Norwegian Fashion Institute

Abstract

This report has been conducted in cooperation with Norwegian Fashion Institute (hereinafter NFI). NFI is a non-profit organisation that represents the participants within the Norwegian fashion Industry. It seeks to make Norwegian fashion brands recognized at home and overseas. There are 90 members in the organisation that represents the wide spectrum of Norwegian fashion. Obtaining knowledge of the market will help NFI promote Norwegian fashion brands in the UK and identify the necessary requirements for the brands to succeed. In order to answer the research question and objectives, information has been collected through secondary and primary data. The research process was used step by step in order to develop and conduct the design of the research. To get an overall understanding of the UK retail market, semi-structured interview was conducted. The interviews were used to identify the questions that should be asked in the survey. The survey-research was conducted in order to reveal attitudes and regional differences in the UK market. The most important findings from the research performed for this report are the following. There is a lack of awareness around Norwegian design. Only five of 113 respondents in the survey had knowledge of any Norwegian designers. Neither the two participants in the semi-structured interviews had any knowledge. There is a tendency for customers to value quality and design over price and brand. London has a higher level of fashion knowledge and interest than the other two cities in our research. This indicates that London is the most appropriate place to launch a new brand. This was confirmed through the semi-structured interviews. The UK can be considered to be a good country to conduct business in. The country has a positive outlook regarding to recovery of the recession. The UK’s membership in the EU offers political advantages. In terms of social aspects the country has a high standard of living and updated technological abilities. Porters Five Forces revealed that there is fairly strong rivalry in the industry; it is however room for smaller players in the market. McKinsey`s 7S’ pointed out that NFI has a good network in Norway and that the lack of administration is the organisations strongest weakness. The findings in of the external and internal analysis where summarised in a SWOT. It is imperative to develop a good promotion strategy to position Norwegian Fashion brands in the UK fashion industry. A clear brand identity has to be identified before promoting the products. The promotion alternatives PR, exhibitions and e-marketing were considered to create awareness around Norwegian Fashion. Foreign Direct Investment, export and agent are three potential alternatives for NFIs members to enter the UK market. In the beginning phase it is imperative for NFI to focus its promotion mainly towards the business-to-business, but also towards potential consumers. The promotion strategy proposed includes London Fashion week, exhibitions and other similar events. These events will help create awareness around Norwegian Fashion brands among influential people in the UK fashion industry. Internet and magazines should be used as promotion channels to the potential consumers. The recommendations for choice of entry mode depend on the size of the business. Recommendations were made for small and medium businesses, for short and long term commitments. The short-term recommendation for small businesses is to use Internet. The long-term recommendation is to consider department stores. Medium businesses should, in the short term, use department stores, in addition to Internet. The long-term recommendation is to open a Norwegian concept store. Alternatively for the brands that have generated reasonable profit, and developed a clear position in the UK market, a possibility will be to open an individual store.