The baby boomer's retirement problem will not influence the women's market as much, as those in the generation had the idea of women becoming housewives. But for reasons other than the baby boomer problem, many women's wear retailers are going over their merchandising due to slowing sales in the OL zone (office ladies). Although this is besides the point, many retailers and companies are struggling to not lose their clients.
Japan's market has a unique characteristic of requiring substantial confidence among the consumers towards the brand. The standard of quality is high, the need for rapid change in merchandising is very high in the young segment, customer loyalty, and the brand image can influence sales at large. These are reasons why Renown's choice in decreasing the ratio of business suits in their stores seem much wiser than to keep the same and hope those who are now entering their late 50's would become their clients.
In the children's market Narumiya International had experienced the same problem when their boom came to a halt due to their original clients feeling that they were wearing what their little sisters are wearing; therefore they switch to brands that fit their segments better.
To keep supplying the same customers is no piece of cake, but when the loss of clients is in the baby boomers, the number is large enough to make companies feel as though they need a change in strategy, although risky. The success, or fall of these brands will be factor that could be used for other brands in the future.
marketing@alchempro.com
