INDIRECT COMPETITORS ANALYSIS-------------------------------------------------------------------P

52

STRENGTHS: WEAKNESES:

- As of 2018, the brand had 2,200 stores in 96 countries - Unique designs: elegant, shows quality, nice finishing - Large variety of products for occasions - Strong brand presence - Brand has stayed away from controversies & has reacted in a humble manner - Great Supply Chain: from concept to store in 2 weeks - Always trendy-most trendy store on the market - Low cost and higher profits: relies completely on trendy image and barely feels the need to advertise - Nice store layout- based on styles and gives an open feel due to space - Join Life products are trendier and more colorful - Generalized collection: does not specialize in anything (just affordability & trends) - Lack of advertising- could pull in more revenue from it - Low safety stock: if a product is highly desired not everyone will be able to have it as it is quickly replaced - Website ease and organizationcould be improved - Swimwear is not available for viewing in February (only 2 womenswear references found through ‘search’)- Zara a brand which is “season-less” does not transmit that with their swimwear

OPPORTUNITIES: THREATS:

- Making e-commerce site easier to navigate - Also collaborating with other e-commerce websites or entering shop-inshops/smaller displays - Growing market potential in extisting markets: more stores desired - Market expansion in developing countries - Expand “Join Life” product line to swimwear, for instance

- Low advertising - High and powerful competitors - Reach and penetration - Rising cost of raw materials (Bhasin, 2018)

PRODUCT:

“Join Life” Sustainable Line since 2015 (Zara, n.d.) 230 product references (Zara, 2019)

Only 2 swimwear references online in February (not “Join Life”) (Zara, n.d.)

53

54

STRENGTHS: WEAKNESES:

- 2,200 stores in 109 countries - Strong brand presence -Strong diversification strategies: expandedto other segments, such as menswear - Unique designs focused on being comfortable, trendy, long-lasting, and durability - Also releases new products every 2 weeks

OPPORTUNITIES:

-Controversies over designs of some products has invited lawsuits inviting considerable criticism from the fashion industry - Unused/unsold inventory in new market of Asia - Inability to adapt to new markets: not as successful as in Europe - Swimwear is currently hard to find on their website - Mango’s current online swimwear selection is small (only 9) - Does not have a sustainable line

- Focusing on other product categories such as eyewar, fragrances, ad shoes in emerging new markets - Diversify further into other product lines to make it a lifestyle brand - Should study foreign markets cultural style and adapt it to their product selection

THREATS:

- Strong and large competitors - Still is seen mostly as a women’s brand, should be modified - Emerging new designers

(Bhasin, 2018) (MBA Skool, n.d.)

“Mango Committed is a carefully designed collection for women integrated by fashion garments committed to the environment. A capsule composed of minimal style garments characterized by using unstructured silhouettes and innovative volumes that infuse a modern air to the proposal.”

(MANGO, n.d.)

PRODUCT:

“Committed” Since 2017 20 Product References (Mango, n.d.)

9 Swimwear currently online (not “Committed”) (Mango, n.d.)

PRICE:

Committed: 17.99-99.99 euros

Swimwear: 15.99-35.99 eur 55

STRENGTHS: WEAKNESES:

- 1,700+ Gap stores worldwide in 70 countries - Flagship brand of a large and strong network of fashion brands (e.g: Banana Republic, Old Navy, & Athleta) - Presence of timeless iconic products - Known for their denim - Segmented stores for kids - Global brand recognition & multibrand portfolio - Large selection of swimwear with some trendy pieces

- Decreasing brand popularity - Declining sales and profits - Increasing competition - Low product variety - Still hasn’t penetrated into the emerging economies market - No signs of sustainable efforts in stores or online - Sustainably made clothes are confusing and hard to find (as shown on next page) - Most of their swimwear pieces are geared towards a more conservative target. - Swimwear pieces are pricier than competitors mentioned

OPPORTUNITIES:

- International market expansion in Asia - E-commerce improvements - Celebrity endorsement - Boost sales through online promotion and shopping on the brand - Implementing a sustainable product line - Improving their online communication and PR efforts

THREATS:

- Decline in sales & profit - Management not able to improve the business - Competitors - Brands offering more fashionable clothing at better value - Rapid changing fashion trends - Rising production costs can put a dent in the profits of the brand

56

(Bhasin, 2018) (Dudovskiy, 2016) (MBA Skool, n.d.)

PRODUCT:

GAP does not have a sustainable line, however offers in a confusing and disorganized manner clothes based off of the categories to the right. It is confusing as these categories are shown in different value offerings. (Gap, n.d.)

157 Non-sustainable Swimwear Product (Gap, n.d.)

PRICE:

Swimwear: $15-$61

Top 3, are trendy and simplistic, while the bottom and majority of the rest of their selection are not trendy and are more focused on comfort.

57

STRENGTHS: WEAKNESES:

- More than 1300 stores in 15 countries - Visionary leader has expanded the brand successfully - Strong branding with consistent positioning - Textile innovations differentiate them - Sound Operational Strategy: owns their value chain & has stable relationships with suppliers - Superior in-store experience due to strict employee-customer interaction - Inability to penetrate successfully in foreign markets (especially USA) - Weather sensitive apparel lacked global adaptability and could not be sold at all in the US - Supply Chain issues: share in e-commerce is just 4% of its total business - Does not have a wide range of swimwear - Swimwear is not trendy and resembles sportswear - Swim is only available on US website (with only 4 references)

OPPORTUNITIES: THREATS:

- New segments: such as kids apparel - The brand can promote itself by viral advertising and aggressive social media usage - High opportunity in campaign ing for various sports events - Increase global presence - Present a sustainable line - Innovate in terms of sustainable materials and communicate this new mission efficiently - Uniqlo Recycle should use recycled clothes for new clothes like H&M recycle

- Strong global fast-fashion competitors - Increasing competition from domestic market and global players -Strategic cost leadership may not be long term sustainable - Brand switching could happen easily as it’s only concentrated target segment is for clothing

(Bhasin, 2018) (MBA Skool, n.d.)

58

PRODUCT:

Does not have a sustainable line 4 non-sustainable swimwear product references (Uniqlo, n.d.)

PRICE:

Swimwear: $9.90-19.90

Uniqlo’s only sustainable initiative: Uniqlo Recycle. (Uniqlo, n.d.)

59