Incorporating Risks in the Marketing Strategy of Clothing Accessories Stores in the US

Retailers stock a wide range of fashion accessories like hand bags, hats and caps, costume jewelry, gloves, handbags, ties, wigs, toupees and belts. Sales are made direct to the public generally without developing or changing the product further. Most retailers in this industry undertake sales and administrative activities such as customer service, product merchandising, advertising, inventory control, and cash handling. The industry of Clothing Accessories Stores in the US is facing risks in this tough economy. The industry faces three operational risks: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk). These three types of risk combine to form the Overall Industry Risk Score Structural Risk This risk arises from within the industry itself and the level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Growth Risk This risk arises from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Sensitivity Risk This risk arises from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant external factors and weighting them to represent how significant each is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate. The industry would be wise to incorporate these risks into its marketing strategy to position itself on a better foothold during the recession. The marketing strategy should include short and long-term objectives that address the risks mentioned above.