CONCEPT OF

INTERNATIONAL TRADE
PROJECT REPORT
ANUKUSH CHAHAL
STUDENT ID: 4481171
 HANDBAGS ROCK LIMITED
 A private limited company, that is limited by shares

 The company has started from Birmingham, United Kingdom.

 Deals with the variety of handbags and wallets which are specially designed by the company
considering the needs and preferences of the customer.

 The organization was working well and was earning a good revenue before the Covid-19
pandemic.

 Within the time of pandemic the company started facing the serious issue related to its growth.

 For compensating the losses and improving the condition of the organization we have decided the
expand our business in the international market of United States of America till late 2022.

2022 2
 For expanding the business our major focus would be changing the strategy of the business and
improving the quality of the product while maintaining low-cost of production.

The mission of Handbags Rock Limited is to provide the customers innovative and designer bags and
wallets with the best product quality and to set standards in the international market.

The vision of the company is to focus on being the top trend conscious producer of the handbags and
wallets in the industry.

The Value of the company is to be committed towards the customers and provide them quality, respect
and pride.

2022 3
 Why USA?
The United States is one of the most important investment destinations in the world.

The relationship between United Kingdom and United states of America in case of trading is highly
strong.

The US market is one of the most attractive markets for the nations because of many reasons which are the
very less language barriers, easy access with the global supply chain and many others.

The US market is the only largest export market of the United Kingdom which totally accounted for 20%
of all export of the country’s goods and services in 2018.

The exports help the UK small businesses and entrepreneurs to innovate and expand more in new markets.
Apart from that, it rises up the productivity and the profitability of the organizations.
 The Handbags market economy has been improved a lot in the recent years.

Due to the Covid-19 pandemic, although there was a recession in the market but it resulted in more
information and technological advances.

. It is seen that the revenue in the Handbags segment is 11.97 billion US Dollars in 2022. Moreover, it is
expected that the growth of this industry would rise by 2.55%.
 THE FACTORS AFFECTING THE BUSINESS
Every business is a part of a larger entity which is the business environment.

The business environment is a huge term which could be divided into two categories the micro business environment and the macro
business environment.

These two categories are although different from each other but these have a major impact on the business entity.

The micro-environment is the main environment which has a major impact on the business.

This environment has the power to have an impact on the proceedings and general performance of the company. The micro
environment is consisting of the factors related to the customers, suppliers, resellers, competitors, and the general public.

While the macro-environment is environment which is all about the economy itself. It basically affects the way each business groups
operates, perform, make decisions and creates strategies.

The macro environment is consisted of the external factors which could not be controlled by the organization.

The macro-environment is consisted of the economic factors, demographic forces, technological forces, natural and physical forces,
political and legal forces and social and cultural forces.
 MICRO ENVIRONMENT
CUSTOMERS :- The customer base has a strong impact on the business wherein the company has to take care of the customers and provide
them the best product as it directly influences the market of the organization. To influence the customer decision in order to encourage them to
purchase the product the company will motivate them to buy with the help of various promotion strategies.

SUPPLIERS :- The growth of the handbags industry in US is high and as of that there is no lack of the handbags suppliers in the country.
Therefore, the price of the product would not be affected because of the less suppliers available in the market. However, we are just going to buy
the raw material from the suppliers and will further make the bags with the best customized way our customers need them.

COMPETITION :- Our competitors have various strengths which is making them grow fast. The strength of the competitors is that they
have already build trust and is a repudiated brand in the market. Also, the products are widely available in the market easily. The opportunity for
organization is that people always seek for the innovative products, the company can build the customer trust easily by providing qualitative
products with adding specific customization which they require.

THE GENERAL PUBLIC :- It is vital to make decisions considering the general public and looking from their prospective. Our
company is going to make decisions considering the fact that the general public is the king and we will do best for them. Moreover, instead of just
selling the products real services will be provided by the company.
 MACRO ENVIRONMENT

DEMOGRAPHIC FACTORS :- Taking in consideration the genders the products are available for female and even for Gay, Lesbian,
Bisexual and Transgender as they can easily customize the products according to their needs and preferences. Taking in consideration, the
occupation marketers segment it by Business women, Office workers, professional designers and designing students, housewives and allow
those who are financially well and can easily afford the products. In terms of income marketers segmented it from $200-$15000.

ECONOMIC FACTORS :- Due to the covid-19 pandemic the world has been siting at home and the fashion industry and outlets faced
difficulties and remained shut down for a specific period. However, with the time of improvement in the pandemic the consumer has increased
the spending on the products and there is a development which can be seen in the market. Moreover, it is expected that there would be a
growing demand, especially in the luxury handbags segment. Apart from that, leather is highly traded commodity in the world. There is a
continuous demand of the leather from the fashion industry. This growing demand for the leather goods is expected to rise the demand of the
leather handbags as well as the luxury bags.

POLITICAL AND LEGAL FORCES :- There are many factors related to the political and legal forces which affect the
fashion industry. While in US it is easy for the firm to open their as there are no much restrictions and barriers. However, the fashion
industry is somehow get affected by employers strikes and there could be a delay in getting the products produced on time.
 MACRO ENVIRONMENT
NATURAL/PHYSICAL FORCES :- Our company is an environment friendly company. Although, we are going to
produce the leather bags considering the need of the customers. But still, we are going to promote other fabrics more and our
mission would be to give best to the customers while harming the environment as less as possible. Moreover, we are going to
reduce the wastage of the raw material by using less machines and more workers as the machines wastes much raw material.

TECHNOLOGICAL FACTORS :- The technological factors which are involved in our business are the one which highly
impact our business. We are going to use technology for designing our products and improving the quality of our product. With
the help of innovative design, it would be easy for the firm to attract the customers. Moreover, the skills and knowledge which
we are going to apply in our production would make our business smooth.

SOCIAL AND CULTUTRAL FORCES :- The company is going to enforce the social and cultural forces by providing
the product keeping these in mind. This would be done by attracting the customers according to their purchasing habits and
religion and beliefs. Apart from that we are going to launch soon a special scheme for our customers who shop while keeping in
mind their family size and providing them some discounts and gifts.

INTERNATIONAL STRATEGY :- The market strategy which we are going to apply to take our business in the
international market would be the international strategy. The reason behind opting this strategy is that the organization doesn’t
have to be concerned about the local cultural conditions. Moreover, it allows the firm to sell the products internationally
without any changes.
 CONCLUSION
Our company is looking forward to expand the business and gain more
profit. Moreover, the company is going provide the customers best product
quality while taking care of their preferences and taste. Our goal is to set
new fashion trends in the market. We are going to put all our efforts and
work on achieving the goals, mission and vision.
THANK YOU