Arellano_451_Industry_Analysis_Report

Arellano_451_Industry_Analysis_Report - Industry Analysis...

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Industry Analysis of the High- end Retail Fashion Industry November 21, 2006 Table of Contents
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1. Introduction a. Members: Barbara Arellano, Judith De Vera, Ashley Obradovich & Hayley Strauss 2. Industry Analysis a. Competitive dynamics and structure of industry b. Affect on entrepreneurial opportunities 3. Recent entrepreneurial entries into industry a. Formation of ventures b. Key points of interviews c. Typical opportunity in industry 4. Key success factors/ biggest challenges a. Strategic factors b. Financial factors c. Operational factors 5. Conclusion 6. Appendices 7. Footnotes Introduction The following is an industry analysis research report on the high-end retail fashion industry
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conducted by the following team members: Barbara Arellano, Judith De Vera, Ashley Obradovich and Hayley Strauss. The industry we are researching is defined as, “Clothing Accessories Store” according to the North American Industry Classification System (NAICS ID # 448150). The scope we have defined for this study is high-end fashion retail clothing made specifically for females between the ages of 15-30 in the area of Los Angeles and its near by surrounding cities. Industry Analysis Competitive dynamics and structure of industry The high-end retail industry has developed an emphasis over the past decade for stores that meet customer needs. However, these various types of shopping environments tend to lack a strong customer-seller relationship. Companies thus face the arduous task of creating a product through a “…combination of merchandise, price, advertising and promotion, customer services, selling and store layout and design…" 1 that match a target customer’s ideal product mix. Although there are many different department stores that serve almost all aspects of the market, (both independent lines such as American Apparel, various lines like Anthropology and boutique stores such as P.I.N.K.) there is a large segment of the retail customer market whose needs are not met. This unmet need is a customization service that fails to tap into a sizable part of the market. The high-end retail structure may appear simple, however, detailed attention to each component of the business is needed to ensure success. One of the major elements that make up the business is the team of people who work to fill the store with products they feel will appeal to the customer. Manufacturers are another critical part that provides the item to retailers who are further down the value chain. Another major element is the management team, which ensure that business operations are working as efficiently as possible. And lastly, a company’s sales force is very important to this structure because it is the last piece of the retail value chain before the product is actually put in the hands of the customer. Though each company may work under a different structure, each product that reaches the floor of a retail store goes through the similar steps that a white unbranded Tee shirt undergoes in a value chain (see Diagram 1.a):
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This note was uploaded on 04/22/2008 for the course BAEP 451 taught by Professor Crookston during the Spring '08 term at USC.

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Arellano_451_Industry_Analysis_Report - Industry Analysis...

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