Industry Analysis
Fashion Industry has always been very fickle. It doesn't show loyalty to one brand or one designer rather it chooses to go with the tide if the tide appears to bring better quality and more chic. The fashion industry is divided into three major segments, high, medium and mass. While the mass industry remains static in terms of brands and loyalty, it is the high and medium fashion segments that change often because in they are ruled by the customers who have great influence on the market but still the big players like Givenchy, Dior and Versace would still know how to play the market and give minimum leverage to the customers.
The industry has been divided into trend setters and followers. While setters enjoy greater influence, followers are dragged along by the companies catering to medium and mass segments.
In this industry, it is the supply chain that matters the most because that tends to help in cost reduction and improve profitability.
Customer/Marketplace Trends
As already mentioned,...
China plays a huge role in production but doesn't have much influence on where the market moves or which trends appear on the horizon. That is mostly controlled by high end fashion houses or the celebrities.
Environmental forecast:
The need for expansion is now much greater than ever before. Technology will play a huge role in the success of fashion trends and fashion houses in the future. New entrant threat is always there and fashion being fickle, Mantero cannot afford to be complacent.
Strategy Diamond
We believe that as a company with 100 years of experience, Mantero must develop a strategy based on what has been discussed in this paper. It can no longer afford to either ignore the B2B method or expand physically. It will have to use both options and develop a much stronger strategy. Secondly it needs technology also to be able to communication better with its clients and stay in close touch with changing trends.
