Content

Abstract------------------------------------------------------------------------------------Page 2
Introduction-------------------------------------------------------------------------------Page 2
Analysis------------------------------------------------------------------------------------Page 3
Conclusion---------------------------------------------------------------------------------Page 7
References---------------------------------------------------------------------------------Page 8

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Abstract
This paper examines the understanding of denim fashion apparel retail within its
industry, G-Star Raw; the background and understanding of the brand, the retail
format that the brand practices, where it stands in the current market, its business
model operations, contrast between its competitors, defining target market, marketing
strategy and competitive strategy within its industry. This report will be evaluated
referring to the Australia market.

Introduction
Once merchandises have been designed and manufactured from the factory, obviously
they need to be sold. However, it will be impossible for consumers to go to one after
another factory to purchase the merchandise that they need. Hence, this is where the
role of a retailer steps in.
A retailer provides business activities or services that add values to the products,
merchandises, and or services to the consumers for their personal or family used. In
another way, it plays an important role in the supply chain between the manufacturer
and the consumers. Retailers often sell these goods or commodities in small quantities
directly to consumers. However, most of the time, the misconception of most peoples
understanding on retailing is that it only provides business activities in products form.
Not all retailing is done in products form. For example, online purchasing, catalogue
purchasing, direct sales purchasing, one-to-one transaction, service line purchasing,
portable kiosk transaction, etc. There are various forms of retailing in our current
innovated market, also to say, there are different types of retail format that runs or
provide different types of retail services, business models, marketing strategy, and
market value.

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Analysis
G-Star Raw; one of the global leading denim fashion brand that runs a specialty store
concept in fashion retailing. But what does a specialty store does comparing to the
others? A specialty store often concentrates on limited number of product range and
associated items, at the same time they often provides high level of services. Their
retail strategies are very specific. They work towards very specific target market and
provide deep and narrow assortments with excellent sales associate expertise. Often,
merchandise in this retail format is grouped by product category in a much narrowed
segment, which allows customers to locate the merchandise easily also allows
customer to shop freely and experiment the product more personally. Knowledgeable
sales assistant is also one of the key point found in this retail format. On business and
marketing strategy wise, the retail format partners have the advantages to control the
stores operation, which also allows them to have better control on their profit and
losses.
Ever since G-Star Raw started its creation in 1989, at Netherlands, its philosophy has
always been, Just the Product and ever since, the brand has always been known as a
leading innovative entrepreneur in the denim industry. Unlike any other denim
brands, G-Star is much more than a product. It utilizes its brand history by
specializing in raw denim. The brand uses untreated and unwashed denim to establish
its presence in the fashion world and most importantly, segment itself from other
trends.
G-Star has always been a denim oriented company on its products since it first started.
They understand the complementary textures and styles of the denim can help to
frame the denim and present it in a different method to its market. The brand manage
to balances the raw denim edginess and street-wear influences with sophisticated
detailed craftsmanship in tailoring its products and results as an all-day, everyoccasion wardrobe for a wide market segmentation that features fashionable cuts,
luxurious materials and subtle branding in the full range of varieties such as, jackets,
shirts, skirts, dresses, knits, pants, shoes, etc.

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The mission statement of G-Star Raw is always remain as a forward looking company
that continue making iconic products in the future to its customers. Being successful
in the denim industry, G-Star Raw is smart enough to be aware that they need to look
into sustainable solutions to create their product with minimal environmental impact
and reduce the criticism from the medias and its competitors.
The strength of simple and straight approach has led the brand to its many first; the
introduction of luxury denim for the streets, by having high-level craftsmanship with
street level style that created a innovated denim sector; the positioning of its unique
selling point of its product, the raw and untreated denim material; and the distinctive
denim style.
According to G-Star Raw international account director, Philip Truyen, the company
started as a Dutch brand, but throughout the years it has gradually become a global
brand around Europe, US, Japan, Australia, New Zealand and some of the Asia
continent. They have over 6000 points-of-sale, 350 specialty G-Star stores, and
currently presenting in 65 countries around the world. Shubhankar Ray, G-Star Raw
global brand manager also mentioned that the company sees retailing as a multidimensional and multi-layered business. Theres always flexibility between multiretailer and independent retailer for the brand. Truyen information also explained that
the company focuses strongly on specialty store to extend their services, however,
multi-brand stores are also very important to the company. It is the specialty stores
that speak directly to their customers. Again, flexibility is what they practice. Both
multi-brand stores and specialty stores are important to their business model. You
could find a G-Star Raw retail in department stores, multibrand stores, normal
multibrand stores, standalone specialty stores, and franchises; in fact, the company
encourages and offers franchising opportunity to its own employees. Apart from
these, the company is also looking forward to flagship stores. The company also
practices to have stores in the location of one important city to reach out to its market
more effectively.
Other than having the physical store in various strategic location, G-Star Raw is also
up to the current growing market phase by having their e-Commerce actively
commencing within the market. According to Truyen, G-Star Raw e-Commerce
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makes up 10% of their turnover, and the company suggested that to gain success in
the e-Commerce, one should not separate their physical store with the e-Commerce
platform. It should be collaborated together, where both sides could achieve the
benefits together and more effectively. The benefit of having an e-commerce site is
when customers are buying online, the retailer could access customers database. It
would be a better option to understand the customers shopping behavior. However,
not to mention that having a physical store is less beneficiaries. In physical stores, that
is where the direct contract and face-to-face service the retailer could provide and
gain between retailer and customers, considering a more direct and immediate
feedback.
Although G-Star Raw first started with its denim couture of jackets and pants, with
the current more than 6000 points-of-sales in 65 countries worldwide, and high
competitive market, such as the main competitors Levis Strauss and Diesel, the
company understand the demand of its market and diversify its approach by having its
urban fashion mens and womens accessories collections, t-shirts, hats, belts,
underwear, footwear, furniture line, boating and flask line; by focusing its company
initial philosophy of making luxury denim for the streets. The company practices the
idea of understanding what they doesnt want to achieve and opens for flexibility of
ideas, which they believe it keeps their brand alive. However, the company makes
sure that their brand message or DNA if you would prefer to say so, is always clear
throughout all their campaigns. For instance, product is their main focus; hence in all
of their campaigns, different method will be used to ensure the products are strongly
highlighted. The concept of their product is always young and cool; and a style for all
time.
One of the main challenge that G-Star Raw faced is also the high competition of
prices in the fashion retail world. Some fashion retailer sought to reduce prices just to
ensure they are able to remain in the competition, however, some neglected the
important of the customer relation experience. G-Star Raw unlike any other budget
fashion, it is an urban fashion and it relies heavily on customer service and in-store
experience.

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Most of G-Star Raw promotional and marketing strategies uses are organizing fashion
shows with the idea of giving the audience a chance to experience the brand and at the
same time portraying their luxury denim style. Although most of G-Star Raw store are
specialty stores, yet in certain location they distribution their products to the multibrand stores, online e-commerce and department store with the idea of having the
flexibility to reach out to their customers everywhere.

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Conclusion
By understanding the fact that brand G-Star Raw is able to gain its success in the
denim fashion retail industry, I would say that firstly that the brand itself has a strong
leading product strategy, where they use materials that will not have a negative effect
on the environment such as recycled and organic materials for its products
manufacturing.
Apart from the above mentioned, G-Star Raw practices strong marketing strategy and
distribution strategy by having various fashion show, great customer service and
flexibility on its products where they distribute their product to multi-brand and multichannel platform of retailing, such as selling their products in their own e-commerce
website, in a third party online stores, third party physical stores and so.
However, the rather disappointment of G-Star Raw is that the price of its products
mainly targeted to middle and above income customers. The brand followed a
differentiated market positioning strategy by having a narrowed market segment of
those in the upper end of the middle market and positioned itself as a premium high
street brand, which also give the opportunity to its competitors Levis and Diesel a
better chance on the pricing strategy.

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References
Micheal Levy, Ph.D., Barton A. Weitz, Ph.D.. (2012). Introduction To The
World of Retailing. In:Retailing Management. New York: The McGraw-Hill.
p6-13.
G-Star. Available:http://www.insightretail.com/clients/case-study/insightconsumer/g-star. Last accessed 30th Nov 2013.
Global Retailers: Cautiously Aggressive or Aggressively Cautious? - See
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Corporate. Available: https://www.g-star.com/en_gl/corporate/index.jsp.
Last accessed 30th Nov 2013.
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Nov 2013.
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http://www.fashionunited.co.uk/news/leads/interviewshubhankar-ray-global-brand-manager-g-star-200801222485.
Last
accessed 30th Nov 2013.
Lynn
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