This made them compete in the fashion market. Today, competition in the fashion market is based on the speed to market and the ability of the fashion retailer to rapidly provide the fashion trends as is revealed by runways and fashion shows. Therefore retailers are exposed to unplanned process as a result of adoption of quick fashion so as to reduce the time gap between designing and consumption. I agree that the fashion market has become so competitive today. It requires constant need to refresh ranges of product.
Louis Vuitton (named after its founder), is considered one of the most recognized and established high-end retail companies in the world. The company’s products range from men and woman’s clothing and accessories, to travel luggage and jewelry. Louis Vuitton accounted for over 9 billion dollars in sales in 2017 alone. With locations in over 49 countries and more than 450 stores across the globe, these new products and service have the potential to increase the company’s bottom line, increase customers and or clientele and create more job opportunities within the organization. According to the reading, “New products are a vital part of a firm’s competitive growth strategy” (Peter & Donnelly, 2013).
Although the extra design cost may lead to higher price, customers are willing to afford the “hot” design products that capture the latest consumer trends (Cachon and Swinney, 2011). Cachon and Swinney (2011) paid attention to the combination of the two techniques. The study shows that quick response reduces the chance of selling inventories in a lower price due to the limited amount of products of each type. Also, enhanced design gives customers a push feeling that the trend products will be sold out shortly and waiting will be of risks for failing to acquire them. Therefore, consumers immediately decide to pay for a higher full price for a trendier product.
Therefore, Nike introduced products at abundant price spirit level in orderliness to compete and reach all areas of the market because if they fail to do so, their market share will be easily taken over by their competitors. The second forcefulness that our group going to discuss will be the bargaining power of the buyer which is relatively high for Nike Company. The meaning of the bargaining power of buyer will be the ability of client to put theÂ troupe Â under insistence , which also affects the customer's sensitivity to damage changes. Buyer power will gain if the buyers can electrical switch to other providers without any difficultness , and causing the company to provide a higher quality military service at a good price in order to retained the client
Whether or not their product is the best, Lululemon’s high prices communicate to the world that their product is in fact the best. Customers think that if it wasn’t the best, it wouldn’t be priced atop of the market. This is a risky strategy if you do not have the quality to justify having the highest prices. However, Lululemon has devoted time and money into creating an array of different products for a multitude of different scenarios with impeccable quality so that they enjoy amazing success having the highest priced products. As also mentioned before, they rarely offer discounts.
So, with such large price tags who buys these extravagant garments? In more recent times new clientele have come from the Middle East, Russia, China, Korea, and Brazil. Jeffry Aronsson, Chief Executive of Emanuel Ungaro, (2011) told Reuters “Women from the Middle East are our top buyers and they are likely to remain so”. In order to avoid numerous trips to Paris for fittings, many of Haute Couture’s clients have a mannequin made of their measurements so that it is not necessary for them to be present. This is a service that would be of great convince for the growing number of Middle Eastern
henever publicists with successful careers in the world of fashion give interviews, there’s one thing we all want to know: How did they get started? While the path to success in fashion PR usually comprises a combination of proper timing, sufficient hard work and obviously luck, there’s no denying that it is a tough industry to break into. Publicists are of the belief that working in fashion may seem to be a glamorous affair on the front as one gets to meet celebrities, attend coolest parties in town etc, but the reality is there’s more going on that meets the eye and much of it is stressful. It is appropriate to say that the world of fashion PR demands professional to be fast-paced, exhilarating where working hours are long and work is extensive.
The market is characterized by intense competition and increasing demand. Aging populations in developed nations are slowing market growth. Growth potential, therefore, lays more in developing countries because of the increasing income levels, trends toward Western fashion, a larger young population and rising standards of living. Hence Lingerie consumers are desperate to make impulse buys, favoring factors other than necessity such as style. 2.2 Market Segments The lingerie market is expected to exceed $70 billion by 2015, reports Global Industry Analysts.
Market and Situation Analysis PESTLE Analysis Political It will be very easy to gain success in fashion industry, good reputation and trust in the Czech Republic because the government changes its policy (e.g. tax policy, employment laws, environmental regulations) very rarely. Economic Labor cost is very high in Europe, consequently products will be expensive. Notwithstanding, economical stability causes confidence among customers and they are ready to invest in fashion. Social “Never judge a book by its cover”, because of that people try to look fashionably and to stand out in a
The small geographical distance between these facilities and the stores maximises local responsiveness to new trends and changing customer desires. Thus, maintaining and increasing market power in that region is especially crucial for the company. In regards to choosing the particular country to penetrate, fashion conscious countries such as Italy, France and the UK could be particularly attractive. Hauge et al. (2009) argue that being located in fashion hot spots like these are crucial for the success within the fashion industry and the past success of Zara in these countries seems to support this view.