Retail Theory and Practice: UK Fashion Market for Marks and Spencer

This report provides an in-depth analysis of the UK fashion clothing market, with a specific focus on Marks and Spencer (M&S). It identifies key changes impacting the industry, including the need for unique brand products, price inflation, discounting practices, Brexit uncertainty, environmental concerns, policy changes, and cultural differences. The report then delves into the strategies and tactics employed by M&S to mitigate the effects of these changes. These strategies encompass innovative recruitment, market research, penetration pricing, targeted discounting, online marketing, customer feedback mechanisms, and franchising, all aimed at maintaining and enhancing M&S's market position. The report highlights the dynamic nature of the retail sector and the importance of adaptability in response to evolving consumer preferences and external factors.

RETAIL THEORY AND PRACTICE

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Relevant changes occurs in the UK fashion clothing market.............................................................3
Applying different strategies and tactics used in reducing the impact of such changes in the
organization.......................................................................................................................................4
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Retail industry is considered to be one of the fastest growing industry in the country
and thus carry the business regarding buying and selling of goods or services. They mainly
deal with customers regarding providing such services which fulfill their needs and demands
in better way (Henninger and et.al., 2017). Retails business mainly focus on improving the
facility which is provided through the supply chain management. It refer to managing the
accounts, finance, research department, marketing and sales department and many more.
Though this aspects, they provide quality products to the customer within the stipulated time
period. Present report is based upon the Marks and Spencer which is considered to be one of
the multinational retailer store in UK selling the high quality products such as clothing, home
equipment and eatable products. The concept of this business is brought by Michael Marks
and Thomas Spencer in 1884.
In this report, the matters will covers the aspects relating to identifying the relevant
changes which occurs in the UK fashion clothing market. It also includes the strategies and
tactics which is used by business regarding responding to the issues occurs in the fashion
clothing market.
MAIN BODY
Relevant changes occurs in the UK fashion clothing market
The changes which are examined and also causing major impact on the fashion brand
is relating to the following manner such as:
Creating the unique brand products: This is one of the major challenges which is faced by the
fashion industry in respect of designing the innovative products for the customers. As due to
changes in market trends tough competition is raised in market through designing the
products as per the customer needs and taste. It is not necessary that the uniqueness is
ascertained in the clothing products only but also in the case of packaging or labeling the
products (Rashid and Barnes, 2017). As customer are focusing more on getting the eco-
friendly products. Thus, it refers to the relevant changes which is mainly adapted by the UK
fashion clothing market in respect of retaining the customer interest towards the products for
longer way.
Price Inflation: It considered to be the biggest factors regarding retaining the customer
interest as due to changes in prices of the products results in distracting the interest of the
customer. As customer demands such products which they can easily affordable and in such
case they prefer new clothing every time. But due to changes in prices relating to increasing
in prices of fabrics or delivering cost in higher which indirectly affects the production cost of
the clothing (Jones and Comfort, 2019). Thus, inflation results in delivering the products to
the customer at the price higher than they expected. Through this manner, the impact on UK
fashion clothing industry occurs regarding changes in prices of the products.
Discounting: It refers to one of the biggest changes which is mainly adapted by the fashion
industry regarding attracting the customer interest towards the business. Through the
perspective of discounting, it resulting in bringing competitors in the business through
attracting the customer by providing discount and offers on particular products. Mainly the
changes occurs in respect of providing heavy discount during the festive season. So that they

can attract the large number of customer towards the business and also crack the competitor’s
technique in building strong customer bases (Thomas, 2017). But changes lies in respect of
providing heavy discount even if company is not sustaining their position in emerging
market.
Brexit uncertainty: The changes which occurs in the UK fashion industry is relating to during
the time of Brexit, in this the business losses their integrity and clients regarding facing
disputed between the countries. Thus, during this time period, people losing confidences on
the retail sectors or banned to purchase goods from other country (Thompson and McLarney,
2017). Thus, changes occurs regarding restricting person to purchase goods from such
country which are not allowing companies to expand the business into such countries.
Environmental impact: The changes which occurs in the fashion industry is relating to impact
raised through the changes in climatic condition or facing any natural calamities. Thus, by
this manner, they are not delivering the products within the set time period. As customer are
retained if they get the products within the set time period and also the quality of the products
are higher than expected (Cullinane and et.al., 2019). By working under the set norms, the
changes occurs in respect of producing the products with using the eco-friendly materials.
Thus, the changes which the fashion market had to adapt is relating to delivering the products
within the set time limit.
Policy changes: The changes which the fashion industry is facing is relating to importing and
exporting the clothing in different countries. As most of the organization are facing issues
regarding paying taxes on clothing or any shipping charges which is higher than the particular
products. The changes which the UK fashion industry facing is relating to strict government
norms regarding paying higher taxes in exporting the products in different countries
(Goworek and et.al., 2017). As most of the business are dealing their business in different
countries through franchising, joint ventures or licensing of any products or services. By
reflecting the changes in government policies, it also resulting in making changes in the
fashion industry regarding planning their budgets and according to gain adequate profits.
Cultural differences: The changes which occurs in the fashion industry is relating to different
style of clothing and preferences of choosing the fabric is also different. As it mainly occurs
by examining the taste and choice of the customers. As few customer are demanding for the
cotton or few are preferring to get jute or silk or chiffon or other fabric are in demand. Thus
the designer had to focus on customer taste before designing any products (UK Online sales
of clothing, fashion accessories and footwear grow by 17% in 2017, 2020). Due to making
continuous change in the products, the fashion industry also facing losses regarding making
changes in their existing working styles.
Applying different strategies and tactics used in reducing the impact of such changes in the
organization
In relation to reducing the impact of the changes in the marks and spencer’s, they had
to adapt various strategies and business tactics regarding overcoming from the issues. By this
aspects, they can promote the products in market through reflecting the company integrity
and reputation at larger scale. Thus, the business tactics or strategies which the marks and
spencer’s uses in following perspective as:

Creating the unique brand products: It is one of the major changes which is faced by the mark
and Spencer’s in respect of bringing new and innovative ideas in the business. Thus can be
resolved through applying the innovative recruitments strategy in which they recruit or hire
the trained and expertise person to handle the matters in better manner. If the expertise person
is appointed at work place, they can instruct and guide the remaining employees to work in
the set directions. It is necessary that employees must be motivated in the business and also
they are instructed and guided to choose the right path (Yu, Cao and Tan, 2019). Through this
manner, they motivated the team members to work as team and also bring innovative ideas at
work place to bring innovation in the design. This can also be achieved through conducting
the market research. The business tactic adapted in this case in respect of conducting the
market research and examining the customer reviews and preferences on the clothing. This is
helpful in making the products unique and different from others.
Price Inflation: Prices are the major aspects which results in affecting the person integrity
regarding retaining their interest for longer way. Thus, Mark and spencer adapted the
penetration pricings strategy in which they set nominal prices for the products which is easily
affordable by any persons. As they are not targeting the particular segment to whom they
promote the products instead of focusing on all category of the person to purchase the
products of M&S (McLaren and Goworek, 2017). Thus, in case of changes occurs during this
perspective, they can sustain the business through charging nominal pricing on the product.
Due to facing inflation in the prices of the products, if the prices are lower, then they impose
low pricing on the products. Similarly in case of higher pricing, they increases the prices of
the products but still kept it nominal. So that they retain the interest of the customer towards
the products for longer time period.
Discounting: This is such factors which is mainly demanded by every class of the person if
they are attracted towards the products. The changes which the discounting affects may
resulting in bringing lot of competitors in market who are attracting the customer interest by
providing the products with heavy discount or special offers is given to them. The business
tactics which the M&S apply is results in giving additional discount to the premium customer
who are preferring the services of M&S on regular bases (Xing, 2018). If they are targeting
new customer than heavy discount is given if they are purchasing the products from the
company official sites. This is the major criteria to attract the customer towards the company
sites and also the company works in respect of innovating their sites through attracting the
customer interest in better manner.
Discounts is such perspective which attracts the customer needs and also forces them
to select the products in return of getting heavy discounts. Most of the online platform, which
the company can promote its business is relating to Amazon, flip cart or other online sites,
but to get major benefits, the discount are mainly given on their physical stores. In this
aspects, promotion is the main criteria to attract the customer interest, through using the
innovative procedure to attract their needs and also fulfills them in better way.
Brexit uncertainty: This the major uncertainty which is faced by the M&S regarding
promoting the business into such countries. As during the period of the Brexit, the conflict
raised regarding partition of the business and people and also imposed strict government
norms in respect of not exporting or importing the business into such countries. In respect of
overcoming from such changes, technology is the main aspects which results in growing the
business into global market. This can be attained through using the social media platform in

which the online marketing of the products is undertaken. M&S launch their product online
and also promote the business through using the innovative ideas to attract the customer
needs and preferences to select the products (Jahdi, Poldner and Koehler, 2017). They also
use the business tactic in respect of taking feedback or reviews from the customer once they
avail the company products and used it to provide accurate reviews about the products.
Through this manner, improvement can be done in respect of making changes as per the
customer demands and needs.
Policy changes: In respect of understanding the policy chances concept in the business, it is
stated that the company is facing issues regarding paying different taxes for the clothing such
as Vat rate or sales tax or service tax. Thus, in such manner, business uses the strategies in
respect of undertaking different procedure through which they can reduce the impact of taxes
on the products and also provide the products with accurate pricing. This can be attained
through reducing the wastages in the products and also M&S can deal their business through
undertaking the concept of franchising of the business (Robinson and Hsieh, 2016). Through
this manner, they can recover from the impact of the paying extra taxes and also enhancing
the stability of the business by providing services to the customer in their own country as
well. As people are still preferring the traditional services regarding purchasing the products
from the stores. Thus, franchising is the best procedure to attract the customer interest in
better manner.
Environmental impact: The impact which is raised to M&S is relating to not delivering the
products to the customer within the set time limit or also cancellation of the order after
having deduction of amount from their account. Thus, from this aspects, they can use the
business strategies regarding paying compensation or 5% or 10% of the refund of their
amount if the order are not delivered as per the set time period. But this condition is not
applied in the case of any natural calamity or desisted which is arising in the country.
In case of facing issues regarding deduction of the amount after getting cancellation
of the orders, M&S set the specific department in which they can resolve the queries of the
customer which they are facing during availing the company services. As customer are
attracted if they are interacting with the employees of the company and they are listening to
their problems and also resolving them in better way (Goworek and et.al 2018). Through this
way, they retain the interest of the customer towards the business for longer way. In relation
to facing issues regarding preferring the eco-friendly products, M&S already dealing in such
services with support the environment in right way and also provide the ecofriendly products
to the customers. By this manner, customer can reuse the waste products for their personal
use and also protected the nature from any type of dangerous activity. The strategies which is
used by M&S is relating to managing their inventories and order is respect of applying the
TQM procedure. Through this manner, they can reduce the waste in the company and also
reuse the raw materials to deliver better quality products.
Cultural difference: M&S is engaged with around 80,000 employees carrying the business
worldwide and also enhancing the company goodwill in larger scale. Thus, they are covered
with wider range of people which belong to different culture and background. The impact is
also raised in respect of external factors through different choices in clothing. The business
tactics which they use to overcome from such issues is relating to conducting the market
research and also build the personal interaction with the customers. Through this manner,
they able to examine the latest concept which is emerging in market. Promotion is also one of

the major issues which reflects the cultural differences, thus they mainly adapts the
innovative concept which not reflects any differences in culture and thus building the strong
base for customers (Gardetti and Torres, 2017). The internal working of the company also
reflects the external progress and thus, every employees are treated in equal manner and also
discrimination between the employees is undertaken. Thus, by adapting CRM resulting in
gaining major advantages in the business.
CONCLUSION
From the above study, the report concludes the matters is relating to understanding the
concept of the UK fashion industry. As this industry is facing major impact regarding
examining the changes of the customer taste and preferences in choosing the particular
products or services. Marks and spencer are adapting various innovative ideas to retain the
interest of the customer such as using the advanced technology to attract the customer
towards the business or providing products which are eco-friendly and best quality. Through
this manner, it enhances the integrity and stability of the company by fulfilling the needs and
demands of the customer by providing the quality services with less pricing.

REFERENCES
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Online

UK Online sales of clothing, fashion accessories and footwear grow by 17% in 2017. 2020.
[Online]. Available through: < https://www.mintel.com/press-centre/fashion/uk-
online-sales-of-clothing-fashion-accessories-and-footwear-grow-by-17-in-2017>.