Retail Theory and Practice

This report provides an in-depth analysis of Superdry, a UK-based multinational textile company in the retail industry. It covers the introduction of the company, key changes in the macro market environment, and strategies. The report also includes recommendations for Superdry's success.

Retail Theory and Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction of Superdry..................................................................................................................1
Brief History of Superdry................................................................................................................1
Key relevant changes in the macro market environment.................................................................2
Key relevant changes in macro environment...................................................................................4
Strategy............................................................................................................................................5
Recommendation ............................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Retail industry is wide sector in which there are different types of entities who offer
products and services to customers (Mukabi and Vu, 2019). It has been evaluated that there are
more than 306,655 retailing outlets prevailing in UK. It significantly generates 5% of overall
GDP for country. Present report has been conducted of Superdry. Company offer their services
in retailing sector. In this report formative discussions has been made on introduction of
company, key relavant changes in macro environment and strategies. Along with this report
include recommendation to company.
Introduction of Superdry
Superdry plc is united kingdom based multinational textile company. It manufacture the
product of combine vintage American styling with Japanese inspired graphics, it basically a retail
industry where the products are related with quality of fabric cloths, world leading hand down
graphics etc. It founded at 2003(17 years ago). Their branding products is utilized by the well
known international celebrities. Their mission is to care about the people expectation and fulfil
their needs and wants, while their values helps to provide a shape of cloths design according to
the respective personality, the values works on the basis of five segments such as Family- they
believe that to being together as a part of one wide Superdry global family, where they always
taking care of each other. Individuality- they try to bring new ideas or creativity into their work
in which they don't want to change the particular customer's lifestyle and they have no issues
with the choices of customers in fact they accept as well respect the customer options. Fun- they
are truly follows the professionalism but on other side they make sure the employees and others
who are connected with Superdry family should enjoy their work. Work quality- the representing
of new creation in their product which reflects and improvised their work quality. Passion-
employees do love with their works as well as devoted towards achieving the goals of Superdry
company. Creativity- The team of Superdry makes sure about the presence of creativity should
be there by which employees exceeds their work to bring ups the creativity upto beyond the
limits.
Brief History of Superdry
Superdry has different and growing presence around the world, on which they operating
through 768 locations around in 65 countries as well as they have owned 250 stores around the
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United kingdom and Europe. The headquarters located in Cheltenham, Gloucestershire, United
Kingdom. They deals with customers with safety norms to over 100 countries worldwide, which
operated from over 21 international websites. Superdry is a British retail fashion success story ,
Julian Dunkerton started invades into fashion with a clothing stall at Cheltenham marketplace.
When Julian Dunkerton and James Holder met co-incidently their ideas and vision found similar
with each other. So, after that they started making products together and creating benchmark in
the retail industry. Furthermore, they offers the quality of design cloths, which it succeeded from
then as it now they deals and sold their product more than in 100 countries worldwide. In Initial
days the they collected approx five T-shirts which included iconic Osaka 6 which is worn by
British superstar David Beckham to sponsor as well create the awareness about their product. On
October, 2014, they introduced the appointment of Euan Sutherland as new CEO of their
company they hired him because for gaining new business opportunities as well as experienced
CEO was paramount. They continued with the business in raw, rural environment in their
hometown at Cheltenham.
Key relevant changes in the macro market environment
There are different types of factors pertaining in macro environment. All these factors
impact upon functioning of company in number of ways. It is essential for an organisation to
have proper understanding of all the prevailing factors in order to overcome them in effective
manner and further gain more strategic edge. In relation with this, Pestle analysis has been duly
undertaken by Superdry as to ensure high profitability and productivity in marketplace.
Political Factors:
There are different types of elements prevailing that affect organisation activities and
functions. In relation with present organisational context, government attitude and political
stability or instability are two factors that may hamper functioning of entity. In this, it is essential
for Superdry to take advantage of strategies and measures as to overcome negative impact of
these factors. In addition to this, by taking advantage of political stability of UK respective
organisation can increase their profitability in a significant manner.
Economic Factors:
UK offer stable economic condition for organisations dealing in retailing industrial
segment. Apart from that elements like, interest rates and monetary policies somehow impact
upon growth of Superdry. In relation to this, it is essential for company to effectively evaluate all
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these factors and take advantage of low interest rates as to increase their overall rate of return.
Apart from that, Brexit may lead organisation to face number of challenges. Thus, it becomes
essential for organisation to formulate strategies to overcome the impact of these factors in an
significant manner.
Social Factors:
This factor include elements like income distribution, demographic changes, fashion
changes etc that affect decision making and activities of entity (Arnould, Salminen and
Tillotson, 2019). In this, it has been analysed that individuals mind set related to fashion is
changing on dynamic basis. This makes Superdry to understand needs, perception and mindset of
customers as to gain competitive opportunity. In addition to this, this has been evaluated that
there is a significant rise in online shopping trend thus in order to take advantage of growth
opportunity it is essential for respective entity to offer attractive online facilities to customers in
a best effective manner.
Technological Factors
It has been evaluated that, there is accelerating growth and development of e-commerce
in United Kingdom. In addition to this, UK clothing retailing significantly evidenced emerge of
online players like Asos, Amazon and more. Thus, it is essential for Superdry take advantage of
e-commerce websites and technological developments in order to effectively shape their
business.
Environmental factors
Environmental factor include factors that are inclined towards environmental
consciousnesses. In addition to this, this has been evaluated that customers in United Kingdom
have significantly adopted practices like paper packing. Thus, in order to ensure long term
sustainability Superdry are required to take advantage of environment friendly practices like use
of recycled materials. Along with this, company can also attract customers attention by
launching sustainable clothing lines that are made from environmentally friendly materials and
organic cotton. This will benefit company lure customers in a significant manner and can further
ensure government support.
Legal
This factor mainly include significant laws and regulations that affect clothing retail
industry within United Kingdom. This has been evaluated that there are some recent employment
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regulations that are being imposed by UK government upon organisations operating their
services in relating segment. Laws like, Workplace Pension, health and safety of labour are some
certain important laws that are eligible British workers as per according to Department for
Business, Innovation & Skills 2016). Thus, it is important for Superdry to ensure that all the
relevant laws and legislations are implemented in organisation workplace premises.
As per according to the discussion, it has been analysed that by taking effective insight
about all the factors of Pestle analysis Superdry can effectively able to perform their activities
and operations in retailing market segment in best effective while ensuring high consumer base
and maximum profitability.
Key relevant changes in macro environment
Porter's five forced is a strategic approach with the help of which an organisation can
significantly able to determine the manner in which they can take competitive advantage and
profitability from marketplace. In relation with this, Superdry by taking advantage of porter's
five force analysis:
Buyer Power-High
This has been identified that, buyers have power to significantly switch retailers, push
down prices and not buy products of respective brand or firm. In context with fashion retail
industry it has been evaluated that bargaining power of buyers is high due to the presence of
already existing large retailing organisation like Zara, Gucci and more. Thus, it is essential for
Superdry to offer high quality and trendy clothes to customers in order to retain them for long
period of time and attract attention of new consumers.
Supplier Power- Less
It has been analysed that in fashion retailing segment power of supplier is relatively low
as most of the entities performing their operations source their products from third world
manufactures (Arnould, Salminen and Tillotson, 2019). This makes little control of suppliers on
respective industry. Thus, Superdry can ensure their long term sustainability until global
development gap get closed.
Competitive Rivalry- High
UK fashion retailing sector offer highly intensified competitive rivalry as there are
already existing organisations those who provide similar kind of products and services. This
makes customers to change their shift in a significant manner. This, in order to hold already
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existing customers and lure attention of new consumers Superdry is required to attract them with
enchanting marketing strategies and high quality products and services.
Threat of new entries- Low
In order to enter into UK fashion retailing segment organisations are required to invest
high amount and identify unique measures as to popularize their products as well as services.
Thus, by taking advantage of this opportunity Superdry can generate large base of customers
towards organisational offerings. In this company can undertake clever use of social media and
can significantly boost their sales and profitability.
Threat of substitution- High
This has been evaluated that, there is significantly high level of threat of substitution in
UK fashion retailing segment. As there are already established entities who offer similar
offerings to customers (Dennis, 2019). This makes buyers powerful to bargain with price and
choice. For this in order to ensure long term sustainability, Superdry is required to attract
attention of customers with unique products and services. In this company can take advantage of
innovation and high-tech technology as to effectively satisfy needs and demand of customers.
Strategy
Strategies are determined as the long term plan which are formulated by the company so
that they can sustain longer within the industry in appropriate manner. Whereas, tactics are
acknowledged as the small initiatives or actions taken by the business manager according to the
situation in order to reach specific end. On the basis of information specified in Economic factor
of PESTLE analysis, it can be Brexit has placed negative impact over the functioning of
Superdry as many of their workforce belongs to EU associated nations. Thus, after the passing of
Brexit referendum there are probable chances that the employees might not continue the work in
Superdry. In order to deal with this the company is required to make strategy of communicating
to the consultancy recruiters so that they can provide them skilled workforce in any sort of
negative situation at workplace. In addition to this, it can be further said that by analysing overall
information from environmental factor, it has been analysed that the respective manager of the
company has focused on developing cloths for its customers by making use of environmental
friendly material. This simply means that product developed by them are highly effective and
will place any kind of harm on environment.
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On the other hand, while emphasising on the information specified in competitive rivalry
force of Porter's five force model, it can be said that the competitiveness with the fashion
clothing industry is very high. Thus, it is highly important for the company to emphasise on
indulging into tie up with its competitors so that they can collaboratively work within the
industry and improve their business performance. Also, the tie will also provide support to the
company in using resources of one another which contributes collaboratively improvising market
share of whole industry rather than fighting with one another within the same industry.
Apart from this, it has been analysed that bargaining power of the buyers are quite high
for fashion retail industry as well as Superdry company. By analysing this, the company is
recommended to acquire the strategy of conducting market research at regular basis so that they
can easily develop their understanding over changing market trends in terms of fashion industry.
Along with this, it will also improvise knowledge of the company about the changing
expectation of the customers towards the fashion that will further help them out in developing
new fashion cloths as the customers requirement which will support the business entity in
satisfying its customers in adequate manner as they providing better products to customers
according to their own requirement. This will also provide contribution in attracting customers
towards the offering of Superdry along with this it will also help them out influencing these
customers to make purchase from the same company. Development of this strategy will help
company in enhancing its sales performance as well as profitability at marketplace which leads
to attainment of success at marketplace.
From the overall analysis performed in this section, it has been analysed that business
manager of the Superdry makes use of both the strategies as well as tactics while executing their
work at marketplace. While adopting both the ways, the main motive of the company is to
improve their business performance and attain success in adequate manner. This also supports
company in gaining competitive edge as by acquiring adequate ways company is able to satisfy
their customers. Along with this, these strategies helps company out in acquiring more number of
business opportunities at marketplace which supports them in serving its customers in adequate
manner.
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Recommendation
As per according to the above analysis, it has been recommend to Superdry to take
advantage of high tech technology and strategies. In addition to this, entity is also recommend to
analyse factors that are prevailing in macro and micro environment and further frame strategies
and measures as to gain more profitability and productive advancements.
CONCLUSION
As per the above mentioned report it has been concluded that, fashion retailing industry
in UK is a vast area in which there are number of organisations who offer different types of
products and services to customers with an aim to generate large base of profitability. In addition
to this, there are different types of factors prevailing in business environment that are required to
be effectively analysed by an organisation as to gain strategic advancements from them. In
addition with this, entity is required to frame strategies and tactics as ensure high profitability
and long term sustainability.
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REFERENCES
Books and Journals
Mukabi, C. and Vu, N.L., 2019. Cryptocurrency as a Payment Method in the Retail Industry: An
application of Diffusion of Innovation Theory (DOI) on the characteristics of Bitcoin:
the case of Bitrefill.
Dennis, K., 2019. Martin House Makers: Exploring Modes of Upcycling and Make within the
Charity Retail Sector. In Engaging with Fashion (pp. 90-106). Brill Rodopi.
ZGAMBO, A. and JENEFA, L., 2019. IMPACT OF ICT IN HUMAN LIFE-A REAL
PRACTICE!. International Journal of Recent Advances in Information Technology &
Management (Online ISSN: 2581-3609), 3(1).
Arnould, E., Press, M., Salminen, E. and Tillotson, J.S., 2019. Consumer Culture Theory:
Development, Critique, Application and Prospects. Foundations and Trends® in
Marketing. 12(2), pp.80-166.
Busetti, S. and Dente, B., 2019. The mechanisms of food waste prevention: theory, design, and
practice for changing behaviours. In Making Policies Work. Edward Elgar Publishing.
Gustafsson, E., Jonsson, P. and Holmström, J., 2019. Digital product fitting in retail supply
chains: maturity levels and potential outcomes. Supply Chain Management: An
International Journal.
Davis, M.V., 2019. Strategies to Prevent and Detect Occupational Fraud in Small Retail
Businesses.
Bahroun, M., Harbi, S. and Bouchriha, H., 2019. A new approach for ordering decision under
uncertainties: a case study in the retail supply chain. International Journal of Logistics
Systems and Management, 32(3-4), pp.392-413.
Jung, J., Ko, E. and Woodside, A.G., 2019. Customers’ Assessments of Retail Traditional Local
Markets: Strategy Outcome Performance Screening. In Accurate Case Outcome
Modeling (pp. 115-183). Springer, Cham.
Danilova, K.A., Maltseva, Y.A. and Kotlyarevskaya, I.V., 2019, May. Retail consumer
opportunism: realities of consumer behaviour in the digital economy conditions. In 1st
International Scientific Conference" Modern Management Trends and the Digital
Economy: from Regional Development to Global Economic Growth"(MTDE 2019).
Atlantis Press.
Chen, W. and Li, Y., 2019. The internationalization process of Chinese research institutions
since the reform and opening-up: Theory and practice. Journal of Industry-University
Collaboration. 1(1). pp.2-16.
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