Classic Knitwear Essay

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Classic Knitwear is a Traded Company, started in 1995 as a manufacturer and distributor of unbranded casual Knit apparel. This company was mainly focused on non-fashion label products of Knit apparel. In this non fashion category, the sale was $24.5 billion. On the U.S Sales Basis, in 2005 its revenue was $550 million .Classic Knitwear’s Revenue comes from wholesalers and mass retail channels. Screen-print channels is used in this category to sell the Product. In wholesale Classic Knitwear, the market share is 16.5% with number two position in the market. Wholesalers consist of 75% of total revenue i.e $413 million and rest 25% Revenue from Retail channel. Wal-Mart and Dollar General were the mainly two retail customers which contributed 57% of the revenue in this retail channel Category. In 2005 ,U.S Revenue of $22 billion were achieved in non-Screen print portion of the non-fashion casual knitwear. Classic had low production cost through which it got an advantages over the other producers .In non-fashion casual Knitwear ,T-shirt represented a 53% of the total revenue i.e $13 billion ,it was mainly focus on the screen print sector, Classic had invested more in the T-shirt sector than its overall investment in other sector. In concern with pricing to the Products, Retailers were provided with a 50% margin on branded knitwear and 40% margin on private label knitwear .Classic average gross margin was 18% in 2005, 45% of unbranded knitwear was sold at a discount on the price ,which leads to the gross profit margin ranged 10% to 20%,at the same time it was recorded 30% to 40% on branded knitwear. Price promotion was an option for retailers to sell the private –label knitwear in a festival periods and with back to back school. 50% of annual retail sales were recorded for knitwear. There were three large Competitors for Classic Knitwear in branded side of non

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