Case Study of Orenton Luxury Goods entry into the Chinese market

Case Study of Orenton Luxury Goods entry into the Chinese market

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Oroton was founded in 1938 in Sydney and built their success on luxury products with a relaxed style and high quality.

Today, Oroton sells a wide range of products, from various clothing to jewellery and accessories such as wallets and even ties and umbrellas.

We selected Oroton due to an interest in whether or not an Australian fashion label would succeed overseas in a market with other larger global brands. As Oroton has already successfully expanded into Hong Kong, Malaysia,

New Zealand and Singapore (The OrotonGroup Annual Report, 2012) it makes sense that it would continue its expansion into additional foreign markets to continue this success. China has been chosen as the next market to enter for three key reasons.

Firstly, neighbouring to Hong Kong means some of the liability of foreignness will have already been overcome, secondly due to the increased buying power of the emergent middle class and finally because of the strong market growth of the fashion industry. …

If you consider the facts that the actual company needs to be found that can be purchased, then you have to subvert capital that had been planned for product development into possible inflated prices due the acquisition premium in purchasing.

After the actual purchase is done you then need to integrate a new firm into the Oroton brand, and turn it around from a performance.

This leads to possible integration concerns and the possibility that you might not successfully fold the new company in.

The most attractive ways to view the entry into the China market is through the creation of a new arm, that of a Wholly Owned Subsidiary and that of a Greenfield setup. Whilst there are going……………