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The Retail Clothing Industry. “In the clothing manufacturing Industry the market structure is very mature and highly competitive.” (ICC Report August 1999). The Main Players. Arcadia Group (Burton’s, Hawkshead, etc.) Variety Stores (M&S, BHS, etc.)
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“In the clothing manufacturing Industry the market structure is very mature and highly competitive.”(ICC Report August 1999)
The Main Players • Arcadia Group (Burton’s, Hawkshead, etc.) • Variety Stores (M&S, BHS, etc.) • Department Stores (Debenhams, John Lewis, Selfridges, etc.) • Supermarkets (Tesco, etc.) • Individual stores (Next, Gap, etc.) • The Internet (dot com!)
Trends within the industry • Poor performance compared to the retail sector as a whole • downward pressure on price and upward pressure on rents and rates • polarisation and changing consumption patterns • dominance of large businesses over small firms • International competition • E-commerce
Factors affecting Competition (1) • Distribution Channels
Factors affecting Competition (2) • New Entrants • Branding / Private Labels • Advertising • Market Segmentation • Competitors Focus • Consumer’s Power
Is the UK a relevant boundary? • Globalisation • Sourcing garments • Specialisation in clothing • Internet • New entrants (ie: supermarkets) • Market competition
The Competitive Environment: The ‘Five Forces Model’ • The threat of new entrants • The bargaining power of the firm’s suppliers • The bargaining power of the firm’s customers • The threat of substitute products • The intensity of rivalry among competing firms
Presentation Group:Andrew BowdenJames BraileyJennie CappsEd ElderfieldLaura HankinsJames Streeter