Avoiding Maga Systems

LS:N global informs us of Avoiding the Mega-Systems companies such as Starbucks, Amazon, Apple and Google have been avoiding pay taxes or lower tax rates. 

Starbucks especially has been attacked by it consumers which has effected its credibility, the company has now been blown out by competitor Costa Coffee who have also increased like for like sales at 7.1% past three months. Starbuck has only paid £8.5 million in corporation tax since opening in the UK in 1998.

Amazon was accused of using Luxembourg as a location to dramatic decrease in tax obligation in the UK. Amazon has only paid £1.8 million in corporation tax in 2011, against their £3.35 billion turnover in UK sales. The company has confirmed these statistics claiming they only made a total of £74 million. 

Apple In the United States committee have blamed Apple of using a complicated website of offshore entities to avoid paying the cost in tax. Apple have escape paying billion of dollar is US taxes, although the company has claimed this is not the case and they are believe they are one of the largest tax payers having paid six billion dollars is 2012 financial year. Apple was established ti have only paid a corporation tax rate of 1.9% outside North America. 

Google course a public outrage in 2011, after finding out the online web search engine had only paid £6 million in corporation taxes. Google had made that year a remarkable £2.5 billion in the UK, the company chairman has defended the company has fully complied to the law before the Parliamentary Public Account Committee.

The Future of Fashion

Hijack App

The highjack app is available from meat pack for mobile phone device. It is an app that is set up to let people know about the discounts that are available in the Meat Pack stores. Meat Pack is a popular shoes store that was established 3 years ago recognised for its edgy, unique styles which is known for its extraordinary discounts. A store desired by many for its limited edition sneakers including brands such as Adidas, Nike, Puma and Supra. Every second that does by the percentage of discount decreases each time; which brings an excitement and Individuality to the store. 


This has attracted a wide gathering of cult youth audience. This new promotion has got people going crazy for the brand, consistently surprising their customers. Current technology are aware of what everybody is up to in the fashion industry, keeping up with the competition of online discounts can be very hard for certain brands.  

Hijack was created to enhance the original Meat Pack App to gain more customers. GPS tracking technology for Hijack was able to admit the discount for sneakers whilst consumers were entering competitors store, the discount would start at 99% and decreased by a percentage with each second that went by. This would send people to hurry towards the nearest Meat Pack store, the fastest they reach the store, the better the discount.

'The Stealth Pocket' is a pocket that you place your phone into and will block GPS, WIFI and other ways of tracking you. This is what people want to get privacy back into their daily lives. This shuts off all data, so nobody will be able to communicate with you or talk to you at all.

The Global Market Place

The Global Market Place

Japanese aesthetic: Kenzo 1970, is a luxury house founded in 1970 by Japanese designer Kenzo Takada, he moved to Paris in 1964 to start his career. Takada uses Asian and Japanese styles with the expert construction of European high fashion. 'Jungle Jap' first started in a boutique located in Paris, the brand produced handmade woman clothing with ethnical designs of Asia and Japan.

Tom Ford 2010 New York show: Womenswear collection is inspired by individualities, real clothes, real ethnicity and real women aged 25-75 years "I want this to be somewhere a woman knows she can go when she wants a great jacket - not a fake expensive jacket, something that has intrinsic value","I don't think fashion has to change every five minutes. I'd like these to be the clothes you can wear for a long time- ten, 20 years; pass on to your daughter'.

"Why buy vintage when you can open your own closet!"




Daslu (Lulu's house) Sao Paula area of Rio grade sol German/Italian population -western looking very blonde, cant access store from street only by helicopter or underground an exclusive shopping centre.

Gum: Moscow Red Square - half of the front is Cartier other half is Louis Vuitton, the store has armed guards on the doors, emerging markets have an interest in fashion where is emerging how to visualise myself the look from the outside.

7P's of Promotion

• Product
• Price
• Promotion
• Place
• Packaging
• People
• Physical Evidence

Product-  Are good and service that a business provide to attract their customer. Businesses have to ensure that they are suppling their customers with a wide range of products. Also other factors that a company should think about is the branding, packaging, quality and many other things. The retailer 'ASOS' sells a wide range of branded products see on celebrities such as mens and womenswear including shoes and accessories. Brands sold at ASOS includes Nike, Ralph Laurent, Calvin Klein and Karen Millen.

Price: Pricing of an item can establish a brand, the amount of money that they customer pays to the business for their service and product that they are given. Businesses will have to make sure that the prices are reasonable for the product at that they customer is happy to pay these charges. Many business have reasonable pricing strategy, however some companies can be over priced. These prices depend of the product that the customer is purchasing, the difference between high street and online is the delivery charges.

  Dior couture 2013/14 entry price £16,000

Topshop Unique 2013/14 entry price £30

Promotion: Businesses promote their the company by advertising, promotional campaigns, PR and personal selling. This keeps their customers aware about what products and services and available to them. There can be many ways that companies can their products one way which is very popular are seasonal sales and discount codes. Businesses can send registered loyal customer emails with promotional discount and money off vouchers which keeps the customer happy. Other methods of advertising are leaflets, webpage and magazines were products are posted on new lines. Latest trends can be found on celebrities, catwalks and reality TV also following social networking such as Facebook, Twitter and Instagram.

  

Place: The place is where customers go to use services provided by a business. The business will ensure that they are in the right location and will have to be aware of the high street or market surrounding them, this can cause the business disturbance if close to competitors. The business will have to ensure that a wide range of customers have an easy access to the business or market place. Once the business is established it can be found on google maps however it is better for the business to place close or around busy areas. Making sure the businesses leading target market are close by.

                                     

                                                Two different Fashion Markets

Packaging: How the business presents visual element of the product and service. It refers to the way a product or service appears on the outside. The packaging is the service and touchpoint through the eye and prospect of the company, it is the last thing the customers see however the first the people on the high street can see. This is the first impression of people seeing you and some element of the business, its is the first moment of contact all the way through to the purchasing process, so changing the external appearance  can have different reactions for different consumers. It also refers to the way people dress and groom themselves, it tributes to all aspects of the business. It is a visual element of the company.

People: The people are they the source who run the business, these are the companies employees, without them around the business will not be about to operate and generate a successful name. They complete daily tasks that present a business, they have to ensure that they are supply a good customer service to benefit the sales of their products. The people have to be friendly, approachable and knowledgeable about the products and services the business provides. Click business have less employees than a more brick or hybrid business this because 'click' companies transactions take place online and less people are needed for a customer service area to run the services. This can be a advantage for some business as it reduces their expenditure but increases their profits. 

Physical evidence: The physical evidence is the visual aspect of the services and product provided to the customer. The customer will purchase a product or service which they must then have physical evidence that the transaction that has taken place was genuine which is shown by a companies receipt. Business representation facilities can have many other ways of showing their physical evidence which can include, buildings and layouts.

Emerging Markets

Who are the BRICs?

In 2001, Jim O'Neil joined the acronym BRICs to developing countries portraying economic potential and these countries are Brazil, Russia, India and China alongside South Africa also. This has been formed due to the term emerging markets being too broad, especially as these countries hold an increasingly greater potential other other developing countries.

These five countries have a combined population of 3bn people.

Brazil:

• Natural resources
• Fashion Rio Show/Rio De Janeiro Fashion week
• Sao Paulo Fashion week.

• Driven demand - 5th largest apparel market.
• 81% of Brazilian consumers prefer domestic brands over international brands.
• Fashion trends driven by celebrities and TV stars.
• Consumers spend more on clothing than they do anywhere else.

Russia:

• Natural resources
• Large number of fashion events by industry
• Apparel market is one of the fastest growing

• Moscow recognised as a Fashion capital Middle and Eastern Europe.
• Leading luxury brands established in Russia

• Burberry- positive response from Russian consumers who have a large appetite for luxury goods.
• Third largest concentration of billionaires after US and Germany. 
  

India:

• Domestic designers 

• Unternational recognition in various global forums
• Ritu Beri, designer from India work in London, NY, Paris
• increasing brand awareness
• 35% reported to buy designer brands.
• youth of the population to have the opportunities
• pursue jobs within the industry.
• constructing products and exports

                                      Ritu Beri Collection shown on Paris Catwalk

China:

• Constructing products
• Population spend a large amount of money on Fashion.

• Fashion market growing 
• Providing opportunities for foreign fashion companies

• By 2020 fashion sales in China are set to triple their current level.

China hold Marc Jacob Fashion Event

Who are the MINT's?


The MINT's are referring to the economies of Mexico, Indonesia, Nigeria and Turkey. These countries primarily use the economics and financial spheres as well as in academia. The bonds of the government, policy makers and thinkers have often

Mexico:

• Rapidly advanced infrastructure

• Developed middle class and rapidly declining poverty
• High GDP than all three European economies of this year.

• Aim in 2050 to find a new local wealth that contributes to the nations economy
• Domestic consumer market which can create more jobs.

Indonesia:

• Indonesia is the largest economy in Southeast Asia
• Has a nominal GDP of 2012 was £587.968 billion given capita GDP was £2,404.

• Indonesia is the worlds fourth populous country after China, India and US.

Jakarta Fashion Week 2013/14

Nigeria:

• Nigeria is the a middle income mixed economy and emerging markets 

• Developing services, communications, financial and entertainment district.
• Ranks 26th in the worlds of Gross Domestic Product at purchasing power parity

                   African Fashion meets Brooklyn

• Re-emergent, though it is currently under performing, manufacturing sector
• Produced a large proportion of goods and services for the West African Region.

Fashion Catwalk in Cape Town 

Turkey:

• Turkey emerging markets and economy grew at 10.3% last year, faster than China 
• Third fastest growing economy in the world

• Its economic growth has mainly been built on the construction making up 6% of the countries economy
• The industries related figures including steel, energy use, timber would count for. 30% of the economy.

• In 2011 Turkey was the worlds 15th largest GDP
• The financial capital had a total of 28 billionaires of march 2010 down from 34 in 2008, ranking 4th in world behind, NY, Moscow and London.

Who are the TIMPs?

Turkey, Indonesia, Mexico and Philippines.
The TIMPS are a group of high level economic growth and favourable demographics that have been put together of emerging markets. The International Monetary Fund forecasts increases in gross domestic products for this year Turkey and Mexico rated 3.5%. For the Philippines 4.3% and 6.3% for Indonesia.