Strategic Brand Management for Ethiopian Retailers.

“The following research project is a

collaboration of the Ethiopian

garment sector, EiTEX, Faculty and

students Of Bahir Dar University.”

Principal Investigator – Mr. Karan Khurana

Researchers – Berihun Bizuneh , Hiwot

Takele , Meron Nigusu, Mohammed

Alebachew, Salem Tsegaye.

Industry Collaborator – MAFI By Mehlat

Afework.

Supporting Organization –EiTEX, Bahar Dar

University.

“Strategic Brand Management for

Fashion Retailers in Ethiopia.”

Introduction • With the advent of the 21st century, and the new phenomenon of

globalisation, the world markets have become closer and are shrinking

in size and getting highly saturated yet volatile.

• This gives rise to competition and survival of the fittest makes the

competition even more intense.

• Ethiopian garment segment could be divided into three broad

classifications; first is the exporters making low priced garments

mainly uniforms and overall garments and exporting to African and

European countries, second are the garment importers importing

Chinese products occupying a large segment of the market and the

third being the local manufacturers of garment and fashion products

• The following research undertakes the subject of brand management of

fashion designers and explores different aspects of brand management.

Problems in the present scenario

33%

7%

7% 13%

7%

13%

20% No Product development

Idol Machines

Idol Workers

Old Machinery

Unskilled workers

Ergonomics

Quality

Our Focus • Our target is this third category of garment retailers who are

domestic and exhibit the strength of the country’s capability is

garment sector.

Why ? • The size of the middle class market in Ethiopia is extremely

favorable for Ready To Wear as the price of domestic product

would be comparatively lesser to the Chinese goods.

• The buying power of the middle class will substantially increase in

the next decade and at that particular time the domestic brands will

play a very crucial role in occupying the effective market

percentage.

• Keeping in mind the above stated facts research we have chosen

mid-size companies as our target area for research and

implementation.

Our Industry Partner

Mafi is design company producing high fashion hand woven

garment line.

Mafi is company devoted to sustainable development and

community service for Ethiopian weavers and the indigenous

weaving style makes it a tangible style element giving the product

a stronger Unique selling preposition.

Mafi is known for its strong Ethiopian essence across the fashion

centers of the world and is admired for contemporization of

design and culture in the form of garments.

Methodology

&

Research Process

Importance of Brands to Consumers

Identification of the source of the product

Assignment of responsibility to product

maker

Risk reducer

Promise, bond, or pact with product maker

Symbolic device

Signal of quality

The Strategic Brand Management Process

Observation

Capabilities/Infrastructure capacities. The infrastructure of the company is analyzed to implement a development

without much invest vent of money in the process.

Line and type of Garments currently being produced.

Often the gap in market and the company starts from here where in the demand from the market and the supply from the producer are not parallel. Brand management brings in line both the concepts.

Strategic Development

• Designing a RTW/affordable collection line.(Men/Women/Kids) RTW is the bread and butter of a design as it serves the immediate need of the

market and the company as it keeps the finance flowing in a design company.

• Developing a brand-brand logo/labels.

Brand –extension for a RTW is planned with a new brand name/logo which would be a supporting the main brand

• Sample development of garments in the production units.(costing+ raw material)

Samples

Implementation

To inculcate the concept of Fashion Retailing- single retailing /collaborative retailing.

The brand would be set a new range of garment for a set type of retailing which could be mono or multi- branded stores depending upon the capability of the brand

• Setting up of retail stores /Outlets.

Designing of store layout and placement of branding in stores.

• Projecting methods of selling Fashion merchandise.

Newer methods of selling garments have to be projected in due course of time to keep the customer intact.

• Consumer Analysis.

A consumer –analysis has been done on the Ethiopian market for the garment to be sure of the procedures

Analysis

• Calculation of Retail sales and customer views and beliefs.

After the garments reach the stores previous retail sales with the single brand and the RTW combined are compared to see the statistical analysis and finally a comparative study is presented to prove the need of RTW in the markets of developing nations.

Results

&

Findings Towards the result of the project we found two interesting results :

1. A consumer survey to prove the 4P`s (Product, Price , Place and

Promotion of the RTW product . 200 women consumers were

interviewed for the results.

2. Development of a RTW Line in accordance of the designer`s style

elements .

47%

27%

26%

Age group of Female Ethiopian Consumer

20-25 yrs

25-35 yrs

35-45 yrs

1.

38%

36%

18%

8%

Monthly income in Birr

Below 1000

1000-3000

3000-5000

Above 5000

25%

32%

26%

17%

Purchasing price for Local products in

Birr

100-300

300-600

600-1000

Above

1000

22%

14%

19% 11%

34%

Known local brands

Ambassador

Wow

Evo

Almeda

None

73%

27%

Use of local product

Yes No

14%

19%

27%

30%

11%

Apparels that are not avaliable in market

T-shirt

Shirt

Dress

Pants

Skirt

49%

13%

9%

7%

25%

Criteria for purchasing products

Quality

Durability

Price

Brand

style

25%

31%

20%

19%

7%

Retail Sales Area in Addis Ababa

Merkato

Haya hulet

Bole

Mikys

Other markets

2.

Design Development-RTW

Conclusion & Further On.. • RTW has a ever expanding scope in developing

economies and companies should focus on domestic market stability and credibility.

• Consumer market is young and will soon be in spenders arena where variety in product is a very important success factor.

• The strength in export will be essentially measured by domestic credibility as Ethiopia will be one of the benchmarks in consumer markets in the coming future .

• Ethiopian companies should devote their capacities and time in building stronger brands and then can capture the African market.

“TOMMOROW IS A BRAND NEW DAY ”