Harrington Collection Case

Although Harrington Collection is one of the biggest retailers of high-end women’s apparel market, sales and margins were the lowest level that they have ever seen. Therefore, creating a new product line that is active wear is one of options and also this helps to raise margin and sales. On the other hand, if the case examines in detail, it is clear that there is a dilemma since the company services high-end segment. This means that it addresses limited segment. However, the aim is that doubles sales in between 2007 to 2009. Despite the fact that Harrington Collection manufactures new product line, targeted sales number is so high that it cannot be achieved for 2 years. If we compare sale that is 7.5 million units of active-wear in 2007, it doesn’t make sense that it is 15 million units sale.

In addition to this situation, Harrington Collection should care about its loyal customers needs. In terms of the researches that they had, most of the active wear segment customers prefer to buy durable and fit products rather than high quality and premium price products. Furthermore, active wear market has been grown year by year and with reference to research, it is obvious that the company cannot lose its loyal customers. In opposite, it seems like the company will increase the sales. From my point of view, the company should enter the market but they should decrease the expectations of the sales in between 2007 and 2009.

SWOT ANALYSIS OF THE COMPANY

In terms of strength of the company, Harrington Collection serves superior quality and upper-class fashion. Due to the fact that the company is not a start-up company, it is easy to fly out the new product line. Also, It has already had e-commerce site and advertised the line. Moreover, the relationship with retailers and partners are strong. Considerable customer loyalty and knowledgeable sales staffs are another strengths, when the company decides to enter the market. As a weakness part, the company has limited financial capabilities and its sales and margin have been decreasing day by day for three years. Also, Harrington Collection doesn’t have any outsourcing. These may prevent to increase the sales rapidly. Also, there are many opportunities of the active wear market. The market has a promising future. In terms of customers, loyal customers desire to buy active wear clothes.

Moreover, baby boomers body change rapidly and they need affordable, fit and look well clothes since potential buyers profile and lifestyle have changed year by year. However, there are important points that it shouldn’t keep an eye out for threats of the new product line. Although the market is promising, it will be highly competitive. Also, potential customers are not limited only loyal customers. Therefore, customers are price sensitive, if the company is reflected the new investment in prices because the entry cost of the market is high. Additionally, Harrington Collection had produced high quality and premium price products but active wear market goes out of fashion in a short time. Finally, company should be more careful customers desire since the demands of the product may change fast at the same time.