Challenges Faced by Desigual-Free-Samples-Myassignmenthelp.com

Question: Write about the company, Challenges they face and how to overcome those challenges. Answer: Introduction Desigual is a famous clothing brand based out in Barcelona, Spain, which is popular for its unique and distinctive designs, intense patterns and attractive color splashes. A Spanish fashion firm which was founded by Christian Meyer and Thomas Meyer in 1984 on an island of Ibiza. It belongs to fashion industry which basically designs clothes and fashion accessories that serves the people of both genders and different age group. Both the founders are actually brothers and also the president of the company. At the age of 20, Thomas Meyer had only one vision in his mind to "create a dressing trend where people would be dressed in a singular way". The main aim was to develop and create something unique in designing clothes which would drive the emotion and positivity from people and something that would be very popular among the individuals. An annual growth of 60% can be seen in the company's favor from the year 2002 to 2009 and a turnover of about 250 million euros. Desigual presence can be seen in more than 70 different countries and a store count of 200 which is it significant in claiming its growth worldwide. It is evident from the figures and numbers that the company is making its presence in the global market and is a major stakeholder in the international markets. Challenges Faced by Desigual It won't come as a surprise that every growing firm has to face and overcome the challenges coming its way. Those who are able to cope up well with the obstacles can only lead the race. For Desigual, the major challenge is to grow as a company and also to increase their sales in the worldwide market. Along with these, Desigual also has to maintain its brand value in the market and its image with the customers (Viardot, 2015). It is seen that the company has never been involved in traditional advertising which makes it very difficult for the firm to maintain its image. It is a notable fact that is visible to people and now the company is able to maintain a static image in people's mind (Steenkamp, 2017). A proper communication with the customers is essential in promoting a brand value which is lacking in the case of Desigual. It is also found that due to cultural differences in different countries, it is difficult for a brand such as Desigual to maintain its cognizance with the local people. As the firm is known for its unique and intense arts and graffiti prints, not all people are fond of this dynamic style of clothing. Considering the company's presence at the global level, high tax rates of foreign countries tends to increase the rate of products too and it is not affordable by the people who chose economy over brand value, thus making the sales value redundant in some parts of the countries (Roux, Tafani and Vigneron, 2017). In the recent years, the company was surrounded by controversy and received criticism for launching a television commercial which was related to the concept of Mother's day whose message was not taken in a good taste. However, the company was able to defend its advertisement but this action certainly resulted in a negative image among the people and the challenge was to overcome this and maintain its value again. Overcoming the Challenges If we talk about the fashion industry, it is very important to avoid mistakes to maintain the brand value. The company should be inclined more and more towards the traditional marketing strategy. With the help of technology, the company can easily enhance the image in the market (Price and Lewis, 2015). The company should ensure that a proactive approach is taken in advertising and marketing its products. It is a known fact that interaction with customers is an important factor that not only enhances the sales of the product but also accelerates its brand value (Babin and Zikmund, 2015). The company should focus on the quality aspect rather than the quantity. It should currently target and promote the products where it has been already gaining success rather than targeting new areas. In this way, the potential customers can be made aware of the company's presence at the global level. Also, if the company is targeting the global rankings, then it should ensure that the products offered are best fit with the cultural indifference (Zhao and Zhou, 2015). Setting up production houses in the countries where it has already been known as a renowned brand can certainly reduce the cost of production and if the shipping price is reduced then it can be affordable for the local people. This is a key contributor to a company who is looking to make its presence in overseas and also trying to maintain a brand image at the national and international level is very important for a company's sales revenue (Dion and Borraz, 2017). The key is to develop different marketing strategies according to different countries, as every country has own indifference and diversified environment which will certainly promote Desigual and its products as a global leader (Saenz and Revilla, 2016). Conclusion It is an unquestionable fact that Desigual has already attracted attention for implementing a marketing strategy which has boosted its sales revenue and has been able to maintain some good profits over the years. The firm should also ensure its ease of communication with the customers by adopting a traditional media and technological strategies. These strategies would certainly increase the market share of the company as one of the factors is the promotion of a product which helps to achieve growth in the market. A production house in the local community would also help in increasing the communication with the local people by offering them employment opportunities. This will also help in understanding the market and targeting the necessary areas where the demand is more and also helps in increasing the sales in redundant areas. A better understanding of the market can be gained. The above-mentioned points, if implemented in a strategic and planned way, would certainly keep Desigual in the long run and would help the firm to maintain its position in the global charts. References Babin, B.J. and Zikmund, W.G., 2015.Exploring marketing research. Cengage Learning. Dion, D. and Borraz, S., 2017. 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