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QUESTION What are the demographics of Guess company's customers these days?

INSIGHTS

The targeted customers of Guess Inc. are in the 18 to 32 age range, with incomes ranging between $25,000 and $60,000 per annum.

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OVERVIEW

Hello, and thanks for your question about the demographics of Guess clothing company's customers. This research found that the targeted customers for this frm are in the 18 to 32 (7) age range, with incomes between $25,000 and $60,000 (10) per annum. It also found that the company's dwindling revenues were caused inter alia by a poor online strategy, poor accessories business, and the rise of fast- brands.

OVERVIEW

Guess was established in 1981, and is currently based in , California.

The company was founded in 1981 and currently owns 336 stores (7) across North America, as well as 386 stores (7) internationally.

Another industry report states that ''Guess and its licensees and distributors operate in 97 countries (8) worldwide. It directly operates roughly 870 (8) retail stores in the Americas, and . The Company's licensees and distributors operated roughly 770 (8) additional retail stores worldwide.''

According to a review, ''Guess Inc. (GES) is a component of the specialty retail industry which is a segment of the overall retail industry. Guess designs, markets, distributes, and licenses lifestyle collections (7) of contemporary apparel and accessories for men, women, and children that refect American lifestyle and European fashion sensibilities.''

TARGET CUSTOMERS

The target customer of Guess is style-conscious, and aged between 18 and 32 (7). This demographic is valued by Guess for their relatively high disposable income, as well as thei (7)r high predilection for brand identity.

This group comes under the demographic known as Millenials - that group of 18-39 year olds who account for approximately 30% (10) of the US population, or about 90 million people (10), and their average spending power is in the region of $25,000 to $60,000 (10) per annum, according to industry site, CRM Trends.

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CUSTOMER INTERESTS

The main interests of Guess customers, as shown by research occur in this order (1):

- Apparel and Fashion - Entertainment - Media - Famous People - Recreational Activities - Food and Drink - Sports - Retail - Beauty - Travel

Guess Inc. is making eforts to expand its customer base. Recently it introduced an athletic clothing line, which was fronted by , a pop star. Its aim was to target the 'Athleisure' (8) market - those who wear sportswear in non-sport situations.

FINANCIAL PERFORMANCE - DECLINING SALES

Revenue has fallen steadily since 2012, and fell by 9% (8) in 2016, compared to 2015 - a loss of $213 million (8). This placed the frm's income for that year at $2.2 billion (8).

Much of the declining income was due to fuctuations in foreign currency which adversely afected the frm. In addition, the company efected a number of store closures, with negative sales growth at its stores in the Americas leading to a 1.6% (8) drop in revenues for that region.

Specifcally, ''the store base in the Americas decreased by an average of 26 (8) stores on the prior year, resulting in a 4.1% (8) fall in square footage'', states industry research site, Vault. Nevertheless, actual cash from overall store activities rose in 2016, with a 17% increase from the previous year, due to changes in accrued expenses (8) and accounts payable.

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Also, according to Forbes, ''Guess’s retailing strategies, its online weakness, the poor performance of [its] accessories business and the growth of fast-fashion brands are among the few factors responsible for [its] market share loss (9).''

SUMMARY

The research identifed the targeted customers of this frm as being in the 18 to 32 (7) age range, with incomes ranging from $25,000 to $60,000 (10) per annum. It also found that the company's dwindling revenues were caused inter alia by a poor online strategy, a poor accessories business, the rise of fast-fashion brands, and foreign currency fuctuations.

Thanks for using Wonder, and do let us know if we can be of further help.

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SOURCES

1) GUESS Customer profle http://customer-profle.com/apparel-and-fashion/clothing/unisex/guess-customer-profle.html

2) 3 Target Markets http://guesswhatsupwithguess.blogspot.com/2009/03/3-target-markets.html

3) Guess? Targets Growth Markets And Better Customer Engagement After Weak Results http://www.nasdaq.com/article/guess-targets-growth-markets-and-better-customer-engagement-after- weak-results-cm231324

4) How Guess Has Thrived in the Apparel Industry for Over 30 Years http://www.brandid.com/blog/how-guess-has-thrived-in-the-apparel-industry-for-over-30-years

5) Target Market https://www.scribd.com/document/49620576/Target-Market-Ad-Placement-Analysis-Guess-Nylon- Magazine

6) GUESS?, Inc. http://www.retail-merchandiser.com/reports/retail-reports/1812-guess-inc

7) Complete Analysis of Guess http://mmoore.ba.ttu.edu/ValuationReports/Summer2007/Guess.pdf

8) Guess Inc. Profle http://www.vault.com/company-profles/retail/guess,-inc/company-overview.aspx

9) Guess's Dwindling Market Share, By Forbes http://www.forbes.com/sites/greatspeculations/2015/02/03/is-there-any-hope-for-guesss-dwindling- market-share/#45499e64591d

10) Millennials' Spending Power - Research http://www.crmtrends.com/ConsumerDemographics.html

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