Ducati Competition
Now Viewing Ducati's competition in: Clothing Stores
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who is the company's typical customer? - Customer demographics vary according to an individual company's strategy: for example, Gap sells men's, women's, and children's clothing.
What type of lifestyle does the company try to project? - Companies consider customer lifestyle (casual, working professional, etc) when developing marketing plans.
What are the company's most effective marketing and promotional vehicles? - Marketing and promotional vehicles include TV, print, and newspaper advertising; direct mail; catalogs; and in-store events. Large chains may run extensive national TV and print campaigns.
How does the company generate store traffic? - Locally, clothing stores often use window displays to attract store traffic. In-store events include fashion shows and trunk shows.
How would the company describe its image? - Companies may use a signature decor to define store image. Many clothing stores aim to deliver a distinct shopping experience or image, through unique decor, merchandise displays, a particular type of background music, or customer service.
How reliant is the company on discounting and clearance sales? - Price markdowns or discounts are a common marketing strategy. Clearance sales help drive store traffic and sell excess merchandise.
How does the company determine the timing and amount of discounting for a particular sale? - Large companies may perform sophisticated pricing analysis to determine the timing and amount of discounting needed to maximize profitability.
How would the company's customers describe the level of service they receive? - Customer service is especially important in high-end or designer clothing stores, where garments can costs thousands of dollars. Sales associates often have personal relationships with loyal customers and contact them when new merchandise arrives.
What are the benefits of offering personal shopping services? - Companies may offer personal shopper services to help busy customers and promote related item sales.
How important are alternative channels, such as catalogs and Internet sites, to the company's sales? - Many chains sell merchandise through catalogs and Internet sites. Clothing retailers may offer colors, styles, or sizes not available in stores through websites or catalogs.
How is the company leveraging the Internet? - Some companies advertise in-store promotions on Internet sites or run exclusive web-only sales. Emails to website customers are a quick, inexpensive way to communicate promotions.
How does the company's pricing compare to its competition? - Designer brand apparel is typically the most expensive. Bridge wear features designer or brand names at moderate prices. Off-price clothing stores typically offer a wide assortment of brands and styles at 20 to 60 percent standard retail prices.
Competitive Landscape
Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is labor-intensive: annual revenue per worker is about $130,000.
Business Challenges
CRITICAL ISSUES
Demand Depends on the Economy - Consumers buy more clothing when they have more disposable income and the economy is healthy. Under recessionary conditions, clothing stores sales can slow significantly. Economic factors that drive consumer spending, including personal income, consumer confidence, and credit availability, affect demand. When money is tight, consumers often cut discretionary purchases, including clothing and accessories.
Competition from Mass Merchants - The rapid expansion of mass merchants like Wal-Mart and Target has pressured clothing retailers at the lower and middle segments of the market. By selling stylish clothes and accessories at low prices, mass merchants attract consumers looking for fashion and value. Many industry experts credit mass merchants for creating the "cheap chic" clothing category. These stores also offer one-stop shopping by selling other products besides clothes.
Industries Where Ducati Competes
- Automotive & Transport
- Motorcycle & Other Small Engine Vehicle Manufacturing(primary)
- Retail
- Apparel & Accessories Retail
