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I wonder then, is it easier to compete with Fruit of the Loom, or Calvin Klein? I may be willing to pay for a premium product, but only from a brand I know and
by dfxm12 5y ago
I wonder then, is it easier to compete with Fruit of the Loom, or Calvin Klein? I may be willing to pay for a premium product, but only from a brand I know and trust, like (for the sake of argument) Calvin Klein. I'm not willing to take a risk on some new brand I've never of. If I'm buying something cheap, I really don't care about name brands and am more willing to try something new. Maybe I'm in the minority with my spending habits, though...
- dwallin 5y agoIt's much easier to compete with Calvin Klein. People aren't buying Calvin Klein for quality, they are buying it for the brand. Fashion is a fickle beast, with constant churn and changing tastes, where a young brand with its finger on the pulse can make a name for itself. The purchasers are less price sensitive, which is ideal for small brands who don't have economy of scale and deep supply networks. On the other hand, Fruit of the Loom competes primarily on price. To stand a chance here you need scale. You'd need to bootstrap massive production capability, source cheap materials and labor, and try to find a way to either sell directly with a razor thin per-customer acquisition cost, or to build up relationships with massive distributers who will further cut your margins.