Overview of the Wrad Livings Company

Published: 2021-07-09 11:55:04
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Category: Corporation, Marketing, Lifestyle

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There are many factors that contribute to Wrad Livings success. Some of these factors also work as a competitive advantage that differentiates Wrad’s product and helps them get incremental business.
Timing – Wrad started at a time when Sustainability had gained popularity but had not seeped into every brand product pipeline. It started two years after the Rana Plaza accident in Bangladesh therefore there was a lot of surge, both emotionally and through campaigns about the need of sustainability in the Fashion Industry.Location – Starting in Italy and close to Milan is another aspect that favored Wrad. Italy is a country that is known for its fashion and quality. Something that is “made in Italy” is assumed to be linked with being fashionable and of good quality. Launching something in Italy also sets a trend for the rest of the world. Being put up in Italy gave Wrad a deeper exposure to the latest trends in the fashion industry as well.
Tie-up – Wrad has made very strategically good decision with its collaborations. One such recent collaboration was with Starbucks. Since this was the first Starbucks to be opened in Italy there was a lot of hype around it and therefore tying up with Starbucks gave Wrad the kind of brand recognition it needed it needed. Since the Starbucks in Milan is the third of its kind in the world, first being in Seattle and second in New York, it has continuous footfall every day. Being present in New York and Seattle through Starbucks has also given Wrad the global presence that it should deserved after being 3 years in the business.
Sustainable Supply Chain – With majority of the brands incorporating sustainability in some way or the other, Wrad stands as one of the few brands that has a complete sustainable supply chain. They have built this supply chain with minimum impact on the environment. This not only improves the reputation of the brand as it shows what they stand for is also incorporated in their business model but also gives the brand exclusivity.
Despite having reached where it is today, Wrad Living did have a few speed breakers in its road to success. While the strengths of a business are often given more importane and the weakness ignored, it is important to identify the areas where the business is lacking so that they can be given more attention to improve the bottom line of the business.
Instead of launching all products at one time it would have been beneficial for Wrad to launch one product at a time. This way they could have focused on selling the story of only one product at a time. Putting all the focus on only one product would help track the performance of that product. Any shortfalls from the campaign of the previous product could be rectified before the launch of the next one. It would give Wrad a deeper understanding of its consumers since they would be able to anaylze the consumers’ needs, buying habits, purchase intentions etc.
Price Premium
Sadly all of the substitutes to the artificial raw materials or harmful process used by the fashion industry and more expensive. Therefore natural process and raw materials are at a higher price point. Quality being the most important factor in Wrad’s clothes, they source the best quality materials and there are no compromises on that. Sustainable practices again come at a higher pice than their substitute cheaper ones. Since Wrad tries to incorporate sustainability at every step of their production process therefore it has a higher price point in comparison to its competitors.
No economies of scale
Organically growing raw materials reduces the amount that could have been grown using fertilizers and pesticides. For example Cotton is not an easy plant to grow and requires a lot of water and pesticides to survive. If it needs to be grown organically then there needs to be more care and attention given to the plant. With the amount of effort that has to be given to grow it the quantity produced reduces. Same holds true for processes like dyeing etc. Being more conscious towards the environment slows down the process of production. Since the company cannot produce in bulk they miss out on the opportunity to leverage on the economies of scale to reduce their prices.
After being in business for three year now, Wrad Living has a lot of options their way that can help them expand. While the start of the business has been good it is important now for this specialized business to move in the right direction.
Even though Wrad has tied up with the right organizations there is still vast opportunity in this space for Wrad. Their recent tie up with the supplier of Kerring group has been one such move that is very strategic for Wrad and that opens a lot of doors for similar tie ups that are mutually beneficial for business. By tying up with more brands for performing different parts of the supply chain, gives Wrad the time and space to focus on strategic planning, future prospectus and selling strategies. Collaborating with big organizations will help Wrad do their business more efficiently since they will be more experienced in the field.
Wider range
Currently Wrad has a very narrow product line. They mainly to do ready to wear clothes, focusing more on jackets and t-shirts. They have huge opportunities to expand the business into other categories, from accessories to footwear etc. The wider the range of products the more known the brand will and higher will be the brand recall. With more products their presence and stand in the business will increase.
Apart from just product expansion Wrad has the opportunity of expanding into different colors for their clothes. Till now majority of the colors used by Wrad are grey, white or cream. Almost all the colors are from the same color palette. There are many new findings in natural dyeing of clothes. For example some clothes are dyed using vegetable color. Similar techniques like this can be used by Wrad to add color to their range of clothes and expand their customer base.
With the changing Textile Industry there are new developments very often. These developments can also pose a threat on Wrad that’s why it is important to be aware of the possible setbacks that can affect the company in the future. Listing out these possibilities will reduce the risk on the business and will also help prepare for damage control.
Sustainability has risen as a trend in a large number of brands, including fast fashion brands. This gives the customers a wide variety to choose from. Since they are spoiled for choice they might not always make the right decision. For example the H&M conscious line has not only more variety than Wrad but is also cheaper. Another plus point that H&M has is that they are more experienced in advertising their products in comparison to Wrad. They already have a customer base and all they need to do Is introduce their new range with a different strategy to do the same customers. As for Wrad they not only have to build a loyal customer base but also have to use marketing strategies and storytelling to prove to the potential customer out there that they are a better and more sustainable choice than its competitors. Not just fast fashion brands but there are also many sustainable fashion brands that are coming up all around the globe. All these brands become direct competition for Wrad.
Trusting Partners
Since Wrad is not vertically integrated and is more inclined to a linear supply chain it has a lot of partners that are involved in its production process. From sourcing to packaging to distributing everything is outsourced to other companies. Even though these companies share the same values like Wrad and help Wrad to gain a competitive advantage over others they still contribute to adding many partners in the supply chain. Every company has a different way of approaching sustainability and if there is any glitch in the understanding of the two business partners on these ground then it could be held against Wrad by its customers. Therefore by adding more partners Wrad runs a risk at every step of its supply chain. Any problem with a partner will have a direct effect on Wrad. In today’s word everyone shops from fast fashion brands. Most of the people shop more than what is required and have clothes in the wardrobe that they don’t wear. The majority of the consumers across the globe succumb to shopping from fast fashion brands. These brands don’t only have a large variety of clothes but also at affordable prices. Fast Fashion companies are characterized by rapid prototyping, small batches combined with large variety, more efficient transportation and delivery. The recent trends of the fast fashion companies is to compress the trend cycle from months to weeks. Since the profits in this sector are high many of the smaller brands are influenced to adapt the same characteristics in their operations. Therefore there has been an alarming number of brands moving into this space. There are many reason that have pushed sustainability to the scale on which it is today.

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