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Guess SWOT & PESTLE Analysis

ID : 52680553| May 2020| 15 pages

COMPANY PROFILE -Guess

Business Sector :Fashion, Apparel & Accessories

Operating Geography :North America, Europe

About Guess :

Guess an American clothing brand and retailer. In addition to clothing for both men and women, the company also sells a wide range of fashion accessories such as watches, jewellery, perfumes, and shoes. Guess was founded in 1981 by Georges Marciano, and his brothers Maurice Marciano, Paul Marciano, and Armand Marciano with its headquarters in Los Angeles. The company was one of the first companies to create designer jeans. At the beginning, the jeans were mainly designed for women, they started a men's line in 1983. GUESS operates in fast-moving global markets serving the style-conscious consumer through the iconic GUESS brand image. Their designers travel throughout the world to monitor fashion trends and discover fabrics that inspire new lines and collections. GUESS has a number of trademarks under its wing, which includes GUESS, GUESS? GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GbG, GUESS by MARCIANO and Gc.
As of February 2020, the company had over 4,900 U.S. and internationally registered trademarks or trademark applications pending with the trademark offices in over 175 countries around the world, including the U.S. Guess And Marciano apparel products are designed by their own separate in-house design teams located in the U.S., Switzerland and South Korea. The company also derives a significant royalty revenue from licensing activities across the globe. Guess sells its products through both domestic and international wholesale distribution channels as well as licensee operated retail stores and concessions. GUESS had approximately 15,800 employees globally as of February 2020.
Guess mission statement states that “We are committed to being a worldwide leader in the fashion industry.”

Guess Revenue :


US$ 2.68 billion - FY ended 1st Feb 2020 (y-o-y growth of 2.6%)
US$ 2.61 billion - FY ended 1st Feb 2019

Competitive Analysis of Guess

SWOT
PESTLE
The SWOT analysis of Guess is presented below:
Strengths
Weaknesses
1. Brand equity source of sustainable competitive advantage
2. Multiple distribution channels across the globe
3. Strong management and excellent corporate strategies
4. Strong relation with reliable suppliers
5. Guess personalized shopping application for tech-savvy customers
6. Agile and responsible supply chain
1. Multiple cases of labor laws violations
2. Negative publicity due to harassment allegations
Opportunities
Threats
1. Market growth of Denim Jeans
2. Emergence of e-commerce
3. Increased penetration in key categories including denim, Marciano, men’s and handbags
4. New dynamics creating future consumer opportunities
1. Demand shock due to Corona virus outbreak
2. Slowing customer traffic in malls or outlet centers
3. Risk in global business
4. Adverse environmental impact of jeans manufacturing
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Detailed SWOT Analysis of Guess

 

Strength

1. Brand equity source of sustainable competitive advantage: The GUESS brand is a strong asset for the company that has been built over the years. It is a strategic asset and also the primary source of competitive advantage. The good thing about a strong brand is that it cannot be duplicated by any competitor and represents a source of identity with which the customer associates themselves. The brand communicates a distinctive image that is fun, fashionable and sexy. This image has been maintained consistently around the globe through the emphasis on innovative product designs and award-winning campaigns. Brand loyalty, name awareness, perceived quality, strong brand images, public relations, publicity, promotional events and trademarks all contribute to the reputation of the company. The strong brand equity can be a source of consistent returns for the company in the long run.

2. Multiple distribution channels across the globe: GUESS uses use direct-to-consumer, wholesale and licensing distribution channels to sell their products. This allows them to spread their risk so that their results do not end up depending on any particular retail channel. The use of many channels also allows them to be flexible to any changes in the distribution environment. Their direct to customer is omni-channel based both for online and brick and mortar. This helps in creating a seamless experience for their customers. The use of multiple distribution channels has also helped them gain an advantage in terms of experience managing them. This is quite beneficial in the long run.

3. Strong management and excellent corporate strategies: The company has consistently performed well as a corporate starting with the successful mergers and acquisitions of many companies with itself. They have been successful in integrating technology companies with their own DNA to streamline operations and bring forth digitization. This proves the fact that they pose a strategic vision. They have employed their efforts to build a reliable supply chain. Another area where they have proved their expertise and experience is in entering new markets and making success. Their expansion has helped them to build new revenue streams for them to leverage and also diversify the economic risks that is associated with a business. Now, all of this has evidently resulted in a high level of customer satisfaction among the existing customers and upholding of the strong brand equity that they have. All of this factors only help reiterate the point that they enjoy guidance of an experienced management team who have effectively guided the company over the years and continue to do so.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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Major Brands :

  • Guess
  • Guess U.S.A.
  • Guess By Marciano
  • GC
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Check Out Analysis of Other Relevant Companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Guess Analysis Report

1. Guess annual report 2019 - http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_GES_2019.pdf

2. Guess annual report 2018 - http://www.annualreports.com/HostedData/AnnualReportArchive/g/NYSE_GES_2018.pdf

3. Guess company profile - https://in.reuters.com/finance/stocks/company-profile/GES

4. Guess investor 2019 - https://investors.guess.com/static-files/c61b4eb0-a39b-4dbb-8377-1e39291bb71a

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Guess SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Guess SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/guess/ [Accessed 28 May, 2020].

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

Copyrights and Disclaimer

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

Copyright of Guess 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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