Essay About Global Media And Development Of Luxury Goods Market

Liu Bai in his restaurant in Beijing | The Chinese and Chinese Market | | (Courtesy of Liu Bai in his restaurant in Beijing) | The Chinese and Chinese Market with Louis Vuitton | | (Courtesy of Liu Bai in his restaurant in Beijing) | The Chinese & Chinese Market with Filipina | | | | | | +5 (more details on the different types of fries being sold by MFC products | | and what these are for) | +5 | | | | | | | | | | | | |

How does any McDonald’s food sold by MFC in India have certain characteristics ? | | | | | | +20 (more details regarding certain types of Fries being sold by MFC products | | and what these are for) [email protected] | +20 |

How many people do McDonald’s use in the US ? | | | +20 | In Mumbai, the food service is made using a system of

The Competitive environmentThe two tables below are PEST analyses of the Chinese market and the Indian market. PEST analysis is a tool used to assess the macro economic environment that a business operates in.

ChinaPoliticalTariff and excises policy affect on the development of luxury goods marketProtectionist policies restricted trade especially on imported goods but when china joined the WTO this opened up gradually, due to excise prices of the goods can be severely effected meaning access to such goods will be easier for some consumers than offers

Tourism policy effecting the luxury good consumption in ChinaThese policies encourage their citizens to go travelling out-bound of china. This is an issue in that if people are travelling abroad they are more likely to purchase their luxury goods there because they are more likely to be real as china has a big problem with counterfeit goods and they wont have to pay extra due to excise taxes that are enforced in China.

Fight against counterfeit purifies the environment for development of luxury goodsEven with China joining the WTO, protections for intellectual property are not consistently enforced which means that luxury goods companies could be losing out on millions due to counterfeit goods.

EconomicalRapid economic growthChina has seen rapid growth over the years due to its manufacturing and industrial sectors. As a result of this GDP has seen rapid growth.High GDPThis factor is the main attraction for luxury goods companies coming to china along with the size of the market in terms of the population size there. This high GDP indicates there is potentially a lot of money to made

Risk of InflationThis could potentially be a problem for luxury goods companies because it will mean that consumers have less disposable income to spend; however on the other hand it is also important note that Chinas GDP is very high and is still rising.

SocialBecoming more westernDue to the global media, the internet and government policy encouraging Chinese people to travel they are beginning to pick up western customs such as owning luxury goods that traditionally in Chinese culture would be frowned on.

Rural migrationMany citizens are moving from rural China to the cities in search of work for a better income and better quality of life this means that luxury goods companies have better access to the population of China.

TechnologicalInternet and related new media broaden the platformDue to the internet and the media it has become a lot easier for consumers to access information this has meant these mediums are very important part when promoting a prod. Easier to access a specific target market.

IndiaPoliticalRelaxation in tariffs and barriersThe economic liberalization in 1991 meant that many of the tariff and non-tariff boundaries were removed or minimized. As a result of this access to the market for MNEs was easier.

Government legislation laws for fast food industryIn order to protect the environment the government is encouraging companies to use bio-degradable and environmentally friendly packaging or wrapping; however the problem is that it cost more that the non environmentally friendly packaging and wrapping.

Health issuesWith the increasing fast food industry it important to consider the health implications it could cause such as obesity, high blood pressure heart problems etc. all these health problem could put a strain on the health service.

EconomicDouble income groupThe growing trend of working women means that there are now two incomes coming into the household which means that families have more disposable income to spend on the things they want i.e. eating out.

Large populationIndia has one of the largest populations in the world this simply means there is room for a lot of profit to be made when doing business in India as there is so much

Loss of jobsWith MNEs entering the market they are likely cause local competitors to go out of business; as they will not be able to compete with level of competition that the MNEs bring. This will result in loss of jobs and therefore higher unemployment rates.

Profit repatriationThis is an area for concern for the Indian economy. The illusion is that when an MNE enters a country it is supposed to increase the employment rate and result in economic growth. In the short term this is true however in the long run due to capital intensive nature of MNEs neither employment and GDP rates increase because MNEs send whatever profits they have made back to their home country.

SocialShift in cultureMany families that live in the urban areas have been exposed to global media and western cuisine and therefore are trying new things however eating at home still remains very ingrained in Indian culture.

Working womenThere have been an increasing number of women working because of changing gender roles. The implication of this