retail management
Heng Seng Management College
BUS4003 – Retail and Channel Management
Baleno Case Study
Group3
Group Member:
1. Introduction
1.1 The history of Baleno
Baleno’s story can be traced back to 1981, established by young fashion experts. “BALENO” was registered in Hong Kong in 1996 and established Baleno Holdings Limited as the holding company. With successful rebranding tactics and marketing strategies, Baleno expanded its network rapidly across Asia. Baleno understands that no single brand can serve all customers. So Baleno wisely makes use of multi-brand strategies and its rich apparel-retail experience to penetrate different markets. By building up a chain of direct operation shops and encouraging partnership with authorize dealers; Baleno is a leading specialty retailer in Asia. Today, the Baleno group currently operates over 10 brands in more than 10 countries.
Since China had lifted restrictions on the operations of foreign retailers as part of its WTO agreement. It provides more freedom to retailers to enter the China market. Retailers can choose where to locate their stores and they could also open their own stores without the need for a joint venture partner.
Baleno entered China market in 1992. Initially, the management used a similar business model as Giordano did. Using the “me-too” approach, Baleno quickly opened stores right next to Giordano’s. This “follower strategy” enabled the firm to enjoy the benefits of low risks, cost efficiency and high traffic. In 1998, Baleno overtook Giordano in terms of sales revenue and brand awareness, making it the leader in China’s fashion market.
1.2 Baleno marketing channel level
Baleno is using indirect marketing channel, uses more than one level of intermediaries to help bring its products to final buyers. Though their contacts, experience, specialization and scale of operation, intermediaries can offer the firm more than it can achieve on its own.
Baleno had strong
BUS4003 – Retail and Channel Management
Baleno Case Study
Group3
Group Member:
1. Introduction
1.1 The history of Baleno
Baleno’s story can be traced back to 1981, established by young fashion experts. “BALENO” was registered in Hong Kong in 1996 and established Baleno Holdings Limited as the holding company. With successful rebranding tactics and marketing strategies, Baleno expanded its network rapidly across Asia. Baleno understands that no single brand can serve all customers. So Baleno wisely makes use of multi-brand strategies and its rich apparel-retail experience to penetrate different markets. By building up a chain of direct operation shops and encouraging partnership with authorize dealers; Baleno is a leading specialty retailer in Asia. Today, the Baleno group currently operates over 10 brands in more than 10 countries.
Since China had lifted restrictions on the operations of foreign retailers as part of its WTO agreement. It provides more freedom to retailers to enter the China market. Retailers can choose where to locate their stores and they could also open their own stores without the need for a joint venture partner.
Baleno entered China market in 1992. Initially, the management used a similar business model as Giordano did. Using the “me-too” approach, Baleno quickly opened stores right next to Giordano’s. This “follower strategy” enabled the firm to enjoy the benefits of low risks, cost efficiency and high traffic. In 1998, Baleno overtook Giordano in terms of sales revenue and brand awareness, making it the leader in China’s fashion market.
1.2 Baleno marketing channel level
Baleno is using indirect marketing channel, uses more than one level of intermediaries to help bring its products to final buyers. Though their contacts, experience, specialization and scale of operation, intermediaries can offer the firm more than it can achieve on its own.
Baleno had strong