Clothing Industry and Competitive Strategies Essay

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Clothing Industry and Competitive Strategies Introduction Clothing industry in the U.S is a big but very competitive industry. It has a very high potential for firms to generate million dollars of profit. However, it is also a very tough environment to survive. Express Inc, Gap Inc, and Guess ? Inc are three of the U.S clothing companies who are experiencing the extremely competitive environment. Each company has its own competitive strategy to fight in the market. With Express, the firm tries to differentiate its products by creating unique, formal, luxury and sexy image in their minds. Gap, on the other hand, try to provide customers with high variety of products and prices. Guess tries to follow the fashion trend investment to attract…show more content…
Most of the suppliers from foreign countries, especially from developing countries like China, Indonesia, etc... wants to deal with American clothing firms because they will get good wholesale price with huge order quantity and long-term relationship. American firms can choose among them, and they can easily switch suppliers since there are many suppliers waiting to be their partners. Competitive level: Clothing industry is a huge industry with a very high competitive level. There are around hundreds of clothing brands who compete with each others, each of them only have a piece of the market share. The industry is also growing at quite a fast rate so we can expect an increase in competitive level in the future. Threat of substitute products: Sine there are hundreds of styles and brands in clothing which offer different design and fits into their products; the threat of substitutes is very big in the clothing industry. People are usually switching clothing styles, brands, fashion/ function type of clothing. Consumers can substitute their formal clothes with more casual clothes but acceptable styles when going to work, like wearing a polo instead a shirt, casual pants instead of suit pants, etc. Customers also do not usually have only one favorite brand. They go shopping in many brands to compare prices, styles and fits. Express Inc Established in 1980 in Chicago,
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