Laplex Investments (Pvt.) Limited, founded in 2014, quickly secured a significant market share in Zimbabwe’s wig industry. However, increased competition from low-priced wig imports from Zambia and China significantly eroded Laplex’s sales. The company’s inability to accurately forecast shifts in consumer preferences further exacerbated inventory accumulation. By late 2024, operational challenges intensified, forcing founder Jianfeng Zhao to contemplate strategic options: sell the company, relocate production to a neighbouring country with lower labour costs, or pursue digital marketing and digital transformation strategies. What choice should he make?
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