Maison Martin Margiela – Singapore Expansion Plan
Adelina Etcu, Cibowa Kalala, Cindy Yoel Tanesia, Nita Tjandra
Luxury brands are being used by the Asians to define their identity and social position in the society.1 The global luxury goods market is forecast to expand by 65% from 2010 to 2015, with most of this growth countries in Asia Pacific and will remain the fastest growing market and the key regions for expanstion for luxury goods retailers excluding Japan.2 Singapore is one of the countries in the Asia that has an increase the retail spending in the luxury segment due to the strong currency, economic growth, and the consumers that have high brand awareness and willingness to possess branded goods.3 It will be a good decision for a brand that wants to expand into Asia Pacific market to start opening a store in Singapore due to the geographic location that connects two continents, Asia and Australia, for a future further expansion. There are lots of luxury brands that have not opened their store in Singapore and one of the brands is Maison Martin Margiela. Maison Martin Margiela has stores in China, Japan and South Korea but did not touch the Southeast Asian and Australia yet.4 An expansion in Singapore will be a good start point for the opportunity of future world expansion. Company Profile
Maison Martin Margiela is a luxury fashion house founded in 1988 by Martin Margiela, a Belgium fashion designer. It opened the first store in Paris, France and now already has stores in United Kingdom, Belgium, Austria, Italia, USA, China, Japan, South Korea, and Taiwan.5 It’s quite fascinating and confusing why they didn't expand throughout the Europe because it will make their name more popular and increase their brand value before go to other countries outside of Europe. Maison Martin Margiela literally means “the house of Martin Margiela”. Martin Margiela is a fashion designer that graduated from Royal Academy of Fine Arts, fashion department in Antwerp, Belgium. He worked at Jean-Paul Gaultier as a design assistant before opened his own fashion house. He is known as an invisible man because he doesn't do publication of himself. He usually refuses to do direct interviews and has rarely been photographed.6 “Often referred to as iconoclast, avant-garde and experimental, the Maison expresses its creativity through recycling, transformation and reinterpretation - like an emotion, a unique and timeless proposal defying all laws and rules. – Maison Martin Margiela Facebook Official Page” Maison Martin Margiela is known for the recycle and transformed products that sometimes electrifying, humorous, sexy or just simply weird as what stated in the New York Times. He once presented sunglasses that look like a censor bar, a top made of lots of gloves, coats reconstructed with socks, and other weird things that usually can’t be seen in the luxury fashion house. The Margiela’s boutique is also presented in the same concept. It’s covered in a white fabric with the staff members that wearing lab coats. The company also use models with a covered face in their fashion show to emphasize the products rather than the person that is wearing the product. The ‘weirdness’ of Maison Martin Margiela somehow defines it’s brand identity which is unique, creative, and extraordinary. Why Singapore?
If Maison Martin Margiela wants to expand it’s company to another country, it will be a smart move to choose Singapore as the potential market. There are several reasons why Singapore is a good potential market for luxury brands from the view of the geographical location and the characteristics of the country, the economic system and condition such as GDP (gross domestic products), unemployment rate and credit rating, population demographics, tourists flow, and the current consumer spending trends. 1. Geographical Location and Characteristics of the Country Geographical location is important in making a decision of do the investment in a...
References: 1. Chadha, R. and Husband, P (2006). The Cult of the Luxury Brand: Inside Asia’s Love Affair with Luxury. London: Nicholas Brealey.
Please join StudyMode to read the full document