G-III Apparel Group SWOT and PESTLE Analysis

Strength

Strong portfolio consisting of globally recognized brands: G-III Apparel Group has a strong portfolio consisting of internationally recognized brands that cater to the changing customer trends. They sell to more than 30 licensed and proprietary brands including famous and old brands like Tommy Hilfiger, DKNY, Karl Lagerfield Paris, Donna Karen and Calvin Klein. These brands account for the highest percentage of revenues and are rightly referred to as the powerhouse brands. G-III has a diverse mix of brands catering to different groups of consumers. DKNY and Donna Karen are focused on women’s affordable luxury segment and have good presence in famous department stores like Macy’s, Saks Fifth Avenue, Nordstrom, Bloomingdale’s, etc. Vilebrequin is focused on premium swimwear with majority of sales coming from Europe and the United States. G-III’s in-house designers are tasked with matching consumer trends with the products they design. They meet regularly with licensed brands to get the designs approved before they can be sold under the licensees’ names. Customer input is also given great importance while designing new products.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

High dependence on third-party manufacturers in Asia: G-III Apparels sources its products mainly from independent manufacturers located in South East Asia, Middle East, South America, etc. Only a very small percentage of the products are manufactured in the US. Vietnam is the largest producer of their products, representing 36.2% of the total inventory in FY21. Inventory sourcing from China declined in FY21 owing to disruptions from the pandemic but still accounted for a significant 32.8% of the total inventory. G-III does not have any long-standing agreements with these manufacturers and that leads to lesser scope of building strong relationships with the manufacturers. This high dependeice on Asia also makes their operations sensitive to political instabilities or economic downturns in the region. During the onset of the pandemic, China was the first countries to be affected and supply chains originating from China were disrupted due to government lockdowns and ban on flights from China. G-III’s operations were largely hit in the beginning of the pandemic itself when other US companies were still performing normally.

The remaining section under "Weakness" is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

1. Rising trend of athleisure among the younger consumers: The sportswear industry was one of the few industries to perform well in 2020 during the COVID-19 pandemic. While the apparel industry as a whole struggled with store closures and loss of sales, the activewear segment saw increasing sales as more and more people were forced to stay at home. American retail giant, Target reported that their proprietary activewear line saw sales worth $1 billion in 2020 which was unprecedented as the brand had only launched right before the pandemic. Allied Market research reports suggest that the global activewear industry is expected to be worth nearly $547 billion by 2024. While the jump in activewear sales during the pandemic is notable, the trend has been around and gaining momentum over the past few years. Several celebrities have also endorsed activewear and athleisure for popular brands, making the trend more attractive for young consumers. Football player, Christiano Ronaldo and tennis player, Serena Williams have promoted athleisure styles for brands like Nike, making their sales skyrocket. G-III also has a strong athleisure segment and they hope to capitalize on this consumer trend to amp up sales.

The remaining section under "Social" is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.