Threat of substitute

6 June 2016

Threat of substitutes
The threat of substitutes means that a product identical or similar with other product which same characteristics product we found easily. The industry is less attractive when the threat of substitutes is high. In this case, we need to produce different product compared to the other firm to attract consumer to buy from us. Our firm threat of substitutes is medium as we are producing the plus sizes of clothing for men and women. In this industry, although there are several brand such as H&M and Mango having large size or plus sizes of clothing.

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There is the difference between us because we only focus on the large size clothing while they are also having other product line like accessories and bag. Another brand like camel active, blue tom and etc is producing large sizes clothing too but their sizes is limited and normally their sizes are only available until XL or XXL. Compared to our brand, it is not the same because we are providing unlimited large sizes cloth.

Normally, obese group will search for tailor on customize their clothing and the budget is high, some of them may be cannot afford it. On the other hand, the price of H&M and Mango is usually high and searching for tailor service is very expensive. In conclusion, our clothes are suitable to all level of income as it is very affordable and reasonable, not only for higher level income’s group. Threat of new entrant

The competitor can enter to the industry easily if they are selling identical or similar product. Which means that the treat of industry is high, not so profitable and the industry are not attractive. The barriers to entry to our industry is moderate because our business location is in Bukit Bintang are which is in the Sungei Wang Plaza which held nearby the same industry competitor such as H&M at Lot 10 shopping mall and Mango in Pavilion shopping mall. In this case, we are providing different clothing business with others because we targeted and focused on obese people and only selling the large size clothing.

We are using good quality raw material and selling at suitable, reasonable, and affordable price for customer. Customer may found what they find and wanted as we are selling latest design and fashion clothing with our fashion master advises and we make sure that they will get what they pay for. Bargaining power of buyer

Nowadays, there are plenty of obese people who having problem in searching for clothes but not much firm is providing what they want, the plus sizes clothing. Therefore, the bargaining power of buyer in our business is low because the customer less choice and has few switching cost. In addition, our plus size clothes are suitable for all level income; all people can afford to buy it. Therefore, the obese people can wear more beautiful cloth and we also can give some consultant to them how to matching cloth. These services do not have in other firm. So, customer can wear beautiful and more confident and also shopping happily and no need worry does not have beautiful cloth wear. Rivalry among exiting firm

There are fewer competitors in our business, so this industry is more profitable and attractive. But the all competitor are more famous than us, they have loyalty customer. So we need innovation, different with other. We do this just specially for obese people and we also provide fashion master service for customer. Our business is consider as slow growth industry, the fashion of cloth always change so we need fight with other to win the market share. So sometimes need do promotion to attract new customer and hold the old customer.

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