Maidenform Competition
Now Viewing Maidenform's competition in: Apparel Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company have any foreign factories? - Large manufacturers increasingly have foreign plants or use foreign contractors.
What percentage of merchandise is returned for quality problems? - Customers may return poor quality items or pay less for them.
Does the company manufacture and market its own brands? - Design, manufacture, and marketing are sometimes done by different companies.
If the company manufactures its own brands, who are its major customers? - Companies often sell directly to merchants like Wal-Mart.
Does the company do contract work? - More companies that own brands use contract manufacturers.
How does the manufacturer determine fashion trends? - Manufacturers are pressured to produce new fashions every spring and fall season.
How does the company acquire new business? - Personal contacts and trade shows are important avenues.
Competitive Landscape
Demand is largely determined by consumer tastes and the comparative costs of manufacture in the US and overseas. The profitability of individual companies depends on efficient operations and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture. There are few economies of scale in manufacture, because of the high labor content of most apparel. The industry is labor-intensive: average annual revenue per production worker is about $155,000.
Business Challenges
CRITICAL ISSUES
Foreign Production Cheaper - More than 75 percent of apparel sold in the US is made abroad because of lower labor costs and the high labor content of most products. Imports come from foreign apparel makers, but also from the foreign plants of US and contract manufacturers. Many US clothing companies have transferred most production capacity abroad. Annual imports of apparel are more than $75 billion.
Dependence on Large Retailers - Many apparel manufacturers depend on a few customers for most revenue. Large clothing chains account for a large portion of industry sales. The growth of large chains also cuts smaller manufacturers out of large orders because they're unable to supply the quantity of goods needed.
Industries Where Maidenform Competes
- Consumer Products Manufacturers
- Apparel
- Intimate Apparel(primary)
- Apparel
- Retail
- Apparel & Accessories Retail
- Nonstore Retail
