Broader Industry EnvironmentBroader industryenvironmentThe apparel retail industry is competitive with a large number of competitors. Within the United States it includes one million stores and accounts for four trillion dollars in revenue in 2012. The industry is characterized by emphasizing diversity and trend fashion. Along with diversity, most of the competitors tend to rely on their brand image. The threat of new competitors is relatively low due to the high start-up costs of entering the market, and this industry by nature is fragmented, thus it is very difficult to compete in. Since Gap inc. and Guess inc. tend to have high quality brand image, they two have power over their suppliers, due to manufactures competing for business.
The Gap Company does not maintain a high level of sales in any of its online properties.[/br]
This does not mean our business in any way matches the Gap Company. However, we do strive to create an environment where we are focused on creating a strong fit with a diverse range of brands. One of our primary aims is to improve overall sales outcomes and growth.
A wide range of brands, many of which are well-known in our retail industry, are recognized by the Gap company as a target for growth and customers want to be part of our sales and marketing efforts. By supporting the brands and their growth, I believe that we can grow the brand through our new locations, our increased presence and product placement.
By providing a variety of different types of clothes, items and services and providing product marketing support, we are also able to provide both the flexibility to increase our sales, and the strength to continue on. We rely on our customers to drive all our efforts, such as in our local stores and in retail outlets, and it makes sense to provide these customers with these services, such as in order to increase our overall business.
I believe that at some stages, the number of Gap Stores across the country could increase from 4 to 10. These sales increase as consumers move to online store alternatives.
I don’t necessarily want to promote my clothing directly to specific consumers, since I don’t have the cash to buy many Gap items or even many products that were produced before my grandmother started making these jeans. While the number of Gap stores represents one of the key reasons for the increase in sales, I do not think it will cause as much damage as I believe.
The Gap store business is an opportunity for customers to learn a lot about the brand through its unique, user-friendly branding and marketing, at a time when we are seeing a wide selection of brands from all over the world reach people. Even more importantly, many Gap employees are involved in helping to create new businesses in my country and around the world.
For those of you who don’t know, the word “hop”—the process of discovering a new and interesting company—is used to describe products and services that are marketed or delivered to certain areas of the human eye. In the case of buying clothing from the Gap stores, you can start your search on the website or within 10 minutes of ordering by email. That’s why Gap has taken the steps to integrate more and different products in the range of products on the website and in retail stores, so that it can bring brands that really can sell. It may not feel like a new thing, but I think such an integration allows the company to continue to grow the business further and to serve customers well.
I think the growing number of retail stores will serve to further increase our presence in the American consumer. However,
Economic and market conditions have become increasingly volatile and uncertain in the world market and consumer behavior remains cautious from 2008. In North America, the weaker levels of consumer confidence and the highly promotional conditions among retailers may persist for an extended period. The whole industry anticipates that inflationary pressures on raw materials, labor, freight and other commodities including oil, experienced at the beginning of fiscal 2011, but starts recovering at the end of 2011
Industry also continue to experience significant volatility in the global currency markets. Since majority of international operations are conducted in currencies other than U.S dollar, currency fluctuations can have a significant impact on the translation of companies revenues and earnings into U.S. dollar amounts.
Brief company introductionGuessGuess inc. was founded in 1981 and currently operate as a Delaware corporation. Guess design, marked, distribute and license one of the worlds leading lifestyle collections of contemporary apparel and a accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. It is marked under numerous trademarks including Guess, Guess Jeans, Triangles Design, and so on. Guess products are sold through retail, wholesale, e-commerce and licensing distribution channels. Its core customer is a style-conscious consumer primarily between the ages of 18 and 32. Guess with 504 directly operated stores in the U.S and Canada as of January 28,2012.
Despite the difficult economic conditions, Guesss key long-term strategies remain unchanged. Global expansion continues to be the cornerstone of their long-term growth strategy. The combined revenue outside of the U.S and Canada represented almost half of the total companys revenues in 2012. They expect to continue to develop in both existing European and Asia markets. At the same time, Guess plan to expand markets in emerging countries like China, Brazil, Russia and Indian.