CASE STUDY
The Client
Slik Zips is a manufacturer and supplier of quality zippers based in Manchester UK. From a small manufacturing business, it has built a name for itself amongst recognised global retailers, fashion brands and store groups. Brands it has courted over time include the likes of Puma, Timberland and Super Dry, making it one of the zip suppliers tailing the global leaders.
Their Business
The global zipper market is expected to be worth $13.7 Billion by 2020 according to research undertaken by the 2015 Zipper Market Research Report from Global Industry Analysts. At the top of this market are two major players, the Japanese giant YKK with clients mostly in the high end fashion market and Chinese challenger SBS who started off catering to clients in the mass market. Both companies account for almost half of the global zipper market share. However there are sections of the market that are still up for grabs. This goes beyond strong global brand awareness to consciously establishing channels to take advantage of unexplored markets. The market is still heavily fragmented and a few factors act as determinants for competition; cost, quality and innovation. In some other markets other determinants join the mix. With conscious effort and the right strategies put in place other global players have a potential for growth.
The Challenge
Already established in Europe and Asia, there was an opportunity for Slik Zips to enter into the African market. With the booming fashion industry emanating from Nigeria, there was no better time than now and we were approached for an entry strategy and partnership development. Bad quality zippers is a commonly referenced issue with Nigerian made garments and although Slik Zips provides a potential solution for this market, it required a well crafted route to market to take advantage of the opportunity. The ready-to-wear apparel industry in Nigeria is still at an infant stage and consumers in this market are not currently producing at a rate other established fashion economies are, which sheds some light on possible lower volume purchases. On the other hand, being a culture that buys majorly made-to-order garments the frequency of purchase also differs and variety expectations would be high. There are also other considerations with the informal setup in the market and how best to reach the end customer. Any entry strategy would have to be cautious and play to the tune of buyers, whilst laying the foundation to learn and scale over time.
Our Approach
We undertook a research project that involved surveys, interviews and industry data fetched from various open and closed sources. The research revealed who the ideal target market at entry should be, buyer behaviour considerations and current consumer pain points. The cohort of buyers likely to adopt Slik Zips early seemed to be the premium emerging and established fashion houses catering to local consumers with high quality expectations and the international market looking for certain standards in apparel. These buyers tend to be more digitally savvy and value brands that can offer convenience, however, this does not mean they will abandon offline channels that provide proximity to other materials i.e. the major supply markets such as Tejuosho. On the back of these, we;
Created a route to market that allows Slik Zips run a pilot in Nigeria and eliminate some of the consumer pain points we unearthed
Drew up a communications strategy that lays out the different steps to move consumers along the adoption process, from awareness to purchase. Noting that the value proposition must show an innate understanding of fashion and style in this market and how zippers come into play
Created an outline of the different sales channels to consider and how the online must link well with the offline to gain benefits in this market
Set up a website that acts as a directory for those looking to explore Slik Zips offerings and maybe buy offline. Vendor listing is particularly important for those quick runs customers make to meet up with last minute made-to-order requests
The website is also a point of sale for consumers after the convenience of buying online
Our Impact
Slik Africa now has a better understanding of the target audience and behaviour peculiarities. It is set to take on the Nigerian market, with a clear path to achieving the communication goals and target sales level within the first 6 months. With a system put in place for data gathering, visitor analytics will help inform decisions in this market over time, arming Slik Zips with the ability to better serve the market and grow.
