25 Nov 2019
Posted
in Clothing
Ted Baker announced on 28 August 2019 the company has entered into an agreement with Sojitz Infinity to create an exclusive retail license deal for Japan for an initial five year period. Infinity will drive the long-term expansion of the Ted Baker brand in the country. The company is projected to grow its international footprint and sales over the next few years. Along with having opened new stores in Canada, Mexico, Malaysia and Qatar
Ted Baker is a British brand which has struggled in recent years. The company has reported a sizable drop in its pre-tax profits. This has raised concerns about the company’s position in an over saturated market. Ted Baker has blamed its latest trading troubles on ‘difficult and unpredictable’ market conditions, as well as unseasonable weather in the US and intense discounting across markets.
Heavy discounting can dilute brand image and frequent discounting serves to lower the value of the brand. This appears to be the case with this British retailer. In addition, whilst Ted Baker is expanding its international presence, the company is still dependent on Europe to generate revenues. This could reduce demand for products, disrupt the supply chain, and also restrict market share and growth opportunities in the future. Ted Baker needs to re-evaluate its business model and reposition itself in the increasingly competitive apparel market, but the company cannot compete with the likes of Primark or Boohoo on pricing. The company can, however, continue to invest in its online channel in a bid to drive sales and strengthen its brand value.