Trends in Business Environment - Essay Example

July 16, Louise Lai CEO 110 East Ninth Street Suite B1255 Junk Underjeans Los Angeles, CA 90079 RE: Opportunity/Trend Analysis Letter Dear Ms. Lai: Watching and following a trend in business environment nowadays has been a part of business discipline (Zahorsky). It is a way to monitor the current and future movements of trend performance before moving into an investment. Very often, businesses are jammed with the daily transactions and demands in managing the business; as a result, they are being left behind by great opportunities. I select your business as my primary concern, thus this letter will focus on the opportunity/trend that is suitable for Junk underjeans, as well as the recommendation that is helpful in the implementation. JUNK UNDERJEANS: After having a primary research about the company, I have discovered some relevant data. You company is producing a unique line of men’s undergarments with the latest and hottest trends made from highest quality fabrics and materials (“About Junk underjeans”). The distribution method is wholesaling with a selling capacity of 500+ pieces as a business apprentice. I have also discovered that Junk underjeans designs are credited to Mr. Sean Gregg as the fashion designer (“Junk”). The different styles and collections such as the rebel, urban and sleek have captured the interest and excitement of straight and gay guys as your target market. Your promotional strategies such as tradeshow, fashion show, magazine, online blogs, and company website are very helpful in delivering the product to the market. The most in-demand business today according to American Apparel and Footwear Association is the apparel manufacturing in which “sales for 2000 reached $315 billion, representing a 90% growth from its 1990 levels” (qtd. in Fulbright). Junk underjeans had made a good choice of business. OPPORTUNITY/TRENDS: Starting up a new business nowadays is not for seasonality alone, but it goes with passion and on what the person really believes. There is nothing wrong if the business gives more focus and priority on one product line especially if that product is doing well in the market. However, opportunities/trends should also be given consideration as it comes. The industry will only appreciate and understand the essence of the opportunity/trend if it has an open mind with a positive outlook (Khoo). It does not entails that because Junk underjeans is producing undergarments for men only, then it should be heading that way in the future. Definitely not, because change is a typical respond for every business which is either a desire or a necessity. Junk underjeans has proven its success in capturing the attention of men, and it has already established a name in the market. Now is the time to use these advantages to capture the attention of women in terms of producing undergarments. Yes, investing for manufacturing women’s undergarment is a good opportunity (Conelly). As to product/services share, women’s and girl’s underwear, briefs and spencers have the biggest share compare to men’s and boy’s underwear, foundations garments, infant wear and sleepwear (“Sleepwear, Underwear”). Why not grab this opportunity and reflect on the idea to craft women’s undergarments in your business. It is not a matter of pretending that the business is not affected, but it is an issue on making projections about future trends that will measure up on how you do business and on what would be its impact on your business (Khoo). OPPORTUNITY/TRENDS’S SIGNIFICANCE: There is no doubt that your product is accepted by men as your target market, however the opportunity that the demand for women’s undergarments is increasing should not be set aside. Your company’s problem is all about searching for new buyers to increase the sales, well then, the demand I presented would surely bring more buyers and give additional profit for the business. If Junk underjeans wanted to be more profitable, it is better to invest new product for new target market. Although it is a crucial step for the business, high demand is an assurance. In India, the promising sales area of the world, 700 million women spend 7% of their budget for underwear (“Survey of underwear”). Women in Britain spend more than 20,000 pounds on underwear. A survey from Jockey “revealed that women are spending around 17 times as much as men are on underwear” (Johnson). 82% of the women want to have a variety of underwear because they considered it as a luxury and a treat for themselves. On the other hand, there is only 7% if men consider the same because underwear for them is a functional product that is why they prefer to stick to one type. In US, lingerie products for women dominate with a market share of 83 % (“Women’s Underwear”). This product is highly competitive in the market in terms of pricing. According to German, Fashion Life, underwear for women contributes 17% on clothing sales compared to 9 % from men (see chart 1). Chart 1 Source: German, Fashion Life According to a survey, undergarments both for men and women are among the top 30 buyer-searching keywords among industries, quoted last May 31, 2008 (“Alibaba.com” 16). This is a good sign for Junk underjeans to take a look on the issue with a corresponding SWOT analysis. Strengths: Junk underjeans is an international company manufacturing men’s undergarments with affordable prices. It allows online marketing and advertising through its company website. Weaknesses: It focuses only on men as its target market and it lacks competitive strategies and variety of products both for men and women. Opportunities: Diversify the market with new products for women to meet the increasing demand of women’s undergarments. Threats: There is a high competitive threat that is why the product should be unique among other manufacturing industries. RECOMMENDATIONS: Introducing a new image for the brand is a big task for the business that is why I am giving recommendations that might help you in making decisions. I believe that Junk underjeans is very much aware about competition as it has long been visible in the market. Most of your general competitors like Calvin Klein, Andrew Christian, Ginch Gonch and many more are now catering both men and women. I want you to enter the market of women’s undergarments not because your competitors are doing it but I want to convince you that a better chance of succeeding is waiting. You have to remember that competition is part of the business, thus it should not be feared rather it should be embraced (Parker). You have to be competitor-oriented, and focus on competitive strategies to surpass competitive threats (Kotelnikov). Entering the market with a new product line is a crucial step for the business for there are many things to consider. Before entering the market, the company should investigate the intensity of the competition. You have to go to the market and observed, find out everything about your competitors, and check on how they produce and market women’s undergarments. To personally investigate the competition, try to put yourself on the part of the customer, talk to salespersons and ask them basic questions about the product. With the help of this initial information you will be guided, and coping up with the latest undergarments trends is easier. Try also to obtain a good source of advice and analysis from industry-specific networking on how to handle competitions. Willing international and successful manufacturers are a good source of information that will certainly shed you light in coming up with your decisions. To enter the market with the best product you should create a business plan, to be followed by building a sales team. The team must be composed of knowledgeable, field expert, talented and enthusiastic people in making money and obtaining success. Once the initial plan has been developed, the company should research on the emerging markets and focus on specific potential countries for underwear like China, India, Europe and many more. Also, the company should consider on the how to reach its target market (women), the risks involved, financing, etc. Sales of this apparel had doubled over the last 10 years, in fact last 2002 the sales had reached to $14 billion with a great market share (“Women’s, Misses’, Children’s”). Imagine how big is the opportunity and how catastrophic it is if Junk underjeans will just let it pass by. It is not impossible to be at the top of the competition for a novice business if only the business is keen to opportunities and trends. Sincerely, Ophaphan Wangmontri (Professional Title/Position) Works Cited “About Junk underjeans.” Junk underjeans. Junk underjeans, n.d. Web. 14 July 2010. . “Alibaba.com Industry Report.” Docstoc. Docstoc, n.d. Web. 15 July 2010. . Conelly, Jennifer. “Wholesale Business – Selling Undergarments can be a Great Option.” Ezine Articles. Ezine Articles, n.d. Web. 14 July 2010. . Fulbright, Jenny. “Starting a Clothing Line Business.” Power Home Biz.com. Power Home Biz.com, n.d. Web. 16 July 2010. . German, FashionLife. “Diverse Structures Dominate German Fashion Markets.” GfK Retail and Technology. GfK Group, 2009. Web. 19 July 2010. . Johnson, Emma. “Retail Therapy/Shopping: Underneath Our Cloths; Emma Johnson Discovers More About An Essential Part Of Our Wardrobes.” The Free Library. Farlex, Inc., n.d. Web. 19 July 2010. . “Junk.” We R Paparazzi. Techbliss Online, 2009. Web. 14 July 2010. . Khoo, Valerie. “Finding Business Opportunities in Trends.” The age.com.au. Fairfax Digital, 2010. Web. 14 July 2010. . Kotelnikov, Vadim. “Business Strategy.” Ten3 Business e-Coach. 100 Ventures.com, n.d. Web. 16 July 2010. . Parker, Richard. “Investigating the Competition of a Business for Sale.” BizQuest. Entrepreneur.com, 2009. Web. 16 July 2010. “Sleepwear, Underwear and Infant Clothing Manufacturing in Australia.” Ibis World. Ibis World, 2009. Web. 14 July 2010. . “Survey of underwear market in India.” Export.by. National Centre for Marketing and Price Study, n.d. Web. 19 July 2010. . “Women’s, Misses’, Children’s, and Infants’ Underwear and Nightwear.” HighBeam Business. The Gale Group Inc., n.d. Web. 15 July 2010. . “Women’s underwear sales take shape in the US.” Just-style.com. Aroq Ltd., 2004. Web. 19 July 2010. . Zahorsky, Darrell. “Hottest Small Business Trends.” About.com. The New York Times Company, n.d. Web. 14 July 2010. . Read More