Bench Case Study

 

 

BENCH TAKES ON THE CHALLENGES OF THE CLOTHING INDUSTRY Bench is recognized as one of the leading local clothing companies in the Philippines. The Bench brand has distinguished itself because of its versatile product line, its diverse chain of stores and franchises, and strong marketing campaign. Initially established as a boutique that offered men’s T -shirt -shirt and jeans, Bench has branched off and diversified its product line to include a variety of men’s and women’s clothing, apparel, intimate wear, footwear, fragrance and cosmetics. It has also established other brands and franchises which include popular foreign brands such as Celio, Charles & Keith, and Aldo, as well as local brands such as Human and Kashieca. At present, there are hundreds of Bench outlets, franchises, and retailers which give the company a wide and enduring presence in the market. Additionally, Bench has gained renown for its advertisement campaigns. The company is known to tap the best talents and most recognizable celebrities to be its endorsers and image models. It has also employed a variety of effective media campaigns on television, print media, and billboards. Bench advertisements and billboards are among the most recognizable ad campaigns in the industry.

Notwithstanding its stature as an industry leader in the clothing business, Bench and other local clothing companies continue to face various challenges in the market. One of these challenges is the cost of production and operations. Frequent changes in prices of raw materials result in increased production costs. Clothing companies can decide to pass on the cost to their consumers, but that would result in increased prices for their products. Top clothing brands such as Bench have decided to absorb the cost of production in order to maintain competitive competitive prices in the market. Another challenge challenge is the high cost of renting space in malls. Many mall operators require tenants to give an advance payment equivalent to several months of rent, apart from the expenses for renovating and improving the space. Finally, the high cost of labor is also challenge to clothing companies, particularly for bench, which uses local manufacturers and suppliers for majority of its products. Another challenge to clothing companies and retailers is the often-changing consumption patterns of buyers. Changes in preferences among consumers often follow a pattern. For instance, during holiday season sales of clothing and apparel are expected o increase. However, consumers nowadays tend to be more price-conscious and opt for less expensive items. This is also evident in i n the behavior of consumers during mall sale sales. s. People take advantage of the lower prices and malls are often crowded with buyers during sale seasons. Ordinarily, these result in an increase in the number of sold items for clothing companies. However, this does not necessarily mean an increase in profit since the products on sale are “off season” items and those left unsold from pr evious stocks that have to be sold to avoid losses for the company.

 

   The entry of foreign clothing brands in the the Ph Philippine ilippines s is a ma major jor challenge challenge which has affected sales of local clothing companies. Clothing stores such as Forever21 from the US, Uniqlo from Japan, and Swedish brand H&M have entered the Philippine market. Despite the entry of these foreign brands, Bench has maintained a steady footing in sales and even steadily increases its sales.  The influx influx of foreign clothing clothing brands brands into into the Philippines Philippines has motivated motivated Bench to take opportunity and establish its brand internationally. At present, Bench has made significant strides in establishing itself as a global brand. Bench stores have opened in the Middle East, United States, Canada, Singapore and China. Overseas Filipinos form a large portion of Bench’s international  clientele, but the company plans to cater to a more international audience. A big limitation to the expansion of Bench and other clothing brands is that foreign clothing companies are often heavily supported by their respective governments. Incentives and subsidies enable the foreign companies to make cheaper products due to decreased manufacturing costs. In the Philippines, there is little support for clothing manufacturers and retailers. Another challenge for Bench is to come up with local clothing lines that will capture the interest of foreign markets. Since Bench primarily caters to a clientele in a tropical country, it has limited options with regard to clothing for colder seasons such as winter and fall.

Requirements: Conduct a SWOT Analysis of Bench using the table below. Fill in the table with appropriate appropriate information.

Strengths

Opportunities

Weaknesses

Threats