Harrington Collection: Sizing Up the active-wear Market
Harrington Collection was established in 1960 by Ella and Steven Harrington as a manufacturer and marketer of designer women’s clothing. Today, it appears as a large manufacturer and retailer that specializes in woman clothing. Harrington collection is essentially focused on two core segments: The manufacturing Group, dedicated to designing, producing, and marketing upscale women’s apparel, accounted for 50.3% of company profits in 2007; and the Retail Group, focused on retail-based operations for company-owned stores, accounted for 49.7% of profits in 2007. The manufacturing group supplied apparel for company-owned stores and also sold products to upscale department and specialty stores. Harrington owned and operated production facilities in the United States, Mexico, and the Caribbean; and the Group did not sell any products to mass merchandisers or discount retail outlets. Harrington Collection’s retail group operated 120 company stores: 70 stores sold a combination of Harrington Limited and Christina Cole merchandise, and 50 of the stores were dedicated solely to the Vigor division. Regardless of the potential market size that active-wear offers, and lackluster sales and low margins that Harrington collection had faced for their past three years; Harrington must review their disappointing 2007 results, analyse the opportunity properly and evaluate launching a new active-wear product line in order to reverse the negative trends, increase profits and maintain their high leadership position in the market. Targets (ages 25-60)
Each manufacturing division was broken off into their own specialized division of either “sophisticated elegance’, “status seeker” or “trend setter”. (Exhibit7)
Leading companies such as Jones Apparel Group and Liz Claiborne captured significant market share with their diverse brand portfolios. They...
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