1.0 Overview
According to Caribbean Export Development Agency, Sonia Noel is one of Guyana’s leading designers and over the last 19 years, has become one of the most recognizable names in the Caribbean fashion industry. Prior to this, Noel operated a boutique, which imported clothing for purchase. Even though this boutique housed some of the finest international clothing brands, Noel opted for a personal style that was more reflective of her Afro-Amerindian heritage, much to the delight of her customers. This prompted the fashionista to create the label Mariska’s Designs. Motivated by her older daughter, this brand represents the many waters, forests and animals of the region. This has created a unique hybrid of Guyanese artistry, Caribbean
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The business is mounting a challenge to existing foreign clothing lines and differentiate itself as a best cost provider of local manufactured, quality garments, through its marketing strategies and brand awareness. MD/SN is maximizing its advantages as a leader of niche products in the clothing industry. The company's goal in the next year is break into new markets and attract a larger support base. MD/SN in the regional market intends to employs a broad differentiation strategy since the company seeks to differentiate it product offerings from rivals’ in ways that appeal to a broad range of buyers within that market …show more content…
Moreover Hill, Udayasankar and Hou (2013) views globalization as an amalgamation of divergent national markets into one global marketplace that brings global products and services together and takes advantage of national differences in cost and quality. Having developed such a successful brand in Guyana MD/SN is looking to capture regional and international niche markets. The first phase of expansion focuses on regional expansion. The two markets that are currently being explored are neighboring Brazil and Trinidad and Tobago (See Appendix I for country
The strengths of the book come from its’ accessibility. The book is easy to follow and provides readers with a great deal of information about the production of mass-manufactured clothing. As well as brings awareness to its’ many issues which we inadvertently take part in when we purchase such products. The book is well written and thoroughly researched but does have its’ share of weaknesses.
The company employs different strategies in making relevant its marketing strategies. Fashion is an industry that makes it necessary for a lot of marketing.
The South American Community of Nations (CSN) is another important region to target for SCJ. Currently SCJ operates in Brazil, Argentina, and Venezuela. But SCJ’s market share in those and other South American countries is low and the opportunities are endless. Since SCJ has operations already in the region, incremental growth is a cost effective way to grow profits. New products and new channels of distribution need to be developed building off of current product lines and trends. This can lead to large incremental growth in the region at little cost to the company. Perusing other regions where SCJ is not currently present could be more costly than building brands already in the marketplace.
This is a major plus for the company since their value chain is similar to its competitors. The design is based on the raw material network. This network is made up of both Natural and Synthetic Fibers. Production networks, talking about apparel manufacturers, are the focus of the marketing stage. An example of this in North America would be garment factories in the United States using subcontractors, both domestically and Caribbean based. While in Asia, an example would be Asian garment contractors with contractors, both domestically and overseas. The company secures clients by focusing on export networks. These networks are mainly concerned with retail outlets with brand name apparel along with buying offices around the world and trading companies. Distribution tends to concentrate on retail outlets such as department stores, specialty stores, factory outlets, and mail
TJD International Holding Company (TJD) will perform an industry analysis on the apparel manufacturing industry. China is the largest exporter of this $480 billion market and the EU, Japan, and the U.S. are top importers of apparel. These three import nations account for 90% of all imported apparel. Demand is driven by consumer preference and a combination of costs of manufactures in the U.S. and overseas. “The profitability of individual companies depends on efficient operations and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture.” 1 U.S. imports account for ninety percent of the U.S. market. The largest suppliers to the U.S. are Bangladesh, China, Indonesia, Mexico, and Vietnam.
Lululemon positions itself by exploiting its points of differentiations. Hence, Lululemon focuses on women as well as innovative technology, high quality materials, functional apparel to bring fashioned luxury athletic apparel to this industry, which doesn't have many high-end products. Thanks to unique positioning, Lululemon has figured out how to create a niche market within the athletic apparel industry. It also differentiates itself from it rivals by providing one of a kind product offering in term of high-performance apparel, stylish. Figure 1 outlines Lululemon's unique positioning. It focuses on the customers' beliefs and values. This permits the brand to develop value based on how the products satisfy
The fashion industry comprises of two things, firstly retail and secondly services. The company does not need any introduction with production equipment. The company will provide a finished product for retail through its own website and provide a large volume of orders service, as well as contract face to face to discuss customer’s needs, pricing etc.
Its brand and image developed since the opening of their first shop in 1947 adds value and is associated with stylish collections sold at lower prices compared to most of its competitors. The experience and commitment of the Persson family who owns the highest percentage of the organisation is probably the most important value chain H&M possesses as they are always investing in growing and development of the business. H&M stores are strategically located in cities’ best areas and small towns across the world carefully chosen to give them access to a much wider population. The use of IT and continuous upgrading of the system allows the business to operate cost effectively allowing them to achieve their main goals of continuous growth as well as supplying cheaper designer merchandise to all its customers. H&M’s non- hierarchical management style philosophy practiced is another chain value that is competitively advantageous as employees take initiatives at all levels leading to fast decisions and quick reactions essential to fast fashion business. Centralisation of procurement, logistics, Designing and pattern making staff is important for quick reactions to changing trends known to occur in the fashion
Entry barriers are low in the apparel industry, there are many companies currently operating in the sporting apparel, footwear, and accessory marketplace. Nike, Adidas, and Champion are considered the biggest competitors for Under Armour. The offshoring and outsourcing creates a unique situation for the Under Armour product line ordering and distribution. To ensure the products are properly stocked Under Armour must have the products manufactured prior to the orders being placed by distributors. On the positive side, the distributors power is high. The products can be found in company stores as well as retail chains, Dick’s Sporting Goods is a major distributor for the Under Armour product. In addition, the buyers power and the threat of substitution is low. The materials greatest competitor is cotton which holds moisture, in opposition to the synthetic material that wicks away sweat. The technology and materials needed to create the synthetic material can be sourced worldwide creating an ease of buying
Sakarya, S., Eckman, M. & Hyllegard, K. H. (2007). Market Selection for International Expansion - Assessing Opportunities in Emerging Markets. International Marketing Review, 24(2), 208-238.
This report will discuss the apparel industry with regard to the business models that the players are employing to beat competition, which is growing every day. Of particular interest to this report is Zara’s position in the industry and its business model. Some of the competitive advantages that Zara has managed to attain that are making it edge the competitors are addressed. The possibilities of Zara’s model being a disruptive model are also explored. At the end of the article, conclusions are drawn from the issues discussed.
Fast Fashion may be the most significant disruptive in the retail industry today. Troublesome novelties, or product or services, that alter an prevailing market by presenting minimalism, suitability, convenience and affordability, have the most positive influence on a company. Because fashion is ever changing and technology is always evolving the amount of production time it takes for something to be manufactured
Offering special products is marked under strengths and opportunity; however, long term sustainability must ease the weaknesses and threats posed by competitors and external markets forces. However, they are several other strengths of this company that outweigh the weaknesses but can easily be threatened. Lululemon has a great brand equity and knowledge in the market which has helped them development a customer loyalty. While Lululemon’s strengths is challenging, limiting their products to a special market, with higher than normal prices opens the markets for competitors. Lululemon has several weaknesses, they only offer a specialty product and it mostly aimed to attract woman. The company’s profitability has decreased over the recent years, showing the necessity for Lululemon to sustain its economic growth through product diversification and geographical expansion. Many of their competitors have grown, mostly likely due to their global growth and divarication. If Lululemon would expand their market growth this would open up so much more opportunity for this company to grow. One of their weaknesses is there is the dependence on suppliers. This opens a great opportunity for Lululemon, right now they are heavily relying on suppliers around the world and they do not have their own manufacturing facilities. This is causing the company to spend more money of vendors to
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
From 2005 the textile segment has been made up of 2 companies, transforming raw materials into fabrics, from spinning to finishing and ennobling. Handicraft product quality and technological research development characterize this business segment which works with internationally recognized names of the apparel and fashion industry.