J Crew Swot Analysis

J. Crew was founded in 1947 under the name Popular Sales Club. It was a company that specialized in door to door sales of women’s clothing. Over the years, the firm grew, and in the 1980s, its executives saw a new opportunity. Catalog sales for companies such as L.L. Bean and Lands’ End were booming, and the executives wanted their company to share in the boom. In 1983, Popular Sales Club mailed out its first 100-page catalog, filled with models wearing the latest fashions. As sales began to grow, the company changed its name to J. Crew in hopes of catching the preppy, affluent consumer’s attention. Over the following years, J. Crew developed a loyal following by having distinct image that the younger generations found appealing. By

It was a different line created with slightly different fabrics or designs that enabled a lower price point. All products were created on the basis of other popular designs. J. Crew Factory offered products such as tops, jackets, pants, swimwear, and dresses. The factory stores were often located in strip malls and focused on selling styles that had already been proven successful. In 2006, Madewell, a subsidiary of J. Crew, was opened to exclusively target the younger female generation by offering more trendy clothing at a lower price point. Madewell offered products such as denims, dresses, shoes, and tops. Crewcuts offered products for boys and girls serving parents who wanted to dress their kids in trendy clothes. Crewcuts featured products such as shirts, skirts, dresses, sweaters, pants, and swimwear. J. Crew Wedding provided styles for the entire wedding party. The bride could pick out her dream gown while also selecting a new suit for her groom. The store offered 50 different styles and colors for bridesmaid’s dresses. In the suiting department, groomsmen could choose from a wide selection of suits and tuxedos, as well as ties, shoes, and belts. The wedding line also offered choices for

Crew has to contend with is the larger competition. The top four major players held about 20 percent of the revenues in 2013. The four largest players and threats to J. Crew were Ascena Retail Group Inc., Ann Inc., Forever 21, and Hennes & Mauritz. Ascena Retail Group Inc. was one of the largest specialty retailers in the U. S. in the women’s apparel industry, with 7.1 percent of the total market share. Ascena operated approximately 3,900 stores throughout the U.S, Puerto Rico, and Canada. Ascena has total revenues of 3,346 million in 2013 with 101 million operating income. Ann Inc. had the second largest market share inside the U.S. women’s apparel industry, with 5.6 percent of the market. In 2013, it operated approximately 1,000 stores in the U.S., Puerto Rico, and Canada. Ann’s revenues for 2013 were 2,548 million with 189 million operating income. Forever 21 was a women’s apparel company that had an estimated 4 percent of the U.S. market share. Forever 21 had 500 stores in the U.S. The company also expanded globally and operated stores in Europe, Asia, and the Middle East. As a result of this expansion, Forever 21 almost doubled its revenues, to a record $3 billion in 2013. Lastley, Hennes & Mauritz was a clothing and cosmetics company that held a 4 percent share fo the U.S. apparel industry in 2013. The company operated on a global scale and had 3,000 stores in almost 50 markets. The company’s estimated revenues in the U.S.