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Marketing Plan for the Introduction of Virgin Jeans
Market and Competition
According to Prudential Securities sixty per cent of the jeans market is five-to 24-years-olds. But this market segment will grow by only 0.6 % each year for the rest of the decade. The world market for Jeans is between 6.6 and 8 billion Dollar worth and (4 to 5 hundred million pairs sold annually). The growth rate over the last few years was: 1993 - 2.6%, 1994 - 2.6%, 1995 - 2.4%.
The main competitors in the market are Levi's, Wrangler, Mossimo, Girbaus, Diesel, Bugle Boy and Jordache. However, in dollar sales, Levi remains No.1. Recent competition has come up by designers such as Versace, Armani, Moschino, Joop, DKNY, Lacrois, Dolce & Gabbana, Anna Sui and Todd Oldhamm. This development shows the new consumer trend to spend more on jeans if they are well branded. Levi's just introduced the 'baggy' style in an attempt to regain market share in the urban youth customer segment, demonstrating the importance of the urban youth market.
The majority of sales takes place in retail chains and not in jeans outlets. Mail order has a surprisingly small market importance.
To gain a view over competitors consider the charts 1,2,3 in the appendix.
The figures originate from a market research among 157 jeans companies analysed in 1994.
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