Harrington Collection

In: Other Topics

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Harrington Collection Case Analysis |
Stephanie Smith |
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MK-4900: Barksdale |
6/19/2013 |

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I. Situation Analysis:
A. Industry: 1 unit = 0.5 hoodie, 1.5 T-shirts, 1 pair of pants
i. 2007 Industry sales:
* $133 billion in women’s apparel
* 1,461.5 million units of women’s apparel
* 82% of industry sales come from imports
* Active-wear: 7.5 million units
* “Moderate” and “Budget” classifications:
a. Volume: 6 Million Units
b. Market Share = 80% of active-wear market
ii. 2009 Industry Sales Volume Estimates:
* Expected growth rate: 4.2%
* Active-wear sales volume estimated at 15 million units
* 200% growth from 2007
* Women’s active-wear in “Better” classification:
a. Volume: 6,000,000 Units
b. Market Share: 40% of active-wear market
c. Average Price Point: Just below 100
iii. Competition:
* Liz Claiborne
* 396 retail stores
* Diversified brand portfolio
* Jones Apparel Group
* 338 retail stores
* Diversified brand portfolio
B. Company: Harrington Collection
i. Expected Market Share for Vigor active-wear line: 7%
iv. Vigor’s expected sales volume in 2009:
* 420,000 units in the “Better” classification for women’s active wear
* $39,900,000 in the “Better” classification for women’s active wear
C. Trends:
ii. Mature market: Short product life cycles
iii. Increased price pressure for firms
* 50% of all women’s apparel is purchased on sale
* Outsource production for low cost labor
iv. Rapid growth of demand for...

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