The Competition
In the current casual apparel market, Hang Ten faces off against two other major competitors Bossini and Giordano, as well as other smaller or non-direct competitors such as Baleno, GAP and Esprit.
Established in 1981 at Hong Kong, Giordano is one of the best known and established apparel retailers in the Asia Pacific region. As of January 2008, it employs more than 11,000 people and operates 1800 stores worldwide in 40 countries, truly a "World Without Strangers".
Giordano owes its success to constant innovation and its resulting first-mover advantage. Combining quality and comfort at affordable prices, Giordano provides a wide range of fashion essentials for men, women and children. The brand emphasis is on simplicity of styles and clean lines with a minimalist attitude.
Headquartered in Hong Kong, Bossini launched its first retail outlet in 1987. Over the past two decades, it rapidly established an extensive international operating platform and distribution network and successfully expanded its business to 33 countries & regions around the globe, with its five core markets of Hong Kong, Mainland China, Taiwan, Singapore and Malaysia.
Bossini's use of edgy and colorful images, as well as aggressive licensing agreements with motion picture characters such as from "Madagascar" and "The Smurfs", has earned it a certain standing among youths in the region. It's "Be Happy" slogan goes along perfectly with its position.
Points of Parity
Basic Product Offering
All three brands compete in the same product category - casual clothing for men, ladies and children. To add on, all brands use 100% cotton as the material for their core products.
Price Range
Giordano, Bossini and Hang Ten all offer mid-to-low pricing for similar products including basic pieces like polo tees and crew-neck tees with occasional seasonal discounts for festive events like National Day or Hari Raya. There is, however, a very slight price difference, with Hang Ten being the cheapest and Giordano the more expensive choice.
Distribution Channel
A quick market visit showed us that all three brands have similar outlet locations in both residential and city areas, with similarly friendly and helpful service staff. Online shops are not currently offered by any.
All three brands compete in the same product category - casual clothing for men, ladies and children. To add on, all brands use 100% cotton as the material for their core products.
Price Range
Giordano, Bossini and Hang Ten all offer mid-to-low pricing for similar products including basic pieces like polo tees and crew-neck tees with occasional seasonal discounts for festive events like National Day or Hari Raya. There is, however, a very slight price difference, with Hang Ten being the cheapest and Giordano the more expensive choice.
Distribution Channel
A quick market visit showed us that all three brands have similar outlet locations in both residential and city areas, with similarly friendly and helpful service staff. Online shops are not currently offered by any.
Points of Difference
Brand Origin
Both Giordano and Bossini are brands originating from Hong-Kong, while Hang Ten was born in 1960 San Diego, California, as the world's first surf-wear brand.
Product Range
Other than casual clothing essentials, Hang Ten also offers surf-wear and accessories for sale. In the US, Hang Ten also sells a range of sports apparel.
Discount Strategy
Another noticeable difference amongst the three brands are the promotions. All three brands offer regular storewide percentage discounts but Giordano and Bossini stand out by attracting customers with free items for their purchases (e.g. Bossini has a "Spend over $150 and get a Smurfs bag free" promotion).
Store Layout
Giordano stores are more organized, with their merchandize displayed on proper shelves. Bossini and Hang Ten often have large bargain bins outside the store entrance, presenting a more wholesale bargain store image in line with their value-for-money positioning. This, however, might seem haphazard to the passing customer.
Brand Origin
Both Giordano and Bossini are brands originating from Hong-Kong, while Hang Ten was born in 1960 San Diego, California, as the world's first surf-wear brand.
Product Range
Other than casual clothing essentials, Hang Ten also offers surf-wear and accessories for sale. In the US, Hang Ten also sells a range of sports apparel.
Discount Strategy
Another noticeable difference amongst the three brands are the promotions. All three brands offer regular storewide percentage discounts but Giordano and Bossini stand out by attracting customers with free items for their purchases (e.g. Bossini has a "Spend over $150 and get a Smurfs bag free" promotion).
Store Layout
Giordano stores are more organized, with their merchandize displayed on proper shelves. Bossini and Hang Ten often have large bargain bins outside the store entrance, presenting a more wholesale bargain store image in line with their value-for-money positioning. This, however, might seem haphazard to the passing customer.
Current Assessment
Hang Ten did not sufficiently emphasize its points of parity (e.g. 100% cotton material), thus resulting in it being perceived as inferior to the other brands. The emphasis on Hang Ten's lower prices further compounds this 'cheap' image.
Meanwhile, it failed to communicate and leverage its points of difference, especially in terms of brand origin and its product range, causing the misconception of Hang Ten being a local, strictly casual clothing brand.
Meanwhile, it failed to communicate and leverage its points of difference, especially in terms of brand origin and its product range, causing the misconception of Hang Ten being a local, strictly casual clothing brand.
