What is your evaluation of the women’s apparel industry and Harrington’s market position? How has the average price of women’s apparel changed? What is your analysis of Harrington’s financial performance?
-The women’s apparel industry market is mature (avg. growth from 2006 to 2007 was only 4.2%) - Economic downturn beginning in the early 2000s significantly impacted the industry. -Imports dominated the U.S. women’s apparel market, accounting for 82% of total industry sales in 2005 (resulting from the elimination of global import quotas on textiles from China in 2004) -Due to the relative ease of outsourcing production, barriers to entry in this industry were rather low. -Consumers became very price-sensitive, and over half of all apparel purchased was sold “on sale”. This trend toward less expensive, casual clothing and the rising supply of low-cost, imported apparel intensified price pressure. -
How well does active-wear fit with consumer needs? What purchase criteria are important for buyers of active-wear? What, if any, evidence is there to support the hypothesis that active-wear will be attractive to an upscale target demographic?
-Very well, Subset of loyal customers no longer desired the tailored, professional look. Now interested in something fresh and comfortable that fits their active lifestyles -The aging baby boomer population wants clothing that does not make them feel old -Important purchase criteria: 10% of customers purchasing apparel in the $100-$200 price range would buy if it consisted of superior styling, fabric, and fit. -Reports from department stores showed the stylish active-wear inventory sold extremely quickly (almost twice the rate of current Harrington Collection apparel). Markdowns for the new stylish active wear were not as extreme as other product lines.
How does active-wear fit with the Vigor division (e.g., target customer, advertising and sales strategy, production capabilities)? What possible impact...
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