Threats and Opportunities in the Fashion Industry

MISSPAP is a UK-based online design retailer, went for 16–multi year olds.
The business was established in 2006, and had deals in FY2018 of nearly
£580m. It works in claim brand design attire, with more than 36,000
products. MISSPAP was established in 2006 by Mahmud Kamani and Carol
Kane, , who separately fill in as gathering official administrator and an
official director and recently provided high road chains, for example, Primark
and New Look. MISSPAP's center items incorporate dresses and tops, with a
determination of more than 27,000 styles of apparel. CEO Carol Kane claims
MISSPAP can separate itself from its nearest matches, as the entirety of their
garments extents are possessed marked with normal costs of £17 as of March
2014, containing 9000 attire lines. With an essential spotlight on the 16–
multi year maturity gathering, it offers garments to more than 100 nations
and as of June 2014 had seven noteworthy markets, including the UK, the
US, and France
BACKGROUND
POSTER
Threat of new entrants- In fashion industry due to change in trends there is
high threat of new entrants. Here, more small companies will try to enter in the
market and offer new products. Besides this, there are less entry and exit
barriers which allow business to enter. Moreover, it requires less capital to be
invested. Thus, new business can enter in it and provide latest fashion wear.
Competitive rivalry – It refers to the competitive rivalry that exists in the
industry. In fashion market there are many companies which is providing
variety of products. So, there is intense competition at present.
Threat of substitution- when familiar products exists in the market it can be
easily substituted. This is because people like to switch products if there
change in price or taste or preference. In fashion industry there are not so many
substitute exists but people may avoid purchasing latest trends. Similarly,
customers can switch from MissPap to another company.
Supplier’s power- A supplier delivers final products or services in the market.
Thus, they can easily influence the price of products.So, when suppliers are
relatively many then buyers can easily switch from one supplier to another. On
contrary if they are small prices drives. In case of MissPap the supply goods
with few suppliers. So, they are highly dependent on them.
Buyer’s power- Here, it refers to the number of buyers that can influence price
of products. When there is large customer base prices can not be influenced.
On other hand when customer base is low prices are easily influenced as they
can switch from one company to another. Thus, MissPap customer base is
small. So, in this case customers can drive prices.
RATIONALE
Segmentation – It is the first method in which market is segmented on basis
of various elements such as demographics, psychographic, etc. This is done
because it makes it easy to identify target market. Moreover, the main benefit
is population can be divided on basis of age, gender, income level, etc. So,
MissPap can expand their market and segment it on basis of gender. It will be
a great opportunity to develop a customer base in UK.
Targeting – It is the second step in which target market is selected after
doing segmentation. This is done as it helps in identifying specific segment
among population. It is done on basis of certain criteria and helps in finding
scope, size, etc. of that market. MissPap can develop new products for men.
They can provide clothing items for men of age between 20- 35. By this
customer base can be increased.
Positioning – Here, the product is positioned in the market. MissPap can
position their products in latest fashion. Also, they can create a different
section of men clothing in their website. By this it will be easy for them to
attract target market. Apart from it, new products can also be positioned by
offering discounts on it.
OBECTIVES
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REFERENCES