True Religion Jeans: Will Going Private Help It Regain Its Congregation?

The True Religion Jeans has many internal advantages which play favorably to its benefit. The advantages have aided it survive some of the most tumultuous economic times that have plagued the industry in the recent in history. Many of its competitors rolled up as a result of difficult economic situations as the purchasing power of the American public diminished.  Despite being relatively new, it has upstaged the jeans and denim industry to emerge in the much exclusive top-tier.  This success has been attributed to certain unique internal factors.  Perhaps one of the most prominent advantages enjoyed by The True Religion Jeans is its differentiated stores and product lines. As Harvey, Ringrose & Gill (2013) intimates, one of the most difficult challenging situations for jeans and denim manufacturers is establishing products that look different from that of its competitors. In the conventional design sense, there are only so many shirt or trouser designs that can be developed from a given denim material.

The True Religion has consistently demonstrated its ingenuity and creativity by establishing unique products and store designs not common to most of its competitors (Lubell, 2007). Another key internal advantage is the firm’s ability to evolve with fashion. The true religion has ensured lasting consumer loyalty by identifying potential fashion trends and availing them to its clientele. Additionally, the firm is advantaged with competent head designers who have presided over many successful design campaigns, aiding the company to achieve considerable success. The True Religion Jeans is known for its lifestyle brands which are affordable to most of its intended market. Its ability to stock the products conveniently eases shopping for its clientele who find a one-stop-shop for most of their denim needs. Lastly, one of the company’s noteworthy internal advantages is its vast market foothold both within the country and on a global scale. The firm has a wide network of stores consisting of 86 full-priced retail, 30 outlet stores and 36 international stores.

The pricing of a pair of jeans has fallen as a result of the change in the manufacturing and supply chain logistics in many denim and jeans manufacturing firms.  Erratic weather in China and the US as well as punitive tariffs exposed by the European Union resulted in the change in the viability of US Mills to sufficiently maintain production. Initially, most mills imported cotton from China and India to cater for their shortfalls but recent changes in climate and the international market operating conditions have made this difficult. Most companies opt to have their products made in the Far-East where most of the cotton originates to sustain a favorable financial condition. The result is a reduced unit price as only most of the other financial liabilities are reduced or nonexistent. It is the main reason why the price of jeans has fallen over the past several years. The True Religion can improve their internal organization for future success by instituting three main changes; structural, strategic and process changes.  Structural changes entail the modification of the structure of the organization to increase its performance. Conversely, Strategic change involves the altering of the firm’s mission, strategy, purpose or goals.  According to Lubell (2007), reexamining what the company’s stands for or its future goals gives the company an opportunity to make more accurate and realistic projections of the future, hence, plan better. Lastly, process changes include the inclusion of better practices and the elimination of those that are a liability to the firm’s operation. These changes result in the improvement of the firm’s operations and processes.

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