Company Description: GOD is now a fast-growing pieces of furniture and furnishings company company in Hong Kong. They tease them as “More Than Just a Home furniture Store”.
THE ALMIGHTY is the phonetic sound of the Cantonese slang “to live better” which a basic human being desire all over the world. The president of THE ALMIGHTY – Douglas Young and Dernier-ne Lau exposed the initial GOD retail store at Ap Lei Chau in 1996. Within two years, two even more shops opened in Central and Tsim Sha Tsui respectively. In 2001, OUR GOD has opened up a 20, 000 sq . ft. flagship store in Causeway Gulf.
The quest of GOODNESS has always been “to define a brand new Hong Kong identity” – simply by exploring age-old oriental practices and modernizing them with modern day consumers in mind, their presentations of the methods and wisdom of previous generations inside the east still has a place later on world. Most of the furniture of GOD is made in Cina to their rigid standards of quality and workmanship. Goods range from furniture, bathware, cookware to actually lighting and carpets. Between these different products, furniture occupies the best proportion of sales revenues.
What makes GOODNESS different from different convectional home furniture and redecorating company is the fact all of their pieces of furniture is designed simply by local designers. The company is strongly against today’s produced in higher quantities and soulless products. The main theme of all their furniture is usually creative, comfortable, and multipurpose.
In order to surprise their customers, GOODNESS constantly ends up new items on a every week basis. Since the marketing strategy in GOD is so clear that will make the company become one of the few home furniture companies that can still make a profit, and even broaden their business, in the moments of economy recession in HASTKRAFTER these years. Situation Examination: 1 . SWOT Analysis: Internally, GOD provides a management team with designing knowledge which may perfectly connect with the daily management inside the company.
Little size of managing team as well benefits the corporation with the successful division of labor. Despite the fact of getting numerous opponents with low cost, G. O. D. continues to be taking the leading role in the market with its exceptional offerings in the oriental traditions Asian style in products, as well as the remarkable decoration in each part. G. OD is expanding its market share by connecting to additional different industries, so as to appeal to more customers from different facets.
The variation of development and also the “custom made” technique contribute to the company as it stop excess inventory. Moreover, a unique R&D crew takes a big responsibility in fulfilling the demand of the buyers in possessing a better quality. Other than all those beneficial circumstances, G. OD remains to be encountering particular weaknesses. Because of the short history of establishment, G. O. M. is insufficient experience and specialization. It is relatively higher price and narrow choice of goods has also avoided the visit and purchase of customers.
Also, due to the limited capital inflow in the company, GOD is still not able to develop a significant R&D group; it also respect advertisement like a big burden for the company. Regardless of the accomplishment of the developing approach, this, on the other hand, provides lead to the high cost of development as it cannot achieve our economy of size. Favorable external factors are the increasing upscale market which will people are more worried about about quality of life, there are only few rather than well-established regional competitors, so that as the economical is recovering, there are more opportunities.
Ergonomics is one of the many popular topics in furniture industry for the reason that customer’s identified value could be raised by simply introducing that. Unfavorable external factors range from the taste of shoppers which persons like foreign culture more, like Japan. In addition , the good investment condition attracts competition from foreign countries. 2 . Industry analysis: The pieces of furniture and redecorating industry includes a long background in Hk. It includes the production of home, office and furniture, too as bedding and parts of household furniture.
There are 249 furniture producers in Hk, employing much more than 704 persons as by Sep 2002. Around 90% of them are small companies participating less than 15 people. Although it is not the major industry in the local marketplace, the competition is extremely keen.
In terms of market segmentation, the current pieces of furniture industry in Hong Kong is usually divided into three main groups: high-end, middle-end and lower-end market. Nevertheless , in the past, the craft-based, labor-intensive furniture sector was one of the oldest sectors in Hong Kong. It was created to meet regional demands.
In those days, the home furniture industry was dominated with a large number of little firms and could be broken into three major sectors, namely, wooden furniture, rattan household furniture and metal furniture. Following your economic crisis in 1998, many tiny companies went bankrupt and customers’ incentive on shopping for furniture was lower. To keep their competitive power, many large corporations strive to lessen their costs and enhance their efficiency. A few relocate their very own manufacturing procedures to other areas with reduced operation costs like Mainland China. Overseas manufacturers take steps to enhance their home-based production through production specialty area.
Hong Kong’s furniture makers also learn to establish their particular brands plus some concept shops in order to develop their unique products to separate their firms from the other folks. Companies like GOD and Franc Droit are the most apparent good examples which develop products with Hong Kong community characteristics and Japanese lifestyle respectively. Just lately, due to the economical recovery as well as the change of customer craze, people are gonna be responsive to the new tendencies and type of furniture.
Thus, the industry is going to generate products to cater the needs of Hong Kong people. Also, a large number of furniture producers become more attentive of the choice of unprocessed trash to meet foreign standards, just like compliance with legal or perhaps other environmental requirements inside their target markets. Because of the limited living space in Hong Kong, the industry generates the household furniture which is remarkably practical and multi- practical.
Moreover, many of them embrace ground breaking designs and combinations of furnishings which will allow them to conserve home areas and provide a sense of style and modernism. To cater the growing tendency and design of furniture which in turn correspond to their taste and lifestyle, the industry creates DIY household furniture which can let consumers to create their ‘unique’ furniture with their own models. Moreover, the majority of them are made of environmentally friendly friendly materials for creation.
3. Competitor Analysis: Opponents in relevant market: There are three key competitors of GOD in Hong Kong, appropriately Franc Franc, IKEA and PRICERITE. Their target market sections do not always the same although do have some overlapping because they both target on the market segments of middle-income level family members. Further, the mission of their competitors likewise stress in developing a new concept of lifestyle to Hk people. Franc Franc’s business would spend over 35 million dollars in Hong Kong and anticipate there will be 36 million HK dollars low profit in the first year.
There will end up being 2 or 3 new branches opened in the next several years. They will be generally located in a lot of big departmental stores. IKEA have got 4 branches in Hong Kong mainly located near big housing town.
IKEA is among the most well known pieces of furniture company in Hong Kong as a result of massive advertising and marketing programs. The concepts of their design are simple, multi-functional and sustainable. There is also a successful and well-developed customer care system which will helps those to develop the loyalty of their customers. PRICERITE’s target group mainly targets lower income families.
They provide a comparatively low price for their customers, thus helping them to develop a low priced, comfortable and multifunctional living environment. They may have over forty five branches in Hong Kong to be able consumers can simply find a PRICERITE nearby. Comparison advantages: 1 ) GOD—Uniqueness of local tradition In these years, many sectors especially those uncover frequently to young people just like filmdom and musical industry, advocate community original design and style and development. This ambiance makes young people create a good feeling to Hong Kong neighborhood products.
Today, GOD is definitely the unique household furniture store with strong “Hong Kong” concept. What Hk concept right here means is usually Hong Kong’s own lifestyle and interpersonal atmosphere. OUR GOD is a community brand and all of their unique designers happen to be local. GOD claims many have “soul” because many can turn away local people’s opinion and attitude to lives. It may attract a team of Hong Kong new generation who like to show away their characters and likes by their household furniture.
2 . Droit Franc—Adhere to Japanese-styled products The trend in Japan usually is a standard for the young people in Hong Kong. It is because the teenagers in Hong Kong think Western always stand on the guidelines of the craze. Thus, most of them are adherent to Japanese-styled goods. Many Japanese brands like Fancl and Sanrio have effectively developed their particular business in Hong Kong. Their very own successes are based on this kind of reason.
Franc Franc is definitely the sole household furniture concept shop with Japanese people style in Hong Kong. This make that exclusively loves the dummy from Hong Kong young people with this market. 3. IKEA—Cost Management To provide goods with top quality at comparatively low prices, IKEA drives tough bargains using its suppliers to be able to employ lowest cost suppliers of uncooked and semi-finished goods coming from all over the world. IKEA Also, goods developers seek out manufacturers who are able to produce inside the most cost effective way and designers always work with solutions that result in a low price.
This cost-focused supply chain style results in having the goods with cheapest cost and good quality.
