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 n Arcadia Group (Burtons, Hawkshead, etc.) n Variety Stores (M&S, BHS, etc.) n Department Stores (Debenhams, John Lewis, Selfridges, etc.) n Supermarkets (Tesco, etc.) n Individual stores (Next, Gap, etc.) n The Internet (dot com!)

Trends within the industry n Poor performance compared to the retail sector as a whole n downward pressure on price and upward pressure on rents and rates n polarisation and changing consumption patterns n dominance of large businesses over small firms n International competition n E-commerce

Factors affecting Competition (1) n Distribution Channels

Factors affecting Competition (2) n New Entrants n Branding / Private Labels n Advertising n Market Segmentation n Competitors Focus n Consumers Power

Is the UK a relevant boundary? n Globalisation n Sourcing garments n Specialisation in clothing n Internet n New entrants (ie: supermarkets) n Market competition

The Competitive Environment: The Five Forces Model n The threat of new entrants n The bargaining power of the firms suppliers n The bargaining power of the firms customers n The threat of substitute products n The intensity of rivalry among competing firms

SWOT Analysis

Presentation Group: Andrew Bowden James Brailey Jennie Capps Ed Elderfield Laura Hankins James Streeter