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Analysis for Padini Holdings Berhad

            Rivalry Between Existing Competitors - High.
             Rivalry among the competitors is high due to the maturity stage of the fashion retail industry. Major players in the fashion retail industry in Malaysia such as Giordano, Esprit, Levis, ZARA, and GUESS existed in the market for a long period of time and they are competing for the same customers and resources. The higher the number of competitors in the market, the higher the competition because of the various choices of product brands which the consumers can choose from. Consumers will tend to compare the designs and prices of the products from Padini with the other competitors. Therefore, Padini has to maintain their consumer loyalty in order to compete with their competitors. .
             Threat of New Entrants - High.
             The fashion retail industry has a relatively easy entry and exit. That is why threat of new entrants is high, due to the low barriers of entry to the fashion retail industry. Moreover, with Malaysia's 9th ranking in the 2015 Global Retail Development Index (GRDI), which ranks the top 30 developing countries for retail investment, Malaysia becomes an attractive expansion market base for the western retailers. This explains the scenario whereby more and more international retailers venture into Malaysia market in the recent years, such as UNIQLO, H&M, and Forever 21. The new entrance of international retailer brands into the Malaysia market may change the preference of consumers. Padini will need to differentiate their products to ensure that they would not be easily replaced by the new entrants or competitors in the market.
             Threat of Substitute - Low.
             Apparel is considered as a basic need and necessity for human that has no visible substitute. However, there are potential substitutes in reaching the consumers, which is the trend of online shopping, growing rapidly in the recent years. The threat of substitute in this scenario is low for Padini.

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