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Retail Theory and Practice INTRODUCTION 4 MAIN BODY4 Part A4 Overview of the UK Fashion Retailing

   

Added on  2021-01-02

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Retail Theory andPractice
Retail Theory and Practice INTRODUCTION 4 MAIN BODY4 Part A4 Overview of the UK Fashion Retailing_1
Table of ContentsINTRODUCTION...........................................................................................................................4MAIN BODY...................................................................................................................................4PART A...........................................................................................................................................4Overview of company.................................................................................................................4Key relevant changes within UK fashion retail..........................................................................5Relevant changes within the micro environmental.....................................................................7PART B............................................................................................................................................8Strategies and tactics that can be used........................................................................................8CONCLUSIONS............................................................................................................................11REFERENCES..............................................................................................................................12
Retail Theory and Practice INTRODUCTION 4 MAIN BODY4 Part A4 Overview of the UK Fashion Retailing_2
INTRODUCTIONRetails sector is the type of business which sells its goods to the end consumer in smallquantities and after that consumer doesn't resell that product further to anyone because theypurchase it for their own use and they considered as the end of the line of product. One suchfastest growing retail sector is fashion industry as in modern world individuals terms to be moreconscious about their living standard so as the time passes customer preferences in respect oftheir dressing senses also changes because of which fashion industry also have to come up withchanging trends clothes so as to satisfy customers. Therefore the company which is beingconsidered to carry out this report is Hennes & Mauritz (H&M) which is a Swedishmultinational clothing retail organisation known specifically for its fashion clothing forteenagers, men, women and children (Allmendinger, 2017). Therefore this report will focuseson overview of the company, key relevant changes within UK fashion retail and relevantchanges within micro environmental factors. Apart from this strategies and tactics are also beingused to overcome issues.MAIN BODYPART AOverview of companyHennes & Mauritz AB (H&M) is a Swedish multinational clothing retail organisationknown specifically for its fashion clothing for teenagers, men, women and children. Itsassociated companies operates in near about 62 countries with 45,00 stores and has 132,000people of employees working in this organisation. Apart from this it is considered to be thesecond largest clothing retailer and possess significant online presence too by rendering onlineshopping availability too in approx 33 countries. This organisation was founded in 1947 byErling Persson and its total operating income is near around US$2.692 billion in 2016 with itsrevenue around US$25.191 billion (Andress, 2014).Fast fashion is not isolated to H&M as this brand possess distinct business model unlikeZara, So H&M doesn't manufacture its goods in-house but it outsource its production to morethan 900 suppliers who are independent in all across the world mainly in Asia and Europe whichare overseen by 30 strategically located oversight offices. Apart from this it uses pilot program aswell so as to incentivize fair working conditions while increasing productivity much more
Retail Theory and Practice INTRODUCTION 4 MAIN BODY4 Part A4 Overview of the UK Fashion Retailing_3
naturally. Thus, it can be said that H&M is term to be the largest fashion retailer in all over theworld and the secret behind this success is its application of fast fashion as it heavily relies ontaking advantage of fashion trends as they get products onto the shelves from design room flooras fast as possible without any delay (Batley, 2014).Key relevant changes within UK fashion retailKey relevant changes within UK fashion retail business can be identified with the help ofPESTLE analysis technique which is being taken into consideration by H&M organisation andits is being explained below (Fernie, Fernie and Moore, 2015):PESTLE analysis of H&M:Political:It refers to the level through which a government can affect the workings of an organisation. Itstates various issues that government can impose on the workings of a business which can slowdown the happenings of the firm. It includes various tax policies, trade policies and many otherthings which an organisation can't even think of and end up facing backlash. Similarly, H&M is no stranger to any such thing. During 2017, one of the political issuefaced by H&M resulted in huge losses to them. At that time, H&M releases an advertisement ofa black child wearing a hoodie which says “Coolest monkey in the jungle” which ended upmaking them hit the bull's eye. As the black people felt, it is an insult to them due to the politicalenvironment created at that time in the country (Garvey and et. al., 2017). The political reformended up for H&M loosing up to $4.3 billions as the clothes remain unsold. Economical:It refers to the economic reforms in the country that can tamper the growth of anorganisation. It includes various economic factors like, tax policy, interest policy, labour cost andvarious other regulations that can affect the working of an organisation. It works as a prescribedformat to an organisation on how to work in an specific country. H&M also have to work keeping in mind the various policies. Some of the economicissues faced by H&M are that they are not able to deliver their products ordered by the customersthrough their online portal because of the construction that needs is happening in Boras Sweden,factory of H&M. This happens because H&M has delayed in understanding that the customersnow prefer online shopping then that of going to shops because its saves their time and itseconomical to them. Other than that, the other parts of H&M like Cos are able to stand in the
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