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Direct & Indirect Competitors
The following boutiques are located within a 10 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Joey’s Clothing is described by their own marketing as “selection that can’t be beat” and has been in business for 32 years. Joey’s offers a wide variety of children’s clothing for ages up to tweens.
Joey’sfocuses on national and regional manufacturers that sell a wide variety of products. Joe’s generally has low and medium-priced options for each type of clothing. Joey’s does not sell at least 75% of the high-end products that [Company Name] plans to carry. Joey’s is also located on the outskirts of town and lacks foot traffic to its store.
Macy’s is in the mall in a neighboring town and carries a variety of children’s clothing. With national advertising and high volume of sales overall, due to the many departments within Macy’s, Macy’s is well-known in the community as a source for children’s clothing.
However, Macy’s is not seen as a place to shop for gifts for children as the clothing within are seem as uninteresting and relatively low fashion. The majority of shoppers within the Macy’s children’s department are price-conscious mothers, who shop based on sales and discounts offered. Others dislike Macy’s for the long waits at checkout within the store.
According to its marketing, “Gymboree carries high-quality children’s clothing and accessories in sizes newborn to age 12.”Gymboree opened a location five miles way from [Company location] one year ago. Gymboree has been successful, selling fashionable clothing that is still rugged enough to allow children to play.
[Company Name] has several advantages over Gymboree including:
- Gymboree sells only Gymboree brand clothing, limiting its options
- Gymboree is far from the downtown area where customer foot traffic gives greater visibility
- Gymboree does not offer gift-wrap service within the store
We expect that Gymboree will continue to thrive based on excitement about a recognizable chain among some townspeople. However, we expect that more and more customers will frequent [Company Name] based on the location and the fact that we are independently owned and operated.
[Company Name] enjoys several advantages over its competitors. These advantages include:
- 5 and Under Focus: [Company Name] will focus solely on clothing for children 5 years of age and younger, which is the fastest growing market segment by revenue. By focusing on younger children, we are able to carry a wider variety of high-end brands for these children.
- Management: Our management team has years of children’s clothing retail experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders and newspapers, as well as clothing suppliers. As such, it will be relatively easy for us to build branding and awareness of our boutique.