Fashion Rivalry In Spain

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Rivalry among existing firms

In Spain there is a strong tradition in fashion, with many popular brands such as Inditex, Blanco, Adolfo Dominguez, Camper, Cortefiel or Pronovias. All of them compete successfully on a global scale, which has entailed to a high level of competition between rivals. They can compete aggressively on prices, quality, design, innovation or marketing.
Due to the economic situation that the crisis has left in our country, the Spanish fashion retail industry has suffered a drop in demand, and therefore profit margins have diminished too. This situation has made the industry less attractive and profitable for competitors.
The intensity of this rivalry depends on a series of factors, such as:
- Numerous or equally balance competitors: There is a huge number of competitors with a high level of equilibrium between them.
- Industry’s growth rate: Due to the crisis, as mentioned before, consumption has dropped entailing to a very slow growth in this sector which has increased competition.
- Exit barriers: These barriers impede the departure from the industry even in the case of negative results. The high amount of diverse competitors and the strategic common interests between rivals -such as the increase of sales or the female market- are reasons that increase rivalry in the fashion retail sector.
- Product differentiation: Talking about fidelity to the brand, the differentiation of the product is considered an entry barrier as it favours the position of

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