Acne studios’ global expansion to mexico
In the fashion industry, designers and fashion brands are continuously seeking to expand their global reach. Discovering untapped markets is a key approach for long-term expansion (WWD, 2018). For the past decade, Asian cities, such as Seoul, Shanghai, Mumbai and Hong Kong, have been the go to market for brands to globalize their business to (New York Times, 2011). Since that market has been tapped by major fashion retailers, it is time to look for a new location around the globe to expand to. For some time, Mexico has been considered an appealing market for international luxury brands (Guidastri, 2017). Ranked as the second largest market in Latin America, Mexico is a key hub for Acne Studios to open their first retail store in an untapped market (Americas Market Intelligence, 2017).
Acne Studios has been a coveted brand throughout Europe since it was founded in 1996. The Swedish brand is known for its “maximist minimalism”, a term coined by its founder Jonny Johansson (personal communication, 2016). Acne Studios’ less than conventional fashion approach is the key to the brands success. Their multi-discipline approach, which includes fashion, furniture, magazines, books, exhibitions, and collaborations is part of their attractiveness and retail success. Yet, while the brand does own a significant amount of retail stores, most of them can mainly only be found in Europe and Asia, and it is time to change that (see Appendix A for a SWOT analysis on Acne Studio).
Acne Studios’ expansion into Mexico will be the beginning of major profits from an untapped market for the brand. According to Euromonitor International (2018), “Mexico has the largest and best preforming luxury goods market in Latin America”. Moreover, according to a study by Euromonitor (2018), “the annual luxury market value in Mexico is forecasted to exceed 85 billion Mexican pesos by 2021” (Fig. 2). However, not only will Acne gain substantial profits, but it will reach a completely new and bigger customer base, expanding its reach and influence around the globe.
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20 to 40-year-old female. She is highly educated and comes from a creative background (fashion, graphic design, music, etc.) She is most likely to be middle or upper class with a high-income level. She has a broad interest in fashion, art, furniture, music and lifestyle. She enjoys going to the movie theater and reading independent magazines like i-D and Paper Magazine. She is described as strong, unconventional, confident, and creative.