Internationalization of Branding

Paper Summary:

This paper discusses at length the challenges faced by the retail fashion industry. After a thorough overview of current issues, the paper launches into a case study of Perry Ellis, Inc., a major fashion retailer, which owns thirteen brands, including Perry Ellis, Penguin Sport and Southpoint. Perry Ellis, Inc. also licenses an additional five brands, including Nike and Tommy Hilfiger. The author explains how Perry Ellis has leveraged the brand-name familiarity to become a lucrative company. The paper also provides a case study of the Levi Strauss company, and shows its distinct branding style.

From the Paper:

"In the past few decades, issues surrounding branding in the retail industry have emerged as a significant concern for retailers, consumers, and the fashion industry alike. Organizations are using branding as a strategy tool in today's business environment with increasing regularity. Although brands and branding are not new ideas, retailers are applying them to more diverse settings where the role of branding is becoming increasingly important (Wentz & Suchard, 1993). The traditional role for brands has recently reemerged as a topic of interest, as retailers are increasingly turning toward the internationalization of brands to survive in the highly competitive industry. With the growing realization that brands are one of a retailer's most valuable intangible assets, branding has emerged as a top management priority in the last decade. As a result of its highly competitive nature, branding carries a significant effect in the retailing industry as one of the main drivers influencing customer perceptions, store choice and loyalty. Thus, as an attempt to offer more to the consumer than just low prices, retailers are developing marketing strategies that build store equity and differentiate their brand."

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