Bargaining Power of Buyers

The bargaining power of buyers in the premium jeans market is moderate. It has been revealed that
that economy of the United States of America faced some spikes from 2008 to 2012. In fashion
retail, customers, due to low-income levels and limited financial capability, contained higher
bargaining power. Customers always wanted to buy the lowest priced jeans along with the sustained
quality in the market. However, on the other hand, with some improvements in the US economy,
the bargaining power reduced due to good income level. For Instance, after regaining the economy
growth, premium jeans industry depicted 11% growth in 2011 (Austine 14). It also rose 7 to 8
percent in the next years.

The big reason for this growth was the low bargaining power of buyers, as they want to wear high
quality and differentiated jeans, which is almost inimitable. The buying power in the premium jeans
industry depends on the income level and sense of fashion among customers. It demonstrates the
attractiveness of the industry. The increase or decrease in sales depends on customer perceptions
and intentions.

Bargaining Power of Suppliers

The bargaining power of the supply is low. The low bargaining power is due to available options for
companies such as True Religion Brand. For Instance, for the premium jeans industry, major
suppliers are India, Pakistan, United States, China, and Brazil. It has been revealed that these
suppliers produce and supply 79% of the world (Austine 18). However, all suppliers contain low
bargaining power due to availability. Conversely, many premium denim jeans makers are looking to
rely on different local fabric suppliers. These are cheaper and superior in quality to make pertinent
premium denim jeans for customers. The example of the White Oak Mill is quite visible. This
company is producing high-quality selvage denim, being used in expensive jeans for men and
women. Interestingly, with different quality features, many US suppliers are willing to sell the
salvage. Thus, the availability of suppliers reduces the bargaining power.

Threats of Substitutes

It is a fact that different retailers, emerging in the competitive fashion industry, are willing to
transform the fashion industry. They are looking to differentiate premium jeans for men and
women. Thus, the threat of the substitutes is quite high. Interestingly, competitors or fashion
retailers are willing to create space from premium jeans products. Integrating with different brands
to increase the sales increases the threats of substitutes of this true Religion Brand. Color, design,
patterned design, wrinkles, and comfort wear due to the stretchable fabric are some features that
can be observed from other brands as well. Other brands have access to different suppliers, and it
also increases the threat of substitutes (Austine 17).

Threats of New Entrants

The threat of new entrants is quite high for the company. It is due to the easy entry of different
companies in the country. In different fashion retail stores, denim can be seen everywhere. New
arrivals in the market are exploring the market because the denim business does not need heavy
investments. There are some minor regulations on this business. After deriving insights from the US
denim market, it has been observed that retail stores are selling more than 86 denim brands,
including True Religion Brand (Austine 15).

Competitive Rivalry

The competitive rivalry is high. 7 for all mankind, Levis, AG Jeans, Hudson, Rag & Bone, Joe, J Brand,
and genetic denim are some major competitors. All these competitors are focusing on quality and
differentiation. These competitors are selling premium jeans at premium prices in the market to
create the perception. Conversely, True Religion Jeans is also giving a tough time to these rivals.
Thus, the rivalry is tough, and intention to gain and sustain the competitive advantage increases

Ancaman Pendatang Baru

Ancaman pendatang baru cukup tinggi bagi perusahaan. Itu karena mudahnya masuknya berbagai
perusahaan di negara ini. Di berbagai toko retail fashion, denim bisa dilihat di mana-mana.
Pendatang baru di pasar sedang menjajaki pasar karena bisnis denim tidak membutuhkan investasi
besar. Ada beberapa peraturan kecil tentang bisnis ini. Setelah memperoleh wawasan dari pasar
denim AS, telah diamati bahwa toko ritel menjual lebih dari 86 merek denim, termasuk Merek True
Religion

Persaingan yang kompetitif

Persaingan kompetitif tinggi. 7 untuk semua umat manusia, Levis, AG Jeans, Hudson, Rag & Bone,
Joe, J Brand, dan denim genetik adalah beberapa pesaing utama. Semua pesaing ini berfokus pada
kualitas dan diferensiasi. Pesaing ini menjual jeans premium dengan harga premium di pasar untuk
menciptakan persepsi. Sebaliknya, True Religion Jeans juga memberikan waktu yang berat bagi
rivalnya tersebut. Dengan demikian, persaingan itu sulit, dan niat untuk mendapatkan dan
mempertahankan keunggulan kompetitif meningkat