BENCH TAKES ON THE CHALLENGES OF THE CLOTHING INDUSTRY

Bench is recognized as one of the leading local clothing companies in the

Philippines. The Bench brand has distinguished itself because of its versatile product
line, its diverse chain of stores and franchises, and strong marketing campaign.

Initially established as a boutique that offered men’s T-shirt and jeans, Bench
has branched off and diversified its product line to include a variety of men’s and
women’s clothing, apparel, intimate wear, footwear, fragrance and cosmetics. It has also
established other brands and franchises which include popular foreign brands such as
Celio, Charles & Keith, and Aldo, as well as local brands such as Human and Kashieca.
At present, there are hundreds of Bench outlets, franchises, and retailers which give the
company a wide and enduring presence in the market. Additionally, Bench has gained
renown for its advertisement campaigns. The company is known to tap the best talents
and most recognizable celebrities to be its endorsers and image models. It has also
employed a variety of effective media campaigns on television, print media, and
billboards. Bench advertisements and billboards are among the most recognizable ad
campaigns in the industry.

Notwithstanding its stature as an industry leader in the clothing business, Bench

and other local clothing companies continue to face various challenges in the market.
One of these challenges is the cost of production and operations. Frequent changes in
prices of raw materials result in increased production costs. Clothing companies can
decide to pass on the cost to their consumers, but that would result in increased prices
for their products. Top clothing brands such as Bench have decided to absorb the cost
of production in order to maintain competitive prices in the market. Another challenge
is the high cost of renting space in malls. Many mall operators require tenants to give
an advance payment equivalent to several months of rent, apart from the expenses for
renovating and improving the space. Finally, the high cost of labor is also challenge to
clothing companies, particularly for bench, which uses local manufacturers and
suppliers for majority of its products.

Another challenge to clothing companies and retailers is the often-changing

consumption patterns of buyers. Changes in preferences among consumers often follow
a pattern. For instance, during holiday season sales of clothing and apparel are expected
o increase. However, consumers nowadays tend to be more price-conscious and opt for
less expensive items. This is also evident in the behavior of consumers during mall sales.
People take advantage of the lower prices and malls are often crowded with buyers
during sale seasons. Ordinarily, these result in an increase in the number of sold items
for clothing companies. However, this does not necessarily mean an increase in profit
since the products on sale are “off season” items and those left unsold from previous
stocks that have to be sold to avoid losses for the company.
 The entry of foreign clothing brands in the Philippines is a major challenge which
has affected sales of local clothing companies. Clothing stores such as Forever21 from
the US, Uniqlo from Japan, and Swedish brand H&M have entered the Philippine
market. Despite the entry of these foreign brands, Bench has maintained a steady
footing in sales and even steadily increases its sales.

The influx of foreign clothing brands into the Philippines has motivated Bench to
take opportunity and establish its brand internationally. At present, Bench has made
significant strides in establishing itself as a global brand. Bench stores have opened in
the Middle East, United States, Canada, Singapore and China. Overseas Filipinos form
a large portion of Bench’s international clientele, but the company plans to cater to a
more international audience. A big limitation to the expansion of Bench and other
clothing brands is that foreign clothing companies are often heavily supported by their
respective governments. Incentives and subsidies enable the foreign companies to make
cheaper products due to decreased manufacturing costs. In the Philippines, there is
little support for clothing manufacturers and retailers. Another challenge for Bench is
to come up with local clothing lines that will capture the interest of foreign markets.
Since Bench primarily caters to a clientele in a tropical country, it has limited options
with regard to clothing for colder seasons such as winter and fall.

Requirements: Conduct a SWOT Analysis of Bench using the table below. Fill in the
table with appropriate information.

Strengths Opportunities

Weaknesses Threats