Harry Rosen SGMA 591: Rabeea Baig (00506057) Table of Contents Company Overview3 Mission Statement3 Strategic Vision3 Current Issue Facing the Company4 Strengths5 Weaknesses7 Opportunities8 Threats9 Driving forces10 * Political and Regulatory10 * Demographics11 * Technology11 * General Economic Condition12 Porter’s Five Forces Analysis13 * Intensity of Rivalry13 * Potential New Entrants13 * Substitutes14 * Suppliers14 * Buyers15 Sustainable Competitive Advantage15 Recommendation16 Appendix18 Bibliography19 Company Overview
Harry Rosen, founder. Harry Rosen Inc. is a privately owned family corporation that sells high-end men’s clothing. This company was established in 1954 by Harry and his brother Lou Rosen in Toronto. They had originally started as a made-to-measure store on Parliament Street with a $500 down payment (Harry Rosen Inc. , 2010a). After having tremendous success, they moved their location closer to the Financial District in order to serve their clientele better (Harry Rosen Inc. , 2010a). Many skeptics had criticized their decision, but this strategic move had worked in their favour.
As of today, this clothing chain has 16 locations across Canada servicing an array of customers. Originally, their focus was to sell made-to-measure suits, but that has expanded to ready to wear suits, dress shirts and ties, sportswear, footwear and accessories. Designers such as Ermenegildo Zegna, Armani Collezioni, TOM FORD, Brunello Cucinelli, and Canali are featured in their flagship stores. Harry’s relationships with Italian manufacturers have allowed him to feature an in-house casual fashion line as well.
As of 2009, Harry Rosen is the only specialty menswear retailer in Canada that has launched an E-commerce website to allow their customers to shop online for certain merchandise. Currently, Harry Rosen has stepped down from any management role and his eldest son Larry Rosen, is the Chairman and Chief Executive Officer (CEO) (Harry Rosen Inc. , 2010b). Mission Statement Harry Rosen Inc. is a Canadian menswear specialty retailer that aims at providing the best shopping experience for their clientele.
They have highly trained employees who are knowledgeable about the fashion industry and their customer’s specific tastes and needs. Also, Harry Rosen Inc. offers virtual services through online retailing, and every season they publish their “Harry” magazine to allow their customers to preview the upcoming trends. Strategic Vision The vision of Harry Rosen Inc. is to strengthen their position as a leading menswear retailer in Canada by doubling sales to $500 million by 2016 (Strauss, 2012a). Through their rising sales, they will re-invest this capital back into the business to help it flourish.
Also, with online retailing on the rise, Larry would like to further develop their E-commerce operations (Strauss, 2012a). Current Issue Facing the Company There are two issues facing Harry Rosen which are increased competition and growth opportunities. During the global recession, the retail industry faced many hardships because consumers have to learn how to spend “wisely”. Euromonitor (2011) reported that within the industry there has been an increase in competition. This is a direct result of companies using tactics of heavy discounting to generate revenues and maintain their customer base.
Luxury apparel retailers are most affected by these tactics because they lose the majority of their profit margins through discounting. Euromonitor (2011) predicts that due to increased competition there will be “lower spending on high ticket items”. The emergence of popular outlet chains in the United States has allowed many Canadians to take advantage of purchasing designer label clothing at reduced prices. Now, what does this mean for Harry Rosen? In the past, the booming economy had allowed for year to year increase in their sales because people had larger discretionary incomes.
But due to the recession, smaller independent retailers had to markdown their items in order to stay in business because designer outlet stores are getting more traffic; so will Harry Rosen follow in suit? Or in order to maintain the integrity of the quality products they offer, will they continue their higher pricing and settle for a lower market share? Recent Bloor St. location renovation. Another issue facing this corporation is the question, what should we do next? Harry Rosen Inc. is not in a stagnant position where they are facing a road block and are unable to grow, but rather how should they grow successfully?
The obvious strategic move is to expand their locations and try to have a larger customer base. Over the years, they have followed this strategy but focused on investing capital into renovating store locations to enhance each customer’s shopping experience. By renovating each store and acquiring more retail space, it allows them to cater to their different customer’s taste as oppose to being limited to only selling suits and formal wear. Competitor: Holt Renfrew In a recent interview in the Globe and Mail, Larry did suggest that the company might enter the women’s wear luxury market in the future.
There is hesitation in expanding their target market to women because during the 1980s they had failed in making this venture profitable. Larry admits that “you would be surprised at how little I know about women’s wear” which reassures skeptics on the success of this opportunity (Strauss, 2012a). Also, if they do embark on this opportunity how would they differentiate themselves from competitor Holt Renfrew, who has been an industry leader in market share for designer women’s apparel? Strengths Ermenegildo Zegna’s Shanghai location
Harry Rosen Inc. ’s role in the supply chain is a hybrid of being a distributor and a retailer. They have access to numerous menswear designers and are able to provide them with exposure through their brick and mortar operations. In 1984, Harry Rosen was the first Canadian retailer to showcase Italian designer Ermenegildo Zegna (Harry Rosen, 2010a). Ermenegildo Zegna has been in the business for over 100 years and are known for their fabrics to be “the most beautiful in the world” (Zegna Group, 2012). Not only does Harry Rosen Inc. arry the creme of the crop Italian manufacturers, but they are the only retailer who has established TOM FORD menswear shops in Canada. Harry Rosen Inc. can take pride in offering all of these exclusive fashion powerhouses within a 30,000 sq. ft. retail space. Within the corporate aspect of their operations, certain individuals are assigned the role of being the specialist for each designer. The responsibilities of this job entail being the buyer of the merchandise sold in stores, communicating with the vendor to understand what is new every season, and exchanging this information with the specialists in store.
Also, every season they dedicate a week to display and promote the different designers’ new products. These events entail having these corporate professionals present in store to provide further information for the customer and enhance their experience while they shop for their favourite designer. During each event, there is special pricing on select fabrics to allow for a more quality product at a reasonable price. For example, designers such as Brunello Cucinelli, will debut their next seasons merchandise and extend the product offering that is seen in stores during their special promotion.
It is evident that this corporation is heavily focused on sustaining their relationships with their suppliers because without them there is no product to sell within their store. Clearly, it is also in the designers’ best interest to support Harry Rosen’s staff and provide them with knowledge because it would translate into better sales for them. By delegating individuals who are devoted to keeping in constant contact with their suppliers it allows Harry Rosen to have the upper hand in comparison to competitors. Brunello Cucinelli’s Fall 2012 Collection.
Finest Cashmere available. As mentioned earlier, Harry Rosen Inc. had started their operations in 1954, which means they have been in business for over 58 years. This is a family owned corporation and many of their early clientele, have followed them through their successful journey. For example, many young students graduating high-school will come to Harry Rosen to buy their first suit with their father because this is where he shops. Some of the sales associates in Toronto have worked there for over 50 years and have assisted different generations of their clients.
The importance that sales associates place into creating long-lasting relationships with their clients is another strength that Harry Rosen has. Over time, associates allow trust to build and customers whole-heartedly give them permission to pick out their wardrobe without any question. Sales associates can further develop their relationship with customers through Harry Rosen’s “lifetime guarantee policy”. This policy entails a complementary maintenance and repairs to the garment for the lifetime of the clothing (Harry Rosen Inc. 2010c). This service is provided free of charge because their focus is for their customers to look their best at all times. . Customers can be reassured that they once they have purchased the garment even the slightest button replacement will not be neglected just for the opportunity of gaining new business. To better equip their employees with tools to aid their transactions with their customers, they employ a Customer Relationship Management (CRM) software titled Sage SalesLogix. In recent news, Harry Rosen Inc. on the “Gold Sales Effectiveness Award in Gartner & 1to1 Media's 2012 CRM Excellence Awards program” for the use of SalesLogix (Marketing Weekly, 2012). This program allows associates to “identify clients by purchase preferences including how often each shops, average purchase price and brands most often purchased to provide recommendations that assist clients and increase sales” (Marketing News Weekly, 2012). Other perks of this software include the ability to “to schedule tasks such as suit tailoring and customer satisfaction follow-up calls, as well as for sending service and order pick-up reminders” (Marketing News Weekly, 2012).
Technology is known for it’s disconnect and lacking personal connection, but through SalesLogix, Harry Rosen’s focus develops long lasting relations with their clients and they are able to Customer Relationship Management Software: SalesLogix continue this through their dedication to programs such as SalesLogix. Weaknesses The retail industry is known to be cyclical because it is dependent on economic conditions. During times of turmoil, the luxury retail market suffers greatly because consumers are less likely to open their wallets to such extravagant items.
Barnes Report (2012) predicts that in the menswear clothing industry, employment will drop by 3. 4% from 2012-2013 while sales remain stagnant (Refer to Appendix A). This forecast on employment could be true as the global economy does run the risk of dipping back into a depression. Harry Rosen’s compensation system is solely based on earning commission through sales. In a company where business is mainly clientele oriented, it is hard for newcomers to find their own customers. If they are unable to create new sales for themselves their livelihood is directly affected.
Therefore, there is a high-turnover rate and as Larry mentioned “turnover means they’re here today, gone tomorrow” (Grnak, Hughes ; Hunter, 2006). Within the retail aspect of the corporation this turnover exists because the new staff is not able to carve a niche for themselves. In order to prepare for the busy seasons such as Christmas time, many new hires are taken on board to help with the rush. However, once the traffic subsides to its normal levels, these new employees have to settle for irregular customers or resign.
This affects their customers because these “new hires” had taken time to learn the specific tastes and preferences of their customers; but now they have lost that relationship and need to start this process of trust once again. When Harry Rosen is short staffed at times, the associates have to juggle between different customers and not give every client the expected ultimate Harry Rosen customer service experience. This is also detrimental to their business because associates have to weigh the benefits of trying to help everyone and make mediocre sales or focus their attention to a few clients and have major sales.
Harry Rosen needs to increase their retention rate because it influences their bottom line and by not doing so it has affected their profitability. Opportunities Euromonitor (2011) stated that online sales are growing because the internet is “becoming more popular as a choice for purchasing as, Canadians worry less about factors like internet credit card fraud”. Brick and mortar companies are facing heavier competition from online retailers because “consumers come in to try on items and then going home to order those items online” (Euromonitor, 2011). How is Harry Rosen supposed to turn this growing trend into a profitable scheme?
They have executed their E-commerce venture allowing their customers to view their products from the comforts of their home. The majority of the merchandise featured online is also inventory present in their store locations, allowing for easy size and colour exchanges. Harry Rosen could capitalize on their already established E-commerce operations by partnering with their suppliers to develop online exclusives. For example, to accompany their special events such as Hugo Boss week, customers could purchase limited edition merchandise that might not be featured in Canada. E-Commerce Interface; Harry Rosen Inc.
Due to the recession tightening many consumers’ budgets, “many Canadian consumers turn[ed] to private label offerings” (Euromonitor, 2011). With many retailers developing their private label “many local consumers ceased to consider them as private label, treating them increasingly as just another big brand name” (Euromonitor, 2011). As mentioned earlier, Harry Rosen does offer its own line featuring dress pants, sports shirts, sweaters and outerwear. Many of their customers do purchase from this in-house line because they know they can expect a quality product at a more reasonable price.
For example during the Christmas season, Harry Rosen’s features its classic promotion of two white dress shirts at the price of $190. 00. This sale is always successful because many white dress shirts start at the $165. 00 range and it allows customers to get “more bang for their buck”. Therefore, Harry Rosen should consider expanding their private label into manufacturing suits as well because there is a market for money-conscious consumers. Private Label: Harry Rosen, the economical choice Threats
The fashion world’s capitals are known to be New York, Los Angeles, Milan, London, and Paris. Many of these designer labels have set up extravagant stores to showcase their newest creations. Harry Rosen can be considered equivalent to the street these fashion powerhouses are located on. Within its business model it has brought together all of these different labels under one roof. This is one of the primary reasons this company has experienced success because customers have the ability to access numerous luxury retailers without having to travel to these fashion metropolitan areas.
However, there is threat to their current business models because many of these designers are starting to open their stores within the cities they operate in. For example the German designer Hugo Boss, is a popular label sold in the West Edmonton Mall Harry Rosen location. Given the success they experienced from featuring their product there, they opened their own independent store within the mall. If the vendors that are sold within the Harry Rosen chain start to establish their own presence in the same city that Harry Rosen operates in, it can cannibalize into their sales.
The reason being, Harry Rosen is limited to the extent to how much they will buy of every designer label. Therefore, if a customer is unable to find the specific product they are looking for; they can go directly to the designer themselves and have the variety they originally asked for. Hugo Boss Location: West Edmonton Mall Driving Forces Political and Regulatory Prada – Violator of Labour Laws The external threats that Harry Rosen should be aware of in the political environment are labour laws. For many of their Italian designers, their manufacturing plants are located in Italy to help boost the domestic economy.
For example, Brunello Cucinelli is focused on “improve[ing] the conditions of human life through modern capitalism where profit is used to do good” (Miller, 2009). If all companies followed this motto Harry Rosen would not have to be concerned with compromising their ethics in order to conduct business. However, designers such as Dolce ; Gabbana and Prada are known to import their staff from China to work in Italy (Lee-Potter, 2007). This method allows them to maintain their “Made in Italy” label while paying “barely half of the minimum wage” (Lee-Potter, 2007).
Therefore, if Harry Rosen would like to appeal to all types of clients they need to be aware of the labour conditions their products were manufactured in because there is a shift in society where people are choosing to become more socially conscious. If they continue to purchase from designers who are violating basic employment laws, they could lose a portion of their customer base. Demographic In the past, the traditional clientele that Harry Rosen used to serve was working professionals who had similar clothing needs.
Clearly, this demographic has evolved dramatically because “the typical Canadian workplace… [is] shifting away from formal suits to more of a business casual environment” (Euromonitor, 2011). One of the main reasons for this shift is that “people need to feel more comfortable in the [work] environment in which they spend so much time” (Euromonitor, 2011). For example, Harry Rosen has already been capitalizing on this change by having its “Vancouver outlets stock more sports jackets over suits and ties for the more casual West Coast shopper” (Strauss, 2012a).
Also, Harry Rosen has been servicing a much younger demographic such as males in their late teen years and the “twentysomething market” (Grnak et al. , 2006). In the newest issue of the “harry” magazine, Larry mentioned that “today’s young workforce is formulating its own approach to business dress” (Rosen, 2012). Overall, many people feel as if they are living “99 lives” and Harry Rosen can use this as an opportunity to sell garments that are multi-functional in purpose. This would allow their clients to be present in many different environments and they wouldn’t have to carry excess luggage in order to fit in.
Z-Zegna Campaign is more popular with the younger generation. Technology In society today, there is no industry that doesn’t heavily rely upon the use of technology to aid in its daily operations. As mentioned earlier, Harry Rosen employs the use of its CRM software SalesLogix to aid its sales associate in analyzing their clientele’s purchase patterns. Alongside the buying habits of their different clientele, SalesLogix allows the associates to communicate electronically rather than being tied to a phone.
The software implemented allows automatic e-mails to be sent out based on the customer’s preferences for sales notices, news and events, or made-to-measure promotions. Another key developmental department of Harry Rosen is its online retailing. Larry has “coined [it] ‘Virtual Harry’ – a comprehensive online customer experience that goes far beyond basic online ordering” (Ovsey, 2012). In a recent report, Euromonitor (2012) identified that “sales in Internet retailing continued to grow in 2011, rising 9% in current value terms to reach C$5. 2 billion”.
Harry Rosen is already ahead of many of its traditional brick and mortar competitors by establishing their E-commerce venture. If they continue to follow in pursuit of this increasingly popular trend they will be able to tap into the “huge demand by the client for a virtual experience that complements a bricks-and-mortar experience” (Ovsey, 2012). Traditionally, Harry Rosen was known for their award-winning “newspaper ad campaigns” that featured many Canadian celebrities. Now, “print newspaper circulation is declining” and “Canadians are spending more time online” (Fox, 2011 et CBC News, 2012).
Harry Rosen has only recently started to take advantage of their online advertising by displaying their company website on popular websites such as Youtube, which is seen here. In my opinion, they should take advantage of the fact that Canadian’s spent over 45 hours on in the Internet this past quarter and about 10,000 minutes on Facebook alone (CBC News, 2012). Since their younger generation demographic is a growing customer segment, they should advertise further on social media websites to make a lasting impression on these potential customers.
General Economic Conditions TOM FORD 2012 Ad. After the 2008 financial crisis, there was a “decline in terms of current retail value sales during [2009]” (Euromonitor, 2011). Almost all consumers were extremely cautious about their spending because Canadians need to “focus on necessities rather than luxuries” (Euromonitor, 2011). As the economy starts to recover, the apparel industry still faced a decline in sales by 2% (Strauss, 2012b). However, men’s fashion is bouncing back in a sagging retail market, where sales rose by 3% this past year (Strauss, 2012b).
This trend in the industry is very opportunistic for Harry Rosen because even when global markets are faced with uncertainty, the livelihood of their business is not affected. One of the main reasons is that males are not focusing on factors such as price rather they are buying what they need. Larry stated that there is demand from many “thirtysomething” customers who are willing to spend $5,000 on a TOM FORD suits (Strauss, 2012a). How can someone justify such a steep purchase on such an item? One of the biggest reasons is the fit and quality.
Many of their clients have leading roles in their corporations, and need to look their best at all times. Therefore, even though the retail industry as a whole is always dependent on the state of the economy there is a shift in the air. This new shift entails the male population being less perspective can be extremely favourable for Harry Rosen’s profitability for the future (Strauss, 2012b). Porter’s Five Forces Analysis Intensity of Rivalry Out of the five competitive forces, the strongest is the “rivalry among competing sellers” (Thompson, Peteraf, Gamble, ; Strickland, 2012).
In the past few years, Harry Rosen has been able to capture “35 to 40 percent of the market for ‘better quality menswear’ among Canadian households with $150,000 or more in income” (Grnak, 2006). Now this quote does not include their younger demographic, who have been at the forefront of consumer spending post recession (Ovsey, 2012). However, Harry Rosen does face intense rivalry from its competitors. For example in downtown Calgary, within a 3 block distance there are three other major luxury men’s retailers such as Holt Renfrew, Henry Singer and Thomas Jeffrey.
Also, we cannot discount the independent retailers that are also located within the downtown or throughout the city. Even though each retailer prides itself on offering the most exclusive selection of designer merchandise, it is possible that some stores may carry the exact same inventory. Therefore, if competitors have conflicting prices on the same item, “the buyer costs to switch brands [can be] low” if they do not care for principles such as customer loyalty (Thompson et al. , 2012).
In the luxury retail market, where consumers are looking for a quality product, there is always the possibility of them looking for alternatives based on the price. Competitor: Henry Singer Potential New Entrants The threat of new entrants does not provide as much competitive pressure from the Porter’s five forces. One of the main reasons that this force does not affect Harry Rosen as much is because they have been able to establish themselves as a niche retailer in the Canadian market.
Over the years, they have proven to be leading experts within in the industry by offering the best merchandise, their dedication to providing superior customer service, and the knowledge and experience they have gained through 58 years in the business. If a new retailer were to enter the market, they would not know what designers are most popular within every metropolitan city or even what types of garments are most requested by their target customer. Or there is the possibility that they won’t be geographically situated which is most convenient or appealing for their “ideal” customer.
Industry experts know that if they want success in their organization then “location is indeed critical to most retail enterprises” (Grnak, 2006). Luckily, Harry Rosen has been able to acquire the perfect locations because they can be close to their frequent customers, and still have the exposure they need to gain new clients. Substitute Products Fortunately for Harry Rosen, there is no direct substitute for clothing since it happens to be a direct necessity for humans. Now, it doesn’t mean they do not face competition from other men’s fashion retail chains that do not specialize in providing designer clothing.
For example, Moores clothing does carry brands such as “Calvin Klien, Arnold Brant and Lauren by Ralph Lauren” but these fashion houses are not in the same league as Italian designers such as Ermenegildo Zegna, Canali and Etro (Moores Clothing, 2012). Therefore, direct substitution does not exist, which works in their favour. Suppliers The supplier bargaining power is moderate because there are many menswear designers within the industry. However, many of Harry Rosen’s clientele are loyal to certain brands and if a particular vendor were to discontinue business it would have detrimental effects.
Therefore, it is always in both parties as in the suppliers and Harry Rosen’s interests to continue their relationship. Hypothetically, if a vendor such as Armani Collezioni were to terminate their business with Harry Rosen it would have adverse effects on both parties. Now, Armani would have to find new contacts to carry their garments and other logistics. Armani would also have to train their new business partners in order to showcase the product and make sure they received adequate exposure. From Harry Rosen’s perspective, they would lose heir brand loyal customers because of their inability to provide that product. Also, they would have to further invest in finding a replacement designer plus the time and funds involved in maintaining a strong supplier relationship is another dilemma. Armani Collezioni Buyers Once again, buyer bargaining power is moderate because the Canadian menswear luxury retail carriers are limited. Harry Rosen is able to provide exclusive products and that means the buyer is “less focused on obtaining low prices, which may signal poor quality” (Thompson et al. 2012). This corporation caters to a specific niche of customers and this population is small in size. As mentioned earlier, males are less likely to be “price sensitive”, which weakens their bargaining power. The reason is because by continuing to purchase these luxury items they support the notion that you cannot place a price on quality. However, buyer bargaining power is stronger during times of economic depression when consumers have tight budgets and luxury retailers have no choice but to reduce their over the top prices to stay in business.
Buyers can also purchase their products online in order to avoid overspending, but they would have to forgo the experience of shopping at such retailer. The attention to detail and the transfer of knowledge would not occur. But if buyers are willing to sacrifice these amenities then it would give the more power in this situation. Sustainable Competitive Advantage Larry Rosen in Toronto Clearly, if Harry Rosen has been in the clothing industry for over 58 years with successful retail chains across Canada, they must be doing something right.
This corporation is not only focused on being the leading menswear retailer in Canada, but a being “relationship-based business” (Grnak, 2006). Not only do they want to provide you with the best service for the first time, Larry wants to “be your clothier for life” (Grnak, 2006). What makes Harry Rosen’s resources durable and rare are based off of these customer service principles. They don’t look at customers as a ratio of Annual Sales/Total Revenue, rather as actual human beings with whom they want to keep in contact with.
Sales associates are complemented with software which “effectively track[s] customer spending and behaviour and provide targeted service to valued clients” (Grnak, 2006). This dedication to customer service and providing employees with all of the tools they need to maintain proves this is rare to find in the retail industry. As mentioned earlier, the other durable resource they have is their relationship with suppliers. Alongside the support from customers, Harry Rosen has received tremendous support from their vendors to help with their success.
Is there a possibility for rival firms to imitate their resources and capabilities? The answer is yes, but it could only be possible in the luxury niche of the retail market. It would be impossible for mass retailer such as Wal-Mart to develop personal and intimate relationships with millions of their clients. In order for the imitation strategy to be successful, it would require dedication from all levels of management to always prioritize their customers. This strategy would not necessarily steal Harry Rosen’s customers away but increase customer loyalty within their organization.
Now, as for the relationships with their suppliers, they are something that cannot be easily duplicated or reproduced. Harry Rosen has invested a lot of time and finances to foster these connections and many suppliers would be hesitant to start this process again with new retailers. In my opinion, the resource could not be made obsolete by their competitors. I do acknowledge that companies could copy their CRM software, and try to implement it within their organization. However, to use the CRM software, the key ingredient is customers and they aren’t inputted in the system when you purchase the software.
Therefore, the loyalty that Harry Rosen’s customers have displayed over the years would never make their true resource of human relationships obsolete. Harry Rosen is breaking the mould in the retail industry because it does not falter away from its true focus being customers. This corporation’s customers have been its biggest supporter, allowing it to expand from a 500 sq ft. shop in Toronto to 16 locations across Canada. They reciprocate this support by providing the best customer service and experience one would desire at a luxury retail store.
Also, for their fashion-savvy consumers they are always on top of the latest trend through their relationships with designers. Overall, this business plan has allowed for success over the past 50 years and this will prove to be sustainable in the future. Recommendations Harry Rosen’s business model of a being a relationship-based business has proven to be successful. However, they are at a crossroads where they need to decide on what the next business venture is. One strong recommendation is that this corporation should not consider expanding their target market to females.
In the past when Harry tried to embark on this business venture it had failed. Larry did mention they would execute this strategy by “acquiring a specialist retailer to provide it with expertise in the area” (Strauss, 2012a). However, the current market for women’s fashion has “dropped by 4%” due to women being more price conscientious (Strauss, 2012b). In a luxury retail market, ideally you would want your customers to neglect the concept of price and focus on the quality of the fabric and fit. Currently, this market exists for menswear and thus, they should stick to this profitable area of fashion retail. Etro for Women
In a recent article, Larry was also contemplating “adding suits to its E-commerce website” (Strauss, 2012a). Aside from expanding their operations to cater to the female market, this would be second worst idea. Through many studies it has reported that Canadians are spending over 45 hours online, but that does not mean they would know what suit to purchase based on their body shape, personal style and fabric preferences. The purpose of the sales associates at Harry Rosen is to keep up to date on all the different styles of merchandise, the various designers, and understand what the best fit is for their customers.
If a customer is going to purchase a suit online, how will they know as to what extent the new edition of a Hugo Boss suit is going to be slimmer than before? This online experience will not complement the brick-and-mortar experience but rather impair its profitability. The personal relationships that Harry Rosen prides itself on will lose the human interaction factor, and cause disconnect with this venture. Also, if sales associates are based off of a commission salary, how are they expected to make a paycheque if customers skip the store experience for a faster online order?
Harry Rosen would just need to employ tailors to alter the garments bought online. My recommendation is to expand upon their strengths. They should take advantage of the ever changing demographics in the menswear retail industry. If the younger generation is huge factor in their business, then start developing relationships with suppliers to gain more garments that appeal to this segment. Also, if men are becoming less price conscientious then they should start showcasing more Loro Piana merchandise or have the buyers host events for the obsessed Brunello Cucinelli customers.
Harry Rosen is a leader in the industry for developing their E-commerce operations but they should stick to only selling items that require generic knowledge. Appendix Appendix A: Barnes Report Industry Trend Appendix B: Harry Magazines Bibliographies BARNES Reports. (2012). Mens Clothing Stores Industry Report. Retrieved March 26, 2012 from Business Source Complete database CBC News. (2012). Canadians lead in time spent online, says report. Retrieved March 25, 2012 from http://www. cbc. ca/news/technology/story/2012/03/02/canadians-more-time-online. html
Euromonitor International (2011). Apparel in Canada. Retrieved March 25 2012 from http://www. portal. euromonitor. com. ezproxy. lib. ucalgary. ca/Portal/Pages/Search/SearchResultsList. aspx Euromonitor Internation (2012). Internet Retailing in Canada. Retrieved March 26, 2012 from http://www. portal. euromonitor. com. ezproxy. lib. ucalgary. ca/Portal/Pages/Search/SearchResultsList. aspx Fox, V. (2011). The State of the News Media 2011: Americans Shifting to Online News, Still Only Paying for Print. Retrived from Search Engine Land website: http://searchengineland. om/the-state-of-the-news-media-2011-americans-shifting-to-online-news-still-only-paying-for-print-68092 Grnak, T. , Hughes, J. , Hunter, D. (2006). Building the Best: Lessons from Inside Canada's Best Managed Companies. Toronto, ON: Penguin Canada Harry Rosen Inc. (2010a). Company History. Retrieved March 23, 2011 from http://www. harryrosen. com/eng/aboutUs/aboutUs. cfm Harry Rosen Inc. (2010b). Biographies. Retrieved March 25, 2011 from http://www. harryrosen. com/eng/aboutUs/biographies. cfm Harry Rosen Inc. (2010c). Retail Service. Retrieved March 26, 2011 from http://www. harryrosen. om/eng/customerService/RetailServices. cfm Lee- Potter, A. (2007). Designer labels' sweatshop scandal. Retrieved from International Labour Rights Forum website: http://www. laborrights. org/creating-a-sweatfree-world/news/designer-labels-sweatshop-scandal Marketing News Weekly. (2012). Computers, Software; Harry Rosen Inc. Wins Gartner ; 1to1 Media CRM Excellence Award Supported by Sage SalesLogix System. Retrieved March 25, 2012 from ABI Inform Global database Miller, L. (2009, July 25). Brunello Cucinelli: Cashmere at its best [Web Log Message]. Retrieved from http://www. suitsociety. om/brunello-cucinelli/ Moores Clothing. (2012). Brands that Make the Man. Retrived March 27, 2011 from http://www. mooresclothing. com/mor/menswear/browse. jsp? page=11 Ovsey, D. (2012). Whatever happened to that consumer business apocalypse? Retrieved from Financial Post website: http://business. financialpost. com/2012/03/16/what-ever-happened-to-that-consumer-business-apocalypse/ Rosen, L. (2012). harry { Letter. harry, Spring/Summer, 2012, page 27. Strauss, M. (2012a). Harry Rosen readies itself for retail foreign invasion. Retrieved from Globe and Mail website: http://www. theglobeandmail. om/report-on-business/harry-rosen-readies-itself-for-retail-foreign-invasion/article2313807/ Strauss, M. (2012b). Men’s appetite for fashion shores up apparel sales. Retrieved from Globe and Mail website: http://www. theglobeandmail. com/report-on-business/mens-appetite-for-fashion-shores-up-apparel-sales/article2368426/ Thompson, A. , Peteraf, M. , Gamble, J. , ; Strickland III, A. (2012). Crafting ; Executing Strategy. New York, NY: McGraw-Hill/Irvin Zegna Group. (2012). History and Development. Retrieved March 23, 2012 from http://www. zegnagroup. com/storia_e_sviluppo/la_storia/inizi
