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French Connection SWOT & PESTLE Analysis

ID : 52642853| Sep 2020| 15 pages

COMPANY PROFILE -French Connection

Business Sector :Clothing

Operating Geography :United Kingdom, Europe, North America

About French Connection :

The French Connection Group designs headquartered in UK, produces and distributes branded fashion clothing for men and women to more than 50 countries around the world. French Connection was founded by Chairman and Chief Executive Stephen Marks in 1972. The company has a long history of trading based on very good design quality and innovative fashion, supported by a strong market presence resulting in one of the most highly recognized and respected clothing brands in the UK and across the world. The aim of the Company is to generate increased shareholder value through the sale of fashion products and the extension of the brands into other lucrative markets through licensing. For extending retail distribution further, the management has granted franchises and licences to quality retailers allowing them to operate French Connection branded retail stores in Europe, the Middle East, Asia and Australia. These customers are supplied through their wholesale channels in the UK and Hong Kong. The main countries where manufacturing takes place are China, India and Turkey.
This UK-based global retailer and wholesaler of fashion clothing, accessories and homeware’s USP or unique selling proposition lies in the notorious usage of the widely popular "fcuk" acronym in its advertising campaigns which has become synonymous with its brand. French Connection is a design led British brand, creating distinctive products across womenswear, menswear, accessories and home for the modern lifestyle that appeals to a broad audience.

French Connection Revenue :


£119.9 million – FY ended 31st Jan 2020 (revenue down by 11.4%)
£135.3 million – FY ended 31st Jan 2019

Competitive Analysis of French Connection

SWOT
PESTLE
The SWOT analysis of French Connection is presented below:
Strengths
Weaknesses
1. Broad segment of market served
2. Brand presents innovative ideas with consistent quality and affordability
3. Unique and successful history of marketing strategy
4. Incumbent management with proven expertise
1. Fewer domestic locations for stores and factory outlets
2. High operating expenses and financial losses
3. Weak marketing efforts in present scenario
Opportunities
Threats
1. International Markets and global networks
2. Rapid growth of E-Commerce
3. Extensive use of Social Media by target customers
1. Increased competition from international brands
2. Different national laws for business
3. COVID-19 may cause severe global recession
4. Change in global landscape
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of French Connection

 

Strength

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Weakness

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Opportunity

1. International markets and global networks: French Connection’s diverse and widespread network allows them to grow globally without the requirement of direct investments. The company currently holds around 21 showrooms outside UK borders. The wholesale accounts help in introducing the brand to the international community for enhanced exposure. The company enjoys a huge fan following all over the globe which is again a great thing for business. While a strong international brand they have not expanded too aggressively in the emerging markets. This is probably the biggest opportunity that the company can use for its growth. And more importantly since they already have a taste of international business it should not be too taxing on their part to penetrate and grow. Having said that, there is a huge demand and prospect for top o the line luxury brands and FCUK fits the bill perfectly here.

2. Rapid growth of E-Commerce: With the current wave of e-commerce hitting everyone in the world both business and customers included. It would be a great time to leverage and grow those capabilities to be a strong player in this space. While e-commerce mostly is for the conventional consumer purchases. There is an opportunity for a fashion first presence in the e-commerce space. French Connection can take the time to understand the segment and more aggressively operate in the online arena in addition to their brick and mortar offering. The interesting thing about ecommerce is that it is growing at a rate much faster than traditional retail and this is a great sign for future investments. It would be a great idea to get a stronghold in the market while still virgin. They can attest start by offering some ranges from the product line and more importantly a strong online platform is the only thing that can cross the locations barriers.

3. Extensive use of Social Media by target customers: In the current world that we live in social media has turned out to be a platform where everyone spends quite a sizeable fraction of their daily lives. Now this gives a company like French Connection immense opportunity to harvest. They can start by launching marketing campaigns on different social media platforms. The advantage of this over traditional marketing campaigns is the lower cost involved and on top of it campaign analytics can be performed which actually helps in understanding and identifying customers at a granular level. The data generated by users of social media platforms is a gold mine for a company like French Connection and can also aid in their new product development practices. The current trends and demand of users in the market can be tracked real time using social media analytics. The company should start to tap into this to gain a sizeable competitive advantage over its rivals.

Threat

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Check Out Analysis of Other Relevant Companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in French Connection Analysis Report
  • French Connection
  • Great Plains
  • You Must Create (YMC)
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French Connection SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). French Connection SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/french-connection/ [Accessed 26 Nov, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

French Connection SWOT and PESTLE analysis has been conducted by Shalmali Chakraborty and reviewed by senior analysts from Barakaat Consulting.

Copyright of French Connection SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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French Connection SWOT & PESTLE Analysis
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