UK fashion clothing market Contents

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CHANGES IN THE UK
FASHION CLOTHING
MARKET

BUSINESS ENVIRONMENT 1
Contents
Introduction to Retail..............................................................................................................2
Introduction to the Company..................................................................................................2
UK Fashion Retail Macro Environment................................................................................3
UK Fashion Retail Micro Environment.................................................................................4
Strategies and Tactics for the Macro and Micro Environment...........................................4
Recommendations to Meet the Challenges............................................................................6
Conclusion.................................................................................................................................7
References.................................................................................................................................8

BUSINESS ENVIRONMENT 2
Introduction to Retail
Retail comprises of all the activities in selling products or services to the final
consumers for their individual and non-business application. In relation with the
fashion retail environment of contemporary industrialized economies, opportunities to
exploit really new products are rare, yet competent retailers succeed to make the
illusion of freshness and newness in their range by building, choosing and editing
innovative product disparities (Turker and Altuntas, 2014). At an international level,
fashion retail industry is getting tougher economic and social environment with
changing consumer trends and shifts in the fashion system and the brand which has
the courage to self-disrupt are emerging at a fast pace. In case of UK, the fashion
industry has gained great growth over the past two decades and it represents for
5.4% of the country GDP with employing 55000 individuals through the nation
(Sleigh, 2018). In addition, UK online clothing market is also becoming more
protuberant with representing more than 20% of the entire sales (Sabanoglu, 2020).
Introduction to the Company
One of the largest global fashion company i.e. Zara belongs to Inditex, one of the
global prime distribution group. From the starting, Zara strategy is to make the
process for locally, fast-in house manufacturing of new trends, straight from the
sketch and this makes the company to consistently act as a pioneer in fast fashion
based in an extremely responsive supply chain. Some of its major sister brands
include Massimo Dutti, Zara Home, Uterque, Berkshka, Stradivarius and Pull & Bear.
The company have a network of 2250 Zara stores and nearly 600 Zara Home Stores
in operations globally and this makes the brand as one of the most valuable clothing
brands in the world (statista.com, 2019). In Forbes list, Zara is at #46 rank as world
most valuable brand 2019 having operations in nearly 96 countries (forbes.com,
2019).
The biggest competitors of Zara in UK are Burberry, Next Plc., Mark & Spencer and
ASOS with the market capitalization of 10 billion dollars, 7.16 Billion, 6.18 billion
dollars and 6.18 billion dollars respectively (fashionunited.uk, 2020). Zara fast
fashion model depends upon an integrated supply chain and a big group of
competent designers and besides the well-designed stores, the company is also
investing in technology to offers the buyers a higher shopping experience. The
fashion products carry by Zara targeted to all customer groups i.e. men, women and
kids. Zara operates 64 stores in the United Kingdom as of 2018 (Hoeijmans, 2018)
and in 2019, the company name gets over one million searches every month in the
UK (billiondollarboy.com, 2019).