Merchandise Sears or Wal-Mart Cannot Effectively Create Essay

Pages: 3 (897 words)  ·  Style: APA  ·  Bibliography Sources: 2  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

Merchandise

Sears or Wal-Mart cannot effectively create a counterculture image for a couple of key reasons. The first is that the stores inherently are not counterculture. They are mainstream in every sense of the word, such that consumers will assume a product coming from those stores as being mainstream. Counterculture is partly defined by what it is not, and it does not involve shopping at Sears or Wal-Mart.

The other reason those stores cannot create a counterculture image is because of their merchandising tactics. Those stores, Wal-Mart in particular, rely on high volume sales to cover lean margins. That business model lends itself to narrow product lines and mass production. Counterculture is effectively impossible with mass production. Moreover, those stores have difficulty tapping into counterculture because of they lack the expertise. The staff tends to be older and therefore is unable to contribute to defining fashion for the stores. This means that the lead time for product development is going to be higher than at a store like Urban Outfitters. By the time a product makes it to a Wal-Mart, it is no longer cutting edge, and therefore no longer counterculture.

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2) In a way, big box stores can sell merchandise identical to Urban Outfitters. They would simply have a longer lead time to create that merchandise. Thus, they would not be able to sell identical merchandise simultaneously. By the time the big box store catches on to a trend, that trend has already passed through the Urban Outfitters stores

In that regard, then, the box stores cannot have the same merchandise at the same time. This is especially true of the more specialized items at Urban Outfitters. These can be very cutting edge, with short development lead times and low production runs. The uniqueness of some of the items at Urban Outfitters cannot be matched by big box stores with long lead times and massive production runs.

TOPIC: Essay on Merchandise Sears or Wal-Mart Cannot Effectively Create Assignment

3) Exclusivity is valuable for several reasons. The first is that in fashion, uniqueness is a valuable attribute. A fashionable person derives a specific sense of worth from being at the cutting edge of fashion. The cutting edge is inherently exclusive, in the fashion industry. Therefore, the prestige gained by the wearer of exclusive clothing lends value to their sense of worth.

The second reason is that exclusivity creates a market, in particular pent-up demand. Exclusivity means that the potential demand for a product is unlikely to be met. This is not universally the case, but is commonly so. With Urban Outfitters, exclusivity results in there being more demand than supply for some products. Basic economic theory tells us then when the demand curve shifts upwards, either the supply curve… [END OF PREVIEW] . . . READ MORE

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"Merchandise Sears or Wal-Mart Cannot Effectively Create."  Essaytown.com.  December 3, 2009.  Accessed September 27, 2021.
https://www.essaytown.com/subjects/paper/merchandise-sears-wal-mart-cannot-effectively/6642496.