Nike, Adidas, and Columbia Sportswear are all frontrunners against Under Armour in the industry. The first section of this report will cover an overview of the trends in, economics, political/legal, social/cultural-global, technology, and demographics. Economics Under Armour Company has been growing substantially. In 2008 its gross profit was $353,041, in 2009 it was $410,125, and in 2010 it only rose higher to $530,507. Its new income from operating expenses went up as well.
London’s Carnaby Street was a new fashion wave described as modern in the 1960’s. Rapid growth and success came from the ability to bring key fashion trends to its store for the fashion forward consumers, both men and women. The firm’s product line became more “mainstream” in the 1980s, targeting a larger market, as a result of growth throughout Canada and the move to the United States. Le Chateau then found itself targeting young adventurous women under 21 who enjoyed a Saturday night out, before the reposition in the early 2000’s to market to soccer moms and career focused women who wanted upscale, high quality
The more an article becomes subject to rapid changes of fashion, the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of € 340 million on € revenues of € 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily € oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price increased by nearly 50%—despite bearish stock market conditions—to push its market valuation to € 13.4 € billion. The high stock price made Inditex’s founder, Amancio Ortega, who had begun to work in the apparel trade as an errand boy half a century earlier, Spain’s richest man.
‘Fast-fashion’ can be defined as a quick response to up-to-date luxury fashion trends in an affordable price, which meets the deeply held desires for young customers (Joy et.al, 2012). The store expansion has continued at several places, such as Denmark, the United States, Great Britain, also in several European Countries like Spain, Germany (Barman and Petersson, 2002). In order to sustain the growth rate of H&M, the CEO, in 2011, invested more stores and opened another 218 stores on the Champs-Élysées in Paris to strengthen their brand and ensure the future expansion. Following that, in the next few years, another 230 stores were established, involving 35 in China (Regnér and Yildiz, 2014). H&M has become the global leader in the ‘fast-fashion’ section, owing to its’ distinctive business approach which enhance the competitiveness.
Nordstrom: Adapting to New Consumer Behavior Joseph Castillo Zuniga Bellevue College Author Note: This paper was written for Business 101, Section R, taught by Patrick Mcniff Nordstrom: Adapting to New Consumer Behavior Richard Jaffe, an analyst with Stifel Nicolaus & Co said that “the Internet is growing at the expense of brick-and-mortar stores” (Kapner, 2014). This has been true for several popular department stores including Nordstrom. At the end of 2013, Nordstrom finished the year with its third straight quarter of shrinking sales in its 117 full-line stores with a 3.3% drop in sales. However, don’t let these numbers fool any other competition because in fact Nordstrom’s total revenue increased by 3.23% from accumulating 12.15 billion in 2012 to 12.54 billion in 2013 (Marketwatch, 2014). So where did the other sales go if its full-line stores’ sales dropped?
We operate with a rapidly changing assortment of brand name and designer merchandise at prices generally 20%-60% below department and specialty store regular prices on comparable merchandise, every day. With our value proposition and exciting treasure-hunt shopping experience, we believe that our demographic reach is among the widest in retail as we attract a broad range of fashion and value conscious customers across many income levels and demographic groups.” This means that TJX is based on all low prices. Their mission is to have brand name designers in their stores and always have the hot new trends. They want you to get the lowest price possible on all of the designer merchandise for the season. Their mission is to also have all ranges of people with different incomes, shop at their store.
In 2008, the souring economy hit Whole Foods rather hard. Sales increases at Whole Foods stores open at least one year rose only 0.8 percent in 2008 versus 8.2 percent in the previous year. In August of 2008, Whole Foods announced that planned new store openings for 2009 would be reduced. Whole Foods had to back out of signed leases or revise the lease terms of 70 new stores that had been scheduled to open in 2009 and 2010. Whole Foods recently arranges to sell $425 million of preferred stock to private equity investors, which equated to an ownership interest of 17 percent in the event the private equity investors exercised rights to convert their preferred stock into common
3). And lastly, Zara offers customers “trendy” clothing styles with approximately 11,000 new items per year, which is by far the most in the industry (McAfee, Pg 7). Furthermore, “Zara: IT for Fast Fashion,” presents a case of 2003 where focus revolves around whether Zara should keep the current IT infrastructure and operating system they used for their point-of-sale (POS) where “[it’s] not broken. Why are we trying to fix it?” (McAfee, Pg. 1).
In 2007, combined sales rose 9 percent to just under 2.1bn. Sales in Europe attain an 87 percent, while in the Americas only around 2 percent (WARC, 2008). 2. Executive Summary The Benetton group is Italys biggest clothing manufacturer, established in 1965 by the Benetton family, with presence in over 120 countries and a 5,500 store network, Benetton ins one of the major players in the clothing industry worldwide, however they have not been able to transfer this success to the U.S. market. The U.S. clothing market is an interesting opportunity for Benetton; with a value of $254 usd billion in 2006 (Euromonitor, 2007) is one of the largest worldwide.