Now, before we talk further about the competitive advantages of the fashion industry is France, let us first know what Competitive Advantage is. Competitive Advantage can be best described as the strategic advantage one business entity has over its rival entities within its competitive industry. Exactly as it defines, France has acquired or developed combination of several attributes that allowed it to outperform all the competitors from all over the world. The innovative ideas of these fashion houses, their knowledge of the latest trend, their sophisticated appearances, and inability of imitation by the competitors are the major reasons why these brands come first in our mind when we talk about luxury fashion brands. Ofcourse there is severe competition from American and UK brands like Coach, Michael Kors, Dunhill, etc, but the French fashion industry knows best how to sustain their competitive edge in the foreign market.
The main strategies which these fashion houses take up in order to maintain the position they have earned in the past years are discussed below.
Product Features
What makes the product unique and desirable? The style, quality ingredients, the outlook and the exclusiveness of the products offered by the French fashion houses are only few of the several reasons that make the product so desirable. The competitors all around the world are also probably providing almost all the features, minus the quality of the fabrics and other materials that are used in the French fashion house products. For example, Christian Louboutin is a French footwear designer whose footwear has incorporated shiny, red-lacquered soles that have become his signature. The usage of the red soles gives the Louboutin brand a competitive advantage that is very difficult also expensive for imitation by competitors. Not only one, but all the brands have one special feature, making their products world class and worth the price premium.
Brand Name Recognition
A carefully crafted and executed marketing plan with a focus on the customer is a major contribution to the business of these fashion ventures in France. A good marketing strategy and intellectual usage of the brand name can be enough to differentiate the French fashion brands from the rest of the world. There is hardly any trendy person in the world, who knows what’s in fashion but does not know Louis Vuitton, Dior, Chanel, etc. Once a brand name is established and maintained, it is very difficult to lose that top position in the market, people will know about the brand name and the products and that’s why the French fashion houses are the major players in the fashion industry.
Exclusiveness and Uniqueness
The French fashion houses are so classy and to maintain their exclusiveness, businesses like Louis Vuitton always burn their unsold products, before the next product line is offered in the market rather than offering the products at a discounted rate or offering any clearance sale. They do this in order to make sure the products offered by them are worth the price and customers feel the pride while using them and the uniqueness of the products are maintained.
Customer Experience
The fashion companies in France have gained the competitive advantage due to their constant innovation, upgrade and change. Their products are shifting to more sophisticated appearances every day, thus the customers experience a new trend every time they use their products. Again, because these companies are constantly improving, and changing fashion sense with each new launch of their lines of products, it has become even more difficult for the rivals to imitate their offerings.
Fashion world is all about introducing new, innovated trendy products every day. The product differentiation strategy of the French fashion houses has put them in the worlds’ number one position, when it comes to fashion industry . The contribution of the French fashion houses to the fashion industry worldwide is remarkable. It is believed that their competitive advantage will sustain for a longer time, and France will always be the leader in the fashion industry. Thus, the customers will always be eager to use their products, regardless of the high price they charge for their exclusive products.
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