The document provides an analysis of potential international expansion opportunities for Dani's Intimate Apparel. It examines several countries and markets, identifying strengths, weaknesses, cultural factors, economic conditions, and overall feasibility for the company in each location. India and Thailand are deemed unstable prospects due to weak economies and political unrest negatively impacting growth. Other Asian countries like Vietnam and Japan are also not recommended, while the Philippines, Turkey, France and Germany show stronger potential fit considering cultural acceptance and economic development.

1. Dani’s intimate apparel report
Brandon Luong
Deanna Delgado
Akaash Manan
Emily Rand
John Sebastian
Dani Khalife

2. Dani’s Intimate Apparel first opened as a single family owned specialty bra boutique in
downtown Richmond in 1989. The store began primarily a bra boutique but overtime began to
carry additional retail items, such as panties, night apparel and other intimate apparel items, and
eventually became one of the most recognizable specialty retail stores in the United States.
Dani’s Intimate Apparel has grown over the years to be one of the most successful and
respected companies still thriving today. They have 54 operating locations throughout the United
States and are continually opening new stores.
Having had such a successful journey so far, Dani’s Intimate Apparel is currently
planning on expanding into the European and Asian markets. It is not a secret that to continue to
be successful in today’s economy, companies must branch out from their domestic market.
Dani’s hopes to gain the same loyal customer base;, they have created in the United States, in
other markets.
Weaknesses
a. Established in the United States but no current operating stores in other countries;
unknown territory
b. Many people are skeptical when it comes to foreign items, especially smaller
boutique type companies
Strengths
a. Strong loyal customer base in the United States
b. Products that offer women both quality and fashion; this serves a smaller market
niche
c. Dani’s Intimate Apparel Offers the ability to custom make intimate apparel items.
This is important in gaining loyal customers
India
India is known for their diverse economy which includes a synthesis of traditional views
as well as modern views. India’s economy is mainly fueled by the service industry which
compromises over half of their labor force. India’s debt is 82% of their Gross Domestic Product
which ranks them the 11th worst in the world (Callaham). Being so far in debt makes it hard for
India to create the stable infrastructure that they need to advance; thus making the potential for
market growth for Dani’s unstable. This is an economy that seemingly has all the elements to
thrive in the global market place but with a weak economy, it is an impossible vision for Dani’s
Intimate Apparel to expect growth in the near future.
Japan

3. Japan is a parliamentary monarchy that is governed by prime minister and a cabinet
formed of Diet members. There are three main political parties in Japan which constantly
change. The diplomatic policy of Japan has been based on a closed partnership with the U.S.
and the United Nations. Japan recovered its influences and has become regarded as one of the
major powers in the world. They have also signed a peace treaty with the United Nations.
Additionally, Japan is the second largest economy in the world at $5.07 trillion in terms of
nominal GDP. Japan has an extremely educated and highly productive work force that makes
them a very competitive economy among the world economies. Japan operates using the Yen, as
their currency, which converts to 95 yen for every one American dollar. They belong to the
following world trade organizations: the Asia Pacific Economic Corporation (APEC), World
Trade Organization (WTO), and the Organization for Economic Co-operation and Development
(OECD). Their major industries are manufacturing, construction and distribution. The economy
relies heavily on exporting goods manufacturing in Japan. Of the goods manufactured and
exported automobiles, electronic devices, and computers rank among the most important. Japan’s
main partners for importing are China and the United States. Dani’s would not be a business
adequate enough for Japan. Although their culture might find it interesting, their economic style
would not be able to handle it. The consumers in the markets would not be able to afford the
apparel. Living in Japan is considerably expensive but there are actually suburbs outside the
major cities that offer more affordable housing. Tokyo is known for being one of the most
expensive places to live; although those living in the suburbs are enjoying life pretty low. One of
the biggest inconveniences of living so far from the major cities is the long commutes to and from
the cities.
France
France is a semi-presidential representative’s democratic republic, in which the president
of France is head of state and the prime Minister of France is the head of government, and there is
a plural form, multi-party system. France has a mixed economy that includes a variety of private
and government control or a mixture of capitalism and socialism. The currency used is the Euro
of which an American dollar equals .77 Euro. The leading industries are telecommunications
(including communication satellites), aerospace and defense, ship building (naval and specialist
ships), pharmaceutical, construction and civil engineering, chemical, and automobile production.
Their GDP is 2.113 trillion. The French culture is more ethnocentric than other cultures. They
play an important role in modern art, cinema, fashion, and cuisine. Freedom of religion and
thought are observed. France is known as the fashion capital of the world and many foreign
designers seek to make their careers in France. France is a country that might have a chance with

4. our business Dani’s. Their market place can handle the business and their markets are developed
enough that people would be able to afford the products and the country is derived from fashion
so the business has a chance in France.
Turkey
Turkey has a business culture that is on the rise and is rich in resources. It has an
expanding export market that thrives in manufacturing industries.
Being a high context country, one may find the business culture in Turkey to be vastly
different than in America. Business negotiations are a slow process. Turks will do business with
someone they trust and feel comfortable with rather than an acquaintance that only wants to get
down to business. One should try to get to know their Turkish business partner on a personal
level when possible. However, avoiding topics such as politics would be wise due to Turkey’s
controversial political history. It is also good to realize that business is much more conservative
than in the United States. Men are expected to wear suits and ties year round and it is
inappropriate for a woman to show her legs. The Turkish economy has been negatively affected
by the global economic downturn. However, there is positive value growth in the retail industry.
Approximately 60% of retail sales form 2009 came from small independent retailers. The market
benefited from tax reductions given by the Turkish government. With the government’s
encouragement in retail development, consumer confidence will rise. By taking both the business
environment and economic aspects into consideration, expanding into this international market
could be beneficial to a company.
Thailand
Thailand operates under a Constitutional Monarchy. There has been much political strife
in Thailand, which has severely affected all elements of life for Thailand’s people. An ongoing
dispute between the People’s Power Party (PPP) and the People’s Alliance for Democracy (PAD)
led to chaos and in September 2008, a state of emergency was declared. In 2008 Thailand’s SET
Index (an economic indicator) dropped very low. The overall safety of the people is much lower
than in the past due to protests and riots. At one point the PAD seized airports in protest which
cost the Thai economy approximately 3 billion Baht (100 million US dollars) a day from lost
shipments and trading opportunities. With Thailand’s government struggles having such an
effect on its safety and economy, consumer and investor confidence are very low. Although the
country has a strong fundamental economic structure, there is a vast deficiency in investment
because of the low business confidence.
Vietnam

5. Another Southeast Asian country researched is Vietnam; however, upon further
inspection into its culture, political status, economy and technology establishing a store there
would not be feasible. The Vietnamese culture is conservative in the clothing they wear including
clothes that are only wore indoors, and have certain taboos about setting foot within stores such
as ours. The country is literally in deep poverty due to the currency having fairly little, or almost
no value, and has a rising inflation. For example, exchanging $1 US dollar into Vietnamese đồng
is worth roughly 19088₫. Another troublesome variable is that since the government is a
Communist base, they would have the ability to confiscate a business without retribution. On the
other hand, since the technology is rising, the economy is picking up, and the people have a
higher learning status than in America, constructing a factory would be ideal here. As far as
Dani’s is concerned, a store would not be profitable due to its high value in a low economy but a
factory would be ideal as long as the government is played correctly.
Philippines
The Philippines is one Asian country to keep an eye on due to its potential in free market
trade, relationship with USA and unique culture. The government has a presidential system and is
a constitutional republic unitary state supporting free trade and open markets. The Philippines
government values its relations with the USA since we are close allies: militarily, politically and
economically. Looking into the economy, the availability of knowledge-based jobs and workers
is ranked #1 worldwide, 4th in quality labor among all the Asian states, and it has the 48th largest
GDP in the world. Its culture has a mixture between the eastern and western customs, like similar
holidays, adapting certain eating habits and beliefs, and has become more open to western
products over the years. Although the US dollar is large compared to Philippines peso, the nation
would still be ideal to establish a few stores in the more prestige areas.
Russia
Russia is another country to be considered for international expansion. Like many other
countries, Russia has also experienced economic crisis. Russia’s weakened economy has caused
decreased domestic demand, which means for failure in selling a lingerie line. As of 2009,
Russia’s GDP was at $1.231 trillion with a -7.9% gross profit rate. Since our main target market
is the female gender, we researched the culture of the female’s responsibilities and priorities. The
general female in Russia works from around 8 am in the morning to 9pm at night. She wakes up,
makes breakfast, goes to work, stops by the store to pick up groceries, makes dinner, and watches
television before going to sleep. Politics is another factor that would play a part in our decision to
go international in Russia. Government intervention is common in Russia, and that might hurt the
chances of being successful, due to the products we are offering. Some might find it too sexual,

6. or “intimate”. Russia is also looked as being a bit narrow minded towards the idea of capitalism
and free markets. Additionally, Russia is known to be extremely over protective of their domestic
products. They tend to protect their local products and factories, so they might oppose the idea of
an American company migrating into their country and outperforming in their domestic market.
Germany
Germany would be a tricky place to start Dani’s Intimate Apparel simply for the fact that
they already have one of the largest national lingerie markets in Western Europe. Their economy
is booming with $3.6 trillion GDP and an annual growth rate of 2.5%. Their inflation rate is
0.30% and unemployment is 8.6%. All of this makes the market very stable. The technological
advances that are being created and utilized in Germany are very competitive with the United
States. Germans do not have any sort of cultural values that prohibit the use of intimate clothing,
and do believe that when the workday ends you are expected to leave and carry on with non-work
activities which could include the use of Dani’s Intimate Apparel.
Spain
Spain does not appear to be quite as stable as Germany. While the Spanish GDP is $1.36
trillion their growth rate is -3.6%. Spain’s unemployment rate is at 18% and 19.8% of their
population lives under the poverty line. Spain’s technology is not quite as advanced as the United
States or Germany’s, however is not too far behind and Dani’s Intimate Apparel does not require
much advanced technology. One main barrier to entry is that the Spanish people prefers to only
do business with people that they already know and trust, and are very skeptical of outsiders.
In conclusion, Dani’s can flourish with stores in Germany, France and Turkey with
reserved areas in the Philippines. Nations like Vietnam or Spain would be a poor choice for the
international penetration of Dani’s considering the various variables that accompany it. If the
situations in the unapproved countries improve, then Dani will consider it in the future.

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