A leading textile manufacturing company from China wanted to explore the expansion opportunities into European nations. The company engaged IKON to conduct a market opportunity assessment study in selected European countries addressing key questions on the current market size, future forecast, market trends and competitive environment.
Approach & Recommendations
After conducting desk research, we started with primary research to collect relevant quantitative and qualitative data from selected european markets. Several interviews of end-users, traders and industry experts had been taken to understand the textile market trends, value chain and customer mindsets in respective countries. In addition, domestic production and international trade data were gathered from local industry associations and official statistical departments to understand the demand and supply of textile products in those markets. Synthesizing those data and information allowed us to form a view on market size, future growth potential, value chain, international trade, market trends and competitive environment in the markets of interest.
A detailed insight for the market, customers and competition were developed and delivered to the client within stipulated time frame. The insight highlighted a number of opportunities in those markets such as the increasing trend of using pure linen yarn in male apparel segments. Moreover, we identified import partners of those markets through analyzing international trade data. Bearing in mind competition with those supplier countries, became the core of the client’s market entry strategy.
With this insight, the client had a clear understanding of each market and decided to enter a few selected European countries. Within two years of entering those markets, the client achieved record export sales and awarded as the number 1 exporter in China in pure linen yarn category.
Note: We are committed to clients' confidentiality. So their names have not been disclosed, but the results are real.