This report discusses the key changes in the UK fashion clothing market and provides strategies and tactics for retail organizations, with a focus on H&M. It also offers recommendations for H&M to overcome major market changes.
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Contents INTRODUCTION...........................................................................................................................3 Introduction to company.........................................................................................................3 MAIN BODY...................................................................................................................................4 Key relevant changes of UK fashion clothing market............................................................4 Relevant changes within micro environment.........................................................................6 Strategies and tactics that are appropriate for retail organisation...........................................7 Recommendations..................................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................11
INTRODUCTION The term retail marketing refers to the institution or the persons who play role of distributing and delivery products and services to end consumer. Goods are designed and manufactured for so they are purchase and consume by individuals and it is the responsibility of retailers to provide and take products towards final destiny to consumers. In the present scenario, the term retail is derived from French word retailers that are for cut a piece, a break down. The term retailers buys products in large quantity and sell them in market within small quantity for satisfying needs and wants of customers in an appropriate manner. This report is written from perspective of H&M and it one of leading fashion brand that satisfy needs and wants of customers at global level(Weber, 2014). Moreover, this report highlights on changes of UK fashion clothing and also recommendation will be generate for responding towards overcoming from major changes that occur in market. Introduction to company Hennes & Mauritz AB is a Swedish international clothing retail organisation that operates their business in fashion industry. In the present scenario, H&M is well-known for its clothing related with men, women, children and teenager. Along with this organisation is operating their business at global level with help of managing store in 74 countries by operating and controlling more than 5000 stores at international level. Along with this there are various tasks performed by management and this aids an organisation for completion of their work with use of completing work according to current clothing trends. Along with this H&M is second largest global clothing retailer and it is developed by organisation for managing task with offering products through use of performing online and offline methods to approach large number of customers. Moreover, scope of clothing industry is too wide and it aids business to complete task by performing all work with more efficiency specifically offering clothing with current trends. There are various task performed by management and this insists individuals for managing and completing work by use of current methodologies to design unique clothes(Teufel and Zimmermann, 2015). This results needs and wants of customers are satisfied in an organised manner. In the year 1974, H&M management listed themselves within stock market. There are various task performed by management and it is designed with motive of appealing investor and financer and this leads
management to complete all work by engagement about expansion of business by gathering funds from market. Moreover, organisation engaged all persons to sale items which are used to distribute about online perspective for registering catalogue about company products. Product portfolio of H&M is too broad and wide and it helps to attract more number of individuals by offering products to person at large level. Moreover, all products provided by respective organisation are good in quality and it is use by management for completion of task according to requirement of consumers. MAIN BODY Key relevant changes of UK fashion clothing market In the present scenario, there are various task performed by respective organisation which is used by management for improving company profits and goodwill(Swoboda, Elsner and Olejnik, 2015). But with globalisation aspects it is complex to perform all work in an organised manner due to different challenges among market. Some challenges that are faced by H&M while operating business in UK fashion clothing market are discussed as below: Political factor-Organisation such as H&M exists at global level so it is essential for management to monitor and overview all functions and operations of business. In the context of UK, Political conditions are stable and this is used by management to complete task according to decided task. In context of H&M management consider themselves with motive of implementing fair working conditions. The changes monitor due to political factor is increase in tax and cost of operations. One of the major challenges in political aspect definesBrexitaspects and it is used for completing work according to political grounds. It creates challenges for H&M because operation cost for business in increased because most production units are established in UK. Economic factor-The decision of Brexit creates challenges and this is used by management for managing work with business aspects. There are various operations performed and it is used to generate signs by political turn in profit-making. Along with countries labour laws make significant changes due to this profits for business are reduced(Soma,2019).Changewhichismonitoredinclothingindustryisthat individualsstop to make expense on expensive clothes. Moreover, H&M charge premium price from purchaser so the norms related with economic policy is increased
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and corporate tax policy varies due to which this is also complex to align all functions with profits of business. Social factor-Clothing is a field among which persons is directly influenced through the aspects of social media and celebrities. There are various task performed by management and it is used for influencing and promoting with channels that are related with goals(Roggeveen and Sethuraman, 2018). One of the major changes which are identified that prefers about making changes with pandemic conditions specifically Covid-19. Methods of sale is changed such as contact less sales is adopted by customers. So new products requirements such as face shield and mask are needs of customers. Social factors aid management in completion of work with more efficiency through completion of task according to society need, value and belief. Technological factor-The time of cell phone has shown up. Individuals are not any more keen on heading off to the store and purchasing the garments stock when they can do the equivalent by means of portable application. Change in technology results that virtual check-up of dress is more controlled by customers and they prefer to buy products from E-commerce platform. The innovation gives the client the simplicity of requesting from their work environment. The organizations including H&M need to stay aware of this technological progression and related evolving conduct. Prize focuses either straight forwardly in the application which is utilized to arrange or as limits are a pleasant methodology blended in with innovation to expand the client base. Legal factor-Every nation has its own administrative arrangements(Pousttchi and Hufenbach, 2014). Firms working in those organizations need to comply with the guidelines to be effectively ready to work the business. For instance, H&M needs to work together with diversifying accomplices in other countries and so on in any event, when diversifying was not the piece of development technique of H&M. Legal aspect make change as quality of products must match with government rules. The Intellectual property right is significant concern. Assume an imaginative plan is produced by H&M however on the off chance that it isn't lawfully made sure about, at that point can be taken by its rivals and inside no time the advancement which might have given them the advantage in market evaporates away.
Environmentalfactor-Materialorclothingindustryoverallisthesecondmost contaminating industry after oil industry. The high measure of water consume which is produced dirties the water bodies. The populace living close by to those water bodies experiences different dangerous infections that impacts on health of merchandise. Changes with environment factor define work to engage only those factors that is easy to recycle(Pioch and Gerhard, 2014). There are government standards for managing these outflows into the air yet is complex to control. H&M has an objective which is to be utilise totally reused garments material for its creation. Relevant changes within micro environment SWOT analyses model is implemented by management of H&M to understand strength, weaknesses, threats and opportunities. Further, SWOT analysis is an effective framework and this enable organisation as a brand by which H&M to improve company performance. SWOT from perspective of H&M are discuss as below: Strength Wide range of products-H&M offer wide range of products and it include apparels, cosmetic, accessories and shoe. This leads persons for managing and completing work as per that makes collection of activities with motive of satisfying individual needs and wants of customers. Unique products-H&M sell its products portfolio through managing needs as it is used for completing task as per company brands such as H&M, Weekday etc. This brands perform about unique identity which is used on making customer target group. Creativity is major strength and this also aids organisation to attract more number of customers. Weaknesses Dependence on third party-H&M is extremely reliant on other sellers for their merchandises (Pantano, 2014). H&M outsources product industrialized on other small andlargeindependentsuppliersandthisresultsorganisationlowercontrolover production. Affordable pricing impact quality-H&M is a popular organisation and this is well- known for affordable clothing. This also results that sometimes products quality of clothes is impacted due to managing price of clothes. Opportunities
To focus on profitability-H&M is focused constantly towards the expansion of their store all over the globe. In the present scenario, respective organisation adds new stores. So it is easy for management of H&M to improve their top as well as bottom line. This results profit is increased by offering high-quality and current products to customers. Expansion in emerging market-Among all the over world emerging market exists at a large level and this also provide potential in clothes industry(Jocevski, 2020). H&M is focused towards establishment of their store in Asia market. This is because emerging market provides opportunity to improve capital for business. Threats Evolving fashion trend-Clothes industry is too dynamic and this develops subjects that are implemented to keep changes in quick manner within fashion industry. Social media plays an important role for analyse of new trends that are implemented in society. H&M deliver new products as per trends to sustain in market. E-commerce allows new entrants-The term E-commerce provide advantage as well as threats to organisation because organisation formulate popular brands now compete with new brands. This also impacts on business brand of H&M as new organisation develops products at same trend and market. Strategies and tactics that are appropriate for retail organisation The term strategy defined an appropriate method and this is used by organisation for implement of tactics by which negative impacts are managed and controlled. In the context of H&M, micro and macro environment consists is used for controlling work with decided market. Some strategies and tactics which is essential for H&M market is discussed as below: Marketing mix tactics Use of marketing mix helps workforce and departments of H&M to develop and implement all P’s at a same place(Das, 2015). In simple terms, product, price, place and promotion are consideredfor completionof all work accordingto decided methodsand objectives. Product-H&M is an appropriate and trusted brand and this is used for completion of work according to merchandise which is used in managing work according to portfolio. With analyse of core range about products this is easy to understand operations cost by
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managing products cost. So political changes is managed by organisation with making deal as per merchandise. Price-Pricing strategy of H&M is controlled by managing range with making sphere of buyer and merchandise. Discount section is an effective technique and this is used by H&M aspects for performing work as per changes of economic. Individuals are attracted to remove barrier from economical terms by improving economy of country. Place-H&M is second retail clothing organisation that is situated among all over the world with a network that is spread within different fifty-five countries. Along with to overcome from the pandemic conditions(Childs and Jin, 2015). It is easy to offer and provide better products that aids in implement of managing new methods to improve company sales. Online distribution or E-commerce is effective ways to place all products with interactive approach. Promotion-H&M realise potential about promotion and marketing of activities and it aids for making special care about implement of effective ways. Along with this advertisementfocusonwaysthroughwhichmoreindividualsareapproachedby minimum cost. H&M techniques make strategy for completion of task with developing strategy. Training of employee’s on on-going basis One of the effective techniques that is used by management relates with analyses of retailers and it hire competitive factors for persons through which individuals perform their role by providing training which satisfies needs of customers in an appropriate manner. From perspective of H&M the main motive of providing training is to train them with current knowledge. This aids persons to follow task by which retail sales is increased like, employees are trained with communication skills and this aids in making effective ways to motivate workers for completion of task with more efficiency. It also refers models are implemented in making merchandise by which persons are motivated in completion of task with use of positive technique such as rewards and monetary terms to individuals for completing work by constant training (Andersson and Forslund, 2018). Recommendations The main motive of H&M and other retail organisation is to improve their customer base that makes entire aspects in favour of business. From perspective of organisation this is identified
by management that retail sector improves their market with focus on ideas with understand of H&M objectives. Some recommendation for H&M is mention as follow: Keep the Interest Alive Execute a client commitment program utilizing an instrument like Clothing industry extremely simple set up try of clothes– they likewise offer free preliminary so individual can check whether it's a fit for their requirements. During new item or administration dispatches, ensure enough individuals think about how persons relate company with trends. So to overcome from threat of sustainability and competition from new brands it is recommend to H&M that authorities generate interest of customers within products to retain in market for longer period. Focus on Customers This is critical in retail activities: consistently go to each client's necessities and give them astonishing client care. To expand consumer loyalty even by a smidgen can bring about steadfast clients that continue purchase on continue basis. This implies that H&M have to manage them as they emerge and not just hide them where no one will think to look. Being a pleasant individual is extraordinary resource and it support H&M to implement recommend of focusing on specific target market of customers. Customer focus recommendation also helps to achieve opportunity of entering in emerging market by manufacturing products with specific customer need. Stay up with the latest and Motivated Ensure that staff has great item information. Train them on new items consistently so they keep awake to-date. Prize them with deals motivators to keep them cheerful and roused. For instance, H&M can run deals challenges for accomplishing of standard inside the sales of overall month with in its initial 15 days by encouraging individuals to complete their work with more efficiency. This results motivated workforce identifies solution for removing barrier such as use of technology in all departments. CONCLUSION With the analyses of above report it is concluded by management that retail sector is a large industry that perform an important role for satisfying consumer need and wants. Clothing sectors is a part of retail industry and it is one of the most dynamic sector due to which it is complex for large organisation to adopt new system for completing their work in a proper manner. There are various challenges such as increase in operation cost, slow of economic and many more create difficulty for H&M to manage work with more efficiency. In the last, some
recommendation to improve customer base and profits are increased and it is used to improve profits, goodwill and market area for business.
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