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A Fashionable Strategy for Tough Times _
A Fashionable Strategy for Tough Times _ Hello, everyone! :)
Can't you feel that time flies? The 3rd week already! (whoa!)
I've learned a lot of things in BS class until now. Remember the story of Gap that the professor mentioned at the end of the class? I've known and even bought some clothes at Gap, Banana Republic, and Old Navy, (I used to live in Canada, so I'm so familiar with these stores) but I never knew that these three are linked altogether. It was such an interesting story I heard, so I looked for an article talking about the relationship between Gap and Banana Republic and fortunately I found one. The title was also attractive, "Yes, we have a new banana!" However, it's quite old, updated in 2004, so I just read it myself and am not gonna share with you guys specifically here. (http://www.businessweek.com/magazine/content/04_22/b3885106.htm?chan=search) - In this article, you will know how Banana Republic has changed.
SO! Here's the story I want to share with you this week. This is the one I found while reading some articles related to Gap's story. As you can see above, the title of this article is 'A fasionable strategy for tough times' written by Susan Yara.
Have you heard of store called 'Intermix'? Intermix, Inc. operates boutiques for women. What's the impression of the word 'boutique'? Isn't it like 'fancy', 'expensive', 'wealth'..? The success of clothing shops depends on the economic situation. However, without worrying about the current economic crunch, Intermix, Inc. expects to earn $100 million in this year. Why? They have a STARATEGY, what we call.
Why can't the shops with well-known designers, such as Tommy Hilfiger, avoid economic concerns while the president of Intermix, Inc., Khajac Keledjian is confident with his strategy. What does Intermix have? What makes Intermix different from other boutique shops? "His stores are situated in hip neighborhoods, and his price tags aren't too outrageous: While it is possible to find a dress that costs $1,200 at an Intermix store, there also are plenty of $175 jeans and $58 T-shirts." (quoted) And smaller, hipper labels—such as Yigal Azrouel, Imitation of Christ, Catherine Malandrino, and Theory— got their first real exposure through Intermix, which means that although it is 'boutique shop', it is open to EVERYONE. Unlike other boutique shops continue to prefer wealthy people, Intermix widens the range of customers.
Salvatore Ferragamos and Hermes' strategy was to expand their shops. Famous designers started to build more stores and retail locations and as a results, the percentage of sales grew. For example, Hermes has 24 stores in the U.S. and more than 40 stores in Japan. They allow more customers to visit their stores and buy products made by luxury designers.
What I want to point out as I conclude is that having an appropriate strategy that fits for the company's characteristics, abilities, and current situation. As each boutique shop has different strategy, we will need to have a unique, special, and the RIGHT strategy in order to make sales explode in a certain market. That's why I have been looking forward to taking this course.
* Original text: http://www.businessweek.com/lifestyle/content/jan2008/bw20080131_592614.htm?chan=search
_posted by 20500297 * Entry 2
Can't you feel that time flies? The 3rd week already! (whoa!)
I've learned a lot of things in BS class until now. Remember the story of Gap that the professor mentioned at the end of the class? I've known and even bought some clothes at Gap, Banana Republic, and Old Navy, (I used to live in Canada, so I'm so familiar with these stores) but I never knew that these three are linked altogether. It was such an interesting story I heard, so I looked for an article talking about the relationship between Gap and Banana Republic and fortunately I found one. The title was also attractive, "Yes, we have a new banana!" However, it's quite old, updated in 2004, so I just read it myself and am not gonna share with you guys specifically here. (http://www.businessweek.com/magazine/content/04_22/b3885106.htm?chan=search) - In this article, you will know how Banana Republic has changed.
SO! Here's the story I want to share with you this week. This is the one I found while reading some articles related to Gap's story. As you can see above, the title of this article is 'A fasionable strategy for tough times' written by Susan Yara.
Have you heard of store called 'Intermix'? Intermix, Inc. operates boutiques for women. What's the impression of the word 'boutique'? Isn't it like 'fancy', 'expensive', 'wealth'..? The success of clothing shops depends on the economic situation. However, without worrying about the current economic crunch, Intermix, Inc. expects to earn $100 million in this year. Why? They have a STARATEGY, what we call.Why can't the shops with well-known designers, such as Tommy Hilfiger, avoid economic concerns while the president of Intermix, Inc., Khajac Keledjian is confident with his strategy. What does Intermix have? What makes Intermix different from other boutique shops? "His stores are situated in hip neighborhoods, and his price tags aren't too outrageous: While it is possible to find a dress that costs $1,200 at an Intermix store, there also are plenty of $175 jeans and $58 T-shirts." (quoted) And smaller, hipper labels—such as Yigal Azrouel, Imitation of Christ, Catherine Malandrino, and Theory— got their first real exposure through Intermix, which means that although it is 'boutique shop', it is open to EVERYONE. Unlike other boutique shops continue to prefer wealthy people, Intermix widens the range of customers.
Salvatore Ferragamos and Hermes' strategy was to expand their shops. Famous designers started to build more stores and retail locations and as a results, the percentage of sales grew. For example, Hermes has 24 stores in the U.S. and more than 40 stores in Japan. They allow more customers to visit their stores and buy products made by luxury designers.What I want to point out as I conclude is that having an appropriate strategy that fits for the company's characteristics, abilities, and current situation. As each boutique shop has different strategy, we will need to have a unique, special, and the RIGHT strategy in order to make sales explode in a certain market. That's why I have been looking forward to taking this course.
* Original text: http://www.businessweek.com/lifestyle/content/jan2008/bw20080131_592614.htm?chan=search
_posted by 20500297 * Entry 2
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