Industry Analysis & Industry Trends
The industry has had to battle against tough external competition. Many department stores and international brands started selling children's clothing in Canada, which reduced the overall price point at which such items are sold. Additionally, significant volatility in the price of cotton has resulted in shrinking profit margins. However, the industry has slowly recovered from the financial crisis, increasing slightly over the past five years. In the next five years, per capita disposable income is expected to rise and a falling unemployment rate will support stronger industry revenue growth. Nevertheless, the industry will continue to experience intense competition from alternative retailers, threatening industry growth... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are moderate and largely relate to the high cost of establishing and maintaining brand reputation. Industry incumbents have already established themselves as considerable forces within the industry. This pushes new entrants to invest time and money in their operations because consumers are unlikely to shift away from the strong brand names with which they are familiar. New entrants will also compete against a high level of external competition arising from department stores, mass merchandiser, and online retailers.
New entrants will also find it difficult to contend with the broad range of products and competitive pricing of industry players... purchase to read more