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HM Hennes Mauritz Ab in Retailing Free Essays

string(339) " Strengths Weaknesses Opportunities Threats Internet retailing The rapid growth of clothing and footwear sales through internet retailing is expected to continue and give H opportunities to reach a wider audience, especially in its core demographic target, teenagers and young adults, whose purchases are often influenced by the internet\." Hennes Mauritz (HM) AB in Retailing December 2009 Scope of the Report Retailing – Hennes Mauritz  © Euromonitor International Scope †¢ This global company profile covers the following products focusing on the year 2009: Retailing: US$10,430 billion Store-based Retailing: US$9,829 billion Non-Store Retailing: US$601 billion Clothing Footwear Specialist Retailers: US$791 billion Homeshopping: US$190 billion Internet Retailing: US$243 billion Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised Learn More To find out more about Euromonitor International’s complete range of business ntelligence on industries, countries and consumers please visit www. euromonitor. We will write a custom essay sample on HM Hennes Mauritz Ab in Retailing or any similar topic only for you Order Now com or contact your local Euromonitor International office: London + 44 (0)20 7251 8024 Vilnius +370 5 243 1577 Chicago +1 312 922 1115 Dubai +971 4 609 1340 Singapore +65 6429 0590 Cape Town +27 21 552 0037 Shanghai +86 21 63726288 Santiago +56 2 4332226 2 Retailing – Hennes Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 3 Strategic Evaluation Retailing – Hennes Mauritz  © Euromonitor International Key Company Facts Hennes Mauritz (H) AB Headquarters Regional Involvement Stockholm, Sweden Asia Pacific, Eastern Europe, North America, Western Europe, Middle East and Africa Clothing and footwear specialist retailers, homeshopping, internet retailing H robust performance in battle with Inditex †¢ The world’s second largest clothing and footwear Sector Involvement World clothing and footwear 1. 7% (2009) specialist retailers share 1. 5% (2008) Retail sales value growth (US$) -4. 1% (2009) 17. % (2008) specialist retailer in 2009, behind Inditex, and ahead of Gap, H continued to record strong sales growth in 2008 and 2009. This was achieved partly thanks to a strong performance in its largest market, Germany, with sales in local currency terms up by double-digits. †¢ Inditex’s and H battle for the world’s largest clothing and footwear retailer position is closely fought, while Gap, which was the world’s largest player in this channel until 2007, has been significantly left behind by the leading two. Hennes Mauritz (H) AB – Sales excl. VAT vs Profit After Tax 90,000 SEK million 80,000 70,000 60,000 50,000 40,000 30,000 2004 2005 2006 2007 2008 Sales excl VAT Profit after tax 18,000 14,000 12,000 10,000 8,000 6,000 SEK million 16,000 H profits remain healthy †¢ H registered sales excluding VAT of SEK88. 5 billion (US$13. 7 billion) in 2008, an increase of 13% over the year, with profit after tax also up 13% to SEK15. 3 billion (US$2. 4 billion), which highlights the group’s high margin. †¢ Its major rival, Inditex, recorded revenue of EUR10. 4 billion (US$14. 5 billion) in 2008, up 10% on the previous year, with net profit up 0. % to EUR1. 3 billion (US$1. 8 billion). Gap registered sales of US$14. 5 billion, down 8% in the year, as it suffered from poor conditions in its core US market, though the company’s net profit grew by 16% to US$967 million, helped by cost savings. 4 Strategic Evaluation Retailing – Hennes Mauritz  © Euromonitor International Q3 results: Resilient Performanc e, Continued Expansion Hennes Mauritz (H) AB – Q1 to Q3 Sales excluding VAT (SEK billion) Profit after tax (SEK billion) Net margin (%) 73. 4 (2009) 62. 2 (2008) 10. 2 (2009) 10. 2 (2008) 13. 9 (2009) 16. (2008) Resilient performance, with sales driven by store network expansion †¢ H sales excluding VAT grew by 13% to SEK23. 6 billion (US$3. 4 billion) in the third quarter ending August 2009. Group profits after tax continued to rise, up by 4% to SEK3. 5 billion (US$506 million). †¢ However, same-store sales declined slightly in local currency terms, with consumer sentiment remaining subdued and hindering sales of non-grocery retailers, especially in the US, while the German market was resilient and strong gains were made in Italy. †¢ For the nine months to August 2009, sales were up by 18% to SEK73. billion (US$10. 6 billion), with growth boosted by new store openings. Profits after tax were up by 0. 2% to SEK10. 2 billion (US$1. 5 billion). Low inventory lev els were a major factor contributing to keep costs down. Inditex records lower sales growth than H †¢ Inditex recorded revenues up by 7% to reach EUR4. 9 billion (US$7. 1 billion) in the six months to July 2009. Growth in Asia’s emerging markets continued to boost revenues, especially in China and Hong Kong, offsetting a negative economic environment in its Spanish domestic market where it saw a strong decline in like-for-like sales. Although impacted by the recession in Europe, Inditex’s profits were resilient, helped by efficient cost controls. The group recorded net income down by only 8% on the previous year to EUR375 million (US$550 million), despite sustained investments in network expansion. 5 Hennes Mauritz (H) AB – Net Sales excl VAT vs Profit After Tax 75,000 72,500 70,000 SEK million 67,500 65,000 62,500 60,000 57,500 55,000 52,500 50,000 2008 Q1 to Q3 Net sales excl VAT 2009 Q1 to Q3 Profit after tax 12,000 11,500 SEK million 11,000 10,500 10,0 00 9,500 9,000 8,500 8,000 Strategic Evaluation Retailing – Hennes Mauritz  © Euromonitor International SWOT – Hennes Mauritz (H) AB Brand recognition: low price and style Combining style innovations and low prices are staple attributes of the H brand on which it has built strong consumer recognition. High profile advertising and collaboration with designers help make stores shopping destinations and raise the desirability of its ranges. Operational efficiency A strong control of the whole logistics process helps H achieve low costs, while low inventory contributes to maintain margins. Reliance on outsourcing The reliance on production outsourcing, unlike other rivals such as Inditex, puts H at greater risks of damaging its reputation in terms of product quality and poor labour conditions in developed countries. Modest presence in emerging markets Despite being a global player present in 33 markets, H has developed its presence in Europe and North America mostly, unlike Inditex operating in over 70 countries including many emerging markets. Strengths Weaknesses Opportunities Threats Internet retailing The rapid growth of clothing and footwear sales through internet retailing is expected to continue and give H opportunities to reach a wider audience, especially in its core demographic target, teenagers and young adults, whose purchases are often influenced by the internet. Untapped potential in emerging markets Urbanisation, increased disposable incomes and changing lifestyles making the population more aware of fashion trends give major growth opportunities in large emerging markets such as China and Russia. There is also potential in markets where H is absent such as Turkey and Romania. Non-food expansion of grocery retailers Hypermarkets and mass merchandisers including Carrefour, Target, Tesco and Wal-Mart are set to continue developing their offer of non-food products and compete directly against H in the value segment of clothing and footwear retailing. Fast fashion becoming more competitive H faces a growing threat from a number of direct competitors with increasingly global ambitions at the low-priced end of the market such as Associated British Foods with Primark, Fast Retailing with Uniqlo and Marks Spencer, alongside a resurgent Gap. 6 Strategic Evaluation Retailing – Hennes Mauritz Euromonitor International Key Strategic Objectives and Challenges Speed to market and price strategy Fast product turnaround, flexibility and speed to market are major elements determining fast fashion retailers’ operational efficiency. H record is strong comparable to Inditex in most aspects, although Inditex has an advantage regarding speed to market, as a resu lt of its vertical integration business model. In the midst of the global economic crisis particularly affecting clothing and footwear specialists, H chose to avoid heavy discounting in order to maintain its margins and profits. However, more aggressive price wars may force it to discount more and hit its margins. Ongoing international expansion with a focus on emerging markets H presence in emerging markets is less important than Inditex’s, which has a major store network in Latin America and more stores in the Middle East and Africa. Expanding in emerging markets remains a priority for H, although growth prospects remain strong in developed markets such as Canada and the US where it can enter numerous new cities, especially in Southern States where it has a modest presence. H CEO KarlJohan Persson appointed in July 2009 restated the group’s global expansion targets, although it appears to be slower than expected, with around 160 new stores likely to be opened out of 225 initially planned for 2009. Maintain brand image and increase desirability Collaborations with designers will need to be continued and reinvented to make products more desirable, make stores more popular shopping destinations and strengthen the emotional bond with consumers and H. Distinctive store layout has been used successfully by Inditex with its Zara chain to convey the desirability of its clothes, and this is a strategy that H could also implement to make the store designs a more important aspect of its strategy. This could allow H to maintain an advantage over smaller rivals with increasing global ambitions for their brands such as Primark and Uniqlo. Late entry into internet retailing Although growth in internet retailing sales is particularly promising for clothing and footwear retailers, H has been a late entrant and will struggle to seize the opportunities offered by this channel. It has left numerous other retailers including pure play internet retailers such as Amazon and Asos and the homeshopping specialist Otto take a lead. Hence, it will be difficult for H to target these consumers and generate traffic to its websites, although it could rely on high-profile advertising and innovative sites to succeed. 7 Retailing – Hennes Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 8 Competitive Positioning Retailing – Hennes Mauritz Euromonitor International H Performs Strongly but Growth is Matched by Inditex †¢ International expansion and fashionable product assortment led to strong growth for H and its main rival Inditex, despite a marked slowdown in 2009 due to the global economic crisis and the strength of the US dollar. Clothing Footwear Specialist Retailers – World – Retail Value RSP excl Sales Tax – US$ – % Year-on-Year Growth 28 24 20 16 12 8 4 0 -4 -8 -12 2005 % y-o-y growth A C B 2006 World C Mode Brenninkmeijer Co INDITEX – Industria de Diseno Textil 2007 2008 Hennes Mauritz (H) AB Gap Inc, The 2009 A – H sales record strong growth, on a par with C, thanks to global store network expansion. However, Inditex outperforms H thanks to more aggressive network expansion not only in Western Europe, but also in emerging markets. B – Gap under-performs its main rivals, hindered by a strong reliance on its low-growth domestic market and a less aggressive price strategy than H. Gap’s image also suffers from a product assortment perceived as more staid than H and Inditex’s. C – The rise of the US dollar against other global currencies in 2009 is causing a fall in value sales for all retailers. H low-priced positioning and its wide global presence helps the company remain resilient in a challenging environment for non-grocery retailers. 9 Competitive Positioning Retailing – Hennes Mauritz  © Euromonitor International Competitive Context: Inditex and H on the Rise World – Top 10 Clothing Footwear Specialist Retailers 2005-2009 Company name INDITEX – Industria de Diseno Textil Hennes Mauritz (H) AB Gap Inc, The C Mode Brenninkmeijer Co Ross Stores Inc Fast Retailing Co Ltd Shinamura Co Ltd Limited Brands Inc Benetton Group SpA Burlington Coat Factory Warehouse Corp 5-year 2009 % 2005 2006 2007 2008 2009 trend share ? Gap loses its crown †¢ Gap saw declining sales in 2007 3 3 2 1 1 1. 7 ? ? ? ? ? ? ? ? 2 1 4 6 8 12 5 11 2 1 4 6 8 14 5 12 3 1 4 5 8 11 7 10 2 3 4 5 6 11 7 8 2 3 4 5 6 7 8 9 1. 7 1. 5 1. 4 0. 8 0. 8 0. 5 0. 5 0. 5 and 2008, due to unfavourable economic conditions in its US domestic market, which accounted for 81% of its global sales through the clothing and footwear specialists channel. †¢ Compared to H, Gap’s higher price positioning hindered its sales, especially in 2008 and 2009 as the global economic crisis dampened consumer spending. Fast Retailing and Shinamura rising Japan-based Fast Retailing posted a strong performance among the top ? 10 10 12 14 10 0. 4 10 global players, helped partly by the strengthening of the yen to the Note: 2009 provisional data US dollar. Competing with a similar price positioning to H, Fast Strong growth for H, overtakes Gap but is surpassed by Inditex Retailing expanded outside Japan, †¢ Strong sales growth for H over the 2005- 2008 period enabled it to especially in China and South overtake key rival Gap. H business model based on low-priced fast Korea, and announced at the end of fashion proved highly popular with consumers. 008 its intentions to open stores in †¢ However, Inditex recorded a stronger performance than H, thanks to a European markets and in the US. more aggressive expansion strategy, especially in emerging markets. The latter was partly helped by a greater reliance on franchised outlets. Although †¢ As Japan’s second largest clothing and footwear retailer, Shinamura’s H new store opening strategy was also ambitious, its presence in ranking was also boosted by emerging markets remained modest compared to Inditex’s. avourable exchange rates, but also †¢ Inditex also benefited from a vertical integration business model enabling it to thanks to new store openings. renew collections more frequently than its main rivals, including H. 10 Competitive Positioning Retailing – Hennes Mauritz  © Euromonitor International H and Inditex Neck-and-Neck †¢ H and Inditex have both been highly successful in the clothing and footwear specialists channel over the 2004- 2009 period. Their positioning based on low-priced fast fashion enables them to appeal to a wide range of consumers, especially since 2008 and with the major world economies entering recession. Their fast fashion business model also gives the two players the flexibility to change collections rapidly to adapt to consumer tastes, although Inditex has the edge over H in this respect. †¢ International network expansion was also a major part in driving sales of both companies, although Inditex has a greater presence in emerging markets, especially thanks to a wide reach in Latin America. Thanks to its greater reliance on franchising, new market entry requires fewer resources and entails less risk for Inditex than for H, which is more biased towards company-owned outlets. Although both companies saw their World – Retailing Sales 2004-2009 retail sales in US dollar terms hit by the fall in the value of the euro 15,000 against the US dollar, they retained their lead over Gap. The latter’s 12,500 strong dependence on the US market proved a disadvantage, as it suffered 10,000 disproportionately from the recession in its domestic market in 2008 and 7,500 2009, which it could not offset with expansion in emerging markets, where it remains absent. ,000 †¢ In addition, Gap adopted a less aggressive pricing strategy than its 2,500 peers, thus losing share rapidly to H and Inditex, but also to players 0 in other channels in the US such as 2004 2005 2006 2007 2008 2009 mass merchandisers Target and WalHennes Mauritz (H) AB INDITEX – Industria de Diseno Textil Mart. Retail value sales rsp excl tax (US$ mn) 11 Competitive Positioning Retailing – Hennes Mauritz  © Euromonitor International Overall Stagnation in Sales per Outlet World – Top 10 Clothing Footwear Specialist Retailers – Sales per Outlet 2004-2009 – US$ Fixed Exchange Rates Company name INDITEX – Industria de Diseno Textil Hennes Mauritz (H) AB Gap Inc, The C Mode Brenninkmeijer Co Ross Stores Inc Fast Retailing Co Ltd Shinamura Co Ltd Limited Brands Inc Benetton Group SpA Burlington Coat Factory Warehouse Corp Note: 2009 provisional data 2004 3,130,909 7,103,455 5,233,467 7,658,816 6,571,607 5,663,966 3,168,427 2,541,956 916,038 8,482,203 2005 3,222,196 7,072,943 4,976,290 7,435,090 6,719,945 4,185,028 3,129,442 2,686,424 911,815 9,062,259 2006 3,245,793 7,102,853 4,882,942 7,276,803 6,967,172 3,720,254 3,222,800 2,799,494 896,071 9,090,081 2007 3,374,326 7,194,397 4,648,360 7,195,536 7,136,890 3,884,908 3,196,295 2,778,019 913,342 9,032,800 2008 3,291,002 7,279,016 4,180,204 6,979,826 6,784,922 4,520,068 3,201,177 2,636,235 949,993 8,904,762 2009 3,267,473 7,303,864 3,753,935 6,843,244 7,238,611 5,203,178 3,163,9 17 2,543,005 960,191 8,068,446 % growth 2004/2009 4. 4 2. 8 -28. 3 -10. 6 10. 1 -8. 1 -0. 1 0. 0 4. 8 -4. 9 Modest growth in sales per outlet for most players, including H †¢ The growth trend in sales per outlet broadly matches the trends in overall sales growth for the top four global retailers, with H and Inditex outperforming C and Gap. Higher sales per outlet for H compared to Inditex largely reflects H larger average outlet size. †¢ Downward price pressure and prevalent discounting in apparel retailing, accompanied by the growing reliance on production outsourcing to low labour cost countries in the clothing industry, contributed to the stagnation or slight decline in sales per outlet for most retailers, especially for C and Fast Retailing. Sharp contraction for Gap †¢ Gap’s higher-priced positioning and its relative resistance to discounting led to a sharp drop in sales per outlet, as it pted to maintain its margins at the expense of overall sales growth. 12 Retailing – Hennes Mauritz  © Euromonitor International Strategic Evaluation Competitive Positi oning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 13 Geographic Opportunities Retailing – Hennes Mauritz  © Euromonitor International A Global Player Still Dependent on Western Europe †¢ Among H top 10 global markets in 2009, all of them were located in Western Europe apart from one, the US. This highlights the company’s modest presence in emerging markets. Western Europe will account for 84% of the group’s sales in 2009. This proportion exceeded 90% in 2005, which illustrates H relative success in expanding its presence globally in order to offset the maturity and saturation in Western Europe’s clothing and footwear retailing. †¢ The company’s largest market, Germany, will account for 26% of world sales in 2009. No other market had a share of global sales exceeding 10%, while the domestic market, Sweden, accounts for 5%, which shows that H is not overly dependent on the economy of a single market. In comparison to H, Inditex is more dependent on its domestic market, which will generate 37% of its world sales in 2009. Both companies seek to extend their global reach, especially in emerging markets, although Inditex has a clear lead in this respect. Hence, H operates in 33 markets as of October 2009, compared to around 70 markets for Inditex. Hennes Mauritz (H) AB – Clothing Footwear Specialist Retailers (Company’s 10 Largest Markets) 2. 0 1. 5 %CAGR 2009-2014 Netherlands Norway Spain 1. 0 Austria 0. 5 Sweden 0. 0 -0. 5 -1. 0 -1. 5 -2. 0 -2. 5 0 25,000 50,000 75,000 100,000 Market Size 2009 (US$ mn) 125,000 150,000 175,000 France Switzerland USA Opportunity Zone Germany United Kingdom Bubble size shows company sales in market, range displayed: US$536 – 3,497 mn 14 Geographic Opportunities Retailing – Hennes Mauritz  © Euromonitor International Western Europe: Ongoing Expansion for HM and Inditex HM has a wide presence covering most Western European markets, in which its two main competitors are Inditex and CA. All three companies have seen their share increase over the 2004-2009 period at the expense of smaller players, especially those with a national presence only. †¢ The shares of HM and Inditex were driven by aggressive continuous network expansion across most markets. HM has seen major ongoing store network expansion in most major European markets in 2008 and 2009, especially in France, Germany, Italy, Spain and the UK. Its business model has proved to be relatively recession-proof, thanks to its low prices. †¢ CA has been distanced by the two largest operators. Positioned as a value retailer targeted at families, CA lost ground thanks to a less fashionable image and an inferior international presence. The company is absent from major European markets including Italy and the UK, and over 50% of its sales in Western Europe are derived from the German market. Clothing Footwear Specialist Retailers: Retail Value RSP excl Sales Tax – Company Shares by GBO 4 % value share 3 2 1 0 2004 2005 2006 2007 2008 2009 14 12 % value share 10 Hennes Mauritz (HM) AB Company Shares – Top 6 Markets – Clothing Footwear Specialist Retailers – Retail Value RSP excl Sales Tax 8 6 4 2 0 2004 2005 2006 2007 2008 2009 CA Mode Brenninkmeijer Co Hennes Mauritz (HM) AB INDITEX – Industria de Diseno Textil France Netherlands Sweden Germany Spain United Kingdom 15 Geographic Opportunities Retailing – Hennes Mauritz  © Euromonitor International Western Europe: Primark Emerges as New Major Player Primark expends beyond the British Isles to emerge as a new European player †¢ Primark, owned by Associated British Foods, only recently expanding outside Ireland and the UK with its first outlets in Spain in 2008 and Portugal and test stores in Germany and the Netherlands in 2009, has ambitions to develop a wide pan-European network. A new market entry is planned in Belgium in 2010. The success recorded by its first stores in Spain indicates that it could become a major Europe-wide player. With a strong brand image based on low prices and trendy collections following fashion trends closely, Primark targets teenagers and young adults, thus competing directly against HM in terms of demographic and price positioning. Clothing Footwear Specialist Retailers – Western Europe and United KingdomRetail Valu e RSP excl Sales Tax – Company Shares by GBO 6 5 % value share 4 3 2 1 0 WE – Hennes Mauritz (HM) AB WE – Associated British Foods Plc (ABF) 2005 2006 2007 UK – Hennes Mauritz (HM) AB 2008 2009 UK – Associated British Foods Plc (ABF) 16 Geographic Opportunities Retailing – Hennes Mauritz  © Euromonitor International Recent and Planned Market Entries: Japan, South Korea †¢ Although geographic expansion has been a central feature of HM’s strategy, it has focused until recently on Europe nd North America, in contrast to Inditex venturing in several markets in Latin America and Asia Pacific and CA’s major presence in Brazil. Recent new market entries in Japan in September 2008 and the planned entry in South Korea in spring 2010 confirm HM’s adoption of a strategy to be less dependent on Europe and North America. Successful new entry in Japan in 2008 †¢ With its first store in the upmarket shopping district of Ginza in Tokyo, HM’s market entry was successful. Initial reception was very favourable to the new chain, with around 50,000 shoppers visiting the Ginza store over the first week of opening, and a second Tokyo store was opened in November 2008 in the trendy district of Harajuku. The Harajuku outlet was the first HM worldwide to sell the fashion label Comme des Garcons, with a collection designed by the Japanese designer Rei Kawakubo. This strategy helped create anticipation ahead of the new store opening among fashion-conscious consumers and gives HM a more exclusive image in Japan than it has in other markets. †¢ Two more outlets in Tokyo are planned by the end of 2009 and a fifth is due to open in 2010, in Osaka. In order to expand faster in the mature Japanese market and to match the scale of its larger rival Inditex, HM is considering acquisitions to be a possible expansion strategy. Intense price competition in Japan †¢ In a market hit by severe recession in 2009, price competition for clothing and footwear items has intensified. This as highlighted by mass merchandiser chains Justo (Aeon), Ito-Yokado (Seven I) and Seiyu (Wal-Mart) starting to offer jeans at around ? 1,000 in 2009. Among HM’s most direct competitors in terms of price and image, the dynamic player Fast Retailing with the Uniqlo chain combini ng low price and fashionable ranges, followed a similar price move in 2009. However, regardless of price HM has an advantage in terms of fast fashion in being able to source and offer new products and refresh its collection more frequently than Fast Retailing. South Korea – following in the footsteps of Inditex †¢ Following its successful entry in Japan, HM plans to open its first outlet in South Korea in March 2010 at a flagship store in Seoul’s business district of Myungdong. In a market less saturated than Japan’s and with fewer major international clothing and footwear specialist chains, HM is expected to be successful. However, similarly to Japan, HM enters after Inditex has already established a footprint in 2007 and expanded rapidly since. 17 Geographic Opportunities Retailing – Hennes Mauritz  © Euromonitor International Further Growth in Large Emerging Markets: China, Russia †¢ With little presence in emerging markets, HM is attempting to catch up with rivals, especially by expanding in large emerging markets, especially in China and Russia. Ongoing expansion in China to continue †¢ Following market entry in Hong Kong in 2007, HM expanded rapidly in 2008 and 2009 with new stores in mainland China. Sales in China accounted for almost 1% of global sales in 2009. The first outlet in Beijing was opened in April 2009 south of Tiananmen Square, with HM becoming the first foreign retailer to be present in this newly renovated part of the city. In order to create more anticipation around the store opening among consumers, it coincided with the launch of a new collection in collaboration with the designer Matthew Williamson. HM’s presence in China is expected to continue expanding rapidly through new store openings, both in existing cities and by entering new cities where it can target the rapidly growing number of middle-class urban consumers. Among HM’s global rivals, although Inditex expanded in China and Hong Kong earlier than HM and has a stronger presence with more outlets, it has a less developed supplier network in Asia than HM, and as a result it can struggle to offer competitive prices to compete against HM and also against local players, which may lead to the a doption a more differentiated positioning than in other markets. †¢ With Gap planning to enter China in 2010, it is likely that a greater number of international clothing and footwear specialist retailers will enter the market. Competing in a similar price segment to HM, Fast Retailing announced at the end of 2008 its long-term objective to have 100 Uniqlo outlets in China. Russia – untimely entry but sound long-term prospects †¢ HM opened its first store in Russia in Moscow in March 2009. However, suffering from a fall in gas and oil revenues, the country’s deep recession in 2009 is worse than previously anticipated and makes HM’s market entry untimely. Rival Inditex has developed a major presence in Russia over several years, which has allowed the group to take advantage of the booming economy until 2008 to expand and establish a wide customer base. Longer term, HM is set to emerge from the recession relatively unscathed thanks to its low-priced positioning and to have major growth prospects. Key point: With no presence in Latin America unlike CA and Inditex, HM could benefit from entering the large markets of Brazil and Mexico where its low prices should help build a major customer base. 18 Geographic Opportunities Retailing – Hennes Mauritz  © Euromonitor International Franchise Deals Give New Middle East Opportunities Middle East and Africa expansion set to gather pace †¢ HM’s presence in the main Middle East market, the United Arab Emirates, continued to increase rapidly in 2009 hanks to the franchise agreement signed in 2006 with the Kuwait-based company MH Alshaya Group. †¢ Opting to expand through franchise stores and using a similar growth model as Inditex represents a major new development in HM’s global expansion strategy in emerging markets, which is likely to help accelerate its global expansion. †¢ Thanks to the partnership with Alshaya Group, HM entered the markets of Bahrain and Oman in 2009, and also opened its first two stores in Egypt in the second half of the year. HM is likely to enter other new markets in the Middle East and Africa by the end of 2009, or in 2010, including Lebanon. †¢ Under another franchise deal signed with the local company Match Retail, HM plans to enter Israel in 2010. Dedicated store concept for Saudi Arabia †¢ As store concept adaptation is an important ingredient in the success for foreign retailers operating in the Middle East and Africa, and require close attention, franchise partners are in a better position than HM to implement new concepts. †¢ For example, in order to comply with local sharia law that forces shops to have segregated areas for men and for women, for its market entry in Saudi Arabia in autumn 2008, HM opted to adapt its store concept to be only open to women and staffed by women. 19 Retailing – Hennes Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 20 Category Opportunities Retailing – Hennes Mauritz  © Euromonitor International Modest Growth Forecast for HM’s Main Channel †¢ HM’s sales through the clothing and footwear specialist retailers channel will account for around 97% of its sales in 2009. This channel is forecast to record modest growth over the 2009-2014 period. While channel sales were hindered by the global economic crisis in 2008 and 2009, they are likely to recover to some extent, although they will remain affected by low price pressures on clothing prevailing within this distribution channel as well as in other channels. HM has stronger prospects than most other clothing and footwear specialist players thanks to its wide international presence and low-cost and flexible business model allowing the group to undercut most rivals while remaining at the forefront of fashion trends. †¢ The remainder of HM’s sales is accounted for almost equally by homeshopping and internet retailing, although the latter is increasingly supplanting the former, mirroring the wider industry trend. Expanding internet retailing presence will help offset the growing saturation of clothing and footwear retailing. Unlike Inditex, which is also present in the furniture and furnishings stores channel in a number of markets under the Zara Home brand, HM does not operate other store-based formats. Hennes Mauritz (HM) AB – Global Retailing Presence Prospects by Channel 9 8 7 6 5 4 3 2 1 0 -1 0 100,000 Internet retailing % CAGR 2009-2014 Clothing footwear specialist retailers Homeshopping 200,000 300,000 400,000 500,000 600,000 Market Size 2009 (US$ million) 700,000 800,000 900,000 Bubble size shows company sales in this channel (2009). Range displayed: US$169 – 13,118 million 21 Category Opportunities Retailing – Hennes Mauritz  © Euromonitor International Battling Against Hypermarkets and Mass Merchandisers Grocery retailers and mass merchandisers increase price pressure on clothing and footwear specialists †¢ Clothing and footwear specialist retailers are increasingly seeing more intense competition from rivals operating †¢ †¢ †¢ †¢ mostly in other store-based channels, such as mass merchandisers and hypermarkets. As HM is positioned in the low-priced segment in clothing and footwear retailing, it is vulnerable to the direct competition from these channels and needs to cultivate its clear competitive advantage in terms of fashion and desirability. An example of the intensifying competition affecting clothing and footwear retailers is the price war between Fast Retailing (Uniqlo) and mass merchandisers Aeon (Jusco) and Wal-Mart (Seiyu) in Japan to sell jeans at around ? 1,000 in 2009. In the US, Gap’s sales have been eroded by the success of mass merchandiser Target’s aggressively priced clothing ranges. In Western Europe, the expansion of major hypermarket operators including Auchan, Carrefour, Tesco and Wal-Mart into non-food products is set to continue as they seek to improve margins. Although this trend has slowed down to some extent in 2008 and 2009 due to the global economic crisis, with grocery retailers refocusing at least temporarily on more recession-proof food items, the longer-term trend is expected to see hypermarkets attempting to be more competitive in their offer of clothing and footwear, with more appealing ranges to compete more directly against specialist non-grocery retailers. In the UK, Wal-Mart’s Asda chain, thanks to the increased sales of its George apparel range in 2009, threatens to overtake Marks Spencer and Associated British Foods’ Primark chain to become the country’s largest clothing retailer. Tesco saw clothing sales improve in the first half of 2009 alongside growth in non-food sales, up by 8%. Meanwhile, Sainsbury’s is planning to increase space allocated to non-food ranges in 2010 and 2011 and widen the reach of its successful TU range of clothes by offering it at more stores. 22 Category Opportunities Retailing – Hennes Mauritz  © Euromonitor International Internet Retailing: HM’s Late Entry HM and Inditex both rise to the challenge and plan to develop internet retailing †¢ Beyond store-based rivals, clothing and footwear specialist retailers are increasingly battling against internet retailers and most of them react by developing or expanding their own online retailing activity. With consumers’ familiarity with ordering online generally on the rise, coupled with efforts from internet retailers to make their websites more visually appealing and user-friendly, consumers’ confidence in ordering clothes via the internet has been strongly boosted. Major homeshopping retailers which are also leading players in clothing, for example, Otto, are increasingly moving online. Similarly, HM’s homeshopping sales in Austria, Germany, Netherlands and the Nordic countries are gradually migrating to internet retailing. The company’s significant exp erience in homeshopping in these markets prepares it well to tackle the logistics aspects to make internet retailing operations efficient across European markets. †¢ Both Inditex and HM made announcements in 2009 indicating that they are gradually joining the fray and expanding online in most European markets. Inditex will start operations in major European markets by early 2010, while HM will launch its website in autumn 2010 in the UK. Thanks to its wide product assortment, the vast choice increases HM’s chances of success in internet retailing although this requires the site to be designed in a way to be easy to navigate. †¢ However, HM is a late entrant in the channel and appears to have made a protracted move, with a plethora of major other operators including Amazon, Asos, the John Lewis Partnership, Marks Spencer and Tesco having already obtained a strong foothold in UK online clothes retailing. Rival Gap also plans to launch its own website in the UK, following its earlier initiative in 2009 to sell its products on the Asos. com website. In the US, Gap has a multibrand website and offers combined delivery on cross-brand orders. Aggressive expansion from internet retailing specialists and grocery retailers †¢ Major grocery retailers have high ambitions for online clothes sales, as shown by Tesco’s relaunch of its UK clothing website in September 2009 offering private label and brands, and with Wal-Mart’s Asda offering the George label at Asda Direct since 2008. Websites of grocery retailers also often offer the added convenience of click-and-collect services. Among specialist internet retailers, Amazon’s acquisition of the US online clothes retailer Zappos for US$850 million in August 2009 signals its ambitions in apparel retailing, and its low prices and high number of visits from customers give it key competitive advantages. Key point: With internet retailing making price comparisons between retailers easier, HM should focus on advertising its low prices and promotions on its transactional website, while also emphasising the more fashionable design of its clothes in order to differentiate its website from Amazon and the grocery retailers. 23 Retailing – Hennes Mauritz  © Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 24 Brand and Operational Strategies Retailing – Hennes Mauritz  © Euromonitor International HM: A Widely Recognised Global Brand Strong brand awareness and image †¢ HM’s strong brand image is associated with value and stylish collections, helped by the collaborations with famous designers. The latest example is the creation of the Jimmy Choo collection to be launched in November 2009. Such events create a great amount of publicity and media coverage to generate added footfall. †¢ In a similar way to Inditex, HM relies on opening stores at a few flagship locations in major cities in order to build its brand image. Examples of such stores include the Harajuku store in Tokyo and the Champs Elysees store in Paris planned for 2010. †¢ Highlighting the HM brand’s high level of awareness, it was ranked 21st among the top 100 most valuable global brands according to Interbrand in 2009, with a value exceeding US$15 billion. In comparison, Zara ranked only 50, while Gap came in at number 78. High-profile advertising with celebrities is widely used by HM, unlike Inditex. HM spends around 5% of its revenues on advertising. HM Brand geographic Asia Pacific, Eastern involvement Europe, Middle East and Africa, North America, Western Europe Brand channels Clothing footwear specialist retailers World ranking share 1 and 1. 6% (2009) in clothing and footwear specialist retailers Multi-brand approach from Inditex †¢ In sharp contrast to HM’s almost exclusive Brands other than HM gain greater importance †¢ The more upmarket COS successfully launched in the UK in 2007 enabling the group to target wealthier customers and potentially increase its margins. It was subsequently extended to other markets: Belgium, Denmark, Germany and the Netherlands. The Swedish chain Monki, acquired in 2008 and known for its sophisticated and colourful store designs, is not being rebranded and was expanded outside Sweden in 2009 with two stores in Denmark. This should allow HM to diversify its customer base. reliance on its eponymous brand, Inditex has adopted a strategy based on building a vast brand portfolio including Bershka, Massimo Dutti, Pull and Bear, Zara and Zara Home. †¢ The key competitive advantages resulting from this company’s multi-brand strategy is its ability to target a wide range of consumer groups with brands and products tailored to various tastes in order to bring exclusivity and differentiation. The level of independence of the company’s major brands is also an important aspect of Inditex’s capacity to adapt quickly to changing market conditions. Group synergies are ensured thanks to the group’s vertical integration, which also contrasts with H strategy of outsourcing. 25 Brand and Operational Strategies Retailing – Hennes Mauritz  © Euromonitor International Operations and Private Label Strategies Production outsourcing vs.. vertical integration †¢ H sources around 70% of its product assortment from Asia and over one third is purchased from China. It relies heavily on outsourcing production, with over 21 production offices worldwide (10 in Europe, 10 in Asia and 1 in Africa) liaising with over 750 factories. In contrast, Inditex sources the majority of its products from Europe, and most of its production is made in-house in order to cut the time lag between product design and in-store availability. †¢ Although production in Asia helps H undercut Inditex on price, it also makes it more vulnerable to currency fluctuations, with the value of the US dollar strengthening in 2009 against European currencies and making imports from Asia more expensive in its main market, Europe. This reduced at least temporarily the scale of its competitive advantage over Inditex. Low inventory levels †¢ H operational efficiency is reflected in the level of inventory being usually low thanks to the frequent renewal of its collection. However, the focus on reducing inventory in order to protect margins has been detrimental to sales in some months in 2009, especially over the summer, when the company had relatively few items available for markdowns. Although H generally achieves low inventory costs, it is likely to be often surpassed by Inditex in this respect. As one of the pioneers of the fast fashion business model with new ranges being introduced every two weeks, Inditex is particularly efficient in incorporating feedback from stores daily into the development of new products, thanks to vertical integration and as such, H cannot replicate this model. Private label ranges under various names †¢ All of H product assortment consists exclusively of private label. Private label ranges have various names to arget different genders and customer types. For example, Hennes is targeted at 25-35 year-old women, L. O. G. G. is a casual sportswear label and MAMA is a maternity range. Key point: As European consumersâ⠂¬â„¢ awareness of ethical issues increases, H is vulnerable to negative publicity surrounding working conditions at factories producing its clothes in Asia. Since it outsources a greater share of its products from Asia than Inditex and has less control over its supply chain, H auditing of factories must be strict and transparent to limit the chances of poor labour conditions being publicised and tarnishing its brand reputation. 26 Retailing – Hennes Mauritz Euromonitor International Strategic Evaluation Competitive Positioning Geographic Opportunities Category Opportunities Brand and Operational Strategies Recommendations 27 Recommendations Retailing – Hennes Mauritz  © Euromonitor International Key Recommendations Develop more premium chains alongside core low-priced offering †¢ H focus on affordability remains Internet retailing to be differentiated and wide-reaching †¢ As H is a late entrant in the New market entries and expansion in existing markets †¢ Entering into new emerging a core element of its success and contributed to make the retailer resilient in a recessionary economic environment. Although its low-priced and fashionable image with its eponymous brand H should not be jeopardised, in addition to cultivating it, the retailer should also attempt to widen its customer base and especially target wealthier consumers with its other banners such as COS and Monki stores offering edgy fashion. This could also help increase profits once the economy recovers and consumers become less cost-conscious. internet retailing arena in most European markets and arrives in a crowded and competitive market where Amazon and Otto have made inroads, it will need to offer innovative transactional websites that can convey effectively the textures, colours and finish of its clothes in order to differentiate its offer but still highlight the low prices. H presence in internet retailing could also be extended to markets where it does not see k to open physical stores, mirroring the example of Marks Spencer delivering products to around 80 countries since autumn 2009. markets, especially in neighbouring markets to those where it operates, offers considerable growth opportunities for H. †¢ Romania and Turkey are large European markets where the store concept is likely to be popular and where rival Inditex has developed a major store network. In Latin America, Mexico offers opportunities in the value segment of clothing and footwear retailing. Although it is well covered by C and Wal-Mart, H can cater for more fashionconscious consumer groups. In Asia Pacific, H burgeoning presence could accelerate by expanding to new cities, especially in China and Japan. In the latter market, new store concepts and collections or new banners such as COS and Monki could be tested. 28 Retailing – Hennes Mauritz  © Euromonitor International Experience more†¦ This research from Euromonitor International is part of a glob al strategic intelligence system which offers a complete picture of the commercial environment . Also available from Euromonitor International: Global Briefings The state of the market globally and regionally, emerging trends and pressing industry issues: timely, relevant insight published every month. Global Company Profiles The competitive positioning and strategic direction of the leading companies including uniquely sector-specific sales and share data. Country Market Insight Reports The key drivers influencing the industry in each country; comprehensive coverage of supply-side and demand trends and how they shape the future outlook. Interactive Statistical Database Market sizes, market shares, distribution channels and forecasts; the complete market analysed at levels of category detail beyond any other source. Strategy Briefings Executive debate on the global trends changing the consumer markets of the future. Learn More To find out more about Euromonitor International’s complete range of business intelligence on industries, countries and consumers please visit How to cite HM Hennes Mauritz Ab in Retailing, Essay examples

Climatic Change and Social Impacts for CFCs-myassignmenthelp.com

Question: Discuss about theClimatic Change and Social Impacts for CFCs. Answer: Some of the problems in the society are caused by human activity while others are caused by change of social behavior. The group identified several problems described by the themes: climatic change and social impacts of technology. The group identified the causes, influencing factors, reasons to remedy the situation, and as a result one of the themes was chosen as the theme to address in this assignment. In the past decade, there has been a lot of climatic change and the impacts of the change have been felt globally. Human activities cause a lot of the change in climate and a change in their behavior could remedy the situation. The change in climate is attributed to excessive water vaporization from land and the water bodies on land, excretion of excess carbon monoxide to the atmosphere, exposing the ozone layer to the Chlorofluorocarbons (CFCs), and solar irradiance. There is need to remedy the situation to ensure stability of climate to avoid calamities such as drought, melting of glaciers, and heatwaves. Similarly, due to the technological innovations, there is a probability of having robots take over some human jobs in the future. Some of the repetitive human tasks can be done by robots in an instant hence they deliver and perform better than the human being. The social impacts of the innovations in technology may render some people jobless especially those who do not embrace cha nge. The paper seeks to address the impact of the climatic change in the global sphere. There has been a lot of effort aligned with streamlining the climate trends by controlling certain human behavior. Nations are holding global conferences to discuss the way forward in the conservation of nature and managing the climate for better living.

12 Interesting Facts About Activist Grace Lee Boggs

12 Interesting Facts About Activist Grace Lee Boggs Grace Lee Boggs isn’t a household name, but the Chinese-American activist made long-lasting contributions to the civil rights, labor, and feminist movements. Boggs died on Oct. 5, 2015, at age 100. Learn why her activism earned her the respect of black leaders such as Angela Davis and Malcolm X with this list of 10 interesting facts about her life. Birth Born Grace Lee on June 27, 1915, to Chin and Yin Lan Lee, the activist came into the world in the unit above her family’s Chinese restaurant in Providence, R.I. Her father would later enjoy success as a restaurateur in Manhattan. Early Years and Education Although Boggs was born in Rhode Island, she spent her childhood in Jackson Heights, Queens. She demonstrated keen intelligence at an early age. At just 16, she started studies at Barnard College. By 1935, she’d earned a philosophy degree from the college, and by 1940, five years before her 30th birthday, she earned a doctorate from Bryn Mawr College. Job Discrimination Although Boggs demonstrated that she was intelligent, perceptive and disciplined at a young age, she couldn’t find work as an academic. No university would hire a Chinese-American woman to teach ethics or political thought in the 1940s,  according to the New Yorker. Early Career and Radicalism Before becoming a prolific author in her own right, Boggs translated the writings of Karl Marx. She was active in leftist circles, participating in the Workers Party, the Socialist Workers Party and the Trotskyite movement as a young adult. Her work and political inclinations led her to partner up with socialist theorists such as C.L.R. James and Raya Dunayevskaya as part of a political sect called the Johnson-Forest Tendency. Fight for Tenants’ Rights In the 1940s, Boggs lived in Chicago, working in a city library. In the Windy City, she organized protests for tenants to fight for their rights, including living quarters free from vermin. Both she and her mostly black neighbors had experienced rodent infestations, and Boggs was inspired to protest after witnessing them demonstrate in the streets. Marriage to James Boggs Just two years shy of her 40th birthday, Boggs married James Boggs in 1953. Like her, James Boggs was an activist and writer. He also worked in the automobile industry, and Grace Lee Boggs settled with him in the auto industry’s epicenter- Detroit. Together, the Boggses set out to give people of color, women, and youth the necessary tools to effect social change. James Boggs died in 1993. Political Inspirations Grace Lee Boggs found inspiration in both the nonviolence of the Rev. Martin Luther King Jr. and Gandhi as well as in the Black Power Movement. In 1963, she took part in the Great Walk to Freedom march, which featured King. Later that year, she hosted Malcolm X at her home. Under Surveillance Because of her political activism, the Boggses found themselves under government surveillance. The FBI visited their home multiple times, and Boggs even joked that the feds likely thought of her as â€Å"Afro-Chinese† because her husband and friends were black, she lived in a black area and centered her activism on the black struggle for civil rights. Detroit Summer Grace Lee Boggs helped to establish the organization Detroit Summer in 1992. The program connects youth to a number of community service projects, including home renovations and community gardens. Prolific Author Boggs penned a number of books. Her first book, George Herbert Mead: Philosopher of the Social Individual, debuted in 1945. It chronicled Mead, the academic credited with founding social psychology. Boggs’ other books included 1974’s â€Å"Revolution and Evolution in the Twentieth Century,† which she co-wrote with her husband; 1977’s Women and the Movement to Build a New America; 1998’s Living for Change: An Autobiography; and 2011’s The Next American Revolution: Sustainable Activism for the Twenty-First Century, which she co-wrote with Scott Kurashige. School Named in Her Honor In 2013, a charter elementary school opened in honor of Boggs and her husband. It’s called the James and Grace Lee Boggs School. Documentary Film The life and work of Grace Lee Boggs were chronicled in the 2014 PBS documentary â€Å"American Revolutionary: The Evolution of Grace Lee Boggs.† The director of the film shared the name Grace Lee and launched a film project about well-known and unknown people alike about this relatively common name that transcends racial groups.

Free Essays on Alcatraz

â€Å"You are entitled to food clothing, shelter and medical attention. Anything else you get is a privilege.† (Number 5, Alcatraz Prison Rules and Regulations, 1934) This rule was one of the realities of life inside the walls of the U.S. Federal Penitentiary, Alcatraz Island. The island is in the heart of San Francisco Bay, just a mile and a quarter away from one of the most beautiful cities in the world. The subject of many movies and books, Alcatraz became a symbol of America’s dark side. There are a lot of documentaries, movies, articles and books about Alcatraz. From fiction rather than fact, we have stories of the prison and of some of the real men who lived in its cells: Al â€Å"Scarface† Capone and Robert Stroud, the â€Å"Birdman of Alcatraz†. Jolene Babyak, the author of Eyewitness on Alcatraz and a former resident of the island, says that the residents of the island were rarely interviewed and the truth of Alcatraz has often been overlooked, lost in the fog of its myths. Alcatraz has been so much more than just a notorious penitantiary. In the time allowed I’d like to tell you about the major purposes the island served throughout its history. Welcome to Alcatraz. It all started on July 18, 1850 when a military board proposed a three-point defensive strategy for San Francisco Bay. This approach required that a massive brick fort be built on each side of the Golden Gate. Alcatraz was selected as the third site with smaller fortification. The city and its rich port were very tempting for Confederate raiders and during the Civil War Alcatraz was an important part of the U.S. Army’s western defense plan. However military technology advanced quickly and the island’s defense became obsolete. In 1907 the Army formally decommissioned Alcatraz as a fortification. When the fort was decommissioned, regular army troops were replaced by the U.S. Military Guard. They tore down the citadel built during the war and start... Free Essays on Alcatraz Free Essays on Alcatraz â€Å"You are entitled to food clothing, shelter and medical attention. Anything else you get is a privilege.† (Number 5, Alcatraz Prison Rules and Regulations, 1934) This rule was one of the realities of life inside the walls of the U.S. Federal Penitentiary, Alcatraz Island. The island is in the heart of San Francisco Bay, just a mile and a quarter away from one of the most beautiful cities in the world. The subject of many movies and books, Alcatraz became a symbol of America’s dark side. There are a lot of documentaries, movies, articles and books about Alcatraz. From fiction rather than fact, we have stories of the prison and of some of the real men who lived in its cells: Al â€Å"Scarface† Capone and Robert Stroud, the â€Å"Birdman of Alcatraz†. Jolene Babyak, the author of Eyewitness on Alcatraz and a former resident of the island, says that the residents of the island were rarely interviewed and the truth of Alcatraz has often been overlooked, lost in the fog of its myths. Alcatraz has been so much more than just a notorious penitantiary. In the time allowed I’d like to tell you about the major purposes the island served throughout its history. Welcome to Alcatraz. It all started on July 18, 1850 when a military board proposed a three-point defensive strategy for San Francisco Bay. This approach required that a massive brick fort be built on each side of the Golden Gate. Alcatraz was selected as the third site with smaller fortification. The city and its rich port were very tempting for Confederate raiders and during the Civil War Alcatraz was an important part of the U.S. Army’s western defense plan. However military technology advanced quickly and the island’s defense became obsolete. In 1907 the Army formally decommissioned Alcatraz as a fortification. When the fort was decommissioned, regular army troops were replaced by the U.S. Military Guard. They tore down the citadel built during the war and start...

Asian art Essay Example | Topics and Well Written Essays - 750 words

Asian art - Essay Example Another difference is in the materials used. Simply by taking a detailed look at the Vairocana Buddha, one can begin to notice several significant elements of this piece that distinguish it as a unique piece of art even though it portrays a familiar and often reproduced (in smaller scale) image. Unlike many of the other Buddha statues that are made of a single block of stone, this statue is constructed in such a way that its natural life process has only contributed to its ability to communicate. It is made of hollowed out cedar wood coated, lacquered and then painted with gold leaf or paint. With the lacquer layer working to reflect any light that penetrates through the gold layer, this statue would have gleamed in any kind of illumination, presenting its viewers with a dazzling display of unearthly beauty and light that would chase itself and play along the different curves, angles and lines of the various sections of the piece. It’s approximately life-sized, which gives it an awesome power in its presentation, but also a familiarity and approachability that a larger statue might not have. It invites you to take a closer look and to get to know it on a personal level. The effect of the wearing surfaces, with gold remaining on some areas of the statue but exposed wood appearing in other areas, serves to heighten the experience for me. Although it wasn’t necessarily a part of the original intent, this aging effect immediately conveys the idea of ancient wisdom and abiding endurance.

Clinical Research Informatics Assignment Example | Topics and Well Written Essays - 250 words

Clinical Research Informatics - Assignment Example Clinical research informatics primarily derives its importance from the fact that it is the lynchpin which links the innovative technologies to their use in the patient care (Majumder, 2012). Clinical research informatics facilitates the ongoing dialogues among both practitioners and researchers in their constant surge to create a dynamic environment of clinical research. â€Å"The development of CRI†¦drives a growing pool of scientific literature based on original CRI research, and high-impact tools and systems will be developed† (Richesson and Andrews, 2012). Health care organizations benefit from the clinical research informatics as they unveil innovative treatment options for the diseases to improve the quality of health care. Clinical research informatics enhance the translational continuum on four levels; â€Å"basic research to clinical trials (T1), clinical trials to academic health center practice (T2), diffusion and implementation to community practice (T3), an d ‘real world’ outcomes (T4)† (Kahn and Weng, 2012). Hence, clinical research informatics make it possible for the health care organizations to apply the theoretical knowledge to practical

American government and politics Essay Example | Topics and Well Written Essays - 1000 words

American government and politics - Essay Example "This vexes me the most of any thing whatever. There are at this time in the adjacent County not less than 5 or 6 well meaning men in close Gaol [jail] for publishing their religious Sentiments which in the main are very orthodox. I have neither the patience to hear talk or think any thing relative to this matter, for I have squabbled and scolded abused and ridiculed so long about it, to so little purpose that I am without common patience. So I leave you to pity me and pray for Liberty of Conscience to revive among us." (Madison, 111) According to church-state scholar Robert Alley, this incident was pivotal in the young Madison's life. Madison had recently graduated from the College of New Jersey (now Princeton University) and was unsure what to do with his life. Dogged by frequent illness, the frail and undersized Madison was not even sure he would live much longer. Learning about those preachers in prison gave him a cause and seemed to reenergize him. "It is the general opinion, I think, of the scholars who have written about Madison that that was a key point in Madison's life," Alley said. "The thing that drove him to get involved in politics was seeing those men in jail in Culpeper County." (Madison, 113) Madison soon had the opportunit... The attempt at disestablishment failed, but Madison's ideas on religious freedom were included in an "Article on Religion" that was adopted by the Convention. The statement held that religion can be "directed only by reason and conviction, not force or violence" and guaranteed to all "the free exercise of religion, according to the dictates of conscience." (Madison, 119) Here Madison was responsible for a great leap forward in thinking. At the Revolutionary Convention, delegate George Mason had proposed an amendment guaranteeing "toleration" of all faiths. To Madison, this did not go far enough. He sought to expand religious liberty rights beyond mere toleration and argued for the "free exercise" of religion -- a concept that would later resurface in the First Amendment. Even though his attempt at disestablishing the state church failed, Madison had planted an important seed. Three years later Jefferson made another attempt at disestablishing the Anglican [Episcopal] Church in Virginia and securing passage of a general religious freedom bill. The move was unsuccessful, but seven years later, after the Revolution, Madison took up the cause and pushed both measures through. It was during this struggle that Madison penned what is considered one of the greatest American documents on religious freedom: "The Memorial and Remonstrance Against Religious Assessments." Despite its somewhat unwieldy title, the "Memorial and Remonstrance" still stands today as a powerful indictment of church-state union. Madison's appeal was written in response to a drive in the Virginia Assembly, led by Patrick Henry, to use tax funds to pay for "teachers of the Christian religion." The "Remonstrance" lists

Organic Industry in Malaysia

Organic Industry in Malaysia Chapter 1 Introduction 1.1 Introduction Today, with the advancement of science and technology, humans have more exposure to information technology, knowledge and education than ever before. As a result, people become more aware and sensitive to the environment and their surroundings. A quality and healthy lifestyle have becomes a kind of necessity to the modern generation. Among others, â€Å"Organic Food† is recognized to be one of the contributors to a healthy lifestyle. Almost every day, you can read or see â€Å"Organic† topic everywhere around you. From newspaper, magazine, billboard advertisement, internet and etc, â€Å"Organic† has slowly becomes a trend to the modern society. However, a few issues have been identified in the Organic Industry in Malaysia. These factors have a strong role in influencing the purchasing and consuming of Organic Food in Malaysia. Therefore, it is important to identified and understand every factor of influence that affect the purchasing and consuming of organic food in Malaysia as all this factors will affect the entire industry from farmer, retailer, produces and even the consumers. 1.2 Background of Study 1.2.1 What is organic food Based on United State, European, and international definitions, organic food is define as without using any material substance in the food itself, but instead by the holistic methods used on organic farms. According to Gracia and Magistris (2007), the intention of organic production is to eliminate chemical used on the food production in order to promote healthier and safety food. Moreover, organic food also means that it is not cultivated using chemical-derived pesticides fertilizers and herbicides. As an alternative, the process of planting and farming the organic food are by using holistic methods such as compost, crop rotation, and biological agents over a natural period of time. According to National Organic Standard Board of the U.S Department of Agriculture (USDA) in year 2000, they established a national standard for the term ‘organic. Organic food, it is defined by â€Å"how it cannot be made rather by how it can be made†, which â€Å"must be produced without t he used of sewer-sludge fertilizers, most synthetic fertilizers, and pesticides, genetic engineering(biotechnology), growth hormones, irradiations and antibiotics† (TheStar, 2005). From the individuals point of view, organic means it is grown in a natural environment without any chemical, antibiotics, genetic engineering, and any synthetic products or in simple way, organic mean natural or go back to the traditional way of modes of agricultural. As an overview, the developments of organic food always work in cooperation with nature environment. Normally peoples definition of organic food maybe was just vegetables and fruits, but actually plenty of foods category like meats, eggs, livestock, dairy products and many more are also conclude as organic food. This issues supported by the research conducted by Padel and Foster (2005) where respondents only associate organic term with vegetable and fruit. Generally, organic food includes plenty of categories which include vegetables, fruits, bread, meat, eggs, coffee, juice, rice, tea, potatoes and etc. Other than that, organic food like egg, meat must be free of all kinds of antibiotics or growth naturally in a clean environment. To sum up, organic food is more environmental friendly since it does not create any pollution and waste to the earth. Besides, they give a tremendous opportunity to human being which led to healthy lifestyle and provide a better environment. Organic consumers carry a meaning of who are not only prefer an improved and healthier lifestyle but also environmental exportation and responsible to take care of the nature (Midmore et al, 2005). In addition, it also brings advantage to whole economy by increase business activities, trade, production and consumption. 1.2.2 The fact of organic The rise of demanding organic food and healthy lifestyle in both developed and developing country is not just a passing fad. The popularity of consuming organic food is now in an increasing manner in all over the world where it also includes Malaysia. Increased consumers concern and care regarding food safety and quality as well as health and nutritional aspect of food resulted in increased demand toward organically produced food. Such trend is a kind of reaction to numerous health affair related to processed food (Davies et al, 1995). Refer to the press release post by Nestlà © Malaysia in year 2008, it shows that organic growth reached 8.9% including 3.4% of real internal growth. In Europe, organic growth of Nestlà ©s total Food and Beverages business is about 5.4% and the growth rate is presented around 9.5% in United State and Asia, Oceania and Africa is at the rate of 14.2%. Functional food such as health supplements and organic food was projected reach RM234bil (US$65bil) in 2003 at global market place. It is estimated reach RM601bil (US$167bil) in 2010 by has the growth rate of 14% annually. According Federal Agricultural Marketing Authority (FAMA), in the year of 2001 the sale for organic food has achieved USD 8 billion world wide. The sale value of organic food is estimated to have growth rate at 20-30% by year 2005. The organization stated that if compared with others agricultural products, organic food has high potential for commercialization in Malaysia. Demand for healthy, environmental friendly processed food, minimally chemical used fresh food, organic food and natural food are caused by increasing of consumer awareness in nutrition value and health conscious (Malaysia Industrial Development Authority, MIDA, 2009). Malaysian start to increase their demand since they believe that consuming organic food is one of the best ways that led to a healthy lifestyle and they view this as a worthy â€Å"investment† for their heath. The concern of consumers toward food safety, quality and the environment give an opportunity to the organic industry and become more valu able for producers and retailers. As a part from that, it also activates the organic agriculture sector in Malaysia. The rises of consumers awareness of healthy lifestyle along with environment free of pollution have created a wonderful opportunity and market for organic food. However, it is hard for producer or businessman to manage the right products at a right time, right price and still right place with attractive promotion since the changes of consumer behaviour was so unstable due to various kind of reason, so it is very complicate to fix or to define how the consumer behave. Consumer behaviour carries the meaning of activities people undertake when obtaining, consuming and disposing of products and services (Kozak, and Decrop, 2009). As a result, study and understanding the consumer behaviour and willingness of consumers to pay for organic food is a vital knowledge for marketers, producers and businessman. There is a behavioural model proposed by Von Alvesleben (1997) address that product information, product perception and attitudes are the main factors that drive consumer behaviour. When w e believe that an object or brand possess favorable attributes or have good feeling then we will have good attitudes toward it. As we all know, when consumer attitudes are more desirable, the intention to purchase is stronger. In this research, it is more focus on consumer preferences and their willingness to pay when they wish to obtain organic food. The result can help marketers and policy makers develop strategies to reach customers more effectively and efficiently. 1.2.3 Natural Food vs Organic food Most of the people are often confuse about the different between organic food and natural food. Moreover, people though organic food and natural food own the same attribute and tend to treat or mean both the same. In fact, there are certain features that distinguish organic food and natural food. Obviously, the main factor difference the two is organic food must be certified by United Stated Agricultural Department (USDA) and organic food possessed higher quality. We can notice that organic food have labelled â€Å"organic† and this label represent the products are considered as organic by USDA and get the stamp of approval from designed organization. Products which stamp by USDA or labelled with â€Å"organic† must contain at least 95percent organic. Organic food can either labelled by foreign certification which is USDA or certify by local organization which is Malaysia Organic Scheme (SOM). Products that labelled with SOM carry a meaning which is the process of production inspected by departments Crop Quality Control Division. The standard where SOM follow is Sirim MS 1529:2001 standards. The guideline applied to control whole process of organic food which includes â€Å"production, processing, labelling and marketing of plant-based organically produced food † and lastly, series number will be provided in order to ease the identification process (SOM). Previously, certification only offer for limited organic food such as vegetables, fruit and etc. In general, Malaysia organic aquaculture products were under the governance of Thailands Organic Aquaculture Farms and Products Certification Centre (OAPC). In order to enhance aquaculture industry in Malaysia, fisheries department provide organic scheme for organic aquaculture production. Additional, this action can minimize the cost of apply organic aquaculture certification from other country. Moreover, organic food always free of chemical fertilizers, pesticides, bioengineering or irradiation during produce, manufacture and handle (Annadana,2009). Besides, livestock must be free of growth hormones and antibiotics. On the others hand, there is not any specify standard for natural food and it is grown with pesticides, herbicides and chemical fertilizers. Basically, natural food have minimal processing and do not contain refined sugar or artificial ingredients and without altering the raw product (Hermitt, 2006). 1.2.4 Consumer vs Customer Generally, most of the people have categorized both consumer and customer in the same category where it carry the meaning of purchase any products from sellers. Conversely, both of the words carry different meaning. According to Kotler and Armstrong (2006), consumer is the person who purchases any products for personal use or they call end user. Basically, consumer is the individual who had previously purchased or current users for particular product. On the other hand, the word â€Å"customer† carries different meaning in different perspective. In business market, customer is the individual or organization who purchase the product but not for own consumption. The products will become their inventory for further production or resell to end user (Kotler and Armstrong, 2006). Customer can either is a current user or only a potential customer for the product (Wikipedia). 1.2.5 Organic industry in Malaysia Since 1990s organic market has grown in a favorable beat. Thus, sale of organic food and products are forecasted to be between USD 20 and USD 30 billion yearly. USA is the biggest organic market follow by Germany and United Kingdom. In certain country such as Denmark, Sweden, Austria and Switzerland have 4% share of organic food which exceed in the total food sales. On the other hand, organic market in developing countries is small but considers growing especially in upper income developing countries. Figure 1.3 shows the coverage of organic farm in different country in year 2005. Malaysia is located in Southeast Asia and consists of two mainlands which is Peninsular (west) Malaysia and East Malaysia with an area of 329,750 km2. The agricultural sector in Malaysia is about 10.24% (738,677 / 75,657) of GDP in year 2008 (Department of Statistics Malaysia). Organic farming in Malaysia was started by Center for Environment, Technology and Development, Malaysia (CETDEM). During year 1986 CETDEM started their organic farm in Sungai Buloh with only one hectare plot. According to Department of Agriculture (DoA), there is 131 hectares of organic farm in Malaysia during year 2001 and approximates organic farming increase to more than 1000 hectares in year 2005. In year 2008, there are about 1000 hectares of registered and 2800 hectares of unregistered organic farm. Organic farming and production had started up during year 1990. Due to increase in favorability and demand toward organic products this niche market is growing continuously. Consequently, there is increase in the number of organic organization which include government department and non government organization (Table 1.2). Malaysian organic scheme (SOM) is the organization that has the right to give certification to organic farmers. Today, there are 28 Malaysian Organic Scheme (SOM) Certificate Holders in nationwide with a total area of 1244 hectares (Table 1.3). Due to increasing in organic farming and production, the number of organic retail outlets is also in the increasing manner. As a result, there are many organic companies have started their business such as Justlife, BMS, Country farm, ZenXin, Woots and etc. Organic food was previously consumed by cancer patients or patients who had serious health problem. Today, organic food becomes a choice for every family or even each and everyone. As we know, Justlife is a famous retailer of organic food and organic products. Justlife has only owned half of a whole retail shop at SS2, Subang Selangor with limited organic products and food. Recently, they are success and owning eight retail shops in Malaysia. Accordingly, we can observe that consumer demand of organic food and products is rising in recent year. Since the demand of organic food and products are increasing, government has putting effort in order to encourage producers to involve themselves in organic farming. Besides, government mentioned in Ninth Malaysia Plan (2006-2010), they estimating the value for organic farms industry will be worth RM800 million after five year and plan to have 20,000 hectares of organic farm in year 2010 (Economic Planning Unit). During year 2001, Organic Alliance Malaysia (OAM) was found and this organization act as a private sector association to form national network. Government has tried to match the demand by increase the number of producer and organic farmer. However, we still supported by imports and the amount of foods that we imported from other country is about RM10.9bil or 8.7% of total import. Therefore, a study on consumer behaviour is crucial in order to forecast the demand and prepare for supply. According to local report, a supplier Kerby Ho of KK Hoganik told that demand for organic fruits and vegetables were increase at about 8%-10% every month (NST, 2008). Informed by organic-certified wholesaler Radiant Codes manager- Loke Siew Fong in local report, the sale is experiencing double digit growth. She added that consumers are having higher awareness on health issues nowadays and search for organic food rather than conventional foods (NST, 2008). As a result, research on consumer behaviour can tell supplier with fact reason why they demand for organic food and better understanding the trend of organic market. Moreover, the needs of communicate for both organic concept and build market confidence are vital in Malaysia market. Most of the citizen were still choosing conventional foods as usual and refuse to purchase organic food due to their own personal reason such as inconvenience, price, knowledge and others. Consequently, marketers have to know the concern of customers or citizen in order to better target the market and segments. In short, organic market is in an encouraging rate and it is a potential market for marketers, farmers, suppliers, wholesalers and retailers to aim. The reason why and how the demand increase is important for them to study in order to server the organic fans at the right time and right place with sufficient supplies. 1.3 Research Problem Consume organic food has become an important subject for today in changing social graphic and emerging trend. Government had been aware of the importance of organic sector since early of 1990s. The Organic Trade Association forecasts sales of organic food will be increase by 18% annually through 2010. Organic products become part of the picture for everyone at the present time and customer base of organic sector expected to rise and retailers continue to provide wider variety of organic food. Commissions communication > were presented in December 2002 that they are planning to increase their efficiency, transparency and consumer confidences in order to develop the market for organic food (Gracia and de Magistris, 2007). Refer to a report found in OAM in November 2008, Katherine diMatteo, president of the International Federation of Organic Agriculture; consumers seek organic produce as a way of environmental degradation, or as the best way to eat healthy foods. Besides, government and others view that purchasing organic is a good way for developing fair trade due to most of the organic farmers are small-scale producers. The trend of eating and purchasing organic has boosted up the organic sector in constructive rate. Transaction and trade of business have increase indirectly and these also bring a healthy rate for Malaysia economy. Consumers also willing to pay for organic food during economy down turn in June 2008. Economy down turn do not brought a strong impact to this industry and the sale of organic food still in a healthy and encouraging rate. As a result, we confidents there are something behind the consumers to motivate and move them to purchase organic food. At one time, people always believe that consumers choice was unstructured and natural but at this moment, people know that human behaviour is manipulated, push or even forced by reason. For instance, health conscious is affecting consumers where they will hunt for organic food in order to replace conventional foods. Nevertheless, this is only one of the hypotheses or assumption that we can made, we cannot prove that this is the accurate explanation for the question: â€Å"Why the demand of purchasing organic food is increased from year to year?† Additionally, there are many factors that keep moving people from conventional foods to organic food. Hence, study on the factor that affect consumers willingness in purchasing organic food is an essential issue to further understand consumers mind and support organic. Furthermore, dynamic issues and factors which influence consumers are changeable among individual and purchase decision of organic food will depend on many variables such as consumers attitudes toward environmental protection and healthiness (Gracia and de Magistris, 2007). Human behaviour and customers choice is not impulsive, unconscious, inborn and natural. Conversely, consumers behaviour is always motivated by the environment, enthusiasm, sensation and emotion (Ajzen and Fishbein, 1980). Consumer willingness to pay for organic food may influence by numerous factors. Human beings easily get influenced by the environment and objects surrounding them. We have no capability to freeze their consumption and purchase behaviour. The only way that we can do is to study deeply on what are the main aspects they are focusing and what are the essential factors that manipulate their purchasing. More to the point, people perception and motivation in purchase organic food are vary from country t o country. There is different demand in different county with different culture. In order to have a good explanation to answer the entire question and have a bottomless understanding of customers willingness to pay during obtain organic food, we come out with the problem statement: What are the main aspects that manipulate consumers willingness to pay for organic food. Policy maker seek consumer oriental analysis in organic sector since the information is crucial for them (Gracia and de Magistris, 2007). The study not only can improve the understanding of consumer behaviour and factors that affect customers but it is also a necessary research to help marketers to market the products, help government to better know the needs of citizen, help retailers or wholesalers to do some related activities to encourage consumers in order to choose organic food and help producer to estimate the production in future. 1.4 Research Objective The main purpose of this research is to recognize some of the essential variables that motivate or stimulate citizen in Malaysia in purchasing organic food. Organic market is a potential and profitable market for marketers to have a deep study on it since the demand of organic food is keep increasing nowadays. Besides, organic industry did contribute to Malaysia economy and citizens health, as well as the environment. In my opinion, customers belief, feeling, attitudes, motivation and demand trend would bring a deep impact on food industry and this will bring challenges for marketer to design marketing strategy. The following objectives are built to achieve goals of this study. i. To study the determinants that motive consumers willingness to pay for organic food. After identify all the factors, we can better target and server our customers when they doing their purchase. When retailers know all the factors and possess this advantage, they can come out with following step such as education fair, seminar or others kind of exhibition to influence or encourage customers in order to purchase organic food. Moreover, eating organic food can save and secure the earth. Consume organic food not only healthier but also more environmental friendly if compare with conventional foods. By educating others customers about the benefit of consuming organic food, sales of organic food will definitely continue to double up in the future. By the way, this also can help marketers to better market the products and also target potential customers easily. Lastly, this as well will contribute to economic growth and better environment for next generation. ii. To better understanding consumer buying decision and contribute precise data to policy makers. There is a problem that release by NST on November 2008 which is the number of organic supporter is increasing however; there are too few farmers to serve the large pool of consumers. As a result, we can overcome the problem of supply and demand after knowing the reason why customers purchase organic food or not. Moreover, most of the researchers showed consumers are willing to pay for high quality food. If this research can prove that there is a significant result between quality and willingness to pay. Related organization can immediately take action in order to strengthen organic production governance. iii. To study the impact on organic food industry due to the issue of health conscious. Recently, health conscious became a latest issue among citizen in Malaysia. Most of them are practicing healthier lifestyle and willing to spend and search for supplements and healthier foods. They try to avoid themselves in consuming oily, high sugar level and high cholesterol foods. They seek for more healthy activities such as yoga, dancing and search for natural or original products in their daily life. Throughout this study, we can collect precise and significant result to see whether health conscious can increase the number of organic food fans. Furthermore, government can use the result of this research to allocate more funds and capitals to develop small farmers and help them to shift from convention production to organic production. iv. To study the relationship between consumer behaviour and organic food purchases. Many studies pointed that consumer behaviour toward organic food is crucial for decision makers. Obviously, we can understand that the popularity of organic food is in an encouraging rate. However, most of the people are still choosing convention foods as their first choice. This is due to the availability of convention foods is higher than organic food. Although organic food is a potential market, yet customers still cannot get organic food in most of the hypermarket or night market. As we know, most of the consumers in Malaysia will go to night market to purchase their daily or even weekly foods since they can get all kinds of vegetable, fish or meat at lower price at night market. Even there is high demand of organic food; however it is inconvenience for consumers to purchase organic food. Although customer have positive attitudes and high intention to purchase organic food but there are some external factors that will influence customers purchase decision. Accordingly, research o n consumer behaviour can help marketer to study the consumers preferences and do a more appropriate and suitable plan to serve the customers. v. To analyze the willingness to pay for organic food. Consumer always wiling to pay a premium price to obtain any thing or object that they are perceive as a valuable and high quality product. As we all known, organic food is priced higher as compare with convention food. As we all known, consumer has different consumption pattern, attitude and response towards organic food. There is a number of customers are not willing to pay for the premium. Beside that, most of the customers prefer to purchase and consume conventional food instead of organic food. However, some of the consumers are still willing to pay for organic food and they believe this is a â€Å"profitable† investment for them. Consequently, segment of organic consumer is getting bigger and bigger. Therefore, it is essential for this study to analyse consumer purchase decision and offer contribution to the decision makers, society, famers and also nation economy. 1.5 Significant of Study Although the concept of â€Å"green† living and consume organic food are becoming one of the favorable issue in this moment that always be discussed and concerned by most of the population today. However, the amount of people who purchase organic food is considered low. According to Fotopoulos and Krystallis (2003), customers are aware of the benefit brought by organic food but there is only small proportion of them willing to pay for it. Additionally, distance brought a significant issue to potential customers (Padel and Foster, 2005) since coverage of organic food shop is low and cause customers who have the intention to purchase organic food face difficulty when they wanted to buy. Additionally, there are a number of research focus on organic industry had been conducted by researchers from others country (for instance, Gracia and de Magistris, 2007; Fillion and Arazi; 2002). However, there is only few researchers are focusing on the organic industry in Malaysia. As a result, this study can helps in better understanding about organic agriculture in Malaysia and contribute to organic industry in Malaysia. As a result, this study aims to analyse in depth the factors that influence consumers feeling and motivate customers to pay for organic food. Apart from that, this study is crucial to show the brief picture to all related parties who involved in organic food industry such as farmers, department of agriculture, wholesalers, retailers and others. This study also plays as an important role and sources for education sector, marketers and small-medium entrepreneur (SME) to understand more about consumer behaviour and factors that influence consumers willingness to pay for organic food. By the end of the day, the result can help them to do their marketing plan more smoothly, effectively and successfully. According to a report posted by Food, Nutrition Science in May 2009, stated that Organic Trade Association (OTA) published the sales of organic have hit $22million. As a result, knowledge and pool of database are crucial for policy makers in order to implementing their marketing plan. Once wealth of data and evidence presented in the industry, all the parties can significantly gain from the benefit. This study can indirectly support small farmers to have more confidents in produce more and more organics foods. Increase in number of production not only can fulfill the demand of Malaysian and self sufficient but also have the opportunity to export the quality foods to others country. Besides, it give a more visual result to government in order to increase their expenditure in helping small farmers to involve in organic farming. Furthermore, objective of some of the related agency such as CETDEM, FiBL, DOA and OAM can become more achievable. After knowing consumer behaviour in depth, r etailer shops such as Justlife and Country farm can have more confidents on their effort and increase the coverage of their business in order to reach more potential and profitable customers. In addition, this study will help us in understanding consumer mind and know the reason behind every purchase of organic food. We can know the aspects that always push and move consumers to purchase organic food instead of conventional foods. On the other hand, we also can see the barriers that influence consumer refuse to purchase organic food and stay with convention foods which offer a lower price and have a high coverage. This also can assist us to understand the barriers faced by most of the population from their point of view. The barriers can be narrow down when we know the root cause of the barriers. Marketer can use the valuable information to run their marketing mix (4P-people, promotion, place, product) and promotion mix (advertising, personal selling, direct marketing, sponsorship, promotion, public relation). Other than that, consumer organic food is one of the ways to save and secure the earth. This can give a hand to the group who are environmental friendly and always love and care the earth. â€Å"Green life† with organic food can provide a bright future for the entire citizen to own a healthier life style and also a superior environment. Moreover, we can keep a more natural and fantastic earth for our next generation. By exposing more people to organic product, we are able to educate them the importance of growing this industry in Malaysia. As the demands increase, it will benefit all level of people as it will boosts our economy to a higher level. It will provide more jobs opportunity, more researches and bring more involvement in this sector. Eventually, it reflects directly on Malaysia GDP, attracts foreign investment and technology transfer. 1.6 Scope of Study The main focus of this study is to identify how organic consumers behave and their willingness to pay for organic food. This research will be targeted on consumers instead of customers since consumers are the group of people who already takes their action in organic consumption. The information provided by them is more precise and accurate if compared to each other. According to information, organic include organic food and organic products. However, the popularity and acceptability of organic products in Malaysia still consider low. Consequently, this research will focus on organic food such as can food, fresh vegetable, fruit and others. As we all known, consumers willingness to pay is an issue that difficult for marketer to predict. People always change according to the environment, people, object and others surrounding them. However, people who possess the same characteristics or in the same categorize will always have the same respond to particular matter. Consequently, we will come out some possible hypotheses and do a research on it to help related parties in the industry to make their decision. Beside that, we will study consumers willingness to pay for organic food since organics foods industry still in a growth stage in product life cycle (PLC). We believe that the outcome of this research will be very useful and valuable for marketers and retailers. In addition, questionnaire