SWOT Analysis of Lacoste. Lacoste SA is a French sportswear and fashion company. Andre Gillier and Rene Lacoste laid the foundation of the fashion brand in 1933. The headquarters of the company is in Troyes, France.
Some of the main products and services of Lacoste are as follows;
- Leather Goods
Key statistical facts and figures about Lacost are as follows;
- The annual revenue of Lacoste in 2022 was 3 billion US dollars
- Approximately 7132 employees are working for the company to manage its operations
- The company ranks at the 462 position in terms of global net sales
Some of the top competitors of Lacoste are as follows;
- Ralph Lauren Corporation
- Hugo Boss
- Diesel SPA
- Fred Perry Limited
- Calvin Klein
- Armani Exchange
- Marc Jacobs
- Armor Lux
- Joe’s Jeans
- Abercrombie & Fitch
Today, we’ll discuss the SWOT analysis of Lacoste. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the world’s leading fashion brand. Here’s the SWOT analysis of Lacoste as follows;
Strengths of Lacoste
Some of the main strengths in the SWOT analysis of Lacoste are as follows;
Lacoste has a very large network worldwide influence and market share. According to an estimate, the fashion brand is operating its business in more than 120 countries across the world. The company has more than 1081 retail stores to connect with customers.
Lacoste has established an iconic brand image and a rich history in the fashion industry. The company has been in the fashion, showbiz, and sportswear industry for the past more than 90 years. It allows the company to earn the trust and confidence of customers.
The worldwide network of Lacoste makes the company easily accessible to customers. Even though the company is operating its business in niche areas, the company offers its products at affordable and economical prices relevant to its competitors.
Lacoste has got a rich client list from the sports industry and they’re representing the sportswear and fashion brand. For instance, it consists of Swiss gold medalist Stanislas Wawrinka; French veteran Richard Gasquet; American tennis player Andy Roddick. The endorsement from such world’s leading sports celebrities would help the company strengthen its brand reputation.
Lacoste has developed a well-diversified product portfolio comprised of watches, perfumes, bags, shoes, and clothing. The diversified portfolio helps the company to target various segments of the customer market, rather than relying on a few of them.
Lacoste is a socially responsible organization and the company engages in human and animal welfare activities. For instance, the company is funding an NGO in the Philippines that is working to protect the extinction of crocodiles.
Weaknesses of Lacoste
Some of the main weaknesses in the SWOT analysis of Lacoste are as follows;
Many critics have declared Lacoste’s clothing as “dirty laundry” because its production and manufacturing process is jeopardizing the environment. They have also accused the company by claiming the company’s t-shirt contains hormone-impacting chemicals. Such types of claims and slogans aren’t good for the company’s reputation in the long term.
Low Market Share
Industry competition and negative connotations have decreased the company’s market share to a great extent. The decreasing market share would jeopardize the company’s growth and profitability in the long term.
Opportunities for Lacoste
Some of the main available opportunities in the SWOT analysis of Lacoste are as follows;
The demand for sportswear products is increasing in the Australia-Asia region. It presents a great opportunity for Lacoste to expand its sportswear products there. It would help the company increase its market share in that region.
The trend of green and environmentally sustainable products has been increasing for the past few years. Lacoste should partner up with such outsourcing companies that are engaging in environmentally sustainable practices. It would help the company to market and promote its product under the green logo and attract environmentally conscious customers.
The demand for Lacoste’s products and goods is increasing in the Asian-Pacific region. The fashion brand should expand its business operations in the developing markets, it would help the company increase its sales, market share, and profitability.
Threats to Lacoste
Some of the main potential threats in the SWOT analysis of Lacoste are as follows;
The sportswear and fashion industry has become highly competitive with brands like Nike, Zara, H&M, and others. There are various brands operating their business in the industry and offering more or less similar types of products, and it has increased the brand switching rate.
Various small cheap companies copy and imitate the design, style, and logo of Lacoste and sell their products under the disguise of the main brand. Customers can’t differentiate between the original and fake products at one glance because they both have the same logo. It is negatively impacting the company’s reputation.
Conclusion: Lacoste SWOT Analysis
After an in-depth study of the SWOT analysis of Lacoste; we have realized that Lacoste is the world’s leading fashion and sportswear French brand. If you are learning about the business of fashion brand Lacoste; you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.