Trends Challenging the State of Herschel Supply Company

Technological

Technology in the backpack, luggage and accessories market is constantly changing and these changes could majorly affect Herschel. One new trend currently in production and a competitor of Herschel is the new HoverGlide “floating backpack”. This new design reduces impact forces by 86 percent and can make the weight of your backpack up to 20 percent lighter.

Another trend currently in the industry is e-wallets. Herschel currently sells and produces wallets, which is a product that could soon be extinct. With the new development of Apple Pay and Apple Wallet there is a reduced need for this product. This could impact the sales and production of wallets in a big way by completely removing them from the roster. If Herschel does not adapt to the new changes in design and technology it could really affect them in the long run.

Economic

Current Canadian economic conditions in the apparel and backpack industry are showing growing imports and decreasing exports, even though domestic demand for apparel goods have increased. Current trends in the industry is that companies are offshoring their apparel production to help cut costs and operating replenishment facilities in Canada so they can respond to the fast changing trends in the retail industry. This trend is also known as fast fashion. This practice could affect Herschel due to the fact that there are so many competing apparel and accessories coming from different countries.

Regulatory

In Canada there are many laws and regulations that affect the sale of products in the apparel and backpack industry. These laws and regulations control how you can market, sell, and distribute products. If these laws and regulations are not properly followed, it could affect the sales and profits of Herschel as lawsuits, fines and delays in distribution can affect business.

Another concern, with respect to distribution of products, are tariffs that could be applied to their products if they are being distributed to other countries. If large tariffs are placed on distribution the local business costs of selling will rise and can cause major losses.

Conclusion

In summary Herschel has to keep up with the trends in the competitive apparel and accessory market. They have a key demographic of young adults and know their target market. Herschel has changed backpack culture by finding their niche in the market with there creative nostalgic designs, but many brands are copying the design and creating similar products due to the brands success. New technology is everywhere and could have major effects on Herschel if the brand doesn't adapt and create more innovative tech friendly designs.

The economic and regulatory factors could also deeply affect Herschel. There are lots of imports of apparel and accessories to Canada, which shows a massive amount of competition. The numbers show that Canadian exports are dropping and there is a lack of demand for Canadian apparel. Canada also has a lot of regulations that can affect the brand such as tariffs. If Herschel watches the market and the external factors closely they will continue to be a success.