Case Brief: Harrington Collections
Essay by ya3496226 • February 25, 2019 • Essay • 436 Words (2 Pages) • 696 Views
Case Brief: Harrington Collections
- What is your evaluation of women’s apparel industry and Harrington’s market position? What are the product lifecycle challenges for Harrington?
The women’s apparel market in the U.S. is both mature and highly competitive as the product life cycle is based on fashion, which means the demand is seasonal. Due to the economic downturn, consumers became price sensitive and started looking for low cost causal clothes instead of high end runway fashion.
Harrington differentiated their products with high end and high quality through four product lines covered three classifications which are Designer, Bridge, and Better. As companies fighting for the market share and shelf space, Harrington is now facing the challenges whether to launch a new product line for active-wear to meet the market and customer’s need.
- What possible impact could this new product line have on the Vigor brand name?
Vigor, though is the lowest level of the product line, still classified as Better. The new product line is inconsistent with the high end brand image. On the other hand, Vigor is more flexible than the other product lines; active wear is more about casual lifestyle, which could attract the existing customers and grab more market share.
- What are the potential retail trade and competitor reactions? Are there any potential channel conflict issues?
Out of 120 company-owned stores, 50 are dedicated to Vigor. The potential retail trade could also be in upscale department stores, specialty stores and internet market. However, competition is fierce and competitors from the same level or even other levels, such as the leading companies Jones Apparel Group and Liz Claiborne, will either imitate new style in a very short period or lower price of their existing products to start a “price war” with Vigor. So there will be potential conflict issues between the price and channel, whether Vigor still charge for a premium in the same channel or lower the price and expand the channel.
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