Carter’s SWOT & PESTLE Analysis

Strength

1. Presence of well-connected Omni-channel in the United States: Carter’s Inc. controls its sales operation through five segments: Carter's Wholesale, Carter's Retail, OshKosh Retail, OshKosh Wholesale, and International Operation. The retail segment of Carter’s and OshKosh operates. The retail is however the major profit building center for the company as it earns above 40% of the total sales via more than 500 stores in US. The company operates nearly 18000 wholesale locations across the globe which includes department stores, national chain store and specialty stores, among which 1,109 Carter's and OshKosh stores are in North America.

2. Growing international business in over 100 countries: The recent international business segment includes sales through company and franchisee-operated retail stores, online e-Commerce sites, international wholesale accounts, and royalty income being generated from 34 international licensees of the Carter’s and OshKosh brands in 40 countries. In addition, Carter’s Inc. also operate an e-Commerce site in China, as well as it reaches out to consumers in approximately 100 countries through e-Commerce sites. International sales contributed to over 12% of Carter’s consolidated sales in 2019 and are expected to grow to 14% of sales by 2024.

3. Broad product portfolio covering major children apparel segments: Carter’s Inc. divides its Carter’s product portfolio into four basic segments as the baby-clothes, sleepwear, play clothes and other product segments. The baby clothes segment consists of bodysuits, pants, dresses, blankets, bibs, booties, sleep and play, one-piece rompers and jumpers. The products are mainly made of cotton and are sold in multiple compelling configurations. The company differentiates itself from its competitors by taking pride in their color, quality and configuration excellence. The play clothes and sleepwear division caters from new-born to 8 years old consumer segment. Carter's brand play clothes include knit and woven apparel while their brand sleepwear products include a full range of pajamas, fleece and poly-jersey. The other product segment include bedding, outerwear, swimwear, footwear, socks, diaper bags, gift sets, toys, jewelry, cribs, paper goods, and hair accessories. The OshKosh brand is best known for its play clothes products which it caters to a larger consumer segment till the age of 14. The brand’s play clothes primarily include multiple wash treated denim apparels. The Skip Hop brand is trademarked for its innovative diaper bags. It also sells various kinds of playtime and bath time home gear for kids.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Environmental pollution regulations in apparel clothing industry: Due to huge amount of water consumption and hazardous nature of various chemicals being used from the raw materials to the finished products phase which ultimately being dumped into the environment, the textile industry is facing many criticisms from the general public as well as it is being deeply scrutinized by the government. The industry has been responsible for creating land, air and water pollution affecting human health and damaging the eco-system. Chemicals used in the processing of goods in textile industry are absorbed through skin, inhaled through air and swallowed through food and water. Chemicals, being toxic and carcinogenic trigger serious diseases and allergic reactions in people. Energy consumption and heat emission are other factors disturbing the eco-system. To protect humans and the environment from harmful substances numerous ecological considerations are becoming important factors all over the world and various countries have introduced stringent legislations to hinder the pollution level caused by these industries.

2. Initiatives towards sustainable products: Carter’s Inc. follows a strict policy in accompanying with the governmental laws of product quality and maintaining ecological friendly products which are not harmful to be worn by a child. They mostly use pure cotton products in all child apparels for all of their brands. Regular inspection is being done at every of their factories to not only check upon the quality of raw materials and the product being used but also to check the working conditions for its labors and other employees. The company believes in a sustainable growth taking in consideration all of its stakeholders. It has fixed quality of raw materials that are ecologically friendly to be used in its products and also the working conditions, hours and wages of the labors are taken great care of. It has collaborated with various other companies who manufacture their products in Carter’s factories. The quality of labour and raw materials for all those industries is also taken care in accordance to the government laws by Carter’s Inc.