Market Positioning of Key Global Outdoor Performance Apparel Vendors, 2018
The global outdoor performance apparel market is characterized by the presence of several global, regional, and local vendors. The market is highly competitive, with all players competing to gain a larger market share. High competition, frequent changes in government policies, and regulations are the key factors that obstruct market growth. The vendors compete based on cost, product quality, and flavors. Vendors must provide cost-efficient and high-quality outdoor performance apparel to survive in an intensely competitive market environment.
The market positioning of the key global outdoor performance apparel vendors has been given below:
Columbia Sportswear Company ZensahV. F. CorporationVoormiPáramo Ltd
Although the leading players, as mentioned above, are dominating the market due to their vast industry experience, broad product offerings, and geographic reach, other companies are actively contributing to the market. These players may strengthen their presence worldwide through product development during the forecast period. The competitive environment in the market is likely to intensify further due to the increasing number of product developments, business expansions, and mergers & acquisitions.
Michael Porter’s Five Forces model offers a framework to study the global outdoor performance apparel market. Strategic business managers, trying to gain an edge over competing firms in the global outdoor performance apparel market, can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each element in the context of the global outdoor performance apparel market have been broken down and analyzed.
Threat of New Entrants
Outdoor performance apparel manufacturers must emphasize on product development and launch products with extra features to gain a larger share of the market. The new players need high capital investments to set up their businesses and position their brands in a manner that attracts consumer attention. Moreover, advertising and other promotional campaigns require significant investments. Consumers in the market possess a high level of brand loyalty, and new players need time to create a positive brand image.
Hence, the threat of new entrants in the global outdoor performance apparel market is expected to be low during the forecast period.
BARGAINING POWER OF SUPPLIERS
The raw material suppliers in the global outdoor performance apparel market are the suppliers of cotton, leather, foam, rubber, nylon, polyester, cotton blends, bamboo, wool, soy, coconut, button, and thread producers as well as collection agents, distributors, importers, and independent suppliers. The presence of a large number of suppliers across the globe is expected to reduce the bargaining power of suppliers in the outdoor performance apparel market. Moreover, market players enter into partnerships and agreements with producers and suppliers to ensure a continuous, uninterrupted supply of various raw materials. This strategic move and the backward integration by manufacturers gives them an upper hand while reducing the bargaining power of suppliers.
Hence, the bargaining power of suppliers in the global outdoor performance apparel market is expected to be low during the forecast period.
BARGAINING POWER OF BUYERS
The raw material suppliers in the global outdoor performance apparel market are the suppliers of cotton, leather, foam, rubber, nylon, polyester, cotton blends, bamboo, wool, soy, coconut, button, and thread producers as well as collection agents, distributors, importers, and independent suppliers. The presence of a large number of suppliers across the globe is expected to reduce the bargaining power of suppliers in the outdoor performance apparel market. Moreover, market players enter into partnerships and agreements with producers and suppliers to ensure a continuous, uninterrupted supply of various raw materials. This strategic move and the backward integration by manufacturers gives them an upper hand while reducing the bargaining power of suppliers.
Hence, the bargaining power of suppliers in the global outdoor performance apparel market is expected to be low during the forecast period.
BARGAINING POWER OF BUYERS
Outdoor performance apparel manufacturers are operating in a fragmented market, which increases product availability and reduces the switching cost for buyers. This results in a higher bargaining power of buyers. However, the number of buyers in the global market is high, which limits their bargaining power. Specific requirements of buyers can give an upper hand to manufactures offering customized products. The manufacturers of outdoor performance apparel have a large customer base and, by offering specific products as per user requirements, can reduce the bargaining power of the buyers.
Hence, the bargaining power of buyers in the global outdoor performance apparel market is expected to be moderate during the forecast period.
Threat of Substitutes
There are no direct substitutes for outdoor performance apparel. However, the market is highly fragmented and faces intense internal competition at the product type level. Consumers might substitute one brand of outdoor performance apparel for another based on their preferences. Moreover, the awareness and availability of outdoor performance apparel are increasing in developing nations. Consumers can easily choose products from various available brands in the market.
Hence, the threat of substitutes in the global outdoor performance apparel market is expected to be low during the forecast period.
Intensity of Rivalry
The global outdoor performance apparel market is fragmented with the presence of several regional and global players. There is high competition among the market players in terms of product quality, variety, and pricing. There is minimal scope for manufacturers to differentiate their portfolios based on either product or price. The growing demand for outdoor performance apparel due to the increasing safety concerns create an opportunity for players to emphasize innovation and product quality and expand their customer base. Thus, manufacturers are focusing on various strategic expansions to grow their businesses worldwide and increase their profit margins.
Hence, the rivalry in the global outdoor performance apparel market is expected to be high during the forecast period.
