SWOT Analysis: Aloha Collection
Although Aloha Collection benefits from the proprietary technology underpinning its product line, the company's highly limited sales and distribution model and relatively narrow target consumer represent significant corporate weaknesses.
- Aloha Collection has a variety of strengths as a brand and organization, most notably including the company's differentiated technology and products.
- Specifically, all of Aloha Collection's luggage offerings, handbags, pouches and other travel bag products are made with the company's patented "splash-proof" technology.
- Officially registered with the US Patent and Trademark Office, this technology allows Aloha Collection to produce products that are "soft" and visually appealing, while also highly functional as lightweight and waterproof items.
- In parallel with this unique and propriety technology, the brand has also differentiates itself through a myriad of collaborations and celebrity endorsements.
- Some of the company's most prominent collaborations are with "notable" brands such as Free People, The Four Seasons, Jack Johnson, Coola Suncare and Kealopiko.
- In addition, Aloha Collection's products are supported by celebrities including Kate Hudson, Anna Herrin and Ivy Miller.
- These partnerships, combined with Aloha Collection's differentiated product offerings, have ultimately generated a wide array of positive press coverage for the brand by fashion outlets (e.g., Elle), athletic magazines (e.g., Shape), business media (e.g., Forbes), travel outlets (e.g., Conde Nast Traveler), lifestyle magazines (e.g., US Magazine) and even local press (e.g., San Diego Magazine).
- Despite these competitive advantages and overall strengths, Aloha Collection also appears to struggle with numerous internal weaknesses.
- Perhaps most notable is the company's limited array of products and highly focused target audience.
- While Aloha Collection offers bags in over seven different sizes, the company overall sells only one type of product (travel bags and purses) and therefore is inherently vulnerable to significant fluctuations in the market for this limited product category.
- In parallel, a review of the company's owned media channels (e.g., corporate website, social media accounts), suggests that Aloha Collection has a highly specific target market: young, athletic women.
- While the company's differentiated technology and product design may be uniquely suited for this demographic, such tailored marketing and more limited consumer focus may impede the company's ability to reach additional customer segments and grow its revenue.
- Moreover, while Aloha Collection sells its products worldwide and is looking to become a dominant global player, the company's product sales and distribution operation appears to be mostly if not entirely limited to the company's corporate website.
- Combined with the fact that Aloha Collection charges significant fees for product shipping, this narrow distribution strategy further constrains the company's potential reach with customers and opportunity to gain market share.
- However, Aloha Collection's developed online presence also represents somewhat of an opportunity for the company, given that e-commerce shopping is now driving retail sales in the US as well as globally.
- In particular, the fact that more than half of US retail sales are now completed through online channels stands to benefit the company, given that it has a strong US sales base, highly curated corporate website and substantial social media presence (e.g., 84,200 followers on Instagram).
- Additionally, Aloha Collection is likely to benefit from the strong momentum towards companies that prioritize ESG initiatives.
- Among the Aloha Collection's various environmental, social and governance programs, the company currently donates 5% of profits annually to support conservation efforts in its native Hawaii.
- Considering the fact that investors, consumers and potential employees are increasingly attracted to companies with strong ESG value propositions, Aloha Collection has the potential to enjoy significant financial and talent-generating opportunities stemming from its core values.
- However, Aloha Collection's business may continue to be threatened by strong competition in the travel bag and purse marketplace, as well as consumer spending pressures from a potential downturn in the US economy.
- Despite the fact that the global travel bag and purse market is expected to grow at a CAGR of 7.1% through 2023, according to Allied Market Research, Statista predicts a much more moderate growth rate of approximately 1.1% for the US market through the same period.
- Considering this limited projected growth, Aloha Collection is more likely to face strong competition within its core market of the US.
- In particular, the company faces a number of more mature and well-known rivals in the travel bag and purse space in America, including Michael Kors, Versace, Away, Everlane and Dagne Dover.
- In parallel, economists are increasingly concerned about the potential for the next US and global recessions, which could present a further challenge for the brand.
- Given the fact that Aloha Collection produces discretionary consumer products, the company may be more vulnerable to the impacts of such an economic downturn.