Premium Jeans Essay

Decent Essays

This case study talks about the slowdown in the premium jeans market. The first slowdown was in 2007, after that time premium jeans never the same. Between 2008 and 2010 the premium denim prices fell 10-15 percent over this time period. There were different tactics these premium denim designers including 7 for mankind, True Religion, Diesel, Joe Jeans and Levi Strauss tried to attempt to maintain their positions. Some did this by lowering the price of jeans, creating lower priced jeans (i.e. recession collection and jeggings), creating more brands and stores. This case study also talked about the major effects that things like economic issues (i.e. the recession) and rising cotton prices (due to low stockpiles, heavy rains and …show more content…

Diesel’s revenue not only came from making jeans it also came from producing products like wine, cars, fragrances, sun glasses, shoes, and watches.

Does True Religion enjoy a competitive advantage in the segment? If so, is its advantage sustainable?

I would say that True Religion enjoy a competitive advantage in the segment because this was a company that had been through a slowdown in sales then rose then fell again. Within the times of falling revenue the company still managed to develop strategies so that it wouldn’t end up like other companies such as rock & republic that filed for bankruptcy. Even when this brand first started out it had a competitive advantage over 7 for all mankind that only offered 2 basic styles of jeans, True Religion offered 5 styles. Then overtime True Religion became “one of the highest priced on the market with an average selling point of $196 for woman’s jeans and $192 for men’s jeans in 2009”. This gives give the True Religion brand jeans the sustainability that it needs to stay ahead. Another advantage it had over its competitors is the use of off price retailers such as Nordstrom rack and its outlet stores which lead to “slow-moving and obsolete inventory”. True Religion’s was able to sustain exclusive third-party distributors to gain access to upscale retailers in foreign markets. They did this by selling their products to

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