E-commerce and Apparel Group

The provided report discusses the significance of e-commerce in modern retail, highlighting its potential to revolutionize business operations. It emphasizes the importance for companies like Apparel Group to adapt and leverage digital platforms to remain competitive. The report also touches upon various concepts such as diffusion of innovation, customer perception, and social media's influence on consumer behavior.

SWOT ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Organisation description.............................................................................................................1
Triggering event that require change .........................................................................................1
SWOT ANALYSIS ....................................................................................................................2
Plan to implement changes..........................................................................................................3
3 strategies to sustain gain...........................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
In current time, it is necessary for the organisation to understand the need of market and
make changes according to it so that it can gain better stability. The report will cover the change
in business environment and its impact on the firm. Along with this, a proper plan will also be
mentioned to implement this change. Some strategies are also provided that will help firm in
retaining their position in market.
Organisation description
Apparel Group is a fashion retailer in the middle east known for its global fashion and
lifestyle. The firm is growing at a fast rate; in current time, the firm is in partnership with 55
international retail and food beverages brand (Apparel-group, 2017 ). The firm started with just
one brand in 1999 but today, it has expanded its business over four continents with more than
1200 stores spread all over. In 2014, the total revenue of the firm was recorded $1,718,231. By
the end of the year 2017, the number has changed to $2,386,435 which clearly shows that firm is
performing well and developing rapidly. The firm current strategy is to focus more on the need
and demand of the customer (Retail apparel group, 2017). In recent time, firm has implemented
cutting the edge system so that whole process can become smoother for them. Alhokair fashion
retail is one of the biggest rival of the firm whose annual revenue in year 2016 was recorded
$7,276 million. It clearly shows that Apparel group have more strong market position that makes
it one of the leading retailer in the nation. The firm is trying to add several brands with the firm
along with the kid brand. The aim of company is to expand their business in Gulf and India.
Moreover, the firm is trying to open more than 120-130 brands along with 100 stores of kid
brand (Apparel-group,2017).
Triggering event that require change
The rise of E commerce has changed the face of fashion retail. This channel is being
furled by the young generation whose shopping style is changing along with the women who are
taking liberties in world of fashion (Prayag and Hosany, 2014). The e- commerce have great
chance of success with new e retailer and more offline stores finding and exploring opportunities
that omni channel present. E commerce and digital marketing has become the face of the
marketing and today's business. The evolution of marketing has changed the whole working of
the firm. E-commerce is responsible not just for marketing but is also useful for many other
work. E commerce has become the platform that not only use to sell the product but also help
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firm in creating relationship with international buyers that work as their suppliers. This reduce
their operational cost and firm is able to produce quality product at much lower price. In current
time the E commerce account for only 2% of retail sales but it has been expected to reach $70
billion by the year 2025. The change has already been noticed by many organisations. A well-
known sight has reported that the average value of order in Middle east countries are 50% higher
than the rest of the world (Amine, 2015). It is necessary of Apparel group to start paying
attention to this sector. The entity already have good physical stores that provide them with great
visibility and distribution, but it requires paying more attention on the e-commerce sector so that
more profit can be brought in the firm (Al-Somali, Gholami and Clegg, 2015).
SWOT ANALYSIS
Strength
Customer focus: The corporate has always focused on the need of customer to gain success. It
has always kept the perception and view of customer as their priority in order to produce
valuable product. In current time also the firm has kept customer satisfaction as one of their main
goal. Being customer focus helped firm in gaining customer satisfaction and also help them in
gaining the loyalty of customer. Being customer focus also help them in gaining competitive
advantage in the market, that work for the benefit of the firm.
Brand image: The firm has strong brand image. In addition to it, entity uses strong campaigning
to enhance their image. Strong brand image play leading role in the success of the firm. With
strong brand image firm can easily establish their business in other countries and can even help
them in achieving success in other countries. Marketing where make people aware about the
product of the firm, brand help firm in creating the image in the mind of customer that lead them
in choosing their firm when they wanted to buy a product ranges that company sell.
Good supply chain: The business unit have streamlined supply chain that help them in supplying
the need of customer (Apparel-group, 2017). By reducing unnecessary steps in the whole
process of buying the firm is able to produce quality product at much lower price that help them
in attracting customer of all type. In addition to it this also help firm in making profit even at the
time of economic crisis.
Weaknesses
Current economic condition: Economic condition of the nation play major role in the sales and
profit of the firm. Its necessary of the firm to come up with the strategy that can help them in
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unstable economic condition. As we have discussed before the streamlined supply chain of the
firm can help them in achieving their goals and objectives.
Product range: There are many things that can affect the sell of the firm. The product range of
the firm has become one of major weakness of the firm. Certain products of the entity are not
suitable and can only be worn according to the season, which reduce their attractiveness. In
addition to it people prefer to invest their profit in product that can be available to them in low
price and have many features.
Opportunities
Strong chance of success in new market : The Apparel group has already become a brand name
in the middle east area. With their unique design and innovative marketing strategy it is able to
emerge as leading clothing brand in this country. The brand image of the firm along with its
strong marketing strategy and great relationship with international market will help firm in
establishing their business in new market. In addition to it the diversification in their product
portfolio will also help them in achieving the success in new market.
Digital marketing: Digital marketing has become one of they important tool that has helped
many companies in increasing and promoting their business. With the adoption of digital
marketing, Apparel-group can reach the vast area all over the world. This technology not only
help them in their expansion but will also help them in maintaining close contact with their
customer and gaining customer satisfaction.
Threat
High competition from local and international brands: One of the major threat that firm can
face in international market is that of high competition. There are many luxury brands that have
already established them self as international brand. It will be very tough for the Apparel group
to establish their business in international market. In addition to it. Its not only international
market that firm has to fend of but also local market.
High chances of being out priced: As we have discussed before its not only the international
brand that will create the tough competition for the firm but also the local market. Local market
have strong hold on the market of the nation moreover they sold their product at much lower
price which increase the chance of firm being out priced.
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Plan to implement changes
In order to implement the change in the firm, Apparel group can adopt Kotter change
management framework. The higher authority of the firm requires making their employee
understand how important this change is to firm. Focussing on the e- commerce will help the
firm in reaching wider audience. It will not only provide it with competitive advantage but also
with profit. If the firm do not implement this change they will lag behind from their competitors
and will also suffer major loss. The leader and supervisor of the team are responsible to manage
this change. The higher authority should bring all the leader together and seek their support so
that this change can be implemented properly (D’arpizio and et. al., 2015).
By creating a vision, employee will get proper idea on what they are thriving and
achieving for. They can put their effort in single direction so that they could achieve this goal.
Communication is a key to success. This is necessary for the firm to communicate the vision of
the firm regularly and strongly so that it can be embed it within every one. In order to have
successful change, it is necessary to remove all the obstacles for e.g. if people are finding too
difficult to operate online then it's the job of organisation to properly train them so that they can
perform well. It is impossible to achieve milestone in the beginning so the firm need to focus on
small wins like rewarding the employee who was able to meet the target.
The firm also need to focus on the long-term win as small wins are good to boost the
motivation of the employee but its long success that employee should aim for (Makki and
Chang, 2015). Anchoring the change in the corporate world help the entity in pay attention to the
progress that it has made after the implementation. Other than this, it can also monitor its
working and ensure that all is working smoothly.
3 strategies to sustain gain
In order to sustain the gain, it is necessary of the firm to use appropriate strategies such
as Use of digital platform, its one of the best way through which entity can reach wider audience
and make them aware about the new changes that have been brought in the firm. It can use
Facebook, snap chat, twitter etc. for the advertisement of the product. It can also provide their
user with the per click benefits such as discount (Holroyd and Coates, 2015). Market segment is
another startegy that can be used by the firm. Saudi Arabia is the only country in the middle east
which consist 75% of local people, UAE only has 12 % of local people. The firm by studying
what people search online can come to know about their preference and demand and can
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enhance their product so that it can meet the demand of the people. 360 Campaign, In this, the
firm uses all the available platform through which it can advertise its products such as TV, radio,
mall entrance etc. This will help them in making people aware about the company and what it
has to offer the people (Allagui, 2017). Customer have their own perception and buying
preference and its not necessary that this preference are universal, before establishing their
business its necessary of the firm to understand the views and perception of the customer so that
they can produce the products that can satisfy them.
CONCLUSION
From the above report, it can be concluded that e-commerce has become the new trend of
shopping that has changed the face of retail industry. In addition, Apparel Group need to pay
more attention to this so that they can find stability in the market.
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REFERENCES
Books and Journals
Al-Somali, S. A., Gholami, R., & Clegg, B. (2015). A stage-oriented model (SOM) for e-
commerce adoption: a study of Saudi Arabian organisations. Journal of Manufacturing
Technology Management. 26(1). 2-35.
Allagui, I. (2017). Internet in the Middle East: an asymmetrical model of development. Internet
Histories. 1(1-2), 97-105.
Amine, L. S. (2015). A study of the diffusion, acceptance and marketing of credit cards in the
Middle East. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual
Conference (pp. 89-92). Springer, Cham.
D’arpizio & et. al. (2015). Luxury goods worldwide market study. Bain & Company.
Holroyd, C., & Coates, K. S. (2015). The Global Digital Economy: A Comparative Policy
Analysis-Student Edition. Cambria Press.
Makki, E., & Chang, L. C. (2015). Understanding the Effects of Social Media and Mobile Usage
on E-Commerce: An Exploratory Study in Saudi Arabia. International Management
Review. 11(2). 98.
Prayag, G., & Hosany, S. (2014). When Middle East meets West: Understanding the motives and
perceptions of young tourists from United Arab Emirates. Tourism Management. 40. 35-
45.
Online
Apparel group. 2017. [Online]. Available through: <https://www.lsretail.com/customers/apparel-
group>
Apparel-group new fashion brand. 2015. [Online] Available through
<http://www.arabianbusiness.com/apparel-group-eyes-new-fashion-brands-
446132.html>
Apparel-group. 2017. [Online]. Available through: <http://www.appareluae.com/>
Retail apparel group. 2017. [Online]. Available through: <http://www.hoovers.com/company-
information/cs/revenue-financial.retail_apparel_group_pty_ltd.a01e7fd508b2ff7f.html>
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