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Kontoor Brands SWOT & PESTLE Analysis

ID : 521062053| Oct 2021| 18 pages

COMPANY PROFILE -Kontoor Brands

Business Sector :Clothing

Operating Geography :United States, North America, Global

About Kontoor Brands :

Kontoor Brands is a clothing brand based in the United States. In May 2019, it was spun out from VF Corporation and now sells denim under the Lee, Wrangler, and Rock & Republic brands. Kontoor Brands also owns and manages the VF Outlet factory outlet shop chain. The company's headquarters are in Greensboro, North Carolina. Its business is built on a strategic sourcing approach and a best-in-class supply chain, all of which are backed by industry-leading sustainability standards. The company is concentrating on using its worldwide platform to generate brand growth and provide long-term value to all of its stakeholders, including consumers, customers, shareholders, and suppliers. It primarily sells its products through wholesale and internet platforms. United States (US) Wholesale, Non-US Wholesale, Branded Direct-to-Consumer, and Others are among the company's distribution channels. Men's and women's denim, clothes, and accessories are marketed from Wrangler. Lee is a denim and clothing company. Lee offers a variety of men's, women's, boys', and girls' jeans, pants, shirts, shorts, and jackets. Rock & Republic is a high-end clothing line. Kohl's is the only retailer of Rock & Republic products in the United States. It also owns and operates several additional brands around the world, including Gitano and Chic. Lee, a Kontoor brand recognised for its timeless denim design and creativity, teamed up with denim producer Artistic Milliners on August 30, 2021, to create a range of 100% recyclable jeans that are a perfect fit for the environment.

Kontoor Brands' USP lies in its being a worldwide lifestyle fashion firm with a portfolio of some of the world's most recognisable consumer brands: Lee®, Wrangler®. The mission statement of Kontoor Brands' reads, "We design, manufacture and distribute superior-high-quality products that look good and fit right, giving people around the world the freedom and confidence to express themselves".

Kontoor Brands Revenue :


USD 2,097.8 million - FY ending 31st December 2020 (y-o-y growth -17.69%)
USD 2,548.8 million - FY ending 31st December 2019

Competitive Analysis of Kontoor Brands

SWOT
PESTLE
The SWOT analysis for Kontoor Brands is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Owns iconic brands in denim clothing
2. Strong partnership with leading retailers
3. Robust and continuous cash generation
4. Strong supply chain presence worldwide
1. Market concentrated into few large customers
2. Dependence on limited mills for raw materials supply
OpportunitiesThreats
1. Developing innovative manufacturing methods
2. Expansion in diverse geographies
3. Evolve inhouse e-commerce capabilities
4. Expansion into adjacent product categories
1. Covid-19 affecting operations in major markets
2. Intense competitive environment in fashion retail
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Kontoor Brands

Strength

1. Owns iconic brands in denim clothing: Kontoor Brands is known for its iconic brands Wrangler and Lee. These brands are well known globally for their authenticity and availability. The garments with these brand names are being sold in around 60 countries. For this, Kontoor Brands has developed a strong network worldwide. The distribution channels support a continuous rollout of new items. The company positions these products through a differentiation strategy. The two brands saw a growth in both US and EMEA markets. In the US market Wrangler and Lee saw a revenue growth of 5% in the second half of 2020. US is an important market for the company as it is responsible for 78% of its global revenues. The two brands were able to increase their market share by 2% in the US market for Men’s and Women’s bottoms. Through innovations, these brands are expected to fuel future growth of the company.

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

Weakness

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

Opportunity

1. Developing innovative manufacturing methods: Lee jeans has introduced body optix technology at a fashion event in London. The technology uses components such as geodesic patterns, lasers, and the behaviour of light to produce body enhancing denim clothes. It was developed in VF corporation’s Cognitive and Design lab by using advance optics. The technology is based on the idea that our brain perceives shapes and colors differently based on the lighting principles. These principles have been used by artists for centuries. The team at Lee has taken up a similar effort for the manufacturing. They have used lasers to improve the shading of body parts. This has brought the contouring of cosmetics industry to clothing. The influence of Instagram helped in quick launch of the technology. The technology bolsters Kontoor Brands’ differentiation strategy.

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

Threat

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

Major Competitors :

  • Gucci>
  • Levi’s Strauss
  • Guess
  • True Religion
  • Diesel
  • Killer
  • Calvin Klein
  • Pepe Jeans

Major Brands :

  • Wrangler
  • Lee
  • Rock and Republic
  • VF Outlet
SWOT & PESTLE (combined)
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TABLE OF CONTENTS
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WHY CHOOSE US?

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Check Out Analysis of Other Relevant Companies

References used in Kontoor Brands SWOT & PESTLE Analysis Report

1. Kontoor Brands, Inc. Annual Report to Shareholders: 2020 - https://d1io3yog0oux5.cloudfront.net/_abd4ab688a7dab8c0e6617bba4f6b823/kontoorbrands/db/700/12306/annual_report/Kontoor_2020_Annual_Report.pdf

2. Lee Jeans Is Using 'Visual Science' To Contour The Body For The Instagram Generation - https://www.forbes.com/sites/rachelarthur/2017/09/20/lee-jeans-visual-science-instagram/?sh=5c1a2a9a7fb2

3. Gender-Neutral Fashion: A Millennial Whim or a Trend to Stay? – Commetric - https://commetric.com/2019/08/26/gender-neutral-fashion-a-millennial-whim-or-a-trend-to-stay/

4. Why Virtual Dresses And Augmented Fashion Are A New Profitable Frontier For Brands - https://www.forbes.com/sites/cathyhackl/2020/06/08/why-virtual-dresses--augmented-fashion-are-a-new-profitable-frontier-for-brands/?sh=3f774d7b62c8

5. The making of a more holistic retail future - https://www.deloittedigital.com/us/en/blog-list/2021/the-making-of-a-more-holistic-retail-future.html

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

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In-text: (SWOT & PESTLE.com, 2021)

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Kontoor Brands SWOT and PESTLE analysis has been conducted by Mohit Harishchandra Deshmukh and reviewed by senior analysts from Barakaat Consulting.

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