Analysis of Bench Retail Brand Using Porter's Five

Competitive Forces
By
ENR 21
from DE LA SALLE UNIVERSITY – DASMARIÑAS

Abstract
As the Philippines' consumers become more diverse in their fashion sense, the local brands do so.
Global Retail Development Index cited that the Philippines is the 18th most attractive retail market
globally, attracting and harnessing more investors worldwide. Local brands like bench offer a
substantial future potential in the fashion industry here in the Philippines. The purpose of this
study focuses on the following elements: the threat of potential entrants, bargaining power of
buyers, bargaining power of suppliers, rivalry among existing firms, strengths, weaknesses,
opportunities, threats, competitive advantage, competitive position, and business strategies. The
study will also illustrate the market condition, production, and cost structure of the company. To
get the data needed, the researchers fully utilized the internet's assets, scouring all the information
accumulated for the study's benefit.

Introduction
Bench is a Filipino clothing line brand under the company of Suyen Corporation. The brand name
derived from the founder's name "Ben Chan." It started in 1987 as a small selling store of men's t-
shirts which can be found only in SM malls and Landmark. During Bench's early days, the fashion
industry in the Philippines was tedious. Ben Chan aimed to transfigure things. Over the years, the
brand grew unparalleled, now accommodating women's and children's apparel, fragrances,
housewares, snacks, and other products' vast scope. The Bench has made its own definite retail
space in the Philippines and is planning to broaden its fashion reach internationally. The firm has
700 retail stores worldwide, including retail shops inside SM Store, Robinson's Department Store,
Landmark, etc. There are over 35 retail branches in 8 other countries.
With over hundreds of BENCH/ in the Philippines, they have 85 branches found overseas,
specifically in the United States, Canada, China, Japan, Saudi Arabia, Egypt, and Singapore. Ben
Chan aimed to bring his fashion brand internationally, and it was proven successful. OFW's are
patronizing the brand, but even other races are also loving the varieties of clothes Bench has
offered. The retail brand Bench owner is Bench Chan, a Filipino-Chinese entrepreneur who is the
company's executive creative director. SUYEN corporation is a family ran corporation; therefore,
it had many problems managing BENCH/ its early years alone. But despite the problems, Bench
became the Philippines' most successful crossover in the fashion and lifestyle industry. And
becomes the first in the Philippines to have the phenomenal global trend because of the reinvention
of the world's most innovative fashion labels from their tagline, the "not just fashion but an entire
lifestyle." They started by selling shirts in the department store; they expanded their products to a
locally manufactured shirt, fashion accessories, skincare, cosmetics, underwear, and watches.
STRENGTHS AND WEAKNESSES OF BENCH RETAIL BRAND IN THE FIVE
COMPETITIVE FORCES

Threat of Potential Entrants

The threat of new entrants for the fashion industry is moderate, as it is easy to enter the market but
with the restrictions of the retail brands and malls, only established brands are allowed. In starting
up a fashion brand business, it needs a high initial investment to be funded and launched. There
are many different requirements for the government and other legal policies to follow to register
the company, which makes the threat low as the new entrants' obstacles will encounter before it
can enter the market. Entrepreneurs can establish their clothing line, but with capital and permit
restrictions, it will dictate how they will be the direct competitor for the brand. The Bench has an
aggressive promotion to introduced and market their campaign by having endorsers and gigantic
billboards in Metro Manila.
The Bench has set the standards high for the new entrants as the firm has a strong branding in the
market, which established the trust for the consumers. The firm has been running in the industry
for 34 years, known for its premium quality products and affordable prices. They have different
stalls and outlets nationwide to have an easy distribution channel of their products wherever their
consumer is. The threat to the new entrants in the distribution channel is low. They may have
difficulty attracting Bench's loyal consumers as the firm established its name in the fashion
industry locally and internationally.
The firm has won many awards locally and internationally; they receive a bronze award at New
York Festival last 1994 for International Advertising. And last 1995, they won Merit and
Excellence Awards and the Platinum Award. During 199, they won three awards; the TV Ad of
the Month/June and Print Ad of the Month/June and November by the Creative Guild, the winner
on Asia at the Regional Max Awards for Worldwide D'Arcy, and won three Gold Awards and two
Silver Awards for print and television at the Philippine Ad Congress. They become the best retailer
award from 1997 to 1998. They became the Most Promising Franchise of the Year 1999 by the
Philippine Franchisers Association from this award. At the end of the century, 200, Bench received
the Year's Best Franchise again by the PFA-DTI. The Bench has 186 branches in the Philippines
while 85 units overseas in the United States, Canada, China, Japan, Saudi Arabia, Egypt, and
Singapore. Venturing out builds the brand to expand in the global market and can compete with
the foreign brand. Bench's only difficulty was the local government's support as it helps the firm
have incentives and subsidies to lessens the manufacturing cost for the products. The firm has a
high economy of scale that lowers the new entrants' threat to enter the market. Bench sets a
standard that will be difficult for the new entrants not easily to match the firm's powerful strength
in the industry.

Threat of Substitutes
The threat of substitute products is high due to the different international brands are entering the
local market, such as Uniqlo, H&M, Zara, etc., which are the biggest threat for Bench. They also
offer affordable and comfortable clothing lines that threaten the loyalty of the consumer to the
firm. The substitutes' pricing may influence the consumer into the switch from a local Bench brand
into the international one that both offer them quality clothes but a much lower price than the local
brand. These are the direct competitors of Bench that can affect the sales and profit of the company.
Substitute products can influence the local consumers to switch to them by offering a trendy style
that the local brand does not provide. The consumer may not hesitate to switch to a well-known
international brand due to the locals' limited choices, not unlike the foreign brand that always has
something new to offer in the market. From this, the locals see the local brands are being left
behind in terms of their design. They do not mind spending a bit more if the foreign brands offer
better quality than the local ones.
Despite this, Bench has more knowledge of the Filipino market than the substitute products. The
firm is a locally established brand; they offer a distinct and irresistible taste that the only Bench
can do. As the firm is a local brand, its products are suited for the tropical weather they promote
as the Filipinos' everyday uniform. In terms of the high performance to cost ratio, the threat is low
as the firm can offer products suitable for the Philippines' weather, where the substitute products
lack. Bench highlights comfort, style, and durability specially made for the hot climate and
rigorous daily activities.

Bargaining Power of Buyers

In the Bargaining Power of Buyers, it refers to the consumer's pressure on the companies to provide
a quality product suitable to the price or services. Bench has hundreds of branches all over the
Philippines and overseas, but the firm is still affected by the consumer's bargaining impact. There
are different factors the firm should look upon to provide the value the consumer needs from them.
The Bench has been dominating the Philippine market for more than 34 years, and throughout the
years, numerous brands enter to compete with the brand. From this, the consumer can pick which
brands exactly fit their preference for the price, quality, design, etc. Penshoppe is always compared
to Bench in the retail market, making them the firm's top competitor. They offer shoes, clothes,
accessories, perfume, and many other products. Not only from the products they offer, but both
brands also associate with the most prominent personality from local and international talents to
cater the appeal from the market. Thus, the consumer now has an option that the retail brand will
choose to offer similar products. It gives the Bench pressure to offer sales in the market for the
consumer's continuous support.
With the different brands that offer similar retail products from Bench, consumers can choose
where they will buy. From this, there is no switching cost can happen when a loyal consumer
switch to the other brands. Switching with the other brands has no cost associated as the consumer
will not pay any extra fees for them to switch. Nevertheless, Bench has a Lifestyle Card, a loyalty
card program for their consumers to gain points to build trust and connection with their buyers.
Bench has employed a customer retention strategy by having their loyalty card collect points and
avail discounts. The consumers' buying force is significant for the firm as they may not influence
the brand's position. But the competition of the brands in the fashion industry is in a race to give
the consumers the best service and satisfactorily influence them. Having their customer support in
their social media sites helps them to engage with them
Bargaining Power of Suppliers
In Bench, suppliers' bargaining power is low as there are many distributors and suppliers of the
different kinds of fabrics needed in a clothing line. The firm can canvass different supplier that
matches their preferences. The primary sources of the raw materials of the firm are mostly coming
from overseas, like China. The supplier's market for the different fabrics is enormous; from this,
each supplier's power is lower as there a greater competition among them.
As the firm is in the clothing industry, switching costs are minimal as the supplier of fabrics in the
market has an enormous amount of options that Bench can choose. Bench buys bulk items from
their suppliers for their products, and if the firm does not get satisfaction from the supplier, they
can immediately switch from the others. The retail brand has been in the market for more than 34
years, and the leading clothing brand in the country where the suppliers are the ones will depend
on the firm's performance.

Rivalry Among Existing Firms

Competition in the fashion industry in the Philippines is intense. Fashion brands and designers are
pressured to create new fresh, intricate designs that will cut through in the market. Different brands
offer similar products, which result from intense competition. Other brands and companies seek
their marketing professionals and graphic designers to hone and whet their unique styles. Most of
the brands that have a strong image can attract loyalty but can charge more. The concentration of
competitors in the Philippines intensifies, as the country is attracting retail markets worldwide.
Moreover, the competitive atmosphere is escalating due to its small geographical area, leaving the
brands with a compact market. As the fashion industry's race is getting intense to win their
consumers' hearts, the newcomers only have little space to enter. The top competitors of Bench
are as follows:

Penshoppe, another leading clothing brand based in the Philippines, was established in 1986. In
the Philippines, Bench, and Penshoppe have a tough competition. Whenever there is a Bench outlet
in a mall, there is also a Penshoppe store in it. Comparing the two, Bench offers a broad category
of products than Penshoppe. Bench has men's wear, women's wear, underwear, body and bath,
accessories, swimwear, cosmetics, skincare, glasses, bags, shoes, and watches. The Penshoppe has
the same offers as Bench but in less; such as men's wear, women's wear, accessories, underwear,
perfumes, and shoes. When it comes to the prices, Bench offers more affordable clothes where
their tops range from P329 – P429, while Penshoppe starts at P399 – P599 on their tops. But when
it comes to globally branches, Penshoppe has a broader range in Asia. They have branches in
Singapore, Malaysia, Vietnam, and Australia. Not unlike Bench, they focus more on the United
States,China, and the Middle East.

Kultura is a local eco-friendly handmade craft that continue to embrace the heritage of Filipino
identity in modern times.

H&M is one of the rising imported clothing brands. H&M is a fashion brand that offers everything
from fashion pieces and unique designer collaborations.
Uniqlo is a Fashion brand from Ube, Japan, taking the Philippine fashion industry by storm. The
very first Uniqlo store arrived in the country on February 20, 2012.

Leading brands approach the industry with much innovation in their hands, modifying them with
various variables and styles. Even with being the number one leading local brand and having
brand-loyal customers, Bench has yet to reform its comprehensive competitive strategies from now
and then to sustain its competence. The threat level of rivalry is high as Bench's market has a high
level of saturation where each brand is competitive to rank on top.

SWOT ANALYSIS

Strengths of BENCH/ Clothing Brand

BRAND POSITION
BENCH/ has the most potent local brand image and considered as a market leader in Philippine
fashion retail. It is a well-diversified company that offers good quality and different variety of
products at affordable prices. They started as a t-shirt brand in the corner of SM Department Store
(now SM Store) in 1987. It is a local fashioned brand that tells its story loudest. BENCH produces
different clothing/apparel designs that are highly fashionable and, at the same time, very
affordable. The Bench also uses a high-quality material in their products. In 2010, Bench turned
into a distinct advantage by turning into the primary neighborhood brand to utilize bamboo fiber
in its environmental line. An entirely feasible asset, bamboo is simpler to develop and reap
contrasted with cotton and uses less energy and water. They are most known for their affordable,
durable, and comfortable jeans that will suit the Filipino lifestyle. The company is generally known
for the towels and fragrances they sell, and the excellent quality shirts worn at home or outdoors.
The firm also held the most prominent fashion show yearly in the country. They will showcase the
different styles and designs of the locally but internationally known designers in the Philippines.

BUSINESS LOCATION FACTOR

The Bench has established a clothing brand that has built a worldwide network of stores and outlets
in the business location. The brand continues to dominate the Philippine retail market, with there
are a total of 678 stores nationwide. The retail brand is a boutique that can easily be found in almost
every shopping mall in the Philippines.

COMPETITIVENESS FACTOR
Bench intends to connect with a robust set of local and foreign celebrities in terms of competitors.
Chan tapped the chance to get local and international endorsers from various backgrounds,
nationalities, ages, body types, and styles. BENCH/ keep up with local and global competitors by
knowing the industry's on-going trends and such information. Based on the business talk with Ben
Chan, he said that the game today revolves around information and what to do with it. If their
brand wants to stay relevant, they must be in the loop with everything that is going on. In simple
words, they cannot miss a beat. The brand either keep up with the times or get left behind.
Technologically, they must be at par with the best of the best. BENCH/ is incredibly aware of their
market with their prices in the lower range, often around Php 300-700, comparable to those from
the "tiangge." Its established brand and carefully curated advertisements are a testament to their
skill in seeking out globalization while firmly grounding itself in Filipino culture for its branding.

Weaknesses of BENCH/ Clothing Brand

EXISTENCE OF COMPETITORS
With Filipino standards, they are considered as low brand recognition with low-quality products.
The other clothing brands are top-rated among the millennials; the business guarantees a high sales
number, which is a great advantage for an aspiring franchisee. The biggest hurdle they had to face
was globalization. They saw the Philippine fashion, textile, and retail industries transform before
their eyes. In many respects, the country was not prepared for globalization, which they had to
overcome a challenging hurdle. Global competition to this day remains fierce, and it is a battle
they face every day. When it comes to mall spaces, the local brands have occupied a smaller space
than the foreign brands with a multi-level space. SM Corporation operates two of the biggest
competitors of Bench, Uniqlo, and Forever21.

PRODUCT LIMITATION
In terms of clothing retail, BENCH/ have no specialization or a unique product to offer. Fashion
brands are increasing the number of clothing articles they release globally and are always creating
new trends to necessitate adhering. The brand offers quality products that come with affordable
prices that target all demographic divisions– age, gender, socioeconomic status. But the
competitors also offer in the same field, with more outstanding options and different varieties.

LACK EFFECTIVE MARKETING SKILLS

BENCH/ calibrates their advertisements to fulfill the tastes of their customers. They only produce
few advertisements through TV advertising. BENCH/ is only active on a different medium of
promotion like digital marketing and big billboard promotions.

Opportunities of BENCH/ Clothing Brand

EXPANSION AND GLOBAL PRESENCE
BENCH/ increases the market shares in the long run and succeeding years. They expanded their
line to cater to an even broader market and continue to offer different products variation. They can
create more new and improved products, also those that appeal to the high-class market. As the
company’s goal is to bring the Filipino brand to more countries overseas and set discussions branch
out with potential partners in four countries, with some located in Asia and North America.

STRENGTHEN THEIR BRAND IMAGE

BENCH/ clothing is considered as a primary store that you can easily found in malls. They can
strengthen their brand image by additional promotion through exploring other forms of mediums
of advertising. Despite Filipinos' mindset that Philippine-made products are of low quality,
BENCH/ can exploit this by demonstrating that they have high caliber, quality, and well-designed
local made garments. Nowadays, people intend to like the mindset of having 'Filipino values" in
terms of commercials. As the technology evolves, this can be seen as an opportunity for BENCH/
to further their promotions and ads.

Threats of BENCH/ Clothing Brand

IMPORTED BRANDS AND START UPS

BENCH/ faces one of the biggest challenges of competing with more unfamiliar design brands
and the quickly developing imported chains, whose pattern-driven and youth-arranged styles in
eye-popping colors accompany costs that undermine the local names. Imported competitors also
offer the right quality products at an affordable price with a known and stable image recognized
by the market. Due to the perception that Filipino brands have an average quality of their products,
there will be a large shift of the consumer preference from local brands to other famous
competitors.

LATEST TRENDS
Keeping their products up with the latest trends can be a threat for BENCH/. Consumers'
perspectives, expectations, and standards are too high, and trends will continuously change, and
stores hardly comply with them.

What is bench’s competitive advantage and competitive position?

Bench has always been on top of the game, with their broad cost leadership among the other brands
and fore fronting couture innovation in the Philippines. Perpetuating designs made them last this
long. While their competitors face their nether end, Bench always produces timeless designs
adored by the masses. Their collaborations with different artists, designers, and models keep the
brand fresh and uncured, making them the talk of the town ever. Their strategic measures
incorporate the combinations of collection development and retail--and development of
competitive, on-brand distribution strategies.

Other Major Income Stream for Bench/

As Bench continues to expand globally and known as one of the leading retail brands in the
country, they have different subsidiaries such as Human, Kashieca, Dimensione, Bench Skin
Expert, and Bench Fix Salon. These companies gave Bench an additional income stream as it
caters to a different industry. The Human is also a clothing brand that offers an alternative selection
of merchandise by turning the basic style into an edgier design. They serve their young consumer
to combine their style with the classics at a pleasingly affordable price. Then the Kashieca is a
clothing line as well but for young ladies. The brand promotes women's empowerment as they
believe every girl is a strong modern woman whose clothing line designs have the touch of
femininity and delicateness. Then the Dimension is a furniture concept store established by Ben
Chan in 1976. As the firm serves a person from head to toe, they establish the Bench Skin Expert
to market skin and body care. The skin clinic mission is similar to their master brand Bench, and
they showcase the latest fashion trend in the skin and body by using non-invasive technology. The
firm has also ventured out in the styling and cutting hair. Bench established Bench Fix Salon where
it becomes one of the fastest-growing salons in the country. They offer an Asian style of look that
appeals to young and stylish by incorporating a highly skilled hair artist equipped with knowledge
in haircut and updated hairstyle.
Aside from the subsidiaries, Bench has been selected to become the local distributor of the
international brands to bring in the Philippines. They brought the Cotton On and Cotton On Kids
from Australia last 2012 with over 800 stores globally. The brand started as female wear, but just
like Bench, they expanded to men's and children's wear, lingerie, pajamas, and workout clothes
with Cotton On Body. They also bring Vero Moda from Denmark, American Eagle from
Pennsylvania, Aldo, Call It Spring from Canada, Charles + Keith and Pedro from Singapore, FOX
clothing from Israel, Under Armour, and The Face Shop from Korea. The firm brought different
brands from Europe and UK's Cath Kidston (clothing, bags, and accessories), Paul Smith, luxury
apparel and accessories from Nottingham, Cappellini, Fritz Hansen, Magis, and MDF Italia. Bench
brought more high-end brands in the country; the Foscarini, Rubi Shoes from Australia, Origins,
Jo Malone, Bobby Brown, Kiehl's, and Estee Lauder.
Among the Philippines' local brands, the international companies have selected Bench to bring
their brands to the country. As Bench has been in the market for more than three-decade, they can
develop the market and the perfect fit for partnering with the brands internationally. Having an
international distribution rule was to look for a distributor with the right customers and generate
quick sales; from being the leading retail brand in the Philippines, Bench is the trusted brand they
can partner with.
Business Strategy
BENCH/ did not just want to sell clothing; They wanted to create an image for the brand. BENCH/
has been initiating development in the clothing industry consistently. Mr. Ben Chan, the founder
of BENCH/, got the idea of manufacturing and designing clothing because of his sister. It started
when his sister established a boutique for kids in Harrison Plaza. Chan's legacy comes from Fujian,
regular among Chinese Filipinos, and his folks had gone to the islands and begun an advertising
organization, providing starch, flour, and coffee. His sibling broadened the business into nibble
snacks; however, Chan took alternate learning inside plan in San Francisco.
Nonetheless, the enterprising soul shone through on his return, setting up a furniture store and an
artistry exhibition before wandering into T-shirts. Now, he is the one who becomes responsible for
the overall operations of the business. The triumphant system is to think, act, and look worldwide,
any place they are. Ben Chan said in an interview that he does it by intuition. It is a family-run
company with his sister, his sister's husband, their children, and himself running the show.
Naturally, they treat our employees as their extended family. As a result of his vision and efficient
basic moves, he has extended the Philippine clothing chain into worldwide business sectors.
Because of his vision and aggressive but strategic moves, he has expanded the Philippine clothing
chain into international markets.
They consistently deliver and produce products that customers may like and advertise them as the
most blazing item for their buyers. Bench/ exports not just products or raw materials, but a brand.
The Bench brand represents a whole vision and the Filipino way of life explicitly. It showcases
accomplishment since it is one thing to offer to a homegrown market, while it is an excellent ball
game abroad, close by the world's greatest and best brands.
BENCH/has developed to incorporate a women's line, clothing, scents, housewares, snacks, and
other lifestyle products from being the main store of men's clothing. Their store sells an improbable
mix of items that leads to branching out with different product lines. BENCH/ is not just a clothing
brand now: it stretches out to embellishments, including truly trendy watches, boutiques, and
excellent spas. They continuously keep maintaining and updating their global lifestyle vision,
which is continuously being shaped and reshaped by technology, world culture, and individuality.
The company continues to cater to global customers who are continually changing their preference,
taste, and flow with the on-going trends. The world lives with social media; they need to be
relevant in determining the trending 'likes,' 'posts,' reposts,' and most followed style to catch up.
BENCH/ became what it is by being a leader and top in its field, so it would be insightful for them
to hold their administrative role instead of being a follower of trends.
The company's vision is "To be a recognized world brand among the best world brands." To boost
Bench's growth, it spearheaded the utilization of big-name endorsers and influencers, TV, and
Billboards to introduce and market for a style brand that offers premium quality items at reasonable
costs. They enter the international market by imbuing a Filipino flavor to their plans while making
it versatile globally. The company's most vital skills are creativity, innovation, loyalty, and known
for reasonable pricing, especially against its competitors. They took the creative risk of marketing
and presenting their brand.
To empower customers, Ben Chan communicated directly with them through social media
platform for comments and suggestions. Chan's way of thinking goes a long way past moving
forward that one needs to transform motivation into something financially feasible. He recognizes
three foundations of his prosperity: imagination, versatility, and timing.

Conclusion
Classifying the five forces of the model, Bench has been the country's leading retail brand. Still, it
may affect the firm with its competitors' growing power as there is a competitive competition
between the substitutes in the marketplace. To prevent the firm from losing its position in the
market, the brand should incorporate a strong advertising campaign by creating an awareness of
the brand's products is perfectly suit the country's tropical weather. The study showed the factors
that helped Bench reach its position. The analysis through Michael Porter's "five forces model"
determined that this scrutinization will help their brand and the other existing firms sort their
strategic techniques and schemes. Through this, just like the Bench, it will help any firm make it
to the top.
References:
• Bench's Strategy for Success: 'Go Global'. (2015, November 27). Retrieved from
https://www.businessnews.com.ph/benchs-strategy-for-success-go-global-20151127/
• The rise and rise of Bench. (n.d.). Retrieved from http://lucire.com/2018/1018fe0.shtml
• BENCH. (n.d.). Retrieved from
https://prezi.com/ibrr62mjopyq/bench/?frame=aa8b68450d5354b52d2fd3551bc75c8426c
88024
• Inc., P. M. (2017, October 09). Business Talk with Ben Chan of BENCH/. Retrieved from
https://primer.com.ph/business/2017/10/09/business-talk-with-ben-chan-of-bench/
• Enriquez, M. C. (2012, November 04). 'We did things nobody dared to do'. Retrieved from
https://business.inquirer.net/90972/we-did-things-nobody-dared-to-do
• “Bench: 25 Years, 28 Brands and Counting.” Philstar.com, 22 July 2012,
www.philstar.com/lifestyle/sunday-life/2012/07/22/830217/bench-25-years-28-brands-
and-counting.