Fashion Retail Business Strategy

This assignment examines the strategic considerations for success in the fashion retail industry. It emphasizes the importance of identifying changing customer preferences and market trends through analysis techniques like PESTEL. The report argues that continuous innovation and a deep understanding of customer needs are crucial for fashion retailers to maintain competitiveness and achieve sustainable growth.

Retail Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview about Marks and Spencer..........................................................................................3
A) Identify key relevant changes in UK fashion clothing...........................................................3
B) Evaluate strategies used by retailer to response against major changes occurring in fashion
industry........................................................................................................................................6
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Retailer are the one who resale the final goods to its potential customer they act as a
mediator between manufacturer and its ultimate user. They simply emphasize on purchasing and
reselling the goods and services to its customers (Mason, Meyer and Ezell,1994). Within,
fashion retail business clothing and accessories are offered by business to its potential market.
This transfer of apparels can take place either from online presence or brick and mortar store. For
the better understanding of this report Marks and Spencer company has been taken which is a
British multinational retailer. They have been operating from years in its home market and
basically deals in clothing, home product as well as luxury food products. This report provide a
brief discussion on overview of Marks and Spencer which is a large fashion retail business,
PESTEL analysis of respective company and discussion will be made on strategies and tactics
used by retailer to deal with major changes occur in fashion clothing retail market.
Overview about Marks and Spencer
Marks and Spenser is large fashion retailer business of UK which operate its business
globally. Its headquarter is in UK and has more than 900 stores in UK for which respective
company has given employment to more than 80,000 employees. Currently, respective company
is holding more than 17% of market share at UK's market in its clothing segment. Moreover, to
enhance the reach of customer Marks and Spenser deals by its physical store as well as they have
online presence that is through its website or presence in big e-commerce sites like Amazon. To
enhance its reach and make loyal customer base within their home country selected company
adopted multi channel retailer to increase their connectivity with customers through mobile
devices, web, physical stores and so on. They receive approx 50% of vast order via online orders
through electronic devices such as mobile, tablet and so on. Furthermore, to scale up the business
respective company identified the changing preferences of its customers and adopted changing
trend accordingly (Zada, 2017). Hence, engagement in CSR activity by building strong
relationship with charitable council and NGO enhances the productivity as well as profitability
of company.
A) Identify key relevant changes in UK fashion clothing
As UK is a developed country due to which residence of respective country are fashion
conscious, they need latest trendy apparel of premium quality. It is a global hub of various

fashion start up. To adopt any changes in existing market company should not only analyse its
strength or core competency and weaknesses. They should also analyse the external market that
include political, environment, social, technology, economical as well as legal conditions that
affect the operations as well profitability of company. This method is used to monitor and scan
the macro factor as well as micro factor that directly hamper the growth of company
(Dimitrakopoulou, 2015). Therefore, Marks and Spenser can make the use of this analyses that
provides a them the framework to maintain its business position, growth, profitability, decision
making power and widen its reach within confined area that is UK.
Political factor: Political factor are in context to government rules and regulation like
trade policy, tariff, labour laws, trade restriction and political stability within a definite country
that affect the existence as well as working of companies within that specific geographical area.
The government of British has set some standard for the companies of UK like health and safety
British standard. This standard help the company to plan against hazard, risk assessment as well
as control. Additionally, if these standard are not being followed by companies then they will be
fined by the government. Apart from strict rules and regulation, Marks and Spenser did not abide
by the standard set by British government due to which they have to bear huge fine that impacted
on the profitability of company. On contrary, it was the first company that achieved fair trade
policy. Thus, political factor that affected the growth of respective company were political
stability as well as VAT that is value added tax. In terms of political stability selected company
don't find much difficulty as the government of United Kingdom is stable but in term of indirect
tax imposed by government on companies affected their profitability by decreasing their total
income.
Economical factor: Economic factor refer to the performance of economy that directly
impact the success of company. It include factors like inflation rate, foreign exchange rate,
interest rate, economic growth of company and so on. that affect the performance of company.
For instance, with rise in inflation rate within economy company changes their price strategy for
their products as well as services to gain revenue (Rajkumar and Arulraj, 2018). At the time of
recession in UK, Marks and Spenser had to shut down its outlet and closes the job for various
staff because of its luxury apparel people switched their brand which lead to decrease in footfall
of outlet. Thus, to overcome such situation respective company introduces various discount offer
to rebuild its market. Currently, the economic situation of United Kingdom is favourable which

is a healthy signal for company's growth. Hence, selected company should make the use of stable
economic environment for its retail business by concentrating on younger generation who are
more fashion oriented and ready to spend for fashionable attire.
Social factor: Social factor are not in the control of business but they have to operate
their functioning on the basis of these factor (Marks and Spencer PESTLE analysis essay 2014).
These factors include cultural aspect, beliefs of society, age distribution and so on. Marks and
Spencer has always adopted latest trend for their retail business to maintain the interest of their
customers. If a marker wants to gain success then they cannot neglect this specific factor as
product or services has to be customer oriented. Thus, respective brand has bring lot of
modification in their business as the people's choice for attire has keep on changing. Apart from
the pattern of clothing they changes the price of the product on the basis of purchasing power of
customer. With the introduction of credit card it allowed the people to use credit card as a mode
of payment for their cloths. Along with that they make significant effort to reduce wastage,
reuse, recycle and reinvest in the resources of company to perform their operations smoothly.
These factors increase the trust over selected brand due to which today there are more than
eighty outlets of Marks and Spenser in UK.
Technology factor: Adoption of latest innovation and technology has always helped
business to increase its profitability and lower down its per head cost. Moreover, with the
emergence of digital marketing and number of women working outside has increased the use of
retail business conduct online. Marks and Spenser has always made the use of technology to
update its latest addition in clothing industry. They communicate with their customers heavily
through advertisement on television, social media and website of company. Through their
advertisement they always appeal to almost all age group and use bright colour in their website
to engage the customer. Therefore, due to strong presence of selected company they can
capitalise their brand within their home country by gaining competitive advantage over its
competitors in UK. Hence, online option and delivery of product in the footsteps of customers
and increased the convenience for customer and profitability for company.
Environmental factor: Environment factor includes pollution target and ways of doing
business ethical to gain sustainable development. Thus, company must operate its business by
safeguarding the interest of society as well as environment. Marks and Spenser has established
its own Plan A which is based on Green policy. They made this plan to minimise the chances of

waste, become carbon neutral and health promoting business. They adopted Plan A to become
world's sustainable retailer they even have extended their Plan A like one of the program of Plan
A is “shwopping”. Under this Corporate Social Responsibility programme people denote their
old or retired cloths, these clothes are further sold to Oxfam. They recycle the product and resell
it to the need people who require clothes but don't have sufficient money to pay. This programme
gained a huge market attention and flourished their business. Respective company charged
reasonable prices for the carry bags to their prospects in UK these fund are being utilised to
enhance the infrastructure of UK like improve public parks and play area.
Legal factor : Legal factor include health and safety, right and law, product labelling,
packaging as well as safety to perform the business operation smoothly. Five to six years back
Marks and Spencer was involved in a tax evasion activity as the sales revenue was required to go
to UK but company sent the revenue to Ireland because the tax rate was low in Ireland in
comparisons to UK. Due to this unethical practice respective company faced huge problem and
government intervention. Therefore, after this action respective company updated their policy
and change it on the basis of new laws and legislation like at the time of Brexit retail industry
faces lot of legal action and change the plan and policies of company accordingly.
Porter's five factor model: Porter's five factor model include factors like threat of
substitution, threat of new entrant, industry competitiveness, bargaining power of buyer and
supplier. It is used for the external analysis, these factors are used by organisation to keep a
check on its rivalries, supplier and customer to gain profitability.
Threat of substitute: In term of fashionable clothing or apparel the threat of substitution
is low. As respective brand provide high product to its customers due to which the recall value of
brand is high. Apart the it the in term of food the threat of substitution is high as other company
like Tesco provide huge range of product at cheaper rate
Threat of new entrant: New entrant gets attracted by profitable business or market. In
that case most of the existing powerful company set barrier for them by making the advantafe of
economies of scale or by taking the patent over their product. Marks and Spenser has put
enormous capital to spread its clothing brand worldwide due to which the threat of new entrant is
low. Even if the new entrant exist it cannot hamper the growth of respective company as they
have huge customer base, has taken patent over their fabrics and has the advantage of economies
of scale.

Bargaining power of buyer: Buyer's power is used by company to know the number of
buyer and identify the switching cost. With the huge competition and large number of
alternatives in apparel industry the bargaining power of buyer is high.
Bargaining power of supplier: This factor is used to determine the potential of supplier.
The more the alternative the more advantage company get to choose cheapest alternative. Above
mentioned company earn enormous profit with massive turnover due to which suppliers don't
remain in state to bargain. As they have huge customer base and operate globally.
Competition level: It is used to identify the strength of rivalries, like if the competition is
neck to neck company can make strategy according to its competitor. Similarly, if the
competition is low company gets the advantage of monopoly market on which they even can set
huge prices. In context to respective company faces intense competition as there are huge
substitute. To survive in competitive market selected company differentiate its product itself as
high quality product so that customer find value to their money.
B) Evaluate strategies used by retailer to response against major changes occurring in fashion
industry
Marks and Spenser is the UK's leading retailer that has huge customer base within UK.
But still company adopt various strategy to remain ahead of their existing competitors like H&M
as well as new competitor. Company change its structure, policy, technology as well as operation
to produce quality product by gain huge sales revenue. Though adoption of changes are not easy
but still company has to adopt changes on the basis of need and trend of customer otherwise
customer will switch to other brand. Thus, selected company after analysing internal as well as
external market adopt following changes like multi channel marketing strategy to expand its
business reach through direct and indirect communication. Similarly, company has adopted
strategy like green initiation, control on emission of carbon di oxide to engage in corporate social
responsibility activity (Votsari, 2015). Apart from these two company has pay attention in taking
suitable action against its competitor due to which respective brand provide premium quality
product at reasonable range for which they adopted price penetration strategy. Lastly, focus is
made on expansion strategy under which company make suitable plans to promote existing
product at existing market by widening its customer base.
Multichannel marketing strategy: Multinational marketing strategy refer to promoting
as well as selling goods and services through various sources including direct as well as indirect

communication channel that is email, mobile, website as well well mail order catalogue (Parab
and Salker, 2018). Whereas, technology refer to the latest innovation or trend adopted by
company to widen as well as strengthen its marketing reach. Initially, Marks and Spenser used to
run their retail business through traditional marketing via physical store or brick and mortar
outlet. Later on with the emergence of digital marketing where marketer communicate the value
of goods and services to customer through online platform. Respected company made the use of
this tool to increase the availability of product. Though, company has covered UK area very well
by opening various retail store but still they equally pay attention in its online services. Company
intensively focuses on advertisement to generate their brand awareness and recall value of
product. Thus, Marks and Spenser has adopted multichannel marketing strategy to selling its
products. Additionally, the website of company is designed in a very organised manner which
include the category of clothing for its women, men and kids section (Kolokolnikov, 2013).
Corporate Social Responsibility strategy: Corporate social responsibility are adopted
by business to conduct their business ethically by safeguarding the interest of society (Evans,
2017). Marks and Spenser is a leader in fashion and clothing segment. To reach at this position
respective company bear various problem like in relation to tax evasion. Moreover, to restore its
image company changes its policy and adopted various corporate social responsibility. For this
they took strategy like green initiation and formed strategic alliance with various NGO's like
Oxfam. Apart from that they controlled the use of plastic bags and fund the additional revenue
acquired from carry bags into the infrastructure of United Kingdom like they helped in
improving the public parks and garden. This help the company to cater the need of unprivileged
society. This enhanced the overall image of company and restored its value in the mind of
customer.
Penetration pricing strategy: To achieve the sustainable development company should
differentiate itself among competitors like H&M. This help the company to attain the attention of
customer and customer do not remain in the state to substitute the company's product. Thus,
Marks and Spenser has a dominant place in fashion industry they serve premium range of
product by adopting penetration pricing strategy. In this pricing strategy the price of product are
set low to gain huge customer base. Similarly, respective brand provide various premium apparel
for men and women at reasonable range (Crawley, Swailes and Walsh, 2013). Apart from that

company should primarily pay attention in younger generation as they the major source of
earning for company.
Expansion strategy: Expansion strategy are adopted by company to achieve huge
growth by increasing the volume of stores within a country to buy goods and services. The
reason behind expansion can be to earn more profit, larger market share, take the advantage of
economies of scale and so on. UK is a huge market for Marks and Spenser to expand its business
operation thus company must take various measures to widen its reach within the geographical
area. Though company has opened various outlet in UK on which its sales is enormous but still
company should keep on adopting innovation and analysing the demand of customer to
overpower their competitors (Parab and Salker, 2018).
CONCLUSION
From the above report it has been concluded that retail fashion business must identify the
changing trend, need as well as preferences to adopt the innovation accordingly. This helps the
business to remain updated by maintaining its huge customer base. Business must identify the
external market through PESTEL analyses which help the company to have the knowledge about
the existing as well as change in government regulation, update of new technology, inflation rate
and so on. Additionally, PESTEL analysis of macro environment factor helps the firm to gain
better understanding about the customer attitude as well as behaviour in fashion segment.
Furthermore, company must adopt significant strategy or tactics to overcome any threat or
challenges faced by company. Adoption of suitable strategy against the threat helps the company
to achieve the growth and long term sustainable development.

REFRENCES
Books and Journal
Zada, I., 2017. Studying the External Environment of the Organizations and Evaluating the
Strategic Options to Win a Business Competition.
Dimitrakopoulou, P., 2015. The Development Of A Bussiness Strategy Model For A Luxury
Brand.
Votsari, E., 2015. The Chinese Luxury Fashion Market.
Rajkumar, C. and Arulraj, A., 2018. Seed mediated synthesis of nanosized zinc oxide and its
electron transporting activity in dye-sensitized solar cells. Materials Research Express.
5(1). p.015029.
Kolokolnikov, A., 2013. International Fur Trade: Trends, Challenges, Prospects.
Crawley, E., Swailes, S. and Walsh, D., 2013. Introduction to international human resource
management. Oxford University Press.
Evans, N. N., 2017. The internationalisation strategies of small and medium-sized enterprises
(SMEs) clothing suppliers in the UK (Doctoral dissertation, Manchester Metropolitan
University).
Parab, S. S. and Salker, A. V., 2018. Structural and optical properties of Tb and Na–Tb co-doped
Ca3V2O8 phosphors prepared by sol–gel process. Materials Research Express. 5(1).
p.016302.
Parab, S. S. and Salker, A. V., 2018. Structural and optical properties of Tb and Na–Tb co-doped
Ca3V2O8 phosphors prepared by sol–gel process. Materials Research Express. 5(1).
p.016302.
Online source
Marks and Spencer PESTLE analysis essay 2014. [Online] Available through:
<https://studymoose.com/marks-spencer-pestle-analysis-essay>

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