research on clothing industry

The primary goal of this study is to look into two retailers in the clothes business. Primark and Topshop have been picked as the retailers. Primark is an Irish fashion store with operations in the United Kingdom as well as other countries such as Italy. The firm was bought out by Associated British Foods in 2005. Topshop is also based in the United Kingdom and it operates as a clothing store chain established in 1964 for women clothes, shoes as well as accessories. The retail is also part of the Arcadia Group. Currently, Topshop store in London is the largest fashion shop store in Europe. The paper provides a situation analysis for the two retailers using various tools such as SWOT and PESTLE to examine the environmental factors and their effects on the operation of the two retailers. Furthermore, the objectives of the two retailers will be provided, and their image, positioning, and targeting strategies. It is recognized in the research that each retailer has its own way of positioning and targeting its consumers. Each retailer has its own objective although they seem to complement each other. For instance, both the retailers have the goal of respecting people within their practices. Accordingly, the retailers are noted for their commitment to participating in charitable activities. The research could not be concluded without examining the marketing mix employed by the two retailers. The two retailers are noted to use various marketing mixes such as place, people, pricing, design, and product among others as discussed in the paper. Therefore, the research provides necessary information regarding the two retailers.

Primark is a fashion retailer with stores in the United Kingdom and also in other nations such as Italy among others. Accordingly, it is pointed out that Primark has enjoyed incredible success particularly with the international revenue summing up to over five billion dollars in the past one year. The company has achieved this through its value scheme of low costs making it a moderate frontrunner in low-cost nonrefundable fashion. As a result, it commands a huge market, particularly after the financial emergency of 2008, and consequent downturn as cash poor consecutive income growth and productivity from 2007. On the other hand, Topshop is also based in the United Kingdom, and it operates as a clothing store chain established in 1964 for women fashion clothes, shoes as well as accessories. The retail is also part of the Arcadia Group. Currently, Topshop store in London is the largest fashion retailer in Europe. It runs operations spread in over twenty nations and includes over three hundred fashion stores countrywide, as well as over forty shops outside the United Kingdom. The company has an online shopping platform that allows consumers to purchase a variety of goods from the comfort of their homes regardless of the location. Within this context, the paper explores the retail strategy employed by the two retailers.

PESTLE Analysis

The political atmosphere involves laws, government entities as well as lobby groups that impact and restrict different organizations and people in an individual community. It also comprises of agencies that regulate and control the business. For instance, in the case of Topshop, the organization was accountable for complying, with the marketing standards’ authority as it advertised the Unique AW 13 assortment. The standard declares that a group must always be answerable and should not misinform the consumers. On the other hand, concerning Primark retail, the commotion caused by Brexit led to frequent indecision for businesses such as Primark. As a result, Primark’s original company ABF indication to vacate the EU has established doubt in the business setting and monetary markets (Douglas and Gross 2016). Primark will be affected significantly with regards to its transactional outcome in the profit margin on its UK sales in case Britain proceeds with its decision to leave the European Union. This shows how political factors can influence a business.

Accordingly, economic aspects have a significant impact on the manner in which organizations carry out their business and also affect the profitability of the organization. Economic issues encompass economic growth, interest proportions as well as nonrefundable revenue of customers. For instance, the purchasing power of most consumers diminishes considerably during economic recession making the fashion business to experience losses. In the case of Topshop, giving its target market a ten percent reduction as a way of impacting consumer’s choice to buy goods from the Unique AW 13 assortment is one way to motivate and entice customers into its store. Accordingly, using a Topshop card that provides the target market benefits as an extra inducement to buy goods from its store is another way (Barrie 2015). In the case of Primark retail shop, it is predicted that it will profit for the remaining part of the year because the referendum election is expected to bear positive outcome. This comes as a result of a decline in the sterling pound against the dollar.

Demographics are noted to have a profound impact on the categories and level of fashion consumption. Demographics comprise categories such as sexual characteristics, age, social status, and cultural attributes. This makes it easy for consumers to view a connection in the clothing market and their accomplishment of societal position or flexibility. It is noted that a good number of clothing retailers in the United Kingdom encounter socio-cultural drifts such as increasing obesity and an aging populace. As a result, the obese people have the tendency of not shopping at some retail shops for lack of suitable cloth sizes. Some retailers such as Topshop mostly sell clothing that is fitting and, thus, fails to meet the needs of the individual with oversized bodies. However, Primark stands to benefit because it provides for obese people’s demands.

The increasing growth and development of electronic commerce have created more competition in the retail industry. The technological aspects such as mobile media such as smartphones have become accessible to the fashion target market comprising mostly of millennials that are increasingly becoming tech-savvy. Therefore, for Primark, which does not operate e-commerce, the website becomes susceptible to reduction in store sales, while Topshop stands to benefit since it sells its products online.

Environmental factors influencing the fashion industry comprise an augmented interest and concern in moral and sustainable problems by the customer, growing shortage of raw materials, augmented the cost of energy and increased pollution and transformations in climate. Topshop being part of the Arcadia Group has a responsibility to do in their effect upon the environment and have to promise to continue with its carbon reduction commitment through investing in improved energy management and transport. Furthermore, the organization is using reusable packaging to continue limiting destruction to the environment. In order to demonstrate its commitment to the process of managing the environment, Topshop has declined its carbon discharges to about five percent. Primark protects the environment by ensuring that its wastes are well managed all the time.

Legal aspects comprise protection of the users, company regulation both countrywide and international, as well as particular regulations for the industry concerning health and safety (Easey 2009, p.35). Therefore, it is essential that it comprehends the laws at national and intercontinental levels and the way in which it influences them. Topshop sells its products online thus it ensures that it complies with the distance trading regulations that permit consumers to cancel their request at any time before the expiry of the time. The regulation guarantees the organization to offer a complete repayment and the consumer has to bring back the canceled goods to the organization. It is also the Primark’s duty to ensure that it follows necessary rules in its business processes.

SWOT Analysis for the Two Retailers

Primark’s strength is its low cost in disposable style, which has enticed many consumers, particularly after the 2008 downturn. This has made the organization encounter progressive income increase and profitability. Furthermore, Primark key strength relates to its affordability and its focus on quality which makes it be in a good position to defeat the Arcadia Group becoming the third biggest in fashion retail shop. Alternatively, Topshop’s strength is its brand image and availability of its products both in the UK and outside the country. Furthermore, Primark’s weakness is in the customer perceptions that it is unethical. The organization also has a weakness in view in that consumers see the team as old-fashioned in its brand and not stylish. This may make the team lose some of its consumers including the young generation, which is after the current fashion. The organization also depends on a lot on the United Kingdom market that produces more than half of the company’s worldwide income. The organization also is hindered by the lack of using advancing technology, thus, slowing its sales. Topshop also has weaknesses including depending on the third party to deliver its products, the organization’s product mix is very narrow compared to its rivals, and it has high prices in its products.

However, Topshop’s greatest opportunity is in its continuous use of advancing technology, and operating new stores internationally increasing its consumers. The organization also has a chance in investing in young people who are likely to spend more than to save. Primark, on the other hand, has an opportunity in the increasing level of obese population in the country, which creates gap market for clothing retailers that can offer oversized outfits. The company can invest internationally. Nevertheless, the organization stands to face some threats such as uncertainty because of the British exit from the European Union. Another one is the hostile transactional impact on profit margin caused by Brexit. Topshop also has some threats like its target market being enticed to low-cost rivals. Its charges are higher than its competitors, and delays in global suppliers.

Objectives

Primark’s main goal is to make its workers, suppliers, as well as local and larger societies section of its achievement through operating with them in all ways it can. This implies that the organization provides equal opportunity to all its workers based on merit, distributors are handled fairly, and local communities are supported. The group takes the role in managing environment. For instance, the organization helps some local benevolent firms, society plans, and households. Environmentally, Primark participates in a project that guarantees its complete compliance with the responsibilities of Ireland waste management.

In contrast, Topshop primary objective is its dedication to establishing and upholding long lasting associations with every person it deals. They have the belief that workers, distributors, and clients are the ones that make their business to flourish. Therefore, the organization’s policies and values are focused on honesty, negotiation, openness, and invention, as well as quality. Moreover, the group has established long lasting associations with its distributors, workers, and consumers to guarantee significant enhancements to operation, societal and environmental situations (Scott 2012). The organization is very active in providing support to various charities and occasions every year. For instance, it is noted to take part in making its fashion target breast cancer every year. They do this by designing a t-shirt that is aimed at supporting the person living with breast cancer, which all incomes are given to the charity dealing with that case.

Positioning, Targeting, and Image

In positioning the Topshop products, the company aims to display an exceptional brand identity to its consumers. The team makes it known that the assortment is the only high street brand to show on the timetable at fashion week and the indoor project group toil all year to generate a variety of fragments commendable for the stage. Therefore, with this, the organization positions itself apart from its rivals (Easey 2009, p.37). Additionally, Topshop demonstrates to its consumers that the assortment is generated in-house, hence, positioning itself regarding quality.

A target market is a set of users that share common requirements or attributes that the organization desires to reach. Therefore, Demographic segmentation is one of the most pleasing ways of segmenting consumer groups, since such variables are simpler to measure than any other forms of variables. Topshop’s target users include learners or people who are just starting their career life, and style tastemakers and high profile people (Johnson 2005, p.45). Together with their need for the current forward thinking trends, these consumers love the shop’s high-class trendy rank and user-friendliness. With more than one million customers checking the stores on a weekly basis searching for up to date fashion, the average consumer is a reliable supporter of the brand.

On the other hand, Primark’s targeting method is a differentiated process because it has various goods and customers that can be segmented into different parts. Consequently, the various segments recognized are founded on age, gender, the way of life, and revenue level. The organization has various goods collection that can be directed to these different subdivisions. As it is known, the positioning of brand offers insight into brand performance and provides essential contributions for marketing communications employed to support a brand. Primark is required to change the position concerning the discernment its target market has of its brand ranging from quality of clothing to more stylish and fashionable (Mintel 2015, p.87). Furthermore, the organization may decide to uphold its present positioning of low charge, inexpensive, but quality for cash. It is through the agency’s positioning that its image will be perceived otherwise. This is because Primark’s image has been viewed to be old-fashioned, compared to that of Topshop, which displays up to date clothing, hence giving it a positive image.

Retailers Mix

Primark is recognized for its way of enticing consumers through its low priced products and quality outfits. Therefore, to be at the top of its competitors, Primark employs some marketing mixes such as product, price, and quality among others. Primark uses its products to uphold its consumers by selling what the consumers need including the obese individuals. On the contrary, Topshop is known for the high-quality products, although very expensive (Blythe 2009, p.34). The company generates goods that are up to date hence attracting the younger generation more than any other. The organization also uses the brand name as a marketing mix; the examples of these brand names include early days, active, and Cedar wood state for men. Similarly to Primark, Topshop has a good name for its products, as it is known for generating up to date products that are trendy. Packaging is also another mix used by Primark. Topshop also has a unique way of packaging its products. The organization’s packaging is attractive and of excellent quality and its products are always packaged in right sizes. Primark is one of the growing organizations, and its principal aim is to offer the best services to their consumers. Henceforth, every store comprises a consumer services section with trained customer care agents to assist customers with their concerns and problems in case of any. Furthermore, apart from using services as a mix, the organization also offers guarantees to its consumers in case the product is returned within twenty-one days from the time of purchase.

Price is also another mix employed by the organization. Primark concentrates on offering the best and quality goods to its consumers at an inexpensive cost. The company’s motto is that “look good and pay less” (Butler 2014). On the contrary, Topshop offers its products at a high cost although its products are of high quality compared to Primark’s. The main objectives of pricing for Topshop are to improve transactions, create income, and augment benefits as well as offering consumers with value. The organization uses cost- founded pricing strategy to generate revenue. The charges of purchasing the goods from the distributor are marked so as to achieve the projected retail vending cost. Primark employs promotion strategy as a way of reaching many consumers and creates a market share. However, the sales of the organization’s products are slow because it is not involved in e-commerce compared to its rivals such as Topshop. Topshop auctions or promotes its products through its website and this has made the company have many consumers nationally and internationally.

Accordingly, Topshop uses promotion as a means to which it communicates with its consumers and offers its target market the information that will enable them in making choices to buy a product. The company also uses advertising, personal selling, and direct selling to reach its consumers. These strategies help in creating awareness of the availability of the product to the final level of buying. Primark uses the place as another vital mix in its business by displaying and operating a number of its stores countrywide (Bohdanowicz 2007, p.9). It has another store working in London, and it is doing great. Alternatively, Topshop uses multi-channel distribution schemes to inform its target market on the availability of its products to be bought through one or more channels. Therefore, logistics is key to the distribution chain and is the physical allocation of goods from raw materials to final use. It is noted that Topshop’s London shop is preferably situated to entice the organization’s target market as it attracts over two hundred thousand consumers every week. People are essential in any business because they are the end users of the produced products. Citizens in primary involve consumers, workers, and distributors among others. Individuals are central to the supply of services and convey essential messages to consumers regarding the quality of their experience.

Topshop’s product designs have become mature, cultured and currently entices an older generation of womenfolk aged between eighteen and thirty-five years. A physical atmosphere such as visual retailing and entertainment are imperative. Therefore, at Topshop, optical retailing is the realistic depiction of the organization’s products, and through the creative presentation and grouping of the merchandise, the store Topshop can entice the assortment’s target market. Just like Primark, Topshop uses different figurine clothed at the center of the display. The intention of such shows is to give the consumer a vision of how they will appear when they buy the dress. Finally, there is the process, which is the most significant aspect impacting repeat buying for Topshop. The organization’s talented staff helps it to achieve a high level of services hence creating a competitive benefit (Lea-Greenwood 2013, p.34). It has an optimal consumer service focused on offering the consumers with an efficient, active and pleasant buying encounter. Therefore, these are some of the marketing mix and strategies that the two retailers that are Topshop and Primark are using to attain more consumers and uphold their target market without much struggle. If these tools are well applied, an organization is guaranteed of being at the top.

Conclusion

After carrying out extensive primary and secondary research, that included SWOT and PESTLE analysis, it is possible to conclude that the two retailers in the clothing industry are competitive within their markets. The marketing practices and strategies used by both Primark and Topshop have efficiently and triumphantly linked together all the components of the marketing mix to attain the companies’ marketing goals. This is through giving their target consumers their desires and requirements. The research realized that macro-level aspects would straightly influence a business and it is essential for administrators to establish a comprehension concerning the way transformations in the macro setting are likely to change organizations. PESTEL is the start point for evaluating macro level effects and can be employed to recognize how future trends. Therefore, by Topshop and Primark applying the tools such as SWOT and PESTLE in their businesses, they stand a good chance to know and understand how their businesses are doing and what they need to do to overcome their weaknesses and various threats to their businesses. These tools also offer the sales opportunity to know how and when to comply with regulations concerning their activities.

References

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