OZ Fashion is a manufacturer and exporter of a full range of quality apparel products for kids, men, and women segments in Australia and New Zealand. After operating in Australia and New Zealand for the last ten (10) years, OZ Fashion is now considering its options to expand into other markets. Owen Jones and Zarah Ali, the co-founders of OZ Fashion are keen on exploring their opportunities in emerging markets in South and South-East Asia.

Especially with the increased competition from cheaper imported goods, the company is contemplating the establishment of a manufacturing plant in Asia to reduce the cost of manufacturing at home. The company has identified Bangladesh, Thailand, and India as potential countries for the establishment of the overseas manufacturing plant. Zarah believes that this move will help OZ Fashion to offer its unique and creative designs at a competitive price thereby gaining a competitive edge in Australian and New Zealand markets. However, coming from a South Asian origin, Zarah is well aware of the institutional and resource barriers they might have to overcome in Asian markets.

Alternatively, Zarah's husband and business partner Owen, thinks that exporting their existing products to India, Bangladesh, or Thailand at a premium price would be a better opportunity. Owen recently completed his Master of International Management from the University of Adelaide. He has learned about the growing middle class in these emerging markets who seek branded products with good quality. Owen strongly believes that OZ Fashion, with its "Made in Australia" tag, will be able to address this upper-middle-class market niche.

In a recent international trade exhibition, the couple met with Rajiv Gupta, an Indian fashion retailer who owns a medium-sized manufacturing plant and a few retail outlets in Mumbai, India. Rajiv mainly sells his apparel products only within the Indian market, however over time he has developed a strong retail network covering most states in India. One of the main drawbacks preventing Rajiv from approaching developed countries such as the USA or Europe is the poor designs and average quality of local fabrics he uses in his garments.

After discovering the intentions of the OZ Fashion owners Rajiv revealed his intention to partner with OZ fashion to create a new brand that can be sold in India and also in Australia and New Zealand. Rajiv believes that this option helps them to build a strong company that can make trendy apparel products with unique and creative design capabilities of Zarah and can be distributed using his strong network of retailers in India.

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