True Religion Jeans Mini-Case

True Religion Jeans Mini-Case

True Religion Apparel, Inc. is an American premium clothing line, established in 2001 by Jeffrey Lubell and co-founder Kym Gold. True Religion is recognized for T-shirts, shirts, sweatshirts and sweatpants and jeans, with a typical western-style. Recently the firm has started license the brand out to branch into new products such as footwear, headwear, handbags, swimwear, eyewear and fragrance. True Religion has around 900 branded stores and boutiques in 50 countries around the world. The flagship store is located in Manhattan Beach, California, and was the first retail store, opening in 2005.

True Religion truly exemplifies the power of premium high-fashion clothing and, specifically, the demand for stylish jeans at any price. It sells high-fashion jeans at prices from $265 per pair to $650 or more per pair.

True Religion has a successful marketing tactic. The firm is mainly targeting people who are willing to pay a high price (premium price) for the product and with it its prestige. The prestige comes mainly from celebrities who wear the brand, and therefore bring something "special" to the product. Stars like Jessica Simpson, Eva Longoria, Jessica Alba and Katie Holms wear the high priced jeans, and therefore make it a "must have" for the "normal" fashion crowed.

Since the company has opened, it has made a very successful growth of revenue, with sales more than $170 million annually. According to wiki analyses, since the first True Religion store had opened in 2005, the Brand had its highest pick of U.S Wholesales in 2006, but since that it has been constantly decreasing. The international wholesale has showed an increase in revenue of 78.6% since 2008 and an increase of more than 30% for 2011 first quarter.

Wiki analyses also showed that since 2007 the brand has experienced an increase in selling men clothing, from about 37% in 2007 to 58% in2010. The sale of women clothing has been decreasing since 2007, from about 59% to 58% in 2010. According to the management for True Religion,: [...]this is partially because women have stopped spending so much money at department stores. The likely reason for this decrease is probably a reaction to the financial collapse. According to a recent article in The Economist, Risky Business, Women produce less testosterone than men do and this leads to a higher level of risk-aversion than men. Given that budgets were tighter after a collapse, women would be more likely to spend less in observance of less money".

True Religion Jeans has shown a fast and great success in their clothing line, especially in their Jeans. But the "World of Fashion" never stands still, and celebrities who now wear their jeans because the "fashion says so", are more fashion conscious than they are loyal to a brand. That means if tomorrow a new, better, and more expensive clothing brand is "in", such as J Brand, celebrities and high income consumers, True Religion's prime consumers, will most likely switch to the new Brand.

As a result True