Trends in the Retail Industry: Analysis of New Look Company

This report discusses the current trends in the retail industry and analyzes the operations of New Look Company, a British global fashion retailer. It explores the impact of e-commerce, online retailing, customization, and brand culture on the company's performance. The report also provides recommendations for improving market share and competitiveness.

Inquiry Project

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Trends in retail industry..............................................................................................................1
Analysis of the organisation........................................................................................................3
Recommendation.........................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Retail is refers to the process about selling consumer goods and services to its customers
with the help of multiple channels of distribution in order to generating larger profitability level.
Now a day's retail is one of the fastest growing industry as retailer can buy products and sell it to
large number of customers in order to keep them satisfied. In this regards, retail industry put
huge impact over the economic growth as it provide opportunities to company in expanding their
business activities. Various current trends and aspects are in retail industry that help company in
enhancing its profitability level (Barata, Da Cunha and Stal, 2018). Current report is based on
New look company, is a famous British global fashion retailer along with chain of high street
shops. Company was founded in 1969 with the aim of attaining competitive success at market
place by serving best quality products to its target customers as per their needs and wants. Report
is focus in determining various trends present in retail industry and analysis of business. Apart
from this, some necessary recommendation is also discussed that contributes in improving
performance level of company at global level.
MAIN BODY
Trends in retail industry
In retail industry there are various trends that affect the entire activities of company at
market place. As per current scenario, retail is changing at an unexpected speed along with huge
opportunities and challenges that support in making entire business activities operate in retail
industry more competitive. Due to digital e-commerce and technology retail has gone by
enormous structural change. In this regards, the growth and adoption of digital technology has
cased an effective change in which consumers shop and communicate with retailers in different
locations. The power of dynamic between retailers and customers as buyers are more empowered
as compare to before. In addition to this, behaviour of customers is also change and their
expectations level are also higher than ever. This is the reason that, it is crucial for retailer to
understand current trends so that competitive success in market place can be easily attained. In
relation to this, New look company operate their business in retail industry in which various
current trends are directly affect its operational activities at market place (Hart and et. al., 2020).
For attaining competitive advantage at market, New look company is responsible for analysing
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trends before operating and running its business activities at competitive market. All these trends
can be understood by following points:
The rise of subscription in E-commerce: Now a day's the E-commerce is one of the
biggest trends that change the entire process of retail company because it cut the time and efforts
for the shopper in order to make its purchase over the mobile apps and social media networks
(Demirgüneş, 2016). As it improve the productivity level of shops and at the same time also
improve their comfort Zone. In context to this, E-commerce market is also expanding bigger and
brighter ever that make shopping in retail industry more easier and best as well. This type of
trend put its huge impact over the retail company as it improve shopping of customers globally
as they are looks for international products easily. It also increase the use of social shopping that
may create awareness in people and market place as well.
High spread over online retailing: In retail industry, omni channel marketing is play a
significant role as it increase digitally and bodily marketing that put positive impact over the
retail companies. Along with this,it is also differs from conventional marketing wherein single
channels are used for make products available to end customers. This trends in retail industry put
huge impact over the company as it may increase brand loyalty in customers mind. With the help
of this, company can easily invite more and more people towards the company products and
services. This can be contributes in increasing profitability level of company in market place.
Customization of products: It is refers to the personal touch to the products that
customers are buying. It allow consumer to order products as per their needs and wants. In
relation to this, company also serve customization within the desired products and services in
relation to design, size, colour and quotes. Mainly, it also provide various benefits that leads in
increasing the profitability level of company at market place. For an example, if company offer
customized products in market lace large number of customers are attracted towards the. This
will put positive impact in developing positive and competitive performance at market.
“Brand” A culture: Due to technology change, retail industry should increase its ethical
practices. With the increasing awareness among millennial customers towards the specified
brand may increase the turnover of company. As large number of customers are get attracted
towards the particular brand (Hançerlioğulları, Şen and Aktunç, 2016). The main focus of
millennial contributes to the betterment of society as they also associated with company which is
proactively engage with the social work and also adopt ethical practices. This will directly
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contributes in improving the competitive brand presence at market place and at the same time
also capture competitive advantage from its competitors.
Analysis of the organisation
New look company is a biggest British global fashion retail organisation that operate
their business in over the world with the aim of establishing its competitive image. Company
have a chain of high street shops which serve quality services to large number of customers as
per their needs and wants (Balaji and Roy, 2017). Mainly, company was founded in 1969 and
also controlled by Christo Wiese. It includes different chain shops that sells women's- wear ,
clothing for teens, menswear in different countries that contributes in maximising the
profitability level.
New look company was founded by Tom Singh in Taunton, Somerset. Along with this,
company also expanded and now it operated a chain of around 900 stores at international level
including France, Belgium, Netherlands, Romania, Malta and many more countries. The main
focus of this company is to produce quality services and offer it to its larger customers in order to
meet their requirements. This will directly contributes in developing positive and competitive
image at market place.
In addition to this, due to tightening competitiveness in UK retail market, New look focus
on producing unique and quality clothing products in order to capture customers attention. This
will increase the profitability level of company and at the same time also established its
competitive edge from its competitors. Along with this, company also focus on analysing the
market trends before expanding their business at international level. This may provide huge
opportunities to company in capturing larger marker share from its rivals. As per current
scenario, change in customers demand may affect the company and its sales. For this company
analysis customers taste and preferences so that they can easily provide them quality products.
This will directly contributes in increasing the possibilities of increasing sales and profitability
level of company at global market.
Apart from this, New look use multi-channel digital marketing process that focus on
providing best fashion of latest trends with affordable cost. By this customers can easily buy
quality products as per their requirements (Malar, 2019). Furthermore, company also promote
their brand image by using effective advertising activities and also adds online value to provide
positive customers experience. In context to this, New look company revenue fell by around
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12.9% year on year to £523.8m in the six months but on the other side, it also reduce its statutory
loss before tax by by £30.7m to £11.2m. In order to enhance their competitive image at market
place, New look implement new strategy that allow it to give more choices to the customers in
fashionable and attractive clothing products through expanding into the digital marketplaces
(Pantano and et. al., 2017). In this company select mortar locations and e-commerce platform
wherein customers will be able to access and buy its products and services. On the other side,
new look company also reviewing its product proposition and make further changes in order to
explore new opportunities that contributes in capturing larger market share from its competitors.
Recommendation
Capturing larger market share and competitive advantage, every business organisation
focus on analysing all the market trends and make all the modification appropriately. In relation
to this, there are some areas that needs to be improved by the New look company so that they can
easily expand their business in retail market at global level. For further improvement, company
needs to analysis market trends and competitors analysis to expand their business aspects at
global level. By understanding customer demand company can meet their requirements and
provide them higher satisfaction. It can be beneficial in building strong customers base and at the
same time also established its competitive image at market place. In addition to this, New look
company should develop online marketing strategy to capture customers attention. By this, firm
can connect with customers and analysis their actual preferences towards the company products
and services. With the assistance of this, organisation can maximising its profitability level and
also attain competitive edge from its competitors. Along with this, invest in Omni-channel Retail
strategies is also recommended to the company in which customers look a an item in their mobile
and at the same time also complete their purchase. It may beneficial in providing positive
experience to customers that contributes in improving the brand presence at global level.
Company is also tapping into mobile shopping that refers to the innovative way to connect with
large number of customers in a single time frame. With the assistance of this, company create a
unique shopping experiences for their target customers by providing interactive activity. This
will contributes in providing as well as exploring purchasing options in-front of customers as
compare to its competitors. Apart from this, for improving famous brand image, New look
company needs to add new products and services in their mix so that customers are actively buy
its services and satisfy their needs. Sell quality and unique products and services to its existing
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customers is also beneficial for company in increasing its sales value and develop the
possibilities to enhancing its productivity level at competitive market place. For attaining success
at market place, company needs to target new customers market in which they put efforts for
specific customers to make them more satisfied. With the help of this, company can easily
compete their competitors and sustain for long period of time in market place.
CONCLUSION
From the above mentioned report it has been concluded that retail industry is fastest
growing as it includes various opportunities that put huge impact over the company performance.
In addition to this, it also put its impact over the economic condition of nation. Thus, it is crucial
for retail company to analysis of understand the customers demand and trends in retail industry.
For attaining competitive image in market, retailer needs to understand all the key trends in retail
industry that help in competitive growth at market place. In relation to this, there are various
current trends in retail industry such as “Brand” A culture, Customization of products, High
spread over online retailing, The rise of subscription in E-commerce and many more. All these
are directly change the business activities and at the same time also enhance the possibilities of
establishing its competitive success at global market. Furthermore, for attaining the same,
company also focus on understanding market trends and customers demand that may beneficial
in improving its positive brand image by making strong customers base.
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REFERENCES
Books and journals
Pantano, E. and et. al., 2017. Does innovation-orientation lead to retail industry growth?
Empirical evidence from patent analysis. Journal of Retailing and Consumer Services.
34. pp.88-94.
Malar, M. S., 2019. Industry 4.0 Transforming Global Retail Industry. Indian Journal of
Computer Science. 4(1). pp.19-25.
Balaji, M. S. and Roy, S. K., 2017. Value co-creation with Internet of things technology in the
retail industry. Journal of Marketing Management. 33(1-2). pp.7-31.
Hançerlioğulları, G., Şen, A. and Aktunç, E. A., 2016. Demand uncertainty and inventory
turnover performance: An empirical analysis of the US retail industry. International
Journal of Physical Distribution and Logistics Management. 46(6-7). pp.681-708.
Demirgüneş, K., 2016. The effect of liquidity on financial performance: Evidence from Turkish
retail industry. International journal of economics and finance, 8(4), pp.63-79.
Hart, M. and et. al., 2020. A roadmap investment strategy to reduce carbon intensive refrigerants
in the food retail industry. Journal of Cleaner Production. 275. p.123039.
Barata, J., Da Cunha, P.R. and Stal, J., 2018. Mobile supply chain management in the Industry
4.0 era. Journal of Enterprise Information Management.
Friedrich, D., 2020. How regulatory measures towards biobased packaging influence the
strategic behaviour of the retail industry: A microempirical study. Journal of Cleaner
Production, p.121128.
Mena, C. and Bourlakis, M., 2016. Retail logistics special issue. International Journal of
Physical Distribution & Logistics Management.
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