The existence of barriers to entry. Almost no barriers except some moderate capital requirements.
· Switching costs or sunk costs. No serious switching costs exist among customers. Brand loyalty is relatively low.
· Capital requirements. There is no need for huge capital requirement to start producing your clothes line, but there is one to build your own distribution and to advertize your brand. These two activities require some money.
· Access to distribution. It is hard to build a strong brand using clothes retailers, so one should built its own distribution network including own shops or use e-commerce.
· Industry profitability. Industry is quite profitable, so that entrants appear quite often.