Yedo Department Stores
Yedo Department Stores
Profitability report
Executive summary Due to extended research we determined that Yedo strategy of selling luxury goods and focusing on richer part of society is main disadvantage, particularly in current economy. Expanding products offer and attracting younger clientele should show positive results in near future. Also we recommend launching an on-line store to fill the gap and reach new customers. Introduction This report will look at: Yedo’s competition Expanding store offer Overseas expansion Benefits of on-line store Age targeting
Findings 1. Yedo is selling luxury goods mostly while the society is turning into savings. 2. Luxury goods are targeting older part of population who can afford and need such products. 3. Japan has very specific market and Yedo might not work in different environment. Overseas expansion is high-risk. 4. There is no on-line store despite the fact that it is a vast market and Yedo could easily gain new customers 5. Competition is strong and varies from medium size markets to big brands from America and France. For the time being there is no point in direct price fight and offering low-price products as Yedo could lose recognition Conclusion The best way to increase and maintain profitability is to attract more customers. Yedo can achieve that by being more convenience. For those who like to shop on-line a dedicated website should be launched – “all Yedo’s product in one place, ready to be delivered to your house”. Furthermore, Yedo should target specific age groups at
once by creating suitable areas, which is directly connected with expansion of available products. Younger customers might not want to buy expensive and luxury goods only. Recommendation 1. An on-line store should be launched asap 2. Store offer must be expanded to medium price range products 3. All stores should be divided into areas targeting specific age group
Head of TWCB 21
Profitability report
Executive summary Due to extended research we determined that Yedo strategy of selling luxury goods and focusing on richer part of society is main disadvantage, particularly in current economy. Expanding products offer and attracting younger clientele should show positive results in near future. Also we recommend launching an on-line store to fill the gap and reach new customers. Introduction This report will look at: Yedo’s competition Expanding store offer Overseas expansion Benefits of on-line store Age targeting
Findings 1. Yedo is selling luxury goods mostly while the society is turning into savings. 2. Luxury goods are targeting older part of population who can afford and need such products. 3. Japan has very specific market and Yedo might not work in different environment. Overseas expansion is high-risk. 4. There is no on-line store despite the fact that it is a vast market and Yedo could easily gain new customers 5. Competition is strong and varies from medium size markets to big brands from America and France. For the time being there is no point in direct price fight and offering low-price products as Yedo could lose recognition Conclusion The best way to increase and maintain profitability is to attract more customers. Yedo can achieve that by being more convenience. For those who like to shop on-line a dedicated website should be launched – “all Yedo’s product in one place, ready to be delivered to your house”. Furthermore, Yedo should target specific age groups at
once by creating suitable areas, which is directly connected with expansion of available products. Younger customers might not want to buy expensive and luxury goods only. Recommendation 1. An on-line store should be launched asap 2. Store offer must be expanded to medium price range products 3. All stores should be divided into areas targeting specific age group
Head of TWCB 21