It is necessary to do a competitor analysis. Not least because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
- Identify the strength of your clothing store competition.
- Search for opportunities to distinguish your clothing store from competitors.
- Set your product’s price.
On the market, you will almost certainly discover some extremely powerful competitors, some of whom will be offering things similar to yours at unbelievably low costs. However, not every competitor works with low-cost, low-quality clothing
The first step is to determine who your direct and indirect rivals are.
The direct competition consists of other clothing store businesses that offer essentially the same products to the same people as you do. Indirect competition consists of brands that offer somewhat different things but can meet the same customer demands, You will likely have online competitors who sell similar items to you.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your clothing store business — but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
- Prices – are they cheaper or more costly than you and other rivals, what value do buyers get for that price, and does shipping significantly raise the price?
- Quality – the materials they utilize, the perceived worth in the eyes of the customers
- Customer service – how they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
- Reputation — the sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium clothing store products? Will you offer unique clothing store products that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your clothing store plan.