Selling T-shirts is easy. Consumers spend at least $15 billion a year on them. Moreover, the inventory is easy to store, doesn’t spoil, and is compact. On the surface, a great business.
But there’s a catch—everybody and his brother sells T-shirts. Every beach resort has dozens of T-shirt shops. And they sprout like weeds at every major sporting or concert venue. And then there are all the online sites that offer custom designs and quick delivery. So, the competition is intense. This makes it near impossible for any T-shirt shop to raise the price of its T-shirts, much less hold on to profits. The owner of a T-shirt shop in South Padre Island, Texas, lamented, “Every day you have to compete with other shops. And if you invent something new, they will copy you.”
Questions:
1.What determine the ability to make profit on this market of T-Shirts?
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