Analyzing UK Fashion Retail: Changes, Strategies, and Next plc's Role

This report provides a comprehensive analysis of the UK fashion retail industry, focusing on the key changes impacting the sector and the strategies retailers can employ to adapt and thrive. The report begins with an introduction to the retail landscape, highlighting the increasing competition and the need for retailers to adopt effective strategies. It then delves into a detailed examination of the UK fashion sector, focusing on the key components which contribute in gaining competitive advantages for overcoming cut throat globe level completion. The report also discusses the impact of digitalization, data analytics, competitive pricing, and sustainability on the industry. The report then analyzes the strategies that retailers, such as Next plc, can utilize to respond to these changes, including developing domestic plants, training staff, employing marketing strategies, and continuous innovation. The report emphasizes the importance of adapting to technological, legal, social, and environmental requirements to ensure long-term success. The report concludes by summarizing the key findings and implications for retailers operating in the UK fashion market.

RETAIL THEORY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
a) Describing key relevant changes in UK fashion sector........................................................4
b) Discussing strategies and tactics that retailer can use for responding major changes
occurring in UK fashion retail industry.......................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Retail refers to any organization that deals directly with end customers for selling goods
and services. In current scenario, competition has increased which forces retailer to adapt
effective strategies for meeting changing circumstances of industry. The chosen company for
present report is Next plc. which is British multinational clothing, home products and foot wear
retailer of United Kingdom. Present fashion industry of UK has arrived at peak growth level due
to advanced knowledge of changing taste & preference of buyers. The present report will give
emphasis on current changes in United Kingdom fashion industry. Current case study will
present strategies & tactics that can be used by retailer for adapting and implementing changes in
positive manner.
MAIN BODY
a) Describing key relevant changes in UK fashion sector
Clothing industry has been faced additional growth which made organization to study major
actions that can influence smooth business functioning. Globalization, changing customers
demand, life style, and corporate practices result into modification of present working criteria.
Availability of sources of funds, expertise consultation, advanced technology, etc. play crucial
role in impacting clothing sector of world. Next group Plc. is large organization that has
achieved success due to its appropriate business strategies for accomplishing objectives. The
following mentioned are key components which contribute in gaining competitive advantages
for overcoming cut throat globe level completion.
Digital technology adoption
The importance of digitalization has increased at large extent. There are various business
based platform that has been developed for selling clothing items. In addition to this, it provides
facility of obtaining discount, product awareness, visual merchandising, etc. Next Group Plc. as
well as given preference for observing customers activities. Data analytics plays essential role in
forecasting demand and sale of particular product (Rachinger and et.al., 2019.). The reason
behind success of UK fashion retailers in international market is more capability regarding
implementation of digitalized form methods for production, distribution, advertisement,

marketing and analyzing market condition. There are several other components that contribute
in influencing price increase of apparel.
The future of apparel of women, men and kids are mostly likely to be more effective in
online mode than traditional form. Customers give preference to look into features offered by
business based platform. Many traditional stores as well start making presence on this online
shopping site for increasing sales, brand awareness, etc. Once customers observes something
online they likely to recognize brands characteristics and unique. There are several benefits that
Next plc. will obtain after adopting this specific mode for dealing with buyers. Speed of delivery,
immersive digital shopping experience which comprises virtual washrooms & stylists, sizing
measurement technique enhances convenience and flexibility for making purchase decision just
clicking a button. It is the biggest change that fashion industry has become dependent on. Next
plc has presence in number of nation which requires more activeness in adapting current trends
prevailing in industry which can aid it to compete both internationally as well domestically.
Data Driven
Rapid information analysis for quick adaption of doing retail business in fashion industry.
Number of tools are available in sector through technological advancement for implementing
quick changes in production, distribution and inventory management of clothes, footwear, etc.
Company in recent time focuses more on customers taste and preferences rather than being
dependent on choice of designers. The software related with ecommerce platform help
organization to derive data by having direct connect with clients (Ellerand et.al., 2020.). It aids
business to get feedback or the product or cloth utilized by buyers which can be obtained in
terms of quality, color, size. Customers scale products which assist other new prospects to get
better understanding regarding shown details.
With respect to this, mentioned change occurred in industry can help business to attain
more profit margins by eliminating waste through ensuring proper return & delivery policy. It
aid company to gain trustworthiness among customers so that proper data regarding customers’
perception for design, quality price can be derived. Furthermore, customer satisfaction has
become crucial element which heavily impact company’s success. All this data driven change
methodology can provide guidance to Next plc for meeting buyers’ requirements in effective

pattern. Cloud based computing , artificial intelligence and other related techniques’ usage can
resource firm to get collaborative work, accessing relevant data, suitable supply chain strategy,
etc. It provide road map to all workers of company for designing an outfit to deliver to end user.
Elimination of manual process for communicating with emailing, display and retargeting
marketing strategy enhances profitability and organizational growth.
Competitive price and quality
The customers in particular industry has easy entry and exist which allows buyers to
enjoy suitable options from various retailers. Buyers switching cost for products is very low
which motivates them to change their buying preferences as per cost varying. It pressurizes other
firm to determine same or lower price for gaining customers attraction. In addition to this, firm
need to reduce its cost of production, procurement as well distributing expenditures (Björkdahl,
2020). The biggest changes that had forced sector to develop competitive prices strategy for
saving expenses and concentrate on delivering qualitative items. Customers has become alert
about each aspect that can affect quality & price of specific product. Internet of things plays
important part in making customer aware about available options which can provide them
competitive benefits.
It is in always difficult to measure accurate changes occurring in clothing industry. Next
plc adopts several strategies to make its prices competitive and affordable in market. The quality
of clothes is most important component for which customers are ready to pay little more than
local brands. Next plc ensures that it does not compromise with its products quality in turn
customer trust attained by organization. In addition to this, Next plc need to conduct research &
development for examination of suitable price for the selected customers segment. The obsolesce
in buying cycle has forced enterprise to increase responsiveness related to reduce production
time through introducing appropriate applicable action for desire outcome.
Growing importance of sustainability
Trend of digitalization also enable key change in apparel is sustainability. Public of every
nation has become aware about importance of eco friendly practices. Customers want business to
conduct green activities which do not harm environment (Zhang, Zhang and Zhou, 2021). For
this purpose Next plc can feel pressurize regarding modifying current business model and

processes. Textile intelligence formulate policies which makes company to adhere regarding
usage of sustainable material in better buyers response can be obtained. Next plc can use its
waste material into recycling procedure it will not only help company to accomplish its social
responsibility but also aid to reduce cost of procurement. There are other reasons also that oblige
organization to keep up with rapid consumer demand so that it can release up to collections per
year. In order to meet with customers requirement company opts for rapid production which
creates excessive waste and old fashioned cloths (Koep and et.al., 2021). All this formulates
situation where firm become responsible for avoiding fast manufacturing procedure by shifting
towards slow production so that environmental impact can be declined as compared to traditional
methods. Another sustainable activity that ahs promotes clients to pursue for second hand
products which also oblige organization to sell at affordable prices.
Factors Description
Political  Government has power to promote
companies to acquire fabric locally,
taxes increases cost of products, etc
Social  Fashion industry is highly get affected
from the music and movie sector .
 Ever changing trend of celebrities
largely affecting the fashion industry of
UK
Economical  Industry get affected from both high
and low income group of UK
Legal  It requires to follow export, tax
restrictions & inflation cost, etc
Technological  The biggest change is emergence of
online platform for shopping, etc.
Environmental  Several products of this sector are made
from cotton and other resources so
safeguarding environment through
reducing pollution, etc becomes

necessary.
UK fashion industry has been affected by many changes which forces business to adapt
new environmental organizational practices. It has faced economic, political, technological,
social, environmental and legal macro changes. In addition to this, high population in United
Kingdom helps organizations to fulfill vision and mission in effectual pattern. It has made the
country’s economy world’s largest retail fashion industry as compared to other country’s.
increased inflation rates also affect purchasing power of lower income group so they tend to
avoid branded clothes. The penetration of smarts phone has boost sale of country’s clothing
sector. Company requires more investment for having presence on website and ecommerce
platforms.
Worst environmental conditions become barrier for firm to expand its operational
activities in new places. It results in declination of prices which reduces the revenue of company.
Legal elements need to taken into consideration for having fair and ethical working culture.
General protection data regulatory make policy which in turn safeguard interest of clients
regarding assuring confidentiality of their personal data. United Kingdom comprises different
people that have varying values, culture which both positively and negatively impact working of
Next plc.
b) Discussing strategies and tactics that retailer can use for responding major changes
occurring in UK fashion retail industry
Retail has been defined by many theorist which states that it means change. External
marketing changes such as emergence of customer changing taste & preferences, new advanced
technology, nontraditional experiences and competition increases demand retailer to reform its
operating ways. There are other reasons also which forces firm like Next plc to coordinate with
changing circumstances of global market in turn capabilities can be ascertained for meeting
customer needs. Number of strategies and tactics are utilized by business in order to be proactive
for responding undesirable modifications. The current study focuses on strategies & models that
company acquires for overcoming relevant change.

Next plc. can make strategy for developing more plants in UK so that it does not need to rely
on other nations for obtaining raw materials and other equipments. It also enables organization to
conduct more export trading for increasing market share and obtaining higher profitability and
sustainability (Hu and et.al., 2021.). Ever changing market trends require company’s staff to be
trained for reacting in positive manner. In many ways designers observe customer changing
behaviors and preferences so ensuring that it is exerted in favorable manner. Staffs are
considered to be representative of firm so making sure that every person connected with
company have positive attitude for dealing with clients can solve half of problem.
Utilization of both traditional as well modern marketing strategies can provide assistance in
getting desirable reaction of buyers. It comprises having print, digital, social media,
advertisement on television, etc. can aid Next plc to employ trend prevailing in fashion industry.
Retailers need to invest in forecasting clothes pattern through research and development can
make possible for Next Plc to reduce risk associated with macro environmental changes.
Continuous innovation for attracting buyers’ attention can help enterprise to obtain expected
level of sales of manufactured clothes.
Theory of natural selection can be utilized by Next plc for evolve to meet the changes occurring
in environment of industry. There are various factors which impact the working criteria of
organization so choosing appropriate model & strategies for employing modification in best way
(Survival of the Swiftest: Not-So-Natural Selection in Retail, 2021). The specified theory helps
retailer to understand both micro and macro environmental changes. It is an extended version
which contradicts wheel theory so selecting particular mode for suitable implication would be
beneficial for Next plc. This states that retailer who is likely to adopt changes is most successful
in sector (Fischer and González, 2021). Next plc. can survive for longer duration if its reacts
positively to technological legal, social, technological and environmental requirements.
From the above mentioned changes company can apply environmental strategy for
developing suitable working culture which will tend to drive longer sustainability. Digitalization,
sustainability, data driven, analysis of information can be employed by Next plc. This is part of
development approach which states that company should implement those changes that make its
operational activities more significant.

Operating model aid Company to react to dynamics of customers behavior, technology,
market & workforce which helps to survive in fast changing and challenging environment. It
follows business approaches to make a transformation successful. It is structural process which
comprises strategy, business & operating models. It all are connected with each others
implementation. Business strategy can help next plc to implement modification which requires
alternation in company model. Business approach includes two part one is procurement of raw
material for production of goods and services. In addition to this, second is related with making
sells of products and services. To implement new business model for getting new competitive
advantages firm need to use operating model. This aligns organization to overall firm strategies
and objectives.
It comprises three dimensions which helps to understand how company organize, execute
and behave regarding new tasks. The first step of operating model is organizing which defines
company structure, governance, and skills for working mechanism. With respect to this,
organization structure of Next Plc. Contribute in knowing that how feasible it is for adapting the
changes. The responsibilities, delegation and decision making procedure shows which type of
governance is supported by firm. Decentralized and lean are two form that is used by Next plc
company which provides directions for employing successful position. The capabilities is also
part of organize step of pyramid that owns technological knowledge for having flexible working.
Next plc would be able to employ all required changes in effectual manner.
For executing budgeting, processes, tooling and KPIs are utilized for having organize
activities for implementing needed changes to be successful. Characteristics organized with
composition of task are exerted for the purpose of having unique activities as compared to
previous. Budgeting for obtaining established task in effectual manner plays important role in
decision accuracy and fairness for requirement of implementation regarding solutions for
overcoming key relevant challenges (Wong and Ngai, 2021). Organizational performance after
establishing outcome into practice can be measured through KPI. Retailing model of operating
comprises this execute step for evaluation of profitability, revenue to know exact impact on
conversional rate.
The changes occurred in organizational activities can be seen in behavioral aspect of
operating model. It involves three components culture, location and incentives. The result of

standard practices established buy Next plc for employing shown outcome in favorable manner
ahs created demographic or autocratic working scenario on business. With respect to this,
location of Next plc branches are performing accurately for meeting setup objectives and goals
through driven changes. Type of incentives are utilized for rewarding employees to encourage to
take all desirable behavior which can positive affect functioning of next plc.
Next plc. can get successfully operating model only when business activities are aligned
with working methods when employees are also motivated. Next plc can become customer
centric organization after implementing all mentioned strategies, tactics, models and theory.
Retailing business in fashion industry can only be successful when it is ready to derive, analyze
and evaluate changing trends in sector for having upward movement of business growth.
CONCLUSION
From the above report it can be concluded that UK fashion industry is gaining rapid growth
which aids country’s economy to have great GDP. The present report has given emphasis on key
relevant changes happening in clothing sector which influences functioning of operational activities. The
factors that are mentioned in current report are data driven, competitive price& quality, technological
advancement, sustainability, etc. in addition to this, it ahs specified political, social, cultural , legal and
environmental modification as well. Current case study focuses on strategies and tactics that can helps
Company to employ occurring changes. The report has shown natural selection theory and operating
model for the mentioned purpose.

REFERENCES
Books and Journals
Björkdahl, J., 2020. Strategies for digitalization in manufacturing firms. California Management Review.
62(4). pp.17-36.
Eller, R., and et.al., 2020. Antecedents, consequences, and challenges of small and medium-sized
enterprise digitalization. Journal of Business Research. 112. pp.119-127.
Fischer, T. B. and González, A., 2021. Conclusions: towards a theory of strategic environmental
assessment?. In Handbook on Strategic Environmental Assessment. Edward
Elgar Publishing.
Hu, T. S and et.al., 2021. Toward economic sustainability: how to shape fashion industry development in
Taipei. International Journal of Business Environment. 12(1). pp.83-112.
Koep and et.al., 2021. Buying Practices in the Textile and Fashion Industry: Past, Present and Future.
In Sustainable Textile and Fashion Value Chains (pp. 55-73). Springer, Cham.
Rachinger, M and et.al., ., 2019. Digitalization and its influence on business model innovation. Journal of
Manufacturing Technology Management.
Wong, D. T. and Ngai, E. W., 2021. Economic, organizational, and environmental capabilities for business
sustainability competence: Findings from case studies in the fashion
business. Journal of Business Research. 126. pp.440-471.
Zhang, B., Zhang, Y. and Zhou, P., 2021. Consumer attitude towards sustainability of fast fashion
products in the UK. Sustainability. 13(4). p.1646.
Online
Survival of the Swiftest: Not-So-Natural Selection in Retail. 2021. [online] Available through: <
https://www.maplewave.com/blog/survival-of-the-swiftest-not-so-natural-
selection-in-retail>