3. + Defining Historical Events
660 B.C. According to legend, Emperor Jimmu became the
first emperor of Japan
He was the descendent of of sun goddess Amaterasu, and was
said to live 126 years
1635 The Japanese break ties with all foreign
countries for 200 years under a policy that
was meant to protect the culture from
European influence and war
1914-1918 Japan declared war on
Germany
4. +
Historical Events Continued…
1940 Japan entered WWII where they occupied North French
Indochina
1945 Bombings of Hiroshima (15,000 deaths) and
Nagasaki 75,000 deaths by the U.S.
**Those numbers are considered
conservative**
1995 Japan becomes apart of the World Trade
Oranization (WTO)
5. +
International Trade History
Edo Period 1603-1868 developed transportation routes by
road and water
Meji Period 1868-1912 Japan emerged as most developed
country in Asia
After WWII overall economic growth from the ‘60s to the
‘80s due to worker productivity, government, and technology
After WWII international trade relations were driven by lack
of domestic raw materials, and desire to catch up to the
West.
6. +
International Trade History
The Lost Decade collapse of the
property bubble in 1989 causing
economic stagnation, deflation,
and high unemployment
They have struggled with
recession on and off since 1989
until 2011
As of 2012, Japan is the 3rd
largest national economy in the
world (after U.S.A. and China) in
terms of nominal GDP
7. +
Humor
There is no word in Japanese for “sense of humor.”
Historically, jokes were centered around making
fun of China
Their jokes are very pun based
For laughs, they enjoy scaring people. There have
even been TV shows centered around it
8. +
Literature
Early literature was influenced by Chinese and Indian literature
“Classical” Literature/The Heian Period (794-1185)
Referred to as the golden era of art and literature
Genji Monotgatari
Kokin Wakashu
Sei Shonagon
Konjaku Monogatarishu (circa 12th Century)
The Tale of the Heike (13th Century)
The Complete Haiku (17th Century)
9. +
Works of Art
The Great Wave—Katsushika
Hokusai
Sansui Chokan—Long Scroll of
Landscapes—Sesshu Toyo
Painting of a Cypress—Kano Eitoku
Abe-No-Nakamaro—Tomioka
Tessai
10. +
Cultural Plays
Kabuki is the most type of
theatre
Shunkan
Kanadabon Chusingura
Migawari Zanzen
Noh has been performed since
before the 14th century
Kyogen is a type of Noh that is
shorter humorous pieces
11. +
Cultural Songs
2nd largest music market in the world
Traditional Japanese music has three main types:
Instrumental
Court
Theatrical
Kabuki
Gidayubushi (Joruri—narrative music)
Shimoza Ongaku
Noh
16. +
Ethnic Groups, Sub-Groups,
Language
98.5% Japanese, .5% Koreans, Chinese .4%, other .6%
Ministry of Justice in Japan has no official breakdown of ethnic
groups in Japan
Japanese-Filipinos
The Ainu aboriginal tribe
17. +
Three Most Important Holidays
Shogastsu New Year
Setsubin—The bean Throwing
Festival
Hanami Cherry Blossom Festival
19. +
Ethics and Morality
Keiei= business in Japan
Stands for “making effort to develop
societies harmoniously and raise the well-
being of the people”
It is always first discipline, then economic
practices
Inseki Jinin (take responsibility and resign)
21. +
Family, Values, Issues
Extended Family: several generations
living and working together on the land
Nuclear Family: father works, mother
at home, and approximately 2 children
for middle/upper class
Lower class accepts that women work
Multiple Family Patterns: no one
model to follow in society to gain
acceptance
EX: divorced, re-married, married w/o
kids, gay/lesbian, etc.
22. +
Educational System
6 years of public elementary school
3 years of junior high school
3 years of high school
2-4 years of university
Education is highly valued by the Japanese, with an average of
15 years of education per capita and a literacy rate of 99%
23. +
Religious Systems
Japanese enjoy full religious freedom
Shinto and Japanese Buddhism are not separate religions,
but rather a complex religious system
One will fine Christianity, Islam, Hinduism, and Sikhism in
Japan
They are not so much religious, but spiritual
24. +
Political Structure
Prime Minister Naoto Kan
Emperor Akihito and
Empress Michiko
multi-party parliamentary
representative democratic
Constitutional Monarchy where
the Emperor acts effectively as
the symbolic Head of state, and
the Prime Minister acts as
theHead of government and the
head of Cabinet which directs the
executive branch.
Japanese Political System, the House of
Councillors is the upper house of the
Japanese Diet, and is composed of 242
members. The term of office for the elected
members of the upper house is six years.
The House of Representatives is the lower
house, with 480 members.
26. +
Financial/Banking System
traditional banking system was segmented into clearly defined
components in the late 1980s: commercial banks (13 major
and 64 smaller regional), long-term credit banks (7), trust
banks (7), mutual loan and savings banks (69), and various
specialized financial institutions
27. +
Economy
Strengths
• High quality and good designs of modern industrial
products
• Japan has a leading advance in technology
• The strength of Japanese companies consists in the strong
ties of trust within their organizations
Weaknesses
• Japan is lagging behind China, South Korea, Taiwan, and
advanced western countries in regards to expansion
overseas
• They have become less competitive in the world in
economic development
• Their population is aging which is impacting their
effectiveness, productivity, and performance
28. +
Economy
Major Industries: manufacturing,
construction, distribution, real estate,
services, and communication
Agricultural: only 2% of GNP, rice,
sugar beets, vegetables; pork, poultry,
dairy products, eggs, fish
Standard of living, income levels and
distribution:
Population below poverty line: 16%
Distribution of family income: 37.6%
Household income: lowest is 1.9%,
highest is 27.5%
29. +
Economy
Unemployment Rate: 4.1%
GDP Purchasing Power Parity: $4.729 trillion
GDP Official Exchange rate: $5.007 trillion
GDP Per Capita: $37,100
1 Yen is equal to 0.0085 U.S. Dollars
30. +
Part Two:
Country Marketing Plan
“I didn’t set out to be unusual or
different. I just wanted to do things my
way”- Lilly Pulitzer
31. +
History
In 1959, Lilly opened her first boutique in
the Vias off of Worth Avenue in Palm
Beach, Florida inspired by Palm Beach
and resort wear.
She meant for the stores to be silly,
bright, and reflect her carefree lifestyle.
Previously, she had sold oranges and
juice but later went into sundresses and
spill-proof shift dresses.
The idea was to create dresses that
represented fun and partying- hence the
crazy prints (from elephants to monkeys
drinking mimosas) but also represent
high prep fashion and class.
32. +
History Continued…
Lilly Pulitzer’s strategy for generating sustained profitable growth
is that it is a lifestyle brand and a company that evokes a strong
emotional response from consumers.
The 2013 market was slow-moving due to the fact that consumers
were becoming more cautious in their retail purchases.
However, Lilly Pulitzer and the other companies underneath the
umbrella of Oxford (Tommy Bahama, Lanier Clothes, Ben
Sherman, and Oxford Golf) were able to achieve a net sales
growth of 7% and adjusted operating income growth of 8%.
Lilly Pulitzer itself grew with a 13% net sales growth. It had almost
doubled in size from 72 million of sales in 2010 to 138 million of
sales in 2013.
Lilly has moved from Palm Beach to completely dominating the
East Coast and middle of the USA with some stores in the West.
34. +
History Continued….again!
Lilly Pulitzer’s core business competencies are its unique store
designs (3D crabs and oranges on the wall, hand-painted prints,
etc.) and emotional appeal through Lilly’s life story and her values.
Lilly Pulitzer primarily markets itself towards young women and
girls with some products geared towards men.
It is competitively distinct in just that- the fact that it has
multigenerational appeal. This is something we would like to
carry over to Japan as well, hoping that the brand peaks interest in
both younger and older woman alike.
Although Lilly has no global market positioning to date, we are
hoping to begin in Japan as there are many patterns that would
flatter and excite the Japanese market as well as tap into family
values/tradition and the quick-moving Japanese economy.
35. +
Mission and Vision
Lilly Pulitzer does not appear to have a
mission statement although it appears that
their vision is to bring together multiple
generations of “preppy” women through their
use of aesthetics, fun, and values in their
stores and dress.
36. +
Goals
Domestic Goal: Maintain an average of opening 5-6
stores every year and slowly spread across the West
while exceeding 200 million in Retail Sales Value
come the end of year 2015.
International Goal: Successfully introduce Lilly
Pulitzer to Asian woman by emphasizing
mother/daughter clothing, going in with a high price
to emphasize class, and strengthening family values.
Goal for Japan: Introduce Lilly Pulitzer to Tokyo,
Yokohama, and Osaka and expect a 5 million Retail
Sales Value for all three stores in year 2015.
37. +
Goods to be marketed and why
The three Lilly Pulitzer stores
will begin in the Spring of 2015,
around late March/Early April
around the exact time the
cherry blossoms bloom.
The stores will be hand-crafted
as they always are, with added
tastes from local artists. All
merchandise will be shown
(Shift dresses, sun dresses,
tops and bottoms, bathing suits,
stationary, and bed spreads).
38. +
Marketed goods continued…
There will be emphasis on the “Cherry Blossom Print” which
will be the highlight of the opening and reflect itself in mostly
the stationary, shift dresses, and bed spreads.
The five different prints will be shown:
1. Bright Navy Cherry Mine
2. Hotty Pink A Thing Called Love
3. Bright Navy Cherry Picker
4. Bright Navy Cherry Wine
5. Resort White Flowers and the Trees
*All are variations on the cherry blossom print
These prints will be shown in the advertisements at the end.
40. +
Transportation
Transportation in Japan is modern
and highly developed
175 airports: there are three main
international airports in Tokyo, Osaka and
Nagoya.
27,182 km of railways: railways are a
major means of passenger transportation
1,210,251 km of roadways; there are 45
million cars in Japan, for a ratio of 350
cars per 1000 people
22 major sea ports
41. +
Communication
Phones: excellent domestic
service (high level of modern
technology) and excellent
international service (numerous
submarine cables)
TV & radio: 6 national terrestrial
TV networks including 1 public
broadcaster; the large number of
radio and TV stations available
provide a wide range of choices;
satellite and cable services
provide access to international
channels.
42. +
Domestic competition
There isn’t any other company in Japan that focuses on
dresses like Lilly Pulitzer makes.
The trend in Japan in Kawaii clothes, and some Japanese
online stores such as MinkyShop or Syndrome Store sell
dresses that might resemble, but they don’t pose a threat
because they aren’t big companies.
43. +
International competitors
Virtually no competition.
Lilly has a unique product offering because the
brands are so special.
We are differentiated from the competition and
uniquely positioned in the market.
We sell more than just a dress, we sell our
brand, this is what differentiates us from
competition.
44. +
Market Potential
26.3 million people
Lilly Pulitzer’s operating results are impacted by seasonality
and the sales depend on the time of year. The following table
presents the repartition in % of net sales and operating income
for Lilly Pulitzer by quarter for 2012:
Current net sales (in thousands):
In 2012: $122,592
In 2011: $ 94,495
45. +
Sales Forecast
We expect sales to rise 30% the first year, then an
additional 15% the third year and 15% the fifth year:
Net sales forecast (in thousands):
46. +
Market Potential: Prospective
Buyers
Given the market size of 26 million girls
and women ages 5-49, prospective
buyers would be teens and women buying
for themselves and their young daughters
The market size for people in their 20s is
the largest. This is because most of them
still live with their parents and don’t need
to pay living expenses. The largest market
for most countries is in the 40–year old
age group.
47. +
Consumption Characteristics
The Japanese are very loyal to foreign prestigious
fashion brands such as Louis Vuitton and Gucci. The
sales of these companies have been growing
steadily with support from young consumers.
Most influenced by fashion magazines and retail-
oriented sources of collecting fashion information
such as store displays and sales people
23% of consumers in Japan shop for most of their
clothing at specialty stores, followed by off-price
stores (22%), department stores (17%), and chain
stores (15%)
48. +
Market Trends
2012 market grew 2.3% for Japanese apparel retailing
There were many examples of success, particularly among the
top 100, including overseas brands such as H&M
Sales are being boosted by consumers buying before the
increase in consumption tax to 10 percent in April 2015.
Prices are rising due to low yen, higher raw material and labor
costs.
Japan remains a huge fashion market that is profitable, stable,
with high levels of trust, and plenty of unmet demand and new
markets to provide growth for years to come.
49. +
Product plan
We won’t be making any product changes, however
we will have a lot of emphasis being placed on
certain patterns- such as the cherry blossom
patterns.
The Lilly Pulitzer brand has a distinct, unique &
iconic style, which is why we won’t be making any
modifications to our products or to its label.
50. +
Market penetration strategy
Our future goal is to be a global company, as we
want to be present in many countries. We market
our products through the use of the same
coordinated image and brand in all markets.
Right now our company is an international
company, we have no investment outside of the US
so our strategy will be exporting for now. We are
also counting a lot on online sales.
51. +
Promotion plan
We will promote our brand in magazines so that we
can reach most of our potential market.
Metropolis Aera
(Japan’s #1 English magazine) (major Japanese magazine)
52. +
Promotion plan
We will also have TV and radio commercials on all major
networks.
We will put ads on the internet and social networks to reach
girls and young women.
An ROP (Run of Paper) Advertisement will looks as follows…
54. + Potential Commercial/ Spring Collection
*Zero to brief dialogue is used is usually used in Japan
55. +
Distribution Plan
Retailers......
The way goods are sold…
Location………
Role of wholesalers……
Transaction relation……
Nationwide chain stores
Specialized (or standardized)
Suburban shopping centers,
roadside, railway station building
Minor
Simple market transaction
56. +
Distribution Cont’d…
Central warehouse in Tokyo
Railways will be main mode of transportation to
central warehouse
Trucks will distribute inventory to other major cities
57. +
Pricing Plan
We will use the skimming method to price our
products- Launch products at premium pricing for
the market segment
Lilly Pulitzer’s closest competitor, Uniqlo, is set to
raise prices 5% before Fall/Winter line debut this
year.
Biggest clothing provider, though casual wear
58. +
Calendar/Timeline
Nov 20th, 2014- Apply for Licensing in Japan
December 30th, 2014- Receive approval from Japanese government
January 1st, 2015- Launch Advertisements to be run for one year.
February 3rd,2015- Start store construction in Tokyo, Yokohama, and
Osaka
March 15th, 2015- All sales associates/managers hired and trained
March 30th, 2015- All stores built and ready for grand opening
March 31st, 2015- Lilly Pulitzer opens with Cherry Blossom line just in
time for their cherry blossom trees to bloom!
