Gildan and American Apparel: A Sales Presentation Analysis

Desklib provides past papers and solved assignments for students. This sales presentation analyzes Gildan's strategy for American Apparel.

1
Sales Presentation
Sales Presentation
Student Name-
Student ID-
Course Name-
Due date-
1

2
Sales Presentation
Introduction
Buyer-seller relationship is also evident in the case of two companies. This is an assignment that
is associated with the sales presentation of one company to the other. The profiles of both
companies will be discussed in the report. Any company takes supplied from other companies
when there are specific issues in the organisation or lack of some technology. The problems
faced by the buyer company will be discussed in the report and how the issues would be solved
by the seller company will also be shown. There will be a discussion about the various queries
that can be raised by the buyer company to the seller so that both the companies can have equal
benefits.
2

3
Sales Presentation
Part A
Company Introduction
Your name:
Company name: Gildan
Features of the products sold by Gildan
 The T-shirts manufactured by Gildan are made from pure cotton. The products are of
very high quality, and there is no contamination in the fabric of the products which makes
the products very comfortable for the users.
 The prices of the products are low, so they are affordable by every section of the society.
People can have high-quality apparels at low prices which is a benefit to the customers.
 The clothes manufactured by Gildan are sold by various other brands as well so
customers can opt for any of the other brands to which Gildan has a supply. This enables
the buyers to purchase the Gildan products from the store that is available near to them or
the store that has operations in a particular country.
The main competitor of Gildan in the activewear clothing market is Hanesbrands. Hanesbrands is
an American manufacturer of clothes and is very socially responsible. The company has its
operations in various countries and has more than 65000 employees all over the world.
Hanesbrands also has several other brands like Hanes, Playtex, Bali and others (Gildan, 2019).
Advantages of Hanesbrands over Gildan are as follows:
3

4
Sales Presentation
 A large number of employees: The number of employees in the Hanesbrands is more
than the number of employees in Gildan which clearly shows that Hanesbrands has larger
operations.
 Larger profits: The annual profits of Hanesbrands are more than Gildan because of its
large number of distributors and buyer companies. Hanesbrands has operations in various
countries which makes it easier for the company to earn higher profits.
 More products: Hanesbrands produces a range of clothes apart from the active sports-
wear. This is an advantage for the company as they have various options to sell and the
customers also have a wide variety of products to choose from (Hanes Brands Inc, 2019).
The major disadvantages of Hanesbrands over Gildan are discussed below:
 Costly products: The products sold by Hanesbrands are a little costly as the labour wages
and other operating costs of the company are higher. This is an advantage for Gildan as
the products sold by Gildan can be purchased by anyone. This makes the market of
Gildan larger as it can have more number of buyers in the market.
 No Specialization: As it is discussed earlier that the company deals in various types of
clothing, this is a disadvantage for the company also as it is not specialised in one kind of
apparel. Gildan is, on the other hand, specialised in active wear.
 No regular technological upgradation: In the Hanesbrands company, there is no regular
up gradation of technology used for t production function as it already has sales and
profits, but this is not the case with Gildan. Gildan regularly upgrades its technology of
manufacturing so that there is no drawback in the company and the cost of the products
are also controlled. Technological advancement also leads to customers loyalty.
4

5
Sales Presentation
The value proposition of products sold by Gildan:
The value proposition of the products sold by Gildan is the price of the products. The company
promises the buyer companies that they would earn higher profits by selling the products of
Gildan rather than its competitors (Praet, 2013).
5

6
Sales Presentation
Part B
Company Name: American Apparel
Company Address: 1550 Metcalfe St, Montreal, QC H3A 1X6, Canada
Prospects Name:
Prospects Title:
Details of the company:
American Apparel is a company that is based in North America. The company is a large scale
manufacturer, designer and distributor of casual and sportswear clothing. The retailer has its
headquarters in Los Angeles, California, USA. The company manufactures and distributes high-
quality products to the target customers and extends its operations in many countries. The
company has a total yearly revenue of USD 608.89 Million. The large scale operations of the
company make it sure that the brand has a large number of employees serving the organisation.
The number of employees in the organisation is 10000. The founder of the company is Dov
Charney and founded the company in the year 1997. The intellectual property rights of American
Apparel are acquired by Gildan Activewear. The company has been in the clothing industry for
21 years now. American Apparel wants to be the leader in the clothing industry. The company
wants to have a separate manufacturing unit and independent retail outlets in the coming years.
The customers of the retailer are the common people of all age groups especially between the age
of 8 to 50. The company wants to increase its profitability by having independent operations and
also intends to enter more core markets. The aim of the company is to establish its stores in the
6

7
Sales Presentation
developing nations as the marketing and selling opportunities in the developing countries are
more than in the developed nations.
Problems with the company that Gildan can resolve:
 The technology used in the production process of American Apparel is not updated, so
the products supplied by Gildan are used by the company to enhance its sales. The
products sold by Gildan are a major part of American Apparel’s store.
 The company does not produce trendy clothes as per the wish and demands of the
consumers. The clothes produced by Gildan are always trendy and according to the
market demand as they research the market before manufacturing any product. This is a
problem with the clothes of American Apparel which is solved by Gildan.
 Low profitability is another issue with the brand as the manufacturing and labor cost in
the US are high, and thus the costs of the products are also high. This also has a negative
impact on the profitability of American Apparel. This problem of American Apparel is
solved by Gildan as the products manufactured by Gildan are low priced and the
distributors of Gildan earns high profits as it is also the value proposition of Gildan.
 Bad public image is another problem faced by American Apparel after its bankruptcy, but
the supply of products from Gildan has saved the company from various other associated
issues. The high-quality products manufactured by Gildan are the plus points for
American Apparel (Lam, 2017).
Concerns raised by the consumer
7

8
Sales Presentation
It is equally fair that the consumers can also raise certain concerns and queries regarding the
products or services provided by the supplier. Given below are some of the concerns that can be
raised by the American Apparel to Gildan.
 Price: The first and foremost concern that can be raised by American Apparel is
regarding the price of the products of Gildan. The company might have questions about
the daily wages and operating cost of the company and the expenses on the production
function. The questions are valid as American Apparel also has the right to know the
strategy of Gildan that how the prices of the products are so low.
 Product Manufacturing: American Apparel might also have concerns about the
production process of Gildan to make sure that each and every activity of the production
function is carried out effectively. This is important for American Apparel to know as
this will have a direct impact on the profitability of the organisation.
 Quality control: Another issue or concern that American Apparel might have is about the
method of the quality check used by Gildan. There are various methods to test the quality
of the products so, and it is the right of American Apparel to know about the method of
the quality check used by Gildan as quality is essential for American Apparel (American
Apparel, (2019).
Conclusion
The assignment concludes about the manufacturing company called the Gildan Activewear Inc.
The report showed the relationship of Gildan with its distributor and buyer company called the
American Apparel. Gildan is a fine manufacturer of active and casual wear and has its
distribution in many countries by different brands. American Apparel is one such brand. There
8

9
Sales Presentation
are various problems faced by the American Apparel like high production cost and technological
upgradations which are solved by the products supplied by Gildan. On the other hand there are
numerous concerns like the pricing strategy and quality check that might be raised by American
Apparel and Gildan has to answer all the queries. This give and take relationship is very
important for both the companies to have higher profitability and increased market share.
9

10
Sales Presentation
References
American Apparel, (2019). How we live. [Online] Global American Apparel. Accessed on 5
March from: https://global.americanapparel.com/en/
Hanes Brands Inc. (2019). Our company. [Online] Hanes. Accessed on 5 March from:
https://www.hanes.com/corporate.
Praet, N. V., (2013). Gildan bets on name recognition with retail turn. [Online] Financial Post.
Accessed on 5 March from:
https://business.financialpost.com/news/retail-marketing/gildan-bets-on-name-
recognition-with-retail-turn.
Lam, B., (2017). GoodBye American Apparel. [Online] The atlantic. Accessed on 5 March from:
https://www.theatlantic.com/business/archive/2017/01/american-apparel-gildan/513128/
Gildan, (2019). Gildan. [Online] Gildan. Accessed on 5 March from:
https://www.gildan.com/state/landing
10