Defining a growth strategy requires a careful analysis of markets and a company’s resources. SINCERO Sportswear successfully operates in Australia, the United Kingdom, and Spain and is ready to enter new markets or expand its capabilities. This report will examine such options as entering the Singapore market, developing exclusive celebrity-endorsed lines in current markets, and launching celebrity-endorsed lines in the Singapore market to determine the most beneficial growth strategy.
The first option involves selling SINCERO Sportswear products for the Singapore market, and PESTLE analysis shows that it is an appropriate strategy for the company. Examining political factors demonstrates that they are favorable since Singapore is a democratic country with a stable political system. According to The World Bank, Singapore had some of the highest rankings for control of corruption and government effectiveness and high scores for political stability and absence of violence in 2018 and 2019 (‘Worldwide governance indicators,’ 2020).
Singapore’s economic situation is also highly beneficial for doing business as the country depends on free trade and contributes to its development. Singapore is the second easiest country for doing business with due to conducive government policies, high transparency, and low corruption (‘2020 Investment,’ 2020). In addition, Singapore’s GDP per capita is $ 101,649.1, which indicates the high purchasing power of the population (‘GDP per capita,’ n.d.). The only drawbacks are higher staff salaries and the government’s program to reduce the proportion of foreign workers; however, the government also provides subsidies for the local population’s training (‘2020 Investment,’ 2020). Consequently, the additional cost of personnel will be relatively low.
The technological level of Singapore is also at a high level, as well as e-commerce. For example, in 2018, 62% of the population made online purchases, and the number of online retail grows (‘Online shoppers,’ 2019; Singapore Department of Statistics, 2021). These figures show that the country’s technological development will enable SINCERO Sportswear to easily develop online sales and find technology to organize warehouses and stores. Singapore’s social factors are also favorable because, despite the collective culture, the younger generation and a significant portion of the adult population follow Western trends and liberal principles (Kumar, 2015). The living standards and education are also at a high level, and the majority of residents know and use English, which allows the company to understand the local culture and choose marketing strategies.
Legal factors also contribute to entering the Singaporean market as the state respects the rule of law and creates conditions for free trade and foreign investment. Singapore has a simplified customs facilitation system, a beneficial tax policy for business, and pro-business laws (Huang and Yeung, 2018; Tabalujan, 2018). Environmental factors are generally conducive due to the state’s geography; however, they have some disadvantages. Even though Singapore has a good road system, the state is located on an island, which makes it difficult to transport goods by land.
In addition, air pollution caused by transport is the main environmental concern, which can increase the cost of transportation throughout the country. However, the state’s territory is small, and water transportation is available in most of the country, which usually does not require high logistics costs. Thus, PESTLE analysis shows that entering the Singapore market is a profitable strategy for the company.
The second option for developing celebrity-endorsed lines for the Australian, UK, and Spanish markets has many disadvantages. First, involving a popular celebrity to advertise a brand requires high costs to pay for their services. Since Spain, Australia, and the UK generally share common cultural values, finding a global celebrity will probably not be difficult. However, the pay for a world-class celebrity is usually high.
In the second case, the company can engage a national celebrity, whose service fees are lower, for each country separately, but, eventually, the costs will be higher due to the number of celebrities. Simultaneously, as noted by Roy and Bagdare (2015, p. 147), engaging a global superstar is beneficial if the population is familiar with the brand; however, in the case of SINCERO Sportswear, this effect may be moderate or negligible. In addition, the choice of a famous person is also critical as she or he must match the characteristics of the brand and product.
This claim is confirmed by the findings of Knoll and Matthes (2017, p. 71), who determined that the male actor that matches the endorsed object is the most influential in shoppers. However, Knoll and Matthes (2017, p. 71) also say that, on average, the effectiveness of celebrity endorsements is zero. Consequently, although there is a chance of success, it probably will not make a significant profit due to the high costs.
However, there is also a third option, which is to launch celebrity-endorsed lines in Singapore. This idea’s success is possible due to the high purchasing power of the population, the developed e-commerce, and the saving costs of engaging only one local celebrity. Firstly, Singaporeans are more likely to buy an exclusive product at a higher price. Secondly, online orders allow the company to reach a significant part of the market without spending money on physical stores. Thirdly, the company can draw attention to its brand by using the influence of the celebrity. However, additional information on the population’s cultural values and the impact of celebrities on society is needed to complete the assessment.
In conclusion, the most appropriate SINCERO Sportswear development option is to launch products in the Singapore market. Implementing this solution requires the use of the company’s previous experience in entering foreign markets, adjusted for local specifics. The main difficulties can be the development of a logistics system, the search for personnel, and successful marketing strategies. However, it is also necessary to assess the population’s attitude towards the company’s products for a complete and accurate assessment.
Reference List
2020 investment climate statements: Singapore. (2020) Web.
GDP per capita, PPP (current international $). (n.d.) Web.
Huang, F. and Yeung, H. (2018) Institutions and economic growth in Asia: the case of Mainland China, Hong Kong, Singapore and Malaysia. New York: Routledge.
Knoll, J. and Matthes, J.(2017) ‘The effectiveness of celebrity endorsements: a meta-analysis‘. Journal of the Academy of Marketing Science, 45, pp. 55–75. Web.
Kumar, P. (2015) Learning marketplace: the East meets West in Singapore. Singapore: World Scientific.
Online shoppers. (2019). Web.
Roy, S. and Bagdare, S. (2015). ‘The role of country of origin in celebrity endorsements: integrating effects of brand familiarity’, Journal of Global Marketing, 28(3-5), pp. 133-151. Web.
Singapore Department of Statistics. (2021). ‘Retail sales and food & beverage services index, Nov 2020‘. SingStat. Web.
Tabalujan, B. (2018) Singapore business law. Hong King: Business Law Asia.
Worldwide governance indicators. (2020) Web.