Market Analysis for a global expansion strategy targeting Saudi Arabia. Linkedin: linkedin.com/in/walidmh

1. Market Analysis for a
Global Expansion
Strategy targeting Saudi
Arabia
By: Waleed Alharbi

2. Agenda
• Company profile
• Global market analysis
• Global consumer demand
• Leading companies in the global market
• Target country (Saudi Arabia)
• Recommendations

3. Company Profile
•American store chain.
•Dealing with branded clothing, bedding, cosmetics, accessories, women shoes,
housewares and home furnishings.
•Deals predominantly on apparels and fashion.
•Has a heavy presence in the USA, where it has 885 outlets in 45 different states.
•The stores also operate in different trade names in some states, or by way of
licensing in some cases.

4. Global Market
Analysis
In the apparel and footwear market, the
USA, China, Germany and the UK are
market leaders.
Other leading markets in terms of average
sales for the past five years include
Russia, India, Brazil, France and Italy in
that descending order.
While European markets are shrinking, the
US, Chinese , Indian and Brazilians
markets are expending (See graph
alongside).
Market Expansion in Top ten global markets - Source Top 10 Apparel and
Footwear Markets: Growth Strategies when the Good Times Stall, by
Euromonitor International, 2015, p.52

5. Global Consumer Demand
In terms of gender, the menswear market
is growing faster than females in many
countries, and is projected to continue
growing faster globally.
There is also a high global appetite for
affordable designer labels and affordable
luxuries.
The average global growth of internet
retailing for the fashion industry is
estimated at an average of 20-30%.
Source: Top 10 Apparel and Footwear Markets: Growth Strategies when
the Good Times Stall, by Euromonitor International, 2015, p.46

6. Leading Companies in the Global Market
(A)
Top 10 Apparel and Footwear Markets: Growth Strategies when the Good Times Stall, by Euromonitor International, 2015, p.19

7. Leading Companies in the Global Market
(B)
Top 10 Apparel and Footwear Markets: Growth Strategies when the Good Times Stall, by Euromonitor International, 2015, p.22

8. Target Country (Saudi Arabia)
1. A country in the Western Asia.
2. Very strong economy.
3. Second largest Arab State (after Algeria).
4. The country is politically conducive for investment.
5. The Saudi government is particularly receptive to American retailers.
6. June 2015 the Saudi government opened the Saudi stock market to foreigners for direct investment.
7. On September 6, 2015, the SAGIA made an announcement to the US investors that the government is going to allow
up to 100% foreign ownership for both retail and wholesale businesses.
8. In 2014, the country experienced a GDP growth of 4%, and the growth rate is projected to be maintained for the next
five years.
9. The high GDP and income per capita implies a high purchasing power.

9. SWOT Analysis Saudi Arabia
Generally conservative society,
though is not homogenous as.
Many are increasingly following
global fashions trends.
Techno-savvy using internet-enabled
smart-phones keep up with the global
trends on the fashion industry.
Increasingly starting to buy online.

10. Saudi Arabia Fashion and Apparel Retail
Market
1. Saudi retailing market is rapidly growing.
2. The fashion retail market, is led by Fawaz Abdulaziz Al Hokair. Other key retailers in the apparel and
footwear market include Al Bandar Trading as well as M H Alshaya.
3. In terms of products, strong value growth is experienced in footwear and luxury apparel , though
apparels has remained higher than footwear in terms of various sales dimensions (volume, value,
percentage growth).
4. As per Euromonitor International (2015b) existing fashions and apparel retailers have an elaborate
expansion plan into the Saudi market in the near future.
5. Macy’s stores will have to compete these retailers.

11. Recommendations
• Macy’s stores to consider venturing into Saudi Arabian market.
• No formidable competitor in Saudi Arabia, conducive market environment owing to a cooperative and pro-investment
government, booming economy and favourable technological environment.
• In entering the market:
1. Men’s wear men’s leisure bags and sportswear are some most viable options.
2. Footwear and luxury apparel are also viable options.
3. The stores need to consider ownership method to adopt.
4. The stores should put innovative strategies to attract customers to its stores, e.g., Introduction of instore-sensors, use of
state-of-arts digital walls and magic mirrors.
5. Undertake both physical and internet retailing including acceptance of Cash on Delivery (COD).
6. Invest in competitors stocks in Saudi Stocks Market.

12. Thank you
Waleed Alharbi