Strategic Challenges

Challenges faced in Singapore retail industry

Non Critical Challenges

The common strategies to build and expand the brand typically consist of two major areas - to expand geographically and to extend the brand. However, Denizen is in a unique position as an endorsed brand from Levi's and thus, these strategic options will not change the due course of the brand's future greatly. 

Brand Extension

Denizen is only a year old brand in Singapore and has yet to build any form of substantial brand equity to differentiate itself from its competitors. Denizen itself is an endorsed brand from Levi's with the aim to leverage on the strong associations as a jeans specialty. It is not common from a brand extension to form its own extension as it would have to align many differing brands together. 

Additionally, the apparel industry is saturated and has little room for expansion. By expanding wrongly, sales might be cannibalized from the parent brand. 

Geographical Expansion

Denizen has different brand positioning for both the western markets and the eastern markets. In the west such as USA, they are sold to the value conscious family with advertisements featuring family members wearing Denizen jeans. In the east, they are sold to youths and position itself with a unique selling point of Asian cuts. Having a well penetration into diverse markets in Asia, it will take a few years for Denizen to achieve a strong foot hold in these countries as part of its brand building process.

As such, we can see that Denizen has strong localization in the markets where it operates thus far. Hence, our main coverage of strategic options will only cover the Singaporean aspect.