Superdry Case

Superdry is a successful brand which targets the young fashion consumer in the UK. It has seen a dramatic increasing business in recent years. At present, Superdry has its owned stores and website and its network of franchises sold in over 100 countries around the world. Now, they are looking to expand their overseas presence and China as their main target market after research. Therefore, this report will analyze the environment, economic performance, political and culture as main sectors combined with PEST analysis and making recommendation to evaluate whether it would be an appropriate strategy or not to open a new store in China.

China have acceded to World Trade Organization(WTO) in 2001 which opened the borders to global trade and it include reducing import tariffs.

At present, the central and regional governments in China have different taxation policies. The policy towards foreign direct investment in Shanghai tries to develop a set a benefit policy to attract foreign direct investment, such as tax-waive and tax deduct policy. Initial two years of profitability without tax is a good policy for foreign investor. Another one is payment benefit policy, shanghai is actively pushing forward its revolution in administrative fees, trying to reduce those negatively influencing FDI.

On the other hand, shanghai government trying to improve relevant service for increase foreign investor's confidence. The government is support provide any relevant service for FDI. The city ensures the improvement in such service by means of implementing related policy for FDI.(Shanghai News, 2011)

Besides, political maintain relatively stability in China after 1990, therefore there has no investment risk to foreign investors. Even ethnic tensions in XinJiang and Tibet issue still have not been resolve, but it is not seriously threatened national stability. Thus, political risk in China is practically absent.