Clothing Retailer G Company’s Competitive Strategy

As the domestic clothing retail industry is faced with more fierce competition,the survival environment of clothing retailer becomes more harsh.On the one hand, the rising shop rents and labor costs causes the raise of enterprise cost. On the other hand, the rapid development of electronic commerce have more impulse and impact on these traditional entity clothing retailers,whose survival environment get more severe.G Company is one of the famous clothing retailer in Asia Pacific region, which runs more than 2600 outlets and has more than 8000 employees over 30 global areas. Over more than 23 years since entering China, it has about 800 stores and more than 2000 employees until now, and it has been one of the pioneers of domestic clothing chain retailers with a higher reputation and influence. Over all the years, G Company has always hold on to the cost leadership strategy, and has abundant experience in inventory management, cost control. But faced of increasingly difficult environment of retail shops, G Company is also urgent to adjust existing management pattern and strategy based on O2 O considering the totally new Internet environment. By this kind of adjustment, it helps to expand shop virtual space, improve the plateau effect, attract more consumers to shop and finally helps to gain sustainable competitive advantage in fierce market.Through analysis of leisure clothing industry, the development trend of mobile Internet, the change in customers’ life and shopping behavior,the article give light on how G company cope with the new environment challenge and how to adjust its original strategy. The paper also analyzes G Company’s resources and capacity, G Company’s operation and management ability. And based on the analysis, it points out the development opportunities and potential threats,its advantages and disadvantages. Beyond SWOT analysis, the paper summarizes and points out that the G Company should adjust its original cost leading strategy based on O2 O, and change it to the Internet oriented cost leadership strategy. By this adjustment and innovative strategy, G company can catch development opportunity in mobile internet environment,connect online to offline, create a new shopping environment, help the consumer get more high-quality experience, and eventually improve enterprise profitability and gain competitive advantage in fierce market competition. Thus,this paper also has reference significance to the similar clothing retailers when developing electricity commerce and implementing O2 O strategy.