ABOUT KALA
KALA was founded in 2011 by Maaike Bakker and Julia van Vliet. The young women met in college where they pursued a BBA with a major in sustainability. Both were shocked that the fashion industry is still one of the major contributors to climate change.
Inspired and motivated to make a difference, they published their very own web shop selling unique, eco-friendly and fair-trade fashion items such as scarves, bags, wallets, and jewelry. In the meantime, two physical stores have been opened in the Netherlands. KALA's products are all made from either organic or recycled materials. Not only does KALA ensure sustainable materials but also the empowerment of our partners in Columbia and Nepal.
Now, KALA is proudly announcing the grand opening of the third store in Miami, Florida.
Expanding to the US is a huge step for Kala and a lot of aspects have to be considered. You might all be wondering why we chose Miami...
...To start off, we created a Business Model Canvas which served the purpose of a guideline throughout the creation of the implementation plan. We continued by conducting a thorough macro-analysis to identify the external factors such as GDP, inflation, interest rate, unemployment, income distribution and income inequality that could influence the success of Kala's expansion.
Our team carried out field research in Miami and discovered that Miami is becoming a hub for new businesses mainly due to the low entry barriers for new companies and the low corporate and sales tax. Miami was also chosen based on its convenient location right by the ocean. The Miami port offers a direct route to our port in Columbia where about 50% of our products are shipped from.
Expanding is a big step and therefore we had to ensure we are implementing the right strategy. Therefore, three competitors were checked thoroughly to compare their strategies and identify strengths and weaknesses. The purpose was for Kala to adopt the strong attributes as a fast follower and to gain a competitive advantage by using the weak points.
Based on the existing competitors, personas were formed to divide the target market into segments. Like that, the need for a sustainable accessory was recognized - meaning a potential customer base exists. Miami's multi-cultural inhabitants and the tourists visiting from all over the world are another advantage, especially for the marketing side. Its diversity will benefit Kala and brings along a variety of potential customers. Market research was conducted to determine the potential target group for Kala. Hence, three personas have been created.
Additional market research includes the analysis of the Bag and Accessories industry including population, users, average revenue per user, users by gender and by income, market penetration rate and analysis of the tourist segment. This market research served as a fundamental part for creating the S&OP for Kala for the upcoming 3 years. With the S&OP it was possible to determinate the inventory and the safety stocks as well as the planned purchases of units which will significantly optimize the supply chain activities of Kala.
Based on S&OP, the finance department was able to estimate future costs and revenues. Operational and financial budgets were created to give Kala a financial overview of the future expenditure as well as to estimate what are the possible financial benefits from the expansion.
Download the PDF below for more detailed information regarding our strategy .
- Your Team
