INTERNATIONALIZATION STRATEGY JONIS MAHMUTLLARI, JULIA OHRANKÄMMEN, ESSI PORKKA, SARA REPONEN

MARIMEKKO IN BRIEF Finnish design company Products sold in ca. 40 countries, over 150 stores globally Key markets: Northern Europe North America Asia-Pacific region In 2015 worldwide brand sales 186 M€, net sales 96 M€ 500 employees Strategy aims at strong international growth, while maintaining the market position in Finland

HISTORY 1950-1960 1970-1980 1990-today 1991: Sold to Kirsti Paakkanen Mika Ihamuotila takes Marimekko’s internationalization to a new level 1974: Listed in Helsinki Stock Exchange 1951: Marimekko is founded 1985 Sold to Amer Group 1950-1960 1970-1980 1990-today 2006: Network of 28 stores is being built in Japan 2011: License agreement with Converse China, Berlin, South Korea, showrooms in USA…. 1960: First retail store in Sweden Licensing to Japan Sales and distribution subsidiaries to USA, agent contracts terminated 1959: Exporting starts through an agent in the US

ANALYSIS - LUOSTARINEN MODEL Product Strategy Goods Focus on sale of goods Services: online stores, store concept renewal, sewing service Services Systems Know-how Operation Strategy NIMOs Exporting Sales subsidiaries Licensing Contract manufacturing DIMOs NIPOs DIPOs Market Strategy Geographical 1956: Exports begin (Sweden, Belgium, USA) 1960: First retail store in Stockholm 1972: Japan 2008-2016: New York, Australia, Hong Kong, Berlin, Malmö, South Korea, Shanghai, Beijing... Cultural Economical

ANALYSIS - UPPSALA MODEL FDI ANALYSIS - UPPSALA MODEL Mode of operation No exporting Exporting via an agent Foreign sales subsidiary Foreign production and sales subsidiary Market A Market B Market C Market D Market N Market (country) Increasing market commitment Increasing geographic diversification Increasing internationalization

ANALYSIS – MARIMEKKO`S Internationalization Stages Similarity to UPPSALA´s 1977 model Market commitment increased gradually with new market expansion Difference in Stages: No export via an Agent UPPSALA´s Revised theory, networking naturally implemented

RECOMMENDATIONS Good or bad decision to sell the company to Amer Group in 1985?  internationalization process was not successful   Effort in unique concept stores, customer is not only buying products Cooperation with fashion brands Brand ambassador Marimekko’s board of directors and management

FUTURE PLANS Growth in the Asia-Pacific region, Japan New market areas: Bangkok, Singapore, Dubai New store openings in Japan, estimated rate of 5 stores per year Australia Marimekko needs to ensure continuous business opportunities through networks