Koyo Jeans Essay

1570 WordsFeb 26, 20157 Pages
Why Koyo has to develop its own brands? William Cheung is able to come up with good design and his factory is able to produce jeans with a quality reaching the international standard. Developing a brand allows Koyo to charge premium from the customer as to reward the customer value offered. Branded products are more appeal to the Chinese market and customer with purchasing power. Developing a brand allows the company to expand the sales network through franchising. Brands also allows Koyo to distinct products which faces different markets. According to Cheung, the brand also enhance the stability of the sales of the product, making them less affected by fluctuations in quality. In 2000s, manufacturer in Asia meets acute competition and decreasing profit, as customers prefer branded products and are willing to pay premium price for them, own brands is the one of the success factor to win in the competition On the other hands, in 2000s, China entred WTO, which is a good chance for Koyo to explore China’s market with it own branded products Only with own brands that Koyo can have long term development, and make its name in international markets By that time, William Cheung had already had over 10 years experience in fashion industry, he was familiar with the factory and suppliers, and with the experience of operating shops and setting up brands with his Korean partner, he already got prepared for building his own brand International fashion brands such as Guess and Levi’s demostrate that company with branded products can use franchising which is one of the fastest way to expand other markets, which is also a good source of revenue. From Cheung’s previous experience of stitching different parts of the badges together which brings double profit, he is convinced that creativity in fashion design & material is highly rewarding and can bring Koyo to

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