Erin Parrish

Niche market strategy for a mature marketplace

Purpose – To examine how companies in the maturity stage of the product life cycle can implement and maintain a successful niche market strategy to increase competitiveness in the face of new competition, with particular reference to the global textile industry.Design/methodology/approach – Responsible executives in eight firms in the textile and apparel/clothing sector in the USA were interviewed face‐to‐face or by telephone, or completed an online questionnaire. The sample contains leaders in the industry.Findings – Research results suggest that niche marketing is an effective strategy for countering price competition in a mature industry and can use a niche market strategy. They identify key success factors, the most important factor of which was found to be a thorough understanding of the targeted consumers. It is concluded that the marketing mix plays a more important part than is generally suggested in the literature, by communicating non‐price product attributes to the niche market.Research limitat...

Opportunities in the international textile and apparel marketplace for niche markets

With the present transient status of many countries’ economies, the international textile industry faces considerable challenges. There are many uncertainties surrounding the global textile market, exacerbated by the foreboding that in 2005, quotas will be eliminated, resulting in “free” trade flows. There is no doubt that manufacturers who have created niche markets will be better positioned to compete in the global marketplace and achieve higher margins for products while yielding greater profitability. This paper is an introduction of a larger study that will examine how niche market definitions are being recast, owing to changing global patterns. This paper addresses what role niche markets will play in 2005. Specific objectives are: to give a broad overview of various trade theories, including classical, neo‐classical, post‐neo‐classical, and modern, in order to determine what, theoretically, the future holds for the US textile and apparel industry. Specifically, focus will be given to the issue of specialization as a result of trade; to explain how the specialization advocated by trade economists relates to niche markets in the US textile and apparel industry; to illustrate how traditional marketing methods differ from niche marketing; and to examine what role niche markets will play in the US textile and apparel industry in 2005. The results of this research study will aid in the formulation of a business strategy that can by utilized to capitalize on niche markets and will provide a research framework for global textile researchers.

Niche market strategy in the textile and apparel industry

Purpose – The purpose of this study is to examine how the textile and apparel industry can utilize a niche market strategy in order to compete with lower priced imports.Design/methodology/approach – The research design used for this study was an in‐depth case study method. The sample consisted of selected companies from the fiber, textile, apparel, and auxiliary sectors who are considered leaders in the US textile and apparel industry.Findings – Results indicated that firms can approach a niche strategy from either a market or a product perspective. Findings also indicated variables that are used by firms for both approaches. The most important factor in which a firm needs to focus is understanding the consumer.Research limitations/implications – Because of the limited sample size of US textile and apparel firms, the results can only be generalized to those companies that participated in the study and not the entire textile and apparel industry.Practical implications – This research study showed that a ni...

Retailers' use of niche marketing in product development

Purpose – The purpose of this research is to investigate the growing trend of the use of private labeling as a competitive strategy among fashion retailers. Specifically, how retailers differentiate and create niche markets within their own private label merchandise is examined. The study focuses on how retailers develop and expand their private label portfolios, while minimizing the risk of cannibalization.Design/methodology/approach – The research methodology is an in‐depth case study design that is used to gather information from a selected sample of those retailers that participate in apparel private label product development.Findings – Results indicate a strong use of a niche marketing strategy by retailers in the development and implementation phase of private labels. The strategy resulted in increased profits and market share.Practical implications – The study is significant because it provides a framework for a globally competitive strategy that retailers can utilize in order to develop specialize...

Analysis of Supply Chain Strategies Used by The United States Textile and Apparel Industries

Due to the highly competitive nature of an increasingly global market, textile and apparel firms are being challenged to leverage and enhance their core competencies in order to maintain and potentially increase market share. A strategy being explored is increasing supply chain efficiencies with the goal of reducing costs and improving customer service levels. This research seeks to explore such supply chain strategies which are currently being used into addition to the product costing and outsourcing decision analysis. Executives within the fiber and yarn, textile, apparel and retail industries are quantitatively and qualitatively interviewed in order to examine these issues. Results show that firms are using a blended sourcing strategy in order to minimize risk and leverage manufacturing capabilities. Quality, cost and reliability of delivery are all indicated as important in terms of sourcing criteria. The results provide insight into the decision process and a framework for increasing efficiency resul...

The use of a niche market strategy by US textile and apparel firms

Abstract The purpose of this study was to examine how a niche market strategy can be used by the United States textile and apparel industry to compete with lower priced imports. A quantitative study was conducted in Spring 2003 that utilized an online survey, based on a deductive model of research (Creswell, 2003). Results showed that the majority of companies surveyed are currently using a niche market strategy. However, the companys approach to the strategy varied among industry sectors. Also, the variables that need to be in place for this strategy to be successful were discovered, in addition to the various methodologies that can be used to identify potential niche markets. The research results can be used in business strategy formulation to create and maintain niche markets as well as to provide a research framework for international textile and apparel researchers.

Assessing the validity of a niche strategy model in predicting the potential and success of niche markets and products

Companies can increase market share and profitability through the use of a niche market strategy. Parrish examined how companies use a niche market strategy and developed the Parrish Niche Strategy Model. This paper presents results of a study testing the model in terms of: (1) predicting the potential of a niche market and/or product and (2) predicting the success of a niche market and/or product. In order to test the model, deductive logic was used to develop questions that would gather quantitative data related to market potential strategies and success variables. In order to determine the importance of variables in relation to predicting the potential and success of a niche market and/or product, instrument questions were developed that utilized rank order scales. In addition, three-point Likert scales were used in order to determine the level of importance for each of the market potential and success variables. The sample consisted of fiber and yarn manufacturers, fabric manufacturers, apparel manufacturers and marketers, and retailers. Results indicate that the Parrish Niche Strategy Model was useful for gaging the potential and success of niche strategies, in terms of both product and market. This research was significant in that it tested the only existing model of niche strategies developed specifically for the textile industry. In addition, this study focused on bottomweights, which represents a significant domestic consumption market for the US textile supply chain.

The Integration of Technology and Management in the Competitiveness of the United States Short Staple Yarn Manufacturing Industry

The purpose of this research was to investigate whether a balance of technology and management could be used in order to sustain a viable United States (US) short staple yarn production industry. The methodology used in this study consisted of primary research comprising two phases. The first phase consisted of interviews with industry executives in order to find out what US yarn manufacturers think are the important factors in maintaining a competitive yarn industry. The second phase was an online survey with industry customers in order to find out why weavers and knitters buy from US manufacturers. Results reveal that US manufacturers have competitive advantages over other countries because of skill level of workforce, variety of products offered, customer relationships, innovation and technology, and product quality. In order to keep these competitive advantages, “technology” and “management” strategies should be implemented. Results also reveal the areas in which the US yarn manufacturers should focus their resources in order to stay competitive or indeed survive.

Competitive Analysis of Niche Product Supply Chains

Companies are pursuing niche markets to combat competitive pressures from low-cost producers of textiles and apparel. These small, customer-need centered markets provide economic competitiveness opportunities through increased market share and profitability (Parrish, 2003). To further understand niche marketing strategies and expand the Parrish Niche Strategy Model (2003), competitive analyses are conducted using secondary data. The analyses covered companies in each sector (fiber/yarn, textile, apparel, and retail) of the supply chain. The purpose of the analyses is to understand competitive positions and strategies of companies competing with niche products in the bottomweight market. This market is chosen because it represents a significant consumption market in the United States where domestic textile manufacturers still have a presence. The results indicate that growth rates are higher for downstream companies, although a larger number of upstream companies are privately held. Companies in all sector...