67, 183-193.
Bohjanen,J. (2015). Multimodal backpacking experience in Finland: Sharingexperiences through an online travel blog.
Paasonen,S. (2015). Heavy skies and a cold Soviet feel: Helsinki as a Cold Warcinematic body double. Journal of Scandinavian Cinema, 5(1), 5-18.