GLOBAL FASHION INDUSTRY AND BUSINESS

Table of Contents
EXECUTIVE SUMMARY........................................................................................................2

Introduction................................................................................................................................2

Analysis......................................................................................................................................2

Market overview.....................................................................................................................2

SWOT analysis...................................................................................................................2

PESTLE analysis................................................................................................................3

Competitor analysis....................................................................................................................4

Key competitors......................................................................................................................4

Competitor mapping...............................................................................................................5

Target market..........................................................................................................................5

Product comparison................................................................................................................6

Consumer analysis.....................................................................................................................6

Market segmentation..............................................................................................................6

Desired target market..............................................................................................................6

Consumer profiling.................................................................................................................6

Research methodology...........................................................................................................6

Strategies....................................................................................................................................7

Product mix............................................................................................................................7

Marketing mix........................................................................................................................7

Communication channel.........................................................................................................7

Launch plan............................................................................................................................7

Recommendation....................................................................................................................8

Conclusion..................................................................................................................................8

References..................................................................................................................................9

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EXECUTIVE SUMMARY

The mountaineering and adventure sports market is very vast in the United States of America
and Canada. The North Face is a company specialising in manufacturing high quality
mountaineering equipment and gears for adventure seekers. Although the company has faced
many setbacks due to its policies in the past, the North face has been bringing improvements
in the internal policies of the company in order to sustain the present day competitive market.

Introduction

The global adventure sports industry has been rapidly evolving according to the changing
nature of the market. The North Face is one of the pioneers in the production of
mountaineering products and protective gears for adventure enthusiasts (Brannon and
EvelynL 2015). The company has its headquarters in Almeda, California in the United States
of America. The organisation has been trying to expand its business by introducing a new
product Futurelight for its already present customer base of adventurers.

Analysis

Market overview

SWOT analysis

Strength
● Premium quality products
● Use of innovative materials
● Presence of a large consumer base
Weakness
● The cost of the products is very high
(Thecoldwire.com, 2021).
● Relies on too many informal sources
of manufacturing.

Threat
● Threat from the competitors
● Lower quality products available at
less prices from the competitors
Opportunities
● More than 200 stores in different
parts of the world.
● Excellent brand image for the quality
of the product being manufactured.

Table 1:
(Source: Thecoldwire.com, 2021)
Analysis

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The North Face is known for producing premium quality mountaineering gears and for using
innovative technology in its products. The company has been facing a setback due to very
high costs being manufactured (Thecoldwire.com, 2021). The company has nearly 200 stores
and an excellent brand image due to its quality all over the world (Burns L.Davis, 2011). One
of the major threats being faced by the company is the availability of low-quality affordable
products by the competitors of the company.

PESTLE analysis

Area Factors Impact

Political ● Oldest democracy in Positive

the world
● A stable form of
government

Economical ● GDP of the country Positive

is $22.72 trillion
(Statista.com, 2021).

Social ● Adequate Positive

infrastructural
development for
mountaineering
(Cfr.org, 2021).
● The literacy rate of
the USA is 99%
(Data.worldbank.org,
2020).

Technological ● Significant Positive

development of
manufacturing
facility using the
latest technology
(Terrastaffinggroup.c

3
 om, 2021).

Legal ● The federal laws Positive

support the growth of
any business in the
country
(Ilpabogados.com,
2021).
● The products
manufactured by the
company fulfil all the
UIAA safety
standards
(Theuiaa.org, 2021).

Environmental ● The products Positive

manufactured by the
company or
environment friendly
(Epa.gov, 2021).

Analysis
The stable form of government in the United States of America provides a suitable
environment for new businesses and innovation to grow (Dillon, 2011). With a GDP of
$22.72 trillion, the purchasing power of the citizens of the country is very high and that is
very beneficial for the company (Statista.com, 2021). The country has adequate terrains for
mountaineers and adventure seekers in the country (Gerald et al. 2015). With the availability
of appropriate technological advancement, there is very good infrastructure available for
mountaineering and thus the availability of a market for the products manufactured by The
North Face (Grose, 2011). The raw materials used for the manufacturing of the
mountaineering gears are environment friendly and follows the federal laws of the country.

Competitor analysis

Key competitors

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The key competitors of the northern face are Patagonia, Canada goose and Columbia.
Patagonia has been the largest competitor of the company that produces mountain jackets that
are more affordable as compared to The Northern Face (Owler.com, 2021). Canada goose
and Columbia also specialise in the manufacturing of sportswear in the apparel industry that
provides serious competition to the company (Rath et al. 2012). As compared to the northern
face Columbia sportswear generates $808.7 million in terms of revenue (Vfc.com, 2021). On
the other hand, Canada goose has 37% more revenue generation as compared to the north
face.

Competitor mapping

Figure 1: Competitor analysis of The North Face

(Source: Owler.com, 2021)
The North Face produces good quality products but at a very high price as compared to its
competitors. “Columbia sports” and “Patagonia” also specialises in the field of sportswear
and apparel but focuses more on reaching a large consumer base with a passion strategy that
suits a large number of customers (Varley et al. 2018). The focus on the quality of the
products is a little less as compared to The North Face.

Target market

The target market of the company is urban citizens and individuals looking for adventure
and mountaineering activities (Choi, Tsan-Ming, 2012). With the growth of the sports
industry in the country of the United States the target market of the company is rising
drastically (Bristol, 2017). The innovation and design of the company have helped the
organisation to increase its value to around $22 billion from its target sports markets of the
USA and the UK (Statista.com, 2021). The company has been able to create a specific market
segment with the manufacturing of very high-quality products (FairchildPosner, 2015).

5
Product comparison

As compared to the competitors The North Face produces slightly better products. The
“Nylon rain jacket” produced by both Patagonia and the Northern Face is similar but the
former uses natural products so as to have a low impact on the environment (Smith, 2018).
The mountain gears and jackets produced by The North Face uses “Gore-Tex” and
“Thermoball” technology in its product to provide better wind resistance to the user
(Thenorthface.com, 2021). On the other hand, the competitors of the company use a nearly
efficient Flash dry system to provide resistance from rain to its users (Noel, 2008).

Consumer analysis

Market segmentation

The north face has been targeting four new brand landscapes to target new market segments:
mountain Lifestyle Mountain sports mountain athletics and urban exploration (Rapp and
Tirabeni 2020). With the help of this new strategy, the company has recorded annual
revenue growth of 6% with the brand value rose to $2.3 billion from $1.9 billion (Vfc.com,
2021). This new market segment has helped the company to create products that attract the
people living in the urban areas.

Desired target market

The company has retail stores in various parts of the world including Asia and Europe. The
most popular places that have the reach of the company are susceptible to cold weather
(Shaker, 2018). The countries of Canada and the United States of America have been the
best geographical locations for the company to continue the business
(Uk.fashionnetwork.com, 2021). Moreover, the North face has products that are available for
everyone. The desired market for the company is vast as it has all the products that can cater
to the needs of individuals from all demographics (Hult et al. 2018).

Consumer profiling

Most of the consumers interested in the products produced by the organisation are adventure
seekers and individuals living in urban areas (Chakrabarty and Sadhukhan, 2019). Since the
company has products for all age groups, it becomes very easy for the company to understand
and profile the consumers in order to satisfy their needs (Fairchild Posner, 2015). The
company has also developed a consumer territory model that helps the organisation to

6
specifically identify the areas where there is demand for the products manufactured by the
company.

Research methodology

The data for the research activity has been collected from authentic sources. A comparison
has been done between the competitors of the company and the target market that The North
Face has been operating. The SWOT and PESTLE analysis has provided all the strengths and
weaknesses and the factors responsible for the success of the new product that is being
launched by the company.

Strategies

Product mix

The organisation specialises in the manufacturing of various types of mountaineering gears

for different age groups. The market of “fashion-oriented urban exploration” is worth about
$72 billion, which is expected to grow between 9% and 11% annually (Vfc.com, 2021). The
company has all the products that are required by mountaineers of every age group from
different locations around the world.

Marketing mix

The four P's of the marketing mix has been suitably used by the company in increasing its
services in the current market scenario (Thabit, and Raewf, 2018). The products
manufactured by the company are of superior quality but at a higher price, thus making them
available for the consumers with higher spending ability. The company links its products with
famous mountaineers in order to market its product in mountainous locations.

Communication channel

The organisation uses various communication channels in order to reach its consumers in an
effective manner. The North Face promotes adventure activities among its prospective
consumers through social media and banners. The good quality of the product helps the
organisation to gain more customers through word of mouth by the old customers of the
company. It acts as a source of free marketing for the company.

Launch plan

The company has inaugurated a new product by the name of “futurelight” that is waterproof
and breathable and has been made with the help of cutting edge “Nano spinning

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technology”. This technology will be much more beneficial for athletes and adventure
seekers in cold and wet conditions (Smith et al. 2017). The 2022 winter Olympics that will be
held in China will act as a golden opportunity for the company to launch its product for
athletes. The company has the option of launching the product by signing sponsorship deals
with the athletes.

Recommendation

The company has been focusing on making good quality products for a very high price. The
number of employees working for the company is very less as compared to its competitors.
The organisation needs to enter into the semi-premium market and manufacture products that
can be purchased by all individuals. In order to stay ahead of its competitors, the organisation
needs to develop a cohesive culture among its workers.

Conclusion

The global adventure sports industry has changed drastically over the years. The North Face
is a company specialising in the manufacturing of mountaineering equipment and protective
gear. The company has been using various marketing tools in order to introduce its new
product into the market with the help of the winter Olympics that will be held in China. Thus
it can be concluded that focusing more on the quality of the products can help a company to
grow in the market even with the very high cost of the product.

8
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