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(ML131) Group 9 - Midterm Assignment - Slides

The document outlines a comprehensive analysis of Allbirds, a sustainable footwear company, including its business model, market presence, and financial performance. It evaluates target market selection criteria for Japan and South Korea, assessing political stability, economic growth, and market attractiveness. Additionally, it discusses sustainable fashion trends and Allbirds' competitive strengths and weaknesses in the global footwear industry.
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0% found this document useful (0 votes)
40 views49 pages

(ML131) Group 9 - Midterm Assignment - Slides

The document outlines a comprehensive analysis of Allbirds, a sustainable footwear company, including its business model, market presence, and financial performance. It evaluates target market selection criteria for Japan and South Korea, assessing political stability, economic growth, and market attractiveness. Additionally, it discusses sustainable fashion trends and Allbirds' competitive strengths and weaknesses in the global footwear industry.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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and

GROUP 9
Nguyễn Trần Liên Nhi - 2212255033 Nguyễn Lê Thảo Phương - 2212255040 Cao Minh Anh - 2215255072
Ngô Lê Hạo Nhiên - 2212255036 Võ Kiều My - 2215255073 Hồ Xuân Nguyên - 2213255061
TABLEOF
INTRODUCTION ( 01 )

TARGET MARKET SELECTION ( 02 )

STRATEGIC MARKET APPROACH ( 03 )

CHALLENGES AND RISK ASSESSMENT ( 04 )

STRATEGIC RECOMMENDATIONS ( 05 )

CONCLUSION ( 06 )
INTRODUCTION
OVERVIEW OF ALLBIRDS
1000

800
1000
927

710

A a sustainable footwear company


600

Founded: 2014
Headquarters: San Francisco, USA 400

Employees: ~1,000 (927 in 2023)


200

Mission 0
to create products that not only 2021 2022 2023

look good and feel good, but Number of employees


also do good for the planet.
INTRODUCTIONBUSINESSMODELCANVAS
KEY PARTNERSHIPS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS
Material suppliers Product design and development Sustainable and eco-friendly Direct-to-Consumer Sustainability-conscious
Manufacturing partners Sustainable material sourcing materials Personalized Customer Service consumers
Retail distributors Manufacturing and production Comfortable and stylish Sustainability Education Athleisure enthusiasts
Technology providers Quality control and testing footwear Loyalty Programs Frequent travelers
Sustainability Marketing and branding Versatile designs for various Social Media Engagement Health-conscious individuals
organizations Direct-to-consumer sales occasions User-Generated Content Eco-friendly shoppers
Logistic partners Retail partnerships and Commitment to reducing Collaborative Events Outdoor activity participants
Marketing agencies collaborations carbon footprint Eco-conscious Initiatives Fashion-forward individuals
E-commerce platforms Customer service and support Transparent supply chain Customer Feedback Loop Age group 25-45
Eco-friendly packaging High performance and durable Urban dwellers
KEY RESOURCES CHANNELS
suppliers products Environmentally aware
Sustainable materials Physical retail stores
Financial partners Minimalist and timeless Tech-savvy shoppers
Supply chain management E-commerce marketplaces
aesthetic Working professionals
Retail partnerships & E-platform Social media platforms
Ethically sourced and Fitness enthusiasts
Branding and marketing expertise Email marketing
responsibly made Trendsetters
Customer service Wholesale partnerships
Customer-centric return policies Socially responsible buyers
Financial resources Influencer collaborations

COST STRUCTURE REVENUE STREAMS


Materials costs Research and development costs Direct-to-consumer sales Collaborations and partnerships
Manufacturing expenses Customer service and support E-commerce platform sales Eco-friendly product line extensions
Logistics and shipping costs expenses Physical retail store sales Limited edition product releases
Marketing and advertising expenses IT and infrastructure costs Wholesale partnerships
Employee salaries and benefits Environmental and sustainability Licensing deals
Retail space rental and utilities initiatives Affiliate marketing
INTRODUCTION
GLOBALPRESENCE
36 countries

59 stores + e-commerce website

Ship to the US, the UK, Europe


Work with distribution channels:
Australia, Canada, China, South
Korea, Japan,...
Physical stores: the U.S., Europe,
China, Japan, New Zealand, UAE,
South Korea.
INTRODUCTION 300000000
Revenue

FINANCIALPERFORMANCE 250000000

200000000

150000000

100000000

50000000

0
2019 2020 2021 2022 2023

Quarter Annual
INTRODUCTION
MARKETOVERVIEW Global Footwear Industry Overview
9)
-202
025
(CAGR 2 Market size (2024):
2.37%
~$457.09 billion
Revenue forecast in
2030: $588.22 billion
Largest market

Key
players
Fastest growing market
INTRODUCTION
MARKETOVERVIEW Global Footwear Industry Overview

Market Concentration Market Characteristics


Concentrated
Industry Competition

Degree of Innovation

Level of M&A Activities


Footwear Market

Impact of Regulations
Fragmented

Substitutes
Market Growth Stage Pace of Market Growth
Medium Accelerating
End-user Concentration
Low | Medium | High Accelerating | Decelerating
INTRODUCTION
MARKETOVERVIEW Sustainable Fashion Trends

Global consumers are shifting toward sustainable products


Millennials and Gen Z are consumers worldwide are willing to
Over willing to pay more for change their consumption habits to
75% sustainable products 73% reduce their environmental impact
(McKinsey & Company) (Nielsen, 2021)

Consumers willing to pay Brands that advocate for sustainability enjoy


sustainability premium,
9.7% even as cost-of-living and
inflationary concerns weigh.
50% in customer loyalty among
Millennials and Gen Z (Nielsen)

Gen Z and Y make purchase decisions based on personal, social, and values
INTRODUCTION
MARKETOVERVIEW Sustainable Fashion Trends

Many consumers, especially younger ones, place a premium on sustainability

50 49
48

Attitude toward premiumization


40
and sustainability, % of respondents
who are willing to pay more for 30 28

environmentally friendly products


23

20
16
(eg. zero pollution, recyclable
10
materials, or minimized packaging)
0
Overall Baby boomers Gen X Millenials Gen Z
INTRODUCTION
MARKETOVERVIEW Sustainable Fashion Trends

Sustainable Footwear Market The global market for Sustainable Footwear


Trends, by Region, 2024-2030 is estimated at $9.3 billion in 2024 and is
anticipated to post a CAGR of 6.2% during
the 2024-2030 analysis period and stand at
a projected $13.3 billion by 2030.

36%
Asia Pacific Market
Revenue Share, 2023
INTRODUCTION
MARKETOVERVIEW Allbirds' Position in the Market
Strengths Weaknesses
Innovative and sustainable products
Strong brand image Limited product assortment
Good mix of skilled leadership team Premium pricing
Positive employee outlook Limited brand awareness
Omnichannel presence

Opportunities Threats
Changing Consumer Preferences Intense Competition
Material, design, production advancements Economic Uncertainty
Growth of e-commerce Changes in trade policy, tariffs, regulations
TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
PRELIMINARYSELECTION-BERI
Criteria Reason to choose Weight

Political stability (Political Stability and Ensures a stable business environment


2.5
Absence of Violence/Terrorism: Percentile Rank) for long-term investments.

Indicates consumer purchasing power


Economic
1 growth (GDP per capita growth) 5
and market expansion potential.

Currency convertibility (Exchange rate Affects financial transactions and ease of


2 3.75
percentage change) repatriating profits.

Labour costs/productivity (Average hourly Influences operational costs for wholly


2.5
wage) owned subsidiaries.
PRELIMINARYSELECTION-BERI
Criteria Reason to choose Weight

Attitude towards foreign investors (Ease of Impacts ease of entry and potential
2.5
doing business ranking) regulatory hurdles.

Bureaucratic delays (Time required to set up Affects speed of store openings and
2.5
a business) business operations.

Communications & infrastructure (Logistics Important for supply chain and e-commerce
2.5
performance index score) efficiency.

1
Determines the ability to effectively localize
Local management & partners 3.75
the brand.

2
Total weights 25

Table 4. Criteria for Business Environment Risk Index (BERI) model


TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
PRELIMINARYSELECTION-BERI
Criteria Weight Overall BERI
Overall BERI
Research Data Score Research Data Score (Weight x
(Weight x Score)
Score)

1 Political Stability 2.5 87.3 5 12.5 64.2 4 10

Economic Growth 5 2.1758 % 3 15 1.2782 % 2 10

2
Currency Convertibility 3.75 4.49% 3 11.25 9.57% 2 7.5

Labour costs/productivity 2.5 $7.02 2 5 $6.75 2 5


PRELIMINARYSELECTION-BERI
Criteria Weight
Research Overall Research
Score Score Overall BERI
Data BERI Data

Attitude Towards Foreign Investors 2.5 30 4 10 5 5 12.5

Bureaucratic Delays 2.5 11 3 7.5 8 4 10

Communications & Infrastructure 2.5 3.90 5 12.5 3.80 5 12.5


1

Moderate, Good, some


Local Management & Partnerships 3.75 requires 2 7.5 established 4 15
2 effort players

Total 25 81.25 82.5

Table 6. BERI score analysis in Japan and South Korea


TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
FINE-GRAINEDSCREENING-MARKETATTRACTIVENESS
Criteria Reason to choose Weight

Larger markets provide more potential


Market size (Total footwear market value) 0.20
customers

Market growth (Compound annual growth rate Growth rate determines long-term
0.15
1 - CAGR) revenue potential

Buying power of customers (GDP per capita Consumer spending power affects
0.20
2 (USD)) premium product sales

Average industry margin (Average operating


Profitability varies across markets 0.05
margin for footwear industry)
FINE-GRAINEDSCREENING-MARKETATTRACTIVENESS
Criteria Reason to choose Weight

Competitive conditions (Number of major Determines ease of market entry and


0.10
footwear brands & Market concentration) differentiation

Market prohibitive conditions (Import tariffs


Barriers can restrict market entry 0.05
(%))

Psychic distance (Hofstede’s cultural distance Cultural and business differences affect
0.05
score) localization efforts
1

BERI index - 0.20

2
Total weights 1.00

Table 7. Criteria for Market Attractiveness (MA)


TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
FINE-GRAINEDSCREENING-MARKETATTRACTIVENESS
Overall MA score Overall MA score
Criteria Weight Research Data Score Research Data Score
(Weight x Score) (Weight x Score)

Market size 0.20 $12.4 billion 2 0.40 $6.86 billion 1 0.20


1

Market
0.15 2.89% 2 0.30 1.76% 1 0.15
growth
2

Buying power
0.20 $33,766.5 4 0.80 $33,121.4 4 0.80
of customers
FINE-GRAINEDSCREENING-MARKETATTRACTIVENESS
Overall MA score Overall MA score
Criteria Weight Research Data Score Research Data Score
(Weight x Score) (Weight x Score)

Average industry
0.05 13.63% 3 0.15 9.21% 3 0.15
margin

Competitive Highly
0.10 Fragmented 4 0.40 1 0.10
conditions concentrated

Market prohibitive
1 conditions 0.05 30% 1 0.05 8% 4 0.20

Psychic distance 0.05 54 3 0.15 60 3 0.15


2

BERI index 0.20 81.25 5 1.25 82.5 5 1.25

Total 1.00 3.50 3.00

Table 9. Market Attractiveness (MA) score analysis


TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Reason to choose Weight

Market share (Percentage of total market sales Determines Allbirds’ competitive


0.25
controlled (%)) presence

1 Influences brand recognition and


Local market knowledge 0.20
customer acquisition

Product’s fit to market demands (Customer


2 Ensures product demand and adoption 0.25
satisfaction)
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Reason to choose Weight

Technology position (Investment and subsidies in R&D


Differentiates through innovation 0.10
($))

Affects supply chain efficiency and


Quality of distributors and service 0.10
customer experience

Financial resources, access to distribution channels Determines ability to scale and


1 0.1
(Current ratio) expand

Total weights 1.00


2

Table 10. Criteria for Competitive Strength (CS)


TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPAN VS.SOUTHKOREA)
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Research Data Score Research Data Score
(Weight x Score) (Weight x Score)

Market share 0.25 0.21% 2 0.50 0.79% 2 0.50


1

Local market
0.20 High 4 0.60 Moderate 3 0.60
knowledge

Product’s fit to
0.25 High 4 1.25 Low 2 0.50
market demands
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Research Data Score Research Data Score
(Weight x Score) (Weight x Score)

Technology
0.10 $15.3 million 4 0.40 $44.6 million 5 0.50
position

Quality of
distributors and 0.10 High 4 0.40 Moderate 3 0.30
service

Financial
resources, access
0.10 3.39 5 0.50 2.32 3 0.30
todistribution
channels

Total 1.00 3.85 2.70

Table 12. Competitive Strength (CS) score analysis for Japan


TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS. SOUTHKOREA)
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Research Data Score Research Data Score
(Weight x Score) (Weight x Score)

Market share 0.25 0.21% 2 0.50 8% 4 1.00

Local market
0.20 High 4 0.80 Very high 4 0.80
knowledge

Product’s fit to
0.25 Very high 5 1.25 Very high 5 1.25
market demands
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Research Data Score Research Data Score
(Weight x Score) (Weight x Score)

Technology
0.10 $15.3 million 4 0.40 $10.2 million 4 0.40
position

Quality of
distributors and 0.10 High 4 0.40 Very high 5 0.50
service

Financial
resources,
access 0.10 3.39 5 0.50 2.11 3 0.30
todistribution
channels

Total 1.00 3.85 4.25

Table 13. Competitive Strength (CS) score analysis for South Korea
TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
Allbirds’ score < Competitors’ score (2 or more pts) → 1
Allbirds’ score < Competitors’ score (1 pt) → 2
Allbirds’ score = Competitors’ score → 3
Allbirds’ score > Competitors’ score (1 pt) → 4
Allbirds’ score > Competitors’ score (2 or more pts) → 5

FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Score Score
(Weight x Score) (Weight x Score)

Market share 0.25 3 0.75 1 0.25

Local market knowledge 0.20 4 0.80 3 0.60


FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Overall CS score Overall CS score
Criteria Weight Score Score
(Weight x Score) (Weight x Score)

Product’s fit to market


0.25 5 1.25 2 0.50
demands

Technology position 0.10 2 0.20 3 0.30

Quality of distributors
0.10 4 0.40 2 0.20
and service

Financial resources,
access
2 todistribution 0.10 5 0.50 5 0.50
channels

Total 1.00 3.90 2.40

Table 14. Competitive Strength (CS) score analysis


TARGET
MA-CSMATRIX
MARKET SELECTION 5

Strong
Market Attractiveness (MA) of Allbirds
Invest/Grow

3.9

Selectivity Strategies

Moderate
3

2
Low

1
Direct investment
5 3.5 3 2.4 1
Partial investment Strong Moderate Low

No investment Competitive Strengths (CS) of Allbirds


KEYFACTORS AFFECTINGENTRYMODEDECISION
Firm-specific factors Country-specific factors Market-specific factors

Asset specificity
Country risk
Brand equity Market potential
Cultural distance
Financial capability Market competition
Government restrictions
International experience

Level of control over foreign operation

Entry mode choice


KEYFACTORS AFFECTINGENTRYMODEDECISION
Firm’s specific factors

Determinate factor and


Allbirds’ assessment
retail’s characteristics

Asset specificity High

Brand equity High

Financial capability Moderate

International experience High


KEYFACTORS AFFECTINGENTRYMODEDECISION
Country’s specific factors

Determinate factor and


Allbirds’ assessment
retail’s characteristics

Country risk Low

Cultural distance High

Government restrictions Low


KEYFACTORS AFFECTINGENTRYMODEDECISION
Market’s specific factors

Determinate factor and


Allbirds’ assessment
retail’s characteristics

Market potential High

Market competition High


CHOICEOFENTRYMODESTRATEGY INTOJAPAN
DUAL-ENTRY STRATEGY
Wholly-Owned Subsidiaries Direct Exporting

Flagship store in Tokyo’s Harajuku Localized website and third-party e-


district in January 2020 commerce platforms

Hybrid direct-to-consumer (DTC) model


COMPETITIVE STRATEGY IN JAPAN Consumer Behavior in Japan

$16B Buying Power


(GDP per $45,948.68 Market Segments
$12.4B
Capita, 2024)
2.66% Sustainability-conscious
:
2025-2033 60 58
CAGR consumers
50 47 48
44
40
40 38 38
2024 2033 Premium and lifestyle sneaker
30 buyers

Consumer Preferences and Behavior 20

+ willing to pay a premium for quality and 10


Athleisure enthusiasts
sustainability 0
+ eco-friendly products and sustainable

9
9

9
9
9

9
-4

-5
-3

-7
-2
-1

-6
16

70
20

30

40

50

60
practices
Share of consumers buying products from
→ Demand for biodegradable, low-carbon, and Urban professionals
eco-friendly production and manufacturing
recycled-material products is rising. in Japan as of February 2024, by age group
COMPETITIVE STRATEGY IN JAPAN Consumer Behavior in Japan
Retail Shopping
Brand Loyalty E-commerce Behavior
Preferences
Brand heritage
research products Physical stores are still
is crucial: prefer
Over online before relevant, with a
brands with
legacy and 60% purchasing preference for high-end
craftsmanship. department stores

Top platforms
prefer established
brands they trust
Isetan Tokyu Hands

Japanese consumers appreciate


Strong inclination toward domestic
personalized service and in-store
brands (e.g., Onitsuka Tiger, Asics)
experience
COMPETITIVE STRATEGY IN EACH COUNTRY Key Competitors & Strategies

Type of Premium Sustainable Eco-Friendly Fashion Indirect Competitors


Strong Direct Competitor
Competitors Competitor Competitor (Partial Market Overlap)

Brand Onitsuka Tiger On Running Veja Adidas, Hoka One One

Premium Japanese sneaker A rising Swiss footwear A French brand focused Adidas (Stan Smith
Market brand known for its stylish, brand known for its high- on ethical production Primegreen,
Position high-quality lifestyle shoes performance running shoes and sustainable Futurecraft Loop) →
with 46 stores within Japan. and eco-friendly materials. sneakers. Sustainable product
lines but broader
market focus.
Emphasizes craftsmanship, Hoka One One →
Uses carbon-neutral Uses recycled materials,
durability, and timeless Performance-oriented
Sustainability materials, CleanCloud™ fair-trade rubber, and
designs, aligning with eco- but gaining traction in
Strategy technology, and bio-based low-impact production
conscious consumer lifestyle sneaker
shoe components. methods.
preferences. culture.
COMPETITIVE STRATEGY IN EACH COUNTRY Key Competitors & Strategies

Type of Eco-Friendly Fashion


Strong Direct Competitor Premium Sustainable Competitor
Competitors Competitor

Brand Onitsuka Tiger On Running Veja

Appeals to tech-savvy, Strong sustainability


Strong brand heritage and sustainability-conscious branding (similar to
recognition in Japan. consumers. Allbirds).
Appeals to minimalist, Strong growth in the premium Popular among eco-
Strengths
premium fashion consumers. sneaker market in Japan. conscious and fashion-
Similar price range (¥15,000– Pricing aligns with Allbirds forward consumers.
¥30,000). ($130 - $270 ~ ¥20,000– Distribution in select
¥40,000). premium retailers in Japan.
COMPETITIVE STRATEGY IN EACH COUNTRY Allbirds’ Competitive Strategy in JP

Production Price Place Promotion

- Core Value Proposition: - Premium Yet Accessible - Expansion of Physical Retail


- Brand Storytelling:
Sustainable Materials Pricing: ¥15,000 – ¥25,000 Presence: Video Content “A Better Way
Lightweight and Breathable: (~$100 – $170). Flagship Stores: Harajuku, to Make Shoes”
Essential for Japan’s humid - Pricing for sustainability: Marunouchi, Osaka.​ - Digital Marketing:
summers.​ Increased prices on Appointed Goldwin, Inc. as User-generated content (UGC):
Easy-to-Clean & Odor- Black Friday by $1 and its exclusive distributor in The #WeAreAllbirds hashtag.
Resistant: value product donated the extra Japan. - Influencer Partnerships and
cleanliness and durability. proceeds to a climate - Strengthening E-Commerce Collaborations
- Product Adaptation for Japan: change initiative → Channels: With actor and environmental
Minimalist, Neutral Colors resonates with their Key Platforms: Rakuten, activist Leonardo DiCaprio
Business Casual Footwear target audience who ZOZOTOWN, Amazon brought significant media
- Product Line: Footwear for value quality and Japan.​ attention and credibility.
men, women, and children, along ethical production over Leverage LINE Shopping: With Parley for the Oceans to
create limited-edition products
with accessories like socks, laces, the lowest possible Essential for targeting Gen
made from recycled materials.
and insoles. price. Z and millennial customers.
COMPETITIVE STRATEGY IN JAPAN Adaptation & Standardization
Brand Image and Messaging demand for biodegradable, low-carbon, recycled-material products.
Key values: comfort, sustainability, and Japanese consumers researching online before purchasing (over 60%) =>
simplicity a unified global digital presence strengthens brand trust.

Product Consistency
Natural materials: sugarcane, Expectation of authentic eco-friendly practices.
eucalyptus fibers, and merino wool Aligning with competitors like Veja and On Running.

Pricing Strategy Japanese consumers spend more for eco-friendly goods.


Premium pricing model, an affordable Price points remain competitive with similar eco-conscious brands in
yet high-quality sustainable brand. Japan: On Running (¥20,000–¥40,000) and Veja.

STANDARDIZATION
COMPETITIVE STRATEGY IN JAPAN Adaptation & Standardization
Product Adaptation
Onitsuka Tiger have successfully leveraged Japan-exclusive collections.
Certain color and style adjustments
Brand exclusivity and desirability
Limited-edition products that
Elegance and minimalism are widely valued in Japanese design.
represent Japanese cultural themes.

Marketing Communications
Cultural characteristics: authenticity,
72% prefer established brands over new entrants => trust-building
dependability, quality ,..
through local influencer partnerships
Japanese influencers promoting on
Brand awareness and credibility.
reliable local platforms like YouTube,
Veja and Onitsuka Tiger also use localized influencer marketing.
Instagram, ZOZOTOWN, Rakuten,..
Physical stores remain relevant in Japan: Isetan and Tokyu Hands.
Retail Experience
Japanese consumers expect personalized service.
Customized, hands-on shopping
Onitsuka Tiger's in-store experience focuses on craftsmanship and
experience
brand heritage.

ADAPTATION
COMPETITIVE STRATEGY IN JAPAN Adaptation & Standardization

> 60% consumers research online before buying.


E-commerce Strategy
Rakuten and ZOZOTOWN dominate the Japanese footwear market.
Top e-commerce platforms (Rakuten,
On Running and Veja sell through ZOZOTOWN and high-end retailers
ZOZOTOWN, Amazon Japan)
rather than only direct-to-consumer (DTC) platforms.

Packaging Adaptation Japanese consumers’ preferences


Compact, aesthetically pleasing, and Onitsuka Tiger incorporates premium, sleek packaging to enhance the
eco-friendly packaging unboxing experience.

ADAPTATION
VALUECHAIN COMPARISON
INBOUNDLOGISTICS OPERATIONS
Procurement function ensures the Allbirds' manufacturing facilities and
timely and efficient delivery of expertise in product design and
sustainable raw materials to the development ensure high-quality
production site. footwear.
The procurement team coordinates The company's operations align with
with suppliers to ensure high-quality its sustainable values and focus on
materials that meet sustainability innovative and eco-friendly materials.
standards. Design and innovation capabilities
They work with the inbound logistics differentiate Allbirds' products in
team to transport materials to the terms of comfort, quality, and
production site effectively. sustainability.
VALUECHAIN COMPARISON
OUTBOUNDLOGISTICS MARKETING&SALES
Allbirds' distribution and delivery Allbirds' marketing team promotes the
processes ensure timely product brand through various channels,
distribution to retail stores, wholesale emphasizing sustainability and unique
partners, and customers. design features.
The company's vertical supply chain Retail stores, e-commerce platforms,
and logistics management and social media presence contribute
competences support efficient to brand awareness and customer
delivery. engagement.
Sustainability practices and focus on After-sales service, including customer
customer experience contribute to a support and a shoe recycling program,
seamless and convenient shopping reinforces sustainability and customer
experience. loyalty.
VALUECHAIN COMPARISON
AFTERSALESSERVICE SUPPORTACTIVITIES
Allbirds' sustainable materials sourcing,
Customer service team provides manufacturing equipment, and
support, handles inquiries, returns, distribution centers support efficient
and exchanges. operations.
Enables innovation, sustainability tracking,
The company focuses on providing
personalized marketing, and efficient
excellent customer service to build
customer support.
strong customer relationships. Ensures employee skills and training align
Allbirds' commitment to with sustainable procurement, operations,
sustainability is reflected in their marketing, and customer service.
after-sales service, promoting Coordinates with suppliers to ensure high-
product lifecycle responsibility. quality and sustainable raw materials for
production.
CHALLENGES &RISKASSESSMENT
Challenge Impact Mitigation Strategy

Enhance material durability, improve after-sales service,


Product Quality Concerns Moderate
offer extended warranties.

Differentiate through sustainability marketing, emphasize


1
Market Competition High unique material innovation, collaborate with local
influencers.

2 Conduct market research to localize designs, introduce


Consumer Preferences Moderate limited-edition collections tailored to Japanese and Korean
trends.
3
CHALLENGES & RISKASSESSMENT
Challenge Impact Mitigation Strategy

Adjust pricing strategies to match economic conditions,


Economic Factors High
introduce installment payment options.

Establish regional warehouses, optimize logistics, and work


Supply Chain Risks High
1 with reliable local partners.

2 Strengthen brand protection through trademarks,


Counterfeit Products Moderate collaborate with authorities to monitor and remove
counterfeit listings.
3
Ensure compliance with local environmental and product
Regulatory Challenges Moderate
standards, work with legal experts for smooth market entry.
STRATEGIC RECOMMENDATIONS
Question Answer

Over reliance on the U.S. market.


What has been eliminated?
Store Closures

Operational Costs
What should be reduced?
Product Complexity

What should Allbirds aim to be no.1 in? Sustainable Innovation

Enhanced Storytelling
What new elements can be introduced?
Improved Shopping Experiences
CONCLUSION
Allbirds have strong potential in Japan and South Korea, but
success requires localized strategies. With Japan favoring
premium quality and South Korea driven by trends and digital
commerce, Allbirds should balance brand consistency with
adaptation to succeed in these markets.

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