Previously we did the elaborated marketing strategy of one of the leading sports brands Puma, this time we will look at the SWOT analysis of Supreme.
Supreme is a skateboarding lifestyle and American clothing established in April 1994 in New York City. Back in 2018, Supreme received an award as the Council of Fashion Designers of America’s Menswear Designer of the Year Award.
Supreme is a very big company because of its marketing tips and tricks and as the world is shifting online the marketing techniques are changing which is digital marketing. As the world goes online, marketing is changing and if you are interested in learning about the latest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we begin with the SWOT analysis of Supreme, here’s a deep dive into the company’s history, founding, products, financial status, competitors.
(James Jebbia, founder of Supreme, Source: Google Images)
Supreme is a well-known American streetwear brand that generally targets youth culture, mainly on hip hop and skateboarding cultures established in New York City.
It is a brand that offers clothes, shoes, and accessories and manufactures skateboards as well. It is owned by VF Corporation. The founder of Supreme James Jebbia reveals that the famous propaganda art logo is taken from the work of Barbara Kruger which the Supreme has Futura Heavy Oblique font printed on a red box logo leading to lawsuits against other women’s street clothing due to close similarities.
However, Kruger still insists that he originally designed it. It has released new products through its retail locations in different areas such as Europe, America, and Japan as well as to its websites. The brand’s popularity spreads throughout Japan, China, the United States, and Europe.
|New York City, United States
|No. of Employees
|$ 1 Billion
|$ 500 Million
|Net Income/ Profit
|$ 20 Million
Current News about the brand
- Supreme has launched its first-ever store in Seoul, South Korea in collaboration with Brinkworth, a design studio in London.
- Supreme teams up with The Great China Wall, an American clothing company, on a new collection.
- Easy to select and order.
- Huge variety to choose from.
- Quality Products.
Interest & Hobbies
- Playing games
- Less information on social media channels.
- Slow website and browsing process.
- No resale of the same collection.
- Limited Stock Availability.
Social Media Presence
SWOT Analysis of Supreme
Examining internal and external factors is the objective of the SWOT analysis of Supreme. The company’s strengths, weaknesses, opportunities, and threats are the four aspects analyzed in the SWOT Analysis of Supreme. This is a tool that reveals the areas that need to improve, what factors are holding back a certain business, or even the consequences of not considering the competitors.
To better understand the SWOT analysis of Supreme, refer to the infographic below:
So let us first start by looking at the strengths of Supreme from the SWOT analysis of Supreme.
Strengths of Supreme
- High-end Quality of Products: Supreme has maintained its authenticity to its fans from a small store to a high-end company. Its products are produced with utmost quality since it is more than a brand.
- A Veteran of the Brand: Supreme was established in 1994 making it a veteran in terms of streetwear and skateboard clothing. This adds to the originality of the brand since they pioneered the style in the clothing industry.
- Hype by Approval From Celebrities: Aside from their products, Supreme skyrocketed in the market thanks to celebrities wearing the brand. They have invested less in promoting the products because those celebrities themselves have an impact on the popularity of the brand.
- The Uniqueness of Stores: The store has minimalist aesthetic cultivation. It has incorporated a sleek interior design that captures customers’ attention. They also posted different art on the wall making it an artsy shop. The store also maintains its roomy environment since it is not suffocated with a bunch of inventories and supplies.
(Supreme’s Milan Flagship Store, Source: mme.hu)
- Fully operating Websites: Supreme has established its website for the convenience of its customers. Customers can avoid fake Supreme products when they buy from the official website of Supreme. They also have customer support for their queries and concerns. This helps them to associate virtually with their customers.
- Social Media Presence: Aside from its website, they have also promoted their brand through Facebook. It is considered a strength because the number of Facebook users is enormous and it opens a larger market for the brand. This also contributes to their promotion since many have access to the said social media.
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Weaknesses of Supreme
- Expensive Prices: Authenticity is the main branding of Supreme. However, due to its popularity, the prices seemed to rise as well. From the price of its t-shirts and hoodies, it is much higher than the other competitors such as H & M which also offers this kind of style.
- Lack of Promotion & Brand Awareness: Supreme, given its net worth, still has no allotted budget for its marketing and advertising. It just relies on collaboration with famous brands and indulging the celebrities’ approval of the brand. Marketing must be dynamic and innovative which should be kept in mind every time.
- Limited Inventory: To sustain its authenticity and quality, the company opted to limit its inventory and was afraid to fill the stocks. It is a weakness of the brand because most of the time the stock is sold out which causes customer dissatisfaction and at the same time can damage the company’s reputation.
Opportunities for Supreme
- Increasing Social Media Presence: Supreme has the option to increase its social media presence by establishing an official account, specifically on Twitter.
- Online Availability: Online presence is a plus factor for every company associating virtually. Supreme may increase its online availability on its website and social media accounts to further connect to its customers online.
- Formulating Advertisements: Allotting the budget to its promotion in terms of advertisements is an opportunity for the company to focus on. Even though they are benefitting from their current fame, there is a possibility that a time may come when they will need the power of advertising.
- Making the Brand a Household Name: Due to its popularity, the company has the option to level its brand into a household name giving it more identity.
Threats to Supreme
- Tough Competition: Various competitors are dominating the market. These businesses give customers different preferences by offering a cheaper price with the same style as the products offered by Supreme.
- Threats of Mass Production: The brand will lose its “hype” in case it decides to mass-produce its products. They need to stick to their limited edition promotion which hinders them from providing all the demands of their customers.
- Threats to Departing from Underground Style to Commercialization: Conversion into commercialization may lose many hard-core fans of the brand. Its uniqueness comes from the rarity of these clothes. If the brand is commercialized, fewer people would prefer the brand since it will be considered as common.
Top 5 competitive brands
- Cariuma– It was founded by David and Fernando, and the brand is establishing itself as one of the trendsetting streetwear brands among others. The brand has created its mission to make eco-friendly sneakers that are stylish and comfortable.
- Wax London– This London-based family label was established in 2015 and has quickly become one of the best online clothing stores for men which offers timeless designs of streetwear brands.
- Vetements– It was founded by Demna Gvasalia and is renowned for its bold, boundary-pushing designs and is one of the best streetwear clothing brands leading the charge.
- Off-White– This brand plays a crucial role in the rise of streetwear in the luxury fashion industry and is regularly featured in Paris Fashion Week.
- Obey– It is one of the well-known names in the fashion industry because of its unique approach to streetwear designs. The brand is founded by Shepard Fairey who reflects his beliefs and love for activism in clothing designs.
Uniqueness and authenticity are what make the Supreme rose to the hall of fame. However, given the popularity, they should still invest in advertisements and promotion. Opportunities such as increasing online accounts and availability should also be maximized.
The company must also develop strategies to minimize the aftermath impact of risks of competitors, production, and commercialization. Truly, Supreme is a successful clothing company and they must retain it through innovation and development.
Lack of marketing will later affect the company in its operation as a whole. Given the online presence made by Supreme, they can have the capacity to venture into digital marketing to minimize their weakness in terms of advertising. Lots of competitors have been into marketing lately.
Digital technology is also emerging, thus, the need for digital marketing is elevated throughout the years. If you are interested in grasping a skill or investing in upgrading your skills in marketing, feel free to check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Supreme has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. If you enjoy in-depth company research just like the SWOT analysis of Supreme, check out our IIDE Knowledge portal for more fascinating case studies.
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