Trading Infrastructure

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Section 8: Trading Infrastructure

Strandbags Group Pty Limited is one of the Australian's largest and most successful retailers and the company generating profits from the retailing of handbags and other travel goods. Strandbags has stores in Australia, New Zealand, Saudi Arabia, and the United Arab Emirates. Strandbags head office is located in Belrose, New South Wales. The group is privately owned and operates over 350 stores throughout Australia, New Zealand, the Middle East and recently South Africa. There are 47 retail shops for Strandbags in Victoria included 3 shops at centre business district of Melbourne and also accepts cash and credit. Scale of the operation is large according to the number of staff is around 201-500 employees. And annual turnover is about $116,000,000

Strandbags is retailing Handbags, Small Leather goods, Travel goods, Business Cases and Backpacks and carry both internationally. However, the group also owned the "equip" chain of stores that providing Fashion Jewelry and other accessories and there are presently 80 for these stores. There is no middle man for this group. As a result of many stores in Victoria, Strandbags is very accessibility and customer can memorize the brand as the stores have a medium size with fine decorated.


For the technology that has been used by Strandbags is the activity in the warehouse. Strandbags has chosen Toyota Material Handling equipment for its new 8500 square meter located at Erskine Park in Sydney's west. New forklifts can meet their needs of the busy warehouse. In addition this technology will support the plan that Stranbags will open 22 stores by the end of the year.


Moreover, stranbags takes the service from JustEnough to demand forecasting an inventory panning solution and support Strandbags for replenishment. After Strandbags had faced the problem like supply is not enough for demand then the opportunities of sales were misuse.



Strandbags retailer is a great opportunity for the NaRaYa to distribute product to Melbourne, Australia, contains 47 store in Victoria and 3 stores in CBD area that offers a great accessibility which is an excellent channel for NaRaYa to create awareness to Melbournian. Stranbags is a strong retailer and well organized with a suitable facilities and well technologies, in addition Stranbags is appropriate retailer for NaRaYa because of its merchandise including bags which is the product from NaRaYa. They also have an experienced to retail this type of merchandise then we can ensure that NaRaYa's goods will be on the right track to the customer hand. Furthermore, the planning from Strandbags which the group is willing to open more 22 stores is a good signal for a tough and unstoppable business.

Section 10: Company

Organization factor

The organization is formed as public company limited, named as Narai Intertrade Public Company Limited. For more ten years NaRaYa has earned the reputation by providing product from fabric with high standard and quality and NaRaYa has been awarded including the 2000 Prime Minister's Export Award for Distinguished Brand of the year, The 2002 Distinguished Designed Award, the 2003 Prime Minister's industry Awarded in the category of Small and Medium enterprise Industrial Management and being named one of the top ten Thai companies awarded the 2003 Superbrand status by England-based Superbrand organization. NaRaYa has gained profit about 20 Million AUD since 1998. NaRaYa has a distribution network and has over 50 branches around the world include 10 branches in Thailand. In addition NaRaYa has opened the new shop at Senado district in Macao on 26 July 2009 after one year that it opened a shop at Venetian in Macao.

Marketing Factors

NaRaYa offers bags made by fabric with a well designed and delicate production. The brand of NaRaYa is very famous for low price bag with great brand name. Commodities from NaRaYa are affordable for the middle class in domestic especially in Thailand, in addition the citizen likes to buy product from NaRaYa to be a gift or present. NaRaYa operates by themselves and no dealer. Many stores are located in the main shopping centre with accessibility and well decorated.

Financial Factor

  • Total sale amount is 20 million AUD for 11 years since 1998
  • NaRaYa invested 13 Million AUD for the new office (HQ) in Thailand
    • (Thai Version Sorry: D)

Manufacturing factors

NaRaYa follows economies of scale concept for their production then can buy material in bulk which can produce high and sale low price then the product from NaRaYa is set the price low. However to obtain this concept NaRaYa has less flexibility and cannot change the production quickly. The factory of production is located in Thailand. The method of production commodities is hire labor and trains them. The production needs an expertise to choose the quality fabric and need trained worker.


NaRaYa has the potential and opportunity to entry the market in Australia Melbourne, which is known as a fashion capital city as the strong brand in Thailand under the Thai name of NaRaYa. In addition the company has a financial stability as mentioned above regarding to the new building for HQ in Thailand and the total sale in 11 years that NaRaYa gained about 20 million AUD. As a result of expansion to other countries lastly in Macau can prove that NaRaYa itself has solidity and ability to expand a market into Australia. Furthermore the price range of the product is tending to be low with suitable in the economic crisis that every countries has faced. The quality and standard of our product is the priority and customer can put their trust on NaRaYa.