Fashion Retail: Market Segmentation, Trends, and Retail Services

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Added on 2024/07/12

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This report provides an analysis of fashion retailing, focusing on market segmentation and the impact of current fashion trends on retail services. It examines the characteristics of different market segments and discusses how fashion trends influence retail strategies, using Zara and Burberry as examples. The report details the importance of market segmentation in meeting customer needs and highlights the differences between niche and mass-market retailers. Key aspects covered include the factors influencing fashion trends, such as social media and celebrity culture, and how these trends affect retail service offerings. The report concludes by emphasizing the significance of aligning a retailer's image with its target market to effectively serve their needs.

Fashion Retailing
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................6
Task 3...............................................................................................................................................7
Conclusion....................................................................................................................................... 8
Reference list................................................................................................................................... 9
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Introduction
In this assignment, the learner will describe the different characteristics of the market segments.
Determining the market segment for the fashion retailer will be also discussed. The assignment
will also focus on the current fashion trends and its affect on the retailers. The chosen retailers
are Zara, Burberry.
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Task 1
Explain the characteristics of the target markets of different fashion retailers (P1)
The proper market segmentation is definitely a requirement to fulfil the needs of the customers
and establish a fashion retailing company in UK.
Effective market segmentation has certain characteristics like substantiality, suitability,
adequate demand, accessibility, action ability and others. If a company follows these criteria for
segmenting their target market, they will be able to cater the customer needs very precisely as
well. The substantiality stands for capacity of the market, which will determine the success of the
segmentation. The market size needs to be big enough to earn profit for the company. Suitability
implies the internal and external situation of the organisation, which needs align properly with
the segmentation. Adequate demand is one of the most important characteristics of the market
segmentation. The segment should exhibit demand. The segmented market should be easily
accessible as well. The last characteristic is action ability, which implies the segment should
have the scope of taking effective action by the company. This enables the company to deal with
problems in the segment For example, Zara is a premium brand of fashion retailer and they cater
to the high-end market in fashion industry. The market is segmented for this brand by
demographic. They cater to the high income demographic. Another brand Burberry on the other
hand caters to the low to mid end market. Their very affordable and the pricing are very
competitive (Walsh et al., 2015, June).
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Explain the policies of different fashion retailers in terms of their retail service offer (p2)
The two different fashion retailers cater to a very different market segment. Therefore, they have
different policies as well and the ambience of the two retailers is very different as well. Zara is
more premium and therefore the outlets are more polished whereas, the Burberry is more relaxed
because they serve a lot young generation budget customers. Service of the two retailers is also
very different as well. Zara has better physical presence of the brand but Burberry is very much
active in online retailing. The opening hours are more or less same but being more active in
online shopping Burberry caters to a lot of global consumers as well (Tian et al., 2018).
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Task 2
Describe how a fashion trend is influenced in its development (p3)
There are different factors that influence the fashion trend. Currently social media is huge and a
lot of the fashion is influenced by it. Popular culture influences the fashion trends very much. In
the recent times, celebrity culture has been definitely influencing the fashion trends. Media has
been always an influencing factor. There is also fashion magazine that influences the fashion
trends. In recent times, the sustainable fashion is trend that is coming therefore ecological
concerns are very much an influencing factor (Aghdaie, and Alimardani, 2015).
Describe the impact of different fashion trends on retail services (p4)
Two fashion trends are street fashion and fast fashion. Burberry has definitely changed their
fashion game with the street fashion. Street fashion is every day fashion that the consumers love
to wear. The street fashion has made the fashion accessible for all. On the other hand, Zara has
upped their fashion with high street fashion. This type fashion is very much premium. The fabric
and tailoring everything is done to serve the high street fashion lover (White et al., 2018).
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Task 3
Explain how the image of a chosen fashion retailer meets the needs of its target market P5
The image of a fashion retailer affects the target market as well. The retailers’ image depends
upon their corporate image, staffs and consumer, product range. If all these are made to serve a
particular market, they will able to serve the markets needs better a swell. Zara for example has a
diverse range of products and has very good quality service online and offline. Corporate image
of the brand also done in a way to display that they are high street fashion retailer. On the other
hand, there is Burberry, which has very hassle free online fashion retailing service and the young
generation likes this type of service very much (Suri, 2016).
Describe the differences in the characteristics of a niche fashion retailer with those of a
mass market retailer.P6
Mass market caters to the large section of the demographic and the niche market only caters to a
particular type of customer. Mass-market fashion is complicated and where as niche market
focuses on a particular group therefore very easy and earns profit easily. Mass market fashion on
the other hand better scope in the market where as niche market limited in scope (Cross et al.,
2015).
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Conclusion
To conclude with it can be said that the market segmentation is very important process. To serve
the market needs it is very important to identify a segment that the retailer will mostly focus on.
In this report the market segmentation of the 2 retail fashion brands are done. Burberry and Zara
are two different type of fashion retailer who caters two different market segment of UK.
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Reference list
Aghdaie, M.H. and Alimardani, M., 2015. Target market selection based on market segment
evaluation: a multiple attribute decision making approach. International Journal of Operational
Research, 24(3), pp.262-278.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science
(AMS) Annual Conference (pp. 531-536). Springer, Cham.
Suri, R., 2016. It's about time: the competitive advantage of quick response manufacturing.
Productivity Press.
Tian, Z.P., Wang, J.Q. and Zhang, H.Y., 2018. Hybrid single-valued neutrosophic MCGDM with
QFD for market segment evaluation and selection. Journal of Intelligent & Fuzzy Systems, 34(1),
pp.177-187.
Walsh, G., Schaarschmid, M. and Ivens, S., 2015, June. IMPACT OF CUSTOMER-BASED
CORPORATE REPUTATION ON PERCEIVED RISK AND RELATIONAL OUTCOMES:
EVIDENCE FROM FASHION RETAILING. In 2015 Global Fashion Management Conference
at Florence(pp. 883-883).
White, B., Rocha, S. and Nicholson-Metz, D., T-Mobile USA Inc, 2018. Market segment
analysis of product or service offerings. U.S. Patent Application 15/593,254.
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