Part
01
of one
Part
01
What are the demographics of Guess clothing company's customers these days?
Hello, and thanks for your question about the demographics of Guess clothing company's customers. This research found that the targeted customers for this firm are in the 18 to 32 age range, with incomes between $25,000 and $60,000 per annum. It also found that the company's dwindling revenues were caused inter alia by a poor online strategy, poor accessories business, and the rise of fast-fashion brands.
OVERVIEW
Guess was established in 1981, and is currently based in Los Angeles, California.
The company was founded in 1981 and currently owns 336 stores across North America, as well as 386 stores internationally.
Another industry report states that ''Guess and its licensees and distributors operate in 97 countries worldwide. It directly operates roughly 870 retail stores in the Americas, Europe and Asia. The Company's licensees and distributors operated roughly 770 additional retail stores worldwide.''
According to a review, ''Guess Inc. (GES) is a component of the specialty retail industry which is a segment of the overall retail industry. Guess Jeans designs, markets, distributes, and licenses lifestyle collections of contemporary apparel and accessories for men, women, and children that reflect American lifestyle and European fashion sensibilities.''
TARGET CUSTOMERS
The target customer of Guess is style-conscious, and aged between 18 and 32. This demographic is valued by Guess for their relatively high disposable income, as well as their high predilection for brand identity.
This group comes under the demographic known as Millenials - that group of 18-39 year olds who account for approximately 30% of the US population, or about 90 million people, and their average spending power is in the region of $25,000 to $60,000 per annum, according to industry site, CRM Trends.
CUSTOMER INTERESTS
- Apparel and Fashion
- Entertainment
- Media
- Famous People
- Recreational Activities
- Food and Drink
- Sports
- Retail
- Beauty
- Travel
Guess Inc. is making efforts to expand its customer base. Recently it introduced an athletic clothing line, which was fronted by Ariana Grande, a pop star. Its aim was to target the 'Athleisure' market - those who wear sportswear in non-sport situations.
FINANCIAL PERFORMANCE - DECLINING SALES
Revenue has fallen steadily since 2012, and fell by 9% in 2016, compared to 2015 - a loss of $213 million. This placed the firm's income for that year at $2.2 billion.
Much of the declining income was due to fluctuations in foreign currency which adversely affected the firm. In addition, the company effected a number of store closures, with negative sales growth at its stores in the Americas leading to a 1.6% drop in revenues for that region.
Specifically, ''the store base in the Americas decreased by an average of 26 stores on the prior year, resulting in a 4.1% fall in square footage'', states industry research site, Vault. Nevertheless, actual cash from overall store activities rose in 2016, with a 17% increase from the previous year, due to changes in accrued expenses and accounts payable.
Also, according to Forbes, ''Guess’s retailing strategies, its online weakness, the poor performance of [its] accessories business and the growth of fast-fashion brands are among the few factors responsible for [its] market share loss.''
SUMMARY
The research identified the targeted customers of this firm as being in the 18 to 32 age range, with incomes ranging from $25,000 to $60,000 per annum. It also found that the company's dwindling revenues were caused inter alia by a poor online strategy, a poor accessories business, the rise of fast-fashion brands, and foreign currency fluctuations.
Thanks for using Wonder, and do let us know if we can be of further help.