How Gildan maintains a leading position in its niche
Gildan is a Canadian clothing brand that supplies products to more than 55 countries around the world. It is a family-owned business that has carved out a niche and thrived in it. The company specialises in casual clothing, including shirts, T-shirts and other products.
The company also produces blanks for other manufacturers, including brands such as Under Armour and New Balance. Gildan’s products are available through websites that offer printing and embroidery services.
Competitive advantages
The brand’s products are available in the affordable price segment, which is highly competitive. Despite this, the company has managed to maintain a leading position in the market over a long period of time. The brand uses a number of approaches to achieve this, including:
1. Gildan’s operations are in South and Central America, allowing for quick delivery to consumers.
2. The company owns its manufacturing facilities, which produce garments in large quantities.
3. Owning factories allows the company to reduce production costs and regulate them independently.
4. Labour in Central America and the Caribbean is much cheaper than in Canada or the United States.
5. The company owns a unique spinning mill that is unparalleled in the US.
Gildan makes clothes for other companies, which is a win-win situation. It avoids the costs of promoting its brand. The company uses virtually no consumer marketing strategies, focusing on the B2B sector and operating as a SaaS. This approach makes Gildan less dependent on market trends and less exposed to rising customer acquisition costs.
Plans for the future
Gildan’s approach to operations does not mean the company has no problems. In 2011, it expanded its own branded products. However, the move was not successful as consumers were not directly familiar with the companies.
In 2024, Gildan’s share price plummeted amid a change in management. The dismissal of the CEO caused controversy among investors, which affected the share price. Despite this, the company continued to grow and develop. After the weakening, the team decided to focus on the key direction. This is the production of billets. This niche is more promising than producing and selling clothing under its own brand.
Grand View Research forecasts that the global market for blanks will grow at a CAGR of 4.7% from 2023 to 2030. Gildan’s share of this market is currently around 30%. The company plans to increase this figure, driven by growing demand from major brands.
