Market Expansion in Paris, France

                  Our store, Classic 2000, is going to have a joint collaboration with L’Espionne in Paris, France. This is going to be a pilot project for Classic 2000 as they are going to be expanding their market by selling their exclusive products inside L’Espionne. Classic 2000 will be using their own channel of distribution; they will also have their own salesmen, campaigns and advertisements. However, Classic 2000 only is using L’Espionne’s existing space, facilities and staffs. They will pay L’Espionne a monthly rent for the space and facilities, pay 10% commission fee for their yearly sales, and pay 15% for the advertisement costs. This project will also help Classic 2000 to expand their independent stores in different locations later on. Moreover, L’Espionne’s location is a best fit for Classic 2000 because France was crowned the most popular country in Europe and Paris is very welcoming to new tourists. Research done by World Tourism Organization (UNWTO) shows that France came in the top spot for tourist travel destination, in 2003, France had 84.7 million visitors. Also L’Espionne is located amongst 18 expensive hotels and restaurants. Such as, Les Jardins de la Villa (hotel), Le Méridien Etoile (hotel), Le Congrès Maillot (restaurant) and Le Congrès Maillot (restaurant). With the vast amount of people visiting Place de la Porte Maillot on a regular basis will expose Classic 2000 to people from all over the world. We predict that Classic 2000 will be able to gain 27% more customers after this project. So this will be beneficial for our future projects because we are going to have a group of loyal customers and will be able to create a market presence easily. For this location, we are going to have a lot of indirect competition as we are going to be competing with the existing restaurants and hotels in the area. However customers are going to be attracted to our products because it is fully made in Canada and the fabulous dresses are going to attract their attention.  Also we are going to be directly competing against some infamous clothing brands in L’Espionne, such as, Balmain, Saint Laurent Paris, Givenchy Paris, Rick Owens and many more. Unlike the others, our dresses are going to shine through the others. Since it is totally new to the market in France, people are going to be curious about all our dresses. With the help of heavy promotion and advertisement, tourists are going to be excited to try on our cloths and ultimately going to buy them.  This joint collaboration will benefit L’Espionne and Classic 2000 in Canada and in France as they are both going to diversify their customers through unique boutiques presented by Classic 2000. This project is also going to greatly increase sales volume of Classic 2000 by 15% and L’Espionne 12% by the end of 2015. Also Classic 2000 is going to have a profit of 10% even after paying L’Espionne 30% of their respectful fees. Most importantly, it will help create a stronger bond between Canadian and French fashion boutiques in the future.

Market Expansion in Manhattan Mall, New York

              While Classic 2000 is working with L’Espionne in Paris, France, they are also going to expand to other international market. Mid-way of 2015, Classic 2000 is going to open an independent store in the Manhattan Mall, New York, United States of America. Research collected from several tourist sites, reviews and comments shows that Manhattan Mall is one of most popular malls in New York. Also it is located in the heart of Midtown Manhattan, half a block away from the Empire State Building, Penn Station and Madison Square Garden. With so many tourist attractions nearby and a subway connection, it makes Manhattan Mall an idle spot to shop and it also makes an idle spot for Classic 2000 to have their store. This project will be more beneficial like the joint collaboration between L’Espionne because Classic 2000 will not have to worry about paying anyone any rent, 10% commission fee for their yearly sales or pay 15% for the advertisement costs. Altogether, Classic 2000 will be saving approximately 35% of their money. This will give Classic 2000 a great opportunity to spend that money on other things such as funds, a bigger store space and facilities and more marketing advertisements. However the biggest concern for this location is going to be getting mixed into the clutter. Since the Manhattan Mall has some well-established stores such as, JCPenny, Aeropostale, Social Apparel and many more. Along with our billboard, television commercial and magazine advertisements; we are going to have advertisements in public spaces such as, inside the subway, subway stairs and taxis. Since in New York spend a lot of their time in traffic. Moreover Classic 2000’s indirect competition will be accessories stores such as Afaze, lingerie store, Victoria’s Secret and most importantly the food courts. The customers are still going to choose us because we are going to have seasonal and holiday promotions to attract their attention. With our great customer service and remarkable products, we are going to be able to retain our customers. If this independent project is success, Classic 2000 is going to be seeing an increase in sales volume by 12% and an increase in loyal customers by 10% in the end of the year. Most importantly, we predict that Classic 200 will be making a profit of 15% after this project, which is 5% more than the joint collaboration between L’Espionne.

Market Expansion in Carnaby Street, London

             With 10% profit from Paris and 15% profit from New York, Classic 2000 has a capital of 25%, which they can use to launch their third international store at the infamous Carnaby Street in London, England. This is going to be Classic 2000’s most exciting project because it will get an opportunity to directly compete with 1960s fashion boutiques at Carnaby Street. If we can make a big profit from this project, we are going to be known worldwide as one of the best fashion boutiques from Canada. This is location is perfect for Classic 2000 because research shows that by the end of the 1960s, Carnaby Street was London's second-most-visited tourist attraction after Buckingham Palace. Till this day, Carnaby Street is well-known for the unique fashion boutiques, arts and restaurants as they have continuous visitors from all around the world. In Carnaby Street, there are many expensive restaurants for example, The Diner, Urban Tea Rooms and many more. These tourist attractions pose as an indirect competition to Classic 2000 because people may visit those places instead of our store. However, with a grand amount of loyal customers around the world, we predict that when we open Classic 2000 at Carnaby Street, there will be a lot of traffic around our store. When people notice the crowd of people gathering one specific store, they will pay a visit to Classic 2000. Also when there isn’t a lot of crowding of customers, we will have seasonal promotions or sales in retain customer attention. Moreover, the direct competition for Classic 2000 at Carnaby Street will definitely be the existing fashion boutique stores, such as, The Face, Pretty Green, Albam Clothing and many more. Even though these stores have been in Carnaby Street for a long period of time, Classic 2000 will be able to overcome the direct competitors with their extraordinary Canadian boutiques with a modern twist. Since our style is unlike the other British stores, we will be able to shine through the clutter. Also since Classic 2000 already made a huge success in Paris and New York, we have established a strong market presence and a large group of loyal customers. With such strong advantage, Classic 2000 doesn’t need to spend a lot of money on advertisements and promotions unlike their project in New York. Furthermore, with the 25% capital, Classic 2000 can spend it on more funds and hire popular Canadian designers to join the team and spend small portion of it to upgrade the brand image at Carnaby Street. If this project is successful, Classic 2000 will be able to make 30% profit. It is because we are not going to be spending a lot of money on the marketing team and we will try to carry some of the capital onto the end of the year. So if we can carry previous year’s capital just by 5%, the third international location of Classic 2000’s will earn about 25% of their profit.