Globalization and Fashion

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Fashion is truly global. I came across an article done in Indian Vogue that highlighted African fabrics and fashion. As India is an emerging economy, there is a growing middle class that is able to indulge in luxuries. This article made us at EJ WIPS Designs realize that small businesses must always look for business opportunities where ever possible. And the opportunities are available between emerging economies. -->

Indian Inspired Fashion

Although it can be difficult to do business in a foreign country, the returns can be tremendous. Entry strategies for a business ranked by path of least resistance include import/export, franchising, licensing, joint venture, and wholly-owned subsidiary.
Import/export, although seemingly simple, is very complex. Importing goods into Canada requires identifying your good's internationally approved Harmonized System (HS) of classification. Even before identifying the HS, a business owner would have to decide how much responsibility they are willing to take on. For example, some manufacturers or wholesalers use an International Commercial Term (INCO Term) called Ex-Works (EXW) where the buyer is responsible for pick-up, shipping, and insurance.This represents the most responsibility for the buyer. On the other end of the spectrum is DDP (Delivery, Duty Paid) where the seller delivers the goods to your door. Besides the responsibility, the main difference between the two is money: EXW carries is a cheaper price than DDP.
It is important to remember that some countries insist that there is domestic ownership of a company, and therefore, a licensing deal or joint venture is desirable for a business. However, licensing can be expensive if you are looking to license a brand or technology in your country and it can be legally complex if looking to license your brand or technology to another country. A joint venture with another small or medium sized business may prove lucrative because the foreign business is aware of the consumer behaviour and the customs in the country. A joint venture can also be less expensive and easier to exit than a wholly-owned subsidiary.
At the end of the day, a small business must always be ready to take advantage of an opportunity (with the proper research) even if it is between two countries.

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EJ WIPS Designs
www.ejwipsdesigns.ca
@EJWIPSDesigns
emilynandjameelag@gmail.com