INDUSTRY ANALYSIS: FASHION IN SPAINBy: Mike Rosenberg, Amy Marcelo, Alexis Zayfert, Tobi Ogundipe
APPAREL INDUSTRY• Valued at $33.38 Billion in 2011• 1.3% growth over 2010• First time growth since the economic recession began in 2008.• Forecasted growth from 2010- 2015 of 10.5%• Spain is the fourth largest producer of textile• Behind Italy, France, and Germany.
TARGET MARKET Young adult Men andWomen aged 18-35 years old• Urban• Concentrated• Young Professionals• Have ability to make a purchase• New source of revenue• Looking for partners• Looking to impress• Trend-setters
TARGET CONTINUED Population Statistics • Population of 46,754,784 • 67.7% aged between 15-64 years old • 77% live in an Urban Environment • Literacy Rate 97.9% • 67% of those aged 18-19 live at home • Opportunities? • Change in Needs?
COMPETITORS ZaraMarket Share of 9.8% H&MMarket Share of 3.2% Bershka Market Share of 2.9% MangoMarket Share of 2.6%
COMPETITIVE ANALYSIS Hennes & Mauritz (H&M) Swedish Company Operating since 1941 Targeting young, cosmopolitan men and women between 18 and 35 Opened in Spain in Spring 2000, today run 126 stores Ranked second in Apparel in Spain Global company with same website and promotion strategy around the world. Strength: Outsourcing to offer low prices Weakness: Price= Quality in Spain No Ecommerce in Spain
COMPETITIVE ANALYSIS Blanco Company of Spanish origin founded in 1960 Making appeal toward young, urban men and women Around 200 stores in Spain, Portugal, United Kingdom, Dubai, Saudi Arabia and Greece Operates in different divisions such as BlancoACCESSORIES and BlancoSTOCK Promotions focus on the clothes and personality of Blanco Strength: Creating the Blanco experience in stores Weakness: Not a big fashion player in European market or Spain
COMPETITIVE ANALYSIS MANGO Company of Spanish origin founded in 1984 Making appeal toward young, modern and urban men and women More than 2,060 stores in 104 countries Operates in different divisions such as MANGO and H.E. by MANGO
COMPETITIVE ANALYSIS Zara Company of Spanish origin founded in 1975 Owned by the Intidex Group Targeting young, cosmopolitan men and women interested in upscale clothing at affordable prices Over 1,577 stores in 78 countries “Zara’s international footprint proves that national borders are no restrictions to a shared fashion culture ” Strength: Unique response to market demands Weakness: Vertical integration
CURRENT REGULATIONS WITHIN THE FASHION INDUSTRY OF SPAIN Spain is part of the European union and European commision. They follow forms of design protections mandated by the European commissions regulation on community design. Also, Express Clothing must overcome bureaucratic and legal issues to incorporate and register a new firm.
STUMBLING BLOCKS • Aside from the regulation and laws, other stumbling blocks include • Vast Culture, diverse languages , and overall, a hugely diverse country. • Unempolyement rate. (rose from about 8% in 2007 to 20% in 2010.) Also, budget deficit is on a rise. • Form of currency- The euros (facing trouble today) • In the Fashion industry, Economic Downturns and somewhat lackluster styles pose a problem.
TURNING PROBLEMS TO OPPORTUNITIES!• Express should handle financial transactions using a more stable currency (such as u.s dollars)• The specter of unemployement is good for the company because it means more people are likely to apply for the job and even willing to work for less money.• In the Fashion Industry, express should also introduce new and exciting designs at a reasonable cost to spur the interest and to encourage more people to buy the products.