Porter’s 5 Forces

Threat of new Entry - high, licensors are looking to expand product offering and tap into new fans by collaborating with new and upcoming streetwear brands. They offer unique assets and more freedom to be creative to rivals, than what is given to Dumbgood. This could be directly related to competitors customer base and influence over new customers and their desire to be “first”. Dumbgood solution, better align with key licensing partners at the beginning of the development cycle to lock in key properties and potentially put an embargo on competitors ability to provide the same licenses in the same development cycles as Dumbgood. Using the Dumbgood established brand name could help to prevent new brands from making a name using the same properties to the same customer base.

Competitive rivalry - high, existing established competitors have access to the same licenses as Dumbgood and have the ability to create innovative products via global sourcing and a robust domestic supply chain. Dumbgood must deliver products first and be first to market with new licenses not yet saturated in their market. Dumbgood solutions, partner with existing competitors to leverage and share customer base, generate sales, garner more social media buzz and provide credibility to both brands. Dumbgood can also set itself apart by being sharper with product delivery times and bringing more innovative products to market, being first is very important to the Dumbgood customers and they share customers with their competition.

Threat of substitution - high, dumbgood customers are fickle and will move to competitors for better pricing, better quality or more unique product offering. Customers also do not want to be perceived as wearing a brand that is available at mass retailers and is perceived as being a “sale” brand or lower priced fast fashion. Dumbgood solutions, Dumbgood must constantly be looking at competitor pricing and comparing our product prices and assortment to these competitors. Analyzing the AOV over the past years should give insight into how the customer buying habits have changed for the brand. Dumbgood also should be looking at sale events and comparing the rate of sale promotions to its competition. The brand cannot afford to be perceived as a “sale” brand where the customer is being undercut by the retailer and making them feel like they are going to lose money by not waiting for a sale. Cusomters won’t buy full priced items from Dumbgood which will have a negative effect on AOV, CAC and return customer rates.

Buyer Power - high, the Dumbgood customer is the most important part of the business, if they are not happy the brand does not hit key success metrics. They have leverage over the brand with their voice on social media and will move to a competitor if they feel they get better value from the competitor. Dumbgood solutions, provide a diverse unique license assortment that appeals to a broad range of fans across all types of interests. This is the Dumbgood competitive advantage, having access to this broad range of brands to design into. Dumbgood must be “first to market” with the brands and provide intriguing, on trend product assortments. Pricing plays an important part in our customer role, but is less important than the customer feeling like they are getting a unique product with a point of view that aligns with their core values.

Supplier power -  high, Dumbgood over seas suppliers are the life blood of the brand, and have major leverage over the brand. Their ability to produce low MOQ items at a reasonable price is critical to the brand success. If the suppliers do not maintain pricing and on time deliveries they can ruin customer confidence and damage key success metrics such as CAC and return customer rate. Dumbgood solutions To fix this Dumbgood should diversify its over seas supplier list and also seek alternatives at a domestic level. Doing this will help reduce delays in deliveries and help Dumbgood hit key dates for trend and licensor partnerships.