Retail Theory and Practice - PDF
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Added on 2020-10-05
Retail Theory and Practice - PDF
Added on 2020-10-05
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RETAIL THEORYAND PRACTICE
Table of ContentsINTRODUCTION...........................................................................................................................1Introduction to retail. .............................................................................................................1Introduction to the company...................................................................................................1Key relevant changes within the UK fashion retail................................................................2Relevant changes within micro environment.........................................................................5Business strategies and tactics................................................................................................6Recommendations..................................................................................................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONRetail is the process of selling goods and services to the customer. This occurs when an organisation sells products and services by using various number of distribution channel such as online, direct mail, etc. This is important in the business organisation as it enables the business enterprise to emphasis on producing goods without being distracted by the enormous amount of efforts through which it interacts with the customer who wants to purchase the products (Baker and Saren 2016). Organisation undertaken in this report Zara which was founded in 1975 which is a retail industry and deals in clothing products. This report will explain the relevant changes inthe fashion industry of UK internally and externally to the business environment. Furthermore, the report will depict the suggestions and discuss the strategies and tactics which can be used within the business environment. Introduction to retail.Retailing is a method of selling goods and services. A retail sale occur when a businesssell its products or services to an individual consumer for there own use. These transaction canbe done with the use of different channels such as online, direct sale, or through direct mail. Theaspects that qualifies a transaction into a retail transaction is that the end user for the product andservices should be the buyer (Black, 2018). There are different players in the retail industry suchas fashion retailers. Once the clothes have been designed and manufactured in the factory itneeds to reach customers for further sale. Companies do not sell their product at retail they placetheir product at wholesale prices in the hands of different kinds of retailers such as online stores,boutique and department stores. Introduction to the company.Zara is a clothing retailer brand it was founded by Amancio ortega in 1963. It offers widevariety of products such as collection for women, men and children. It has also launched a line ofcosmetic, perfume and household products. Its first store was featured with products which werepriced low and then the new stored opened in 1980s brought in the alternations andmodifications in design, manufacturing and distribution process to minimise lead time andenactment to new fashion trends in rapid way. Its expansion has improved its product line andways of selling products, customer services and offerings. 1
Key relevant changes within the UK fashion retail.Fashion industry is always dynamic in nature. It is growing at an tremendous rate andmodern industry is expanding and competing with one another because of multiple new brands.Being the highly dynamic nature designers are launching new designs, clothes and materials.However, Zara being the good and reputed brand in the market still faces changes within thefashion industry of the UK and this can be understood deeply with the help of PESTLE.Pestle analyses is a analytical instrument for strategic business planning. This model ishelpful for apprehending external determinant on business. This concept of marketing is used by the companies to trace the environment in which the company is operating and planning tolaunch a new product (Bodie, 2015). In marketing environment of the organisation, beforeimplementing any plan of business, it is considered to be highly valuable to conduct thesituational analyses which can be done by using PESTLE which is discussed below : Political factors : These factors are concerned with the burden and opportunities whichare brought in by the political institutions and the degree which impacts the government policiesfor the businesses. It also includes factors like taxation polices, trade agreements, governmentrules and regulations, import export duties, etc. which has a strong influence on Zara. The freetrade agreement in Europe has helped Zara to hike the UK sales because with the help of thisagreement the goods and services can be independently delivered between several Europeancountries with no border tariff, no restrictions on quantity and quality of imported or exportedproducts (Bowen, 2016). Zara has also faced political turmoil and has overcome with thisproblem by limiting its supply chain operations in domestic country and neighbouring nations. Economic factors : It is related to the economic policies, structures and the degree atwhich it impacts the business. This includes factors like local economy, inflation, deflation,interest rates, economy trends and seasonality issues, etc. The situation of economy has a directimpact on retail industry because if the economic condition within the country is smooth than theflow will also be smooth and vice versa (PESTEL Analysis, 2019). Zara has always increased itssales due to the staggering broad level of unemployment and high population in the UK, the costof labour was low which has also led to the lower cost of production and superior qualityproducts at affordable and lower prices which has ultimately attracted the majority of thecustomers. Apart from this, the British exit from the European union has resulted in depreciationof pound which has led to high inflation rate and maximised the cost of living with minimum2
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