Zara basically can quickly transform an ordinary sketch to a product in the store in the matter of two weeks. Zara’s second competitive advantage is the fact that it manufactures and designs the majority of the attires that it sells in its stores. It is extremely rare to find fashion companies that manufacture as well as design their products. Most fashion industries avoid doing both because it is considered as a hard task and also because it takes a lot of time to be able to finish the product. This competitive advantage raise Zara automatically up because the customers realize how much effort Zara puts in order to please them and also to guarantee the best quality of products that they sell to
The collaboration with world class designer made the customer feel they are purchasing high fashion shirt that they normally cannot afford. Not only that, there are approximately 200 in-house designers under H&M design team, this allowed H&M to minimize the time-to –market. H&M also believed Strong brand name is one of the
Target's main goal is to be the main shopping center for families. It's a classy discount store that focuses on customer loyalty and also has brand names that the customers wouldn't mind paying the higher prices for. Target's slogan, "Expect more, pay less" is recognizable throughout the country. It's also recognized for their coupons, red card rewards, and distinct red logo. Even when the economy takes a hit Target sales continue to grow, proving that it is one of the top retailers in the game at the moment.
In addition fast fashion brand help to grow the clothing industry. Fast fashion brand is the brand provides cheap and fashionable clothes. According to According to the Bureau of Labor Statistics (BLS) 2014 Consumer Survey (qtd. Josephson), Apparel and services increased 11% between from 2013 to 2014 in the United States. However, clothing industry is oligopoly market because famous brand dominate the industry.
Five Forces Analysis Threats of New Entrants - High The threat of new entrants for the bag industry is high since putting up a bag business is easy. There are a lot of different companies that are already in this kind of industry. There are international and local businesses that have successfully established their brands here in the Philippines. There is an increasing percentage of local brands here in the Philippines which indicates that the barriers to entry are low in the bag industry. Entering in this type of business can be easy for entrepreneurs who already have enough capital to manufacture bags, who already have a background in this type of industry, who are updated in the current fashion trends and those who already know a supplier and a manufacturer that they can do business with.
In fact, there are two versions: leather and nylon. The skin is less common because of its high cost. However, it is very sturdy, durable, heavy enough in itself, requires some care. Nylon can be called one of the most affordable and versatile material. He is thin and light, but quite durable, easy to wash, unpretentious.
Such as House of Louis Vuitton, Chanel, Christian Dior, Saint Laurent (Yves Saint Laurent), which hold prestige in the high fashion business. Although the high fashion market has expanded to the middle class as well, many consumers still go for the similar style but the less expensive way to get it to their hands. Many of the young generation want new designs and new clothing, in other words the younger generation of consumers demand for “fast-fashion”. Many of the high fashion brands has shown concern where the younger generations are losing the experience and the understanding of craftsmanship, quality, and luxury. Another concern that they stressed was that the fashion houses may not have a place in the market in the future if this continues.
Its definition how people look at the competition in an industry. An high threat of new entrance can make the industry very competitive and cause the existing competitors to lost profit. In this case, Louis Vuitton threat of new entrants are Gucci, Chanel and Prada, these are the luxury brands that rely on the imagery of their products to appeal to the high-end market. Their pricing creates a high quality images and position that customer claims as a status symbol. Therefore customer would compare these few brands before buying of one the
Blackbarret’s potential target audience are adults, celebrity, and adolescent. This is because adults can afford to buy their own trench coat as they are working. Blackbarrett target adult because Blackbarrett has a design that suits adults who wants a certain high class looks. Since most working adults do care about how they look,adults are Blackbarrett easy potential target. Blackbarrett next potential target are the red carpet celebrity because targeting the famous celebs, the young adult (adolescent) will follow up with their favourite star fashion trend.
4- The company product is new, so the management should be aware of customer reaction if the price is so high 5- To deal with the majority of people, the ACME Smoothies should be able to give the price to be acceptable by most of society social classes in particular the product should be sold in the cities and semi urban areas. 6- The company should go along with the life style of the people because their lifestyle with present trend is so important nowadays. Additionally, the consumer looks always what are fits the new life style. Gifts Coupons: The company can distribute POP materials like stickers or printed shirts with giving price discount would have to be used to remind the target customers at the point of purchase. In addition these should also serve the purpose of informing those who are still unaware till the time of