Comprhensive Case “The Apparel Shopper” 1. What overall conclusions do you reach after reading this case? The information in the case gave the overall conclusion that the apparel industry is a very competitive field to get into and in order to prosper companies must find their own personal niche within the industry. A company cannot survive in the apparel industry by providing what is already available in other stores. It is important to define a target market and appeal to their needs and wants.
For instance, Wal-Mart appeals to low income individuals, Target and Old Navy appeal to more fashion sensitive customers, and so on. Ultimately, stores must relate and direct efforts towards specific apparel shoppers demographics and preferences. 2. How can apparel retailers compete with Wal-Mart? To compete with Wal-Mart you need to think of Wal-Mart’s competitive advantage: price. Your stores competitive advantages MUST stand out, and be in demand. You must have a style clothing that appeals to your target market if you want to compete with Wal-Mart.
This means marketing based on style, name brand, and higher quality clothing. Wal-Mart can’t offer any of these things. Also, if you try to market to another demographic such as Hispanic Americans or Asian Americans you might find a niche that has not yet been tapped into. 3 Does cross-shopping affect apparel retailing? Is this good or bad? Why? I think cross-shopping definitely affects apparel retailing. People will go to different stores and shopping centers in one shopping trip to look for a specific item, the best prices or just a different look. Low income shoppers may shop around for the best bargains.
For retailers, cross shopping can be a good thing and a bad thing. If a person starts out at a particular store and doesnt find anything they really want they may buy something somewhere else just because they are tired of looking. Stores also have to stay competitive with their prices in order to keep loyal shoppers. 4. What are the retail implications of this statement: “American consumers are not trendy – either at work or play” Do you agree with the statement? Why or why not? The retail implications are that most stores tend to follow the trends and not necessarily set them.
Americans are more conservative than Europeans in their apparel so if a new retailer is trying to break into the market, he/she should consider how they want to market their clothing. If they want to stand out, maybe they should invest in newer, trendier clothing. If not, then they should keep their target market in mind. I don’t agree with that statement however, I do believe Americans are trendy themselves. Many people I know rely on celebrities, magazines, talk shows, and television to figure out the latest styles and how to wear certain styles.
I believe Americans acually focus quite a bit on trends.. especially younger generations. Older generations tend not to follow this idea however. 5. How could the information cited in the case be used in a retail information system? The information in this case could be used by a retailer to help dicover how to cater to their target market. Their retail information system can keep track of information on the types of customers that shop at their stores, such as income level, gender, race, age, ethnicity, and clothing preferences.
The retailer then knows if they are targeting the right customers for their product line and price range or if they need to change their target market. 6 What additional consumer-related information would you like to review about apparel shoppers besides that stated in the case? I would like to see a comparison based upon different locations within the United States. Income, age, gender, and ethnicity all play important factors regarding where consumers shop. However, I feel that the location and surroundings of the consumer will also play an important role when deciding where to shop.
For instance, two different employees, who are both earning the same salary and working for the same company in different locations, will probably tend to dress differently. A standard dress code is usually enforced no matter where the company is located; however, how people adhere and dress in regards to the dress code will probably differ. The employee in New York City will probably dress on a more upscale and trendier level. This is due to the fact that these employees have access to several upscale, specialty store locations.
On the other hand, an employee working in Lancaster may not be wearing Prada shoes or carrying Louis Vuitton briefcases. As stated on page 201, “consumer lifestyles are based on social and psychological factors, and influenced by demographics. ” In addition, consumer demographics on page 199 states within the definition that consumers can be identified by place of residence. Stores such as Hollister, which bases their style on a California trend; and Abercrombie, which demonstrates styles of the east coast are realizing these differences and are now basing the styles of their stores off of these locations.