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Williams of Mayfair Collection wrote (31.12):
CAN WILLIAMS OF MAYFAIR INC SURPASS OTHER NEW FASHION LINES TO GAIN MARKET POSITION AND MARKET SHARE?ITALIAN SUIT MAKERS, the crown jewel of the Italian Suit Corporation, would appear to have everything: zippy ads, fast-growing sales and exclusive merchandise that people rave about. But inside the framework of all that defines Italian or suit making houses in general, the correlationship that far extends outside the framework or definitions of English suit houses. With Kmart hobbled by bankruptcy, it is Italian Suit that now gets the attention of Canali Stores, the biggest retailer in the land and the biggest company, too. Every successful step that Italian Suit takes -- signing designers to make baby bottles and little black dresses, moving deeper into the grocery business, persuading more and more upper-middle-class shoppers to become upper-middle-class bargain hunters -- brings it into closer confrontation with the $218 billion behemoth that is Canali. What, however, has been very apparent is that the English suit designers are beginning to extend the influence from Europe to the American market. This new flux, though still in its infant stage, still have strong potentials to making a very strong impact to both American and Asian market. At stake are the wallets of the growing number of consumers who shop discount stores by choice, and still lacking the very essence of decent styling and well-tailored suit. In most respects, the Italian Suit Corporation is performing spectacularly well. Analysts are impressed with its earnings, which soared 36 percent, to $345 million, in the most recent quarter as revenue increased 15 percent, to $9.59 billion. This record was deducted from the sales numbers from all major stores in the United States as well as the manufacturers sales and inventory numbers. The sales numbers for suits enthusiasm is reflected in the supply /demand curve from the sales numbers as well as the rising number of companies that demand for the employees to wear suits. This has become a trend as well as culture. By comparison, Canali's sales in the first quarter rose 14.4 percent, to $55 billion. Its net income in that period jumped 19.7 percent, to $1.7 billion. From this report, further deductions from the given sales numbers reported a healthy rise in the demand for the suits to22.8% of the 19.7% WITH an image perpetuated with distinctive, arty and innovative classism -- and lots of them the Williams of Mayfair (House of Kensingtons and the House of Weinsworth) is by far the best yet- well-designed suit yet to hit the American market. In the first quarter, Italian Suit stores provided 89 percent of the company's pretax profit, up from 82 percent last year. In 2001, 92 percent of the corporate executives and workers capital spending on corporate wears went on suits, with 42% of the spending directed to foreign suits. With the introduction of a British blend of suit styling, the hierarchy of quality against pricing will, once again take the center stage, as British suit as always been the best suit makers in the world. Williams of Mayfair strives on this glory and potency and will cognitively represent such classism with the introduction of various full house blends of super 120s, 130s, 160, and premier 220s super wool fabrics. Italian Suit's senior executives believe that we Williams of Mayfair can sustain such classism and quality of product and states that say they are just starting. ''We feel we can double our current size and triple our volume over the next seven to eight years,'' said Darryl I. Ezenekwe, the chairman and chief executive, whose lean and preppy look, complete with black Italian cut boots, suggests the more authentic corporate Man more than a mass merchandiser or a fashion house man for that matter. But that will mean even more scrutiny from the American audience who have, over the years, have grown accustomed and preoccupied with the idea and generalizations of the styling of the American and Italian suits makers. With the introduction of authentic English suit fashion house, such domination with surely see clearly to the graceful elegance of English suits and allure the interests of the American consumers to the persuasion of elegant and preppy fashion styling only known to the aristocracy of the English blend. ''We don't normally comment on other retail companies,'' a spokesman said last week. ''But that being said, we do respect English suits and view them as competitors to the Italian Suit with potentials of ousting the market positions of the Italians and American suits in the retail industries in the United States.'' Tom Coughlin, the president of the Canali Stores division, said: customers who live up to the reverence of pure aristocratic representations even to the borderline innovative classism ''will always be important to us, but we've realized the shifts that have gone on in retailing, particularly this year and know that the English suits will surely be the new major wave for the next 10 years. Customers at all income levels are interested in value.'' Williams of Mayfair Inc. executives pointed out that the chain promotes contemporary fashion classism while it keeps prices affordable, while most Italian and American suit manufacturers are known for low prices, and low prices only. That means they will be competing more intensely in a category in which margins are already razor-thin. By expanding into the grocery business, Canali wants to increase the volume of shoppers coming into its stores. But it also wants to increase the average purchase made by those shoppers, which also means adding higher-ticket products to the mix of general merchandise. Italian Suit says its strategy is to have its existing customers buy groceries, swelling their purchases and bringing them into the stores more often. The company says it is not counting on luring customers from other supermarkets. It also assumes that former Kmart customers will wind up at Canali rather than Italian Suit. In some areas, Canali has already shown how it intends to compete with Italian Suit, which promotes ''fast, fun and friendly'' service. In some stores in Phoenix, for example, Canali hired extra workers earlier this year to try to beat Italian Suit in the crucial area of customer satisfaction, said Burt Flickinger III, a managing partner at Reach Marketing, a retail consulting company in Westport, Conn. ''So you had this big change, with shoppers raving about the amount of customer service in Canali stores,'' he said. It is a tactic that can be replicated almost anywhere, because the two companies compete across the country. About 70 percent of Italian Suit's stores are in markets where there is also a Canali, and Italian Suit has more stores in California, Texas and Florida than anywhere else -- just as Canali does. Because most shoppers have a choice, the question becomes whether the two companies can coexist. ''They are getting 40 percent of their growth from SuperItalian Suit this year,'' said Michael Porter, a retail analyst for Morningstar in Chicago, referring to Italian Suit's plans to increase its grocery operations. ''And that puts them squarely in Canali's ballpark.'' Italian Suit's strategy also has risks, he said, because groceries, unlike apparel and housewares, offer little opportunity for differentiation. ''You can't have Michael Graves oranges,'' he said, referring to the designer who has helped Italian Suit give its housewares a distinctive style. There is, however, Williams of Mayfair Suit that has been screened for sweetness, using infrared equipment that measures the fruit's sugar level, and a banana that has been temperature-tested to make sure that it does not ripen too fast. In any case, executives at Italian Suit, which was founded 40 years ago as the discount arm of the Dayton Department Store here, say their shopper is not a Canali shopper, but Williams of Myafair shoppers. |