New Look: UK Fashion Market Analysis and Strategic Recommendations

This report analyzes the UK fashion clothing market, focusing on the British retailer New Look. It begins with an introduction to the retail industry and the dynamic nature of the fashion sector, highlighting the importance of adapting to rapid changes. The report then delves into the key relevant changes within the UK fashion market, employing PESTEL and SWOT analyses to evaluate the macro and micro environments, respectively. The PESTEL analysis examines political (Brexit, PETA boycotts), economic (economic slowdown, lower-priced clothing brands), social (dynamic customer preferences, influencer marketing), technological (e-commerce growth), environmental (eco-friendly products), and legal factors (employment law, workplace pensions). The SWOT analysis assesses New Look's strengths (brand recognition, product portfolio, digital platforms), weaknesses (lack of innovation), opportunities (e-commerce expansion, influencer marketing), and threats (competition, economic instability). Finally, the report discusses strategies and tactics New Look could employ to respond to these market changes, including adapting to e-commerce, addressing environmental concerns, and responding to economic shifts. The analysis is based on the assignment brief for the Retail Theory and Practice module (QAB020N522H).

Summative Assessment
Table of Contents

INTRODUCTION...........................................................................................................................1
Key relevant changes in the UK fashion clothing market...............................................................1
PESTEL analysis....................................................................................................................2
SWOT analysis.......................................................................................................................4
Respond to the major changes occurring in the fashion clothing market........................................5
Recommendations..................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Retailing is defined as a process of buying and selling of goods and services and has a
direct interface and connection with end customers. With respect to fashion retailers it has been
seen that it is one of the most dynamic industry where random changes keeps on going thus,
become more vital for fashion retailers to keep a phase and balance with rapid changes through
having specialisation in latest trends and insights of business environment (Thompson and
McLarney, 2017). The current assignment is based on New Look Retailers Ltd which is a well
known British global fashion retailer commonly known as New Look that is having a chain of
high street shops and many online platforms and websites to sell and provide best quality
women’s-wear, menswear, and fashion clothing for teens. This assignment consist a description
about key relevant changes in the UK fashion clothing market with help of PESTEL analysis and
SWOT analysis. Further, a discussion about strategies and tactics that could be used by the
retailer to in order to respond the changes occurring in the fashion clothing market is also there.
Key relevant changes in the UK fashion clothing market
Retailing activity has enormous economic significance and taken as one of the most fastest
growing segment of an economy. Fashion clothing retailer are mainly associated with buying of
clothes from manufactures and selling them to the end customers thus, retailers are the
orgnisation which acts an intermediary between manufactures and customers and sets a balance
with expectations of customers and product supplied to them (Ryding, Henninger and Cano,
2018). Fashion industry is one of the fastest growing and rapidly changing industry which
directly gets affected by all kinds of changes in internal and external factors. New Look retailers
Ltd is a well known global British retailer of fashion clothes for all range of customers including,
women, men and teens. The main headquarter of New Look is sistted at the London, United
Kingdom with many branches and high street shops across UK and many other regions of world.
To evaluate about the key relevant changes going in the fashion clothing market of UK use of
PESTEL analysis is made by New Look retailer to evaluate its macro environment where as use
of SWOT analysis is used to analysis changes in micro its environment (Fernie and Grant, 2019).
A description of PESTEL analysis and SWOT analysis is provided below in context of New
Look Retailer.
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PESTEL analysis
It is a framework and management tool that provides in-depth analysis of key factors of
macro environment so that the relevant changes that are going on business environment in
fashion clothing industry of UK can be evaluated in context of New Look Retailers:
Political- This factor is directly associated with the government attitude and political
stability of a nation which directly creates impact on the business operation of an orgnisation.
With respect to political conditions of UK, they are mainly stable but recently the Brexit issues
has lead to many instability and changes in the political environment of UK that is leading
significant impact on New look retailers (PESTLE Analysis Of The Fashion Industry, 2018). The
Brexit issues had lead to more strict foreign trade policy that leads to significant control over
exports and imports of New Look Retailers which is leading effects and change in its supply
chain and quality of products. Furthers, the PETA boycott lead by the government of UK is
leading changes in fashion trend of New look as it lead to strict boycott against companies which
makes use of real animal furs and skins in clothes. Beside this, the fashion and clothing trend of
big politicians and members of white house also lead to change in fashion trends which leads
emphasises on New Look to modify as per current fashion trends (Zhong and Mitra, 2020).
Economical- This aspect of PESTEL analysis consists of all factors like interest rate, bank
rate, disposable income of customers, recession, inflation, etc which repents the economic
stability and growth of a nation. UK is basically having a fast growing economy but the recent
Brexit issues slows down its economic growth and leads to recession in fashion clothing industry
that is leading a change in clothing trend as a boom for lower-priced clothing brands has
increased (Kautish and Sharma, 2018). Thus, New Look retailers also needs to focus on this
resent change in economic trend of UK that is emphasising more on sell and purchase of lower-
priced clothing brands.
Social Factors- These macro factors are directly associated with the demographic changes,
lifestyle, income distribution and overall taste and demand of society which leads to significant
level of fashion changes in UK. The taste and preference of society and customers of UK is
highly dynamic which keeps on changing and leads emphasis on New Look Retailers to make
rapid innovation and have continuous creativity to meet this domain preference and expectations
of Customers (Blazquez and et. al., 2019). Further, the dressing style of actors and musician are
also significant influence on demand of customers thus, New Look retailers needs to make
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changes in its marketing strategies through targeting more brands which are endorsed and
promoted by top actors to meet the taste and preference dynamic customers.
Technological Changes- The technological factors consist of level of new innovations and
development along with rate of technology transfer of a nation. UK is having a fast technical life
cycle and speed of technological obsolescence thus, rapid changes and innovation are seen in
information technology that leads emphasis on New Look to adopt and make use of latest and
most efficient technology to attract and cater larger number of customers. Further, the reset
changes is seen in technical environment of UK that is more inclined towards growth of e-
commerce and online retail facility (Claxton and Kent, 2020). Thus, e-commerce and online
retailing fashion is the new key relevant changes seen in the fashion retail industry of UK that is
leading a more easy and low cost operational base for organisation. Thus, the technological
developments continue to shape the retail environment of UK that is leading significant relevant
changes for New look fashion retailers through emphasising more opportunity for e-commerce.
Environmental- This consists of all environmental regulations and protections act that
were made for conservation and safety of environment. A high level of rise and increase in
environmental friendly rules and regulations is seen in UK along with bend of customer’s
towards eco-friendly products that is marked as a crucial change in fashion clothing industry of
UK. Thus, a key relevant change is seen in the environmental aspects of UK that leads to rise in
ethically and more environmental conscious customers that is leading a new trend and fashion
which is based on enhanced use of recyclable materials and organic cotton for production of
clothes that is leading significant change in Fashion clothing retail industry of UK (Giri,
Thomassey and Zeng, 2019).
Legal- Theses factors are mainly associated with legal rules and acts which consist of tax
policies, employment law, customer protection act and other safety regulations for leading better
work place environment for employees and quality products for customers. The legal structure of
UK is very strict and consist of many provisions and acts for betterment of customers and
employees that lead significant changes and impact in operations of New Look Retailer as new
Workplace Pensions legislation that has made it compulsory for all companies to contribute at
least 3% to their workplace pension of employees for eligible British workers (The
Macroenvironmental Factors Affecting the Clothing Industry, 2020). This new pension
provisions had bring a relevant change in fashion retail industry of UK as all orgnisation like
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New look retailers are more emphasized towards automation enrolment for production and sales
of its clothes.
SWOT analysis
To evaluate the changes in the micro environment of New Look retailers ltd use of
SWOT analysis is made that provides better evaluation of internal strengths and weakness of an
organisation along with leading better evaluation of resent changes that creates significant
opportunity and threats for an organisation (Nayak, Akbari and Far, 2019).
Strengths Weakness
 New look retailers is one of the leading
and fast growing fashion brand of UK
(New Look SWOT ( SWOT Diagram),
2020).
 The biggest strength of New look
consists of its vast product portfolio
which consist of many quality and
branded products.
 The another latest trend in fashion
market that leads to strength for New
look consist of significant level of
presence at social medias and other
digital platforms.
 Beside this, offering products at
competitive price rate and strong
relationship with suppliers are also
accounts for strength of New Look
fashion Retailer (Sari and Asad, 2019).
 Use of Interactive websites and positive
media coverage are also the new trends
of fashion retail market of UK that
comprises strength of New Look
 Lack of uniqueness and innovation in
fashion products and clothing style is a
biggest weakness of New Look Fashion
retailers.
 Overstock of products through buying
large volume of products leads to
enhanced chances of obsolesce that
makes products and fashion items of
New Look fashion retailers out dated in
the clothing fashion market of UK
(Chow, 2018)(Di Benedetto, 2017).
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Retailer.
Opportunity Threats
 The better opportunity for expansion at
global level through means of e-
commerce and online platforms ensures
better growth and success opportunity
for New Look Fashion retailers
(Thompson and McLarney, 2017).
 A more innovative and creative form of
marketing and promotion of products
through collaboration with celebrities,
designers and other fashion influencers
is also leading enhanced opportunity
for New Look Fashion retailer.
 Improving marketing campaigns and
online loyalty programmes are also
leading better expansion and growth
opportunity for New look fashion
retailers.
 Intense competition in the UK fashion
clothing market is the biggest threat for
New Look Fashion retailers.
 Tough economic situation and
insatiability in the UK fashion clothing
market due to Brexit is also leading
threat for New Look fashion retailers
(Ryding, Henninger and Cano, 2018).
Thus, with respect to above SWOT analysis it has been evaluated that rising use of social
media and other online platforms is key relevant change which is seen in the UK fashion clothing
market along with emphasis on improved marketing and campaigns. Further, a high level of
competition and economic slowdown are also leading significant change in the UK fashion
clothing market through emphasising more in innovative and exclusive fashion clothes.
Respond to the major changes occurring in the fashion clothing market
On the basis of above analysis it has been evaluated that relevant changes are going in the
UK fashion clothing market as the recent Brexit issues leads to significant level of Political
instability that has made the exports and imports of raw material and other needed products more
difficult for retail fashion industry (Fernie and Grant, 2019). Further, the PETA boycott has also
lead significant change in UK fashion clothing market through leading boycott of clothes which
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are made up of pure skin and fur of animals (The Macro environmental Factors Affecting the
Clothing Industry, 2020). Beside this, the economy slow down leads to an increase in demand
for lower-priced clothing brands. Apart from this, the dynamic taste and enhancing expectations
level of society has also brought significant change in the fashion clothing market of UK. Apart
from this key relevant change in fashion clothing market of UK consist of a more incline and
enhancing trends towards e-commerce that is lead by technical advancement in the macro
environment of UK (Zhong and Mitra, 2020). Further, high provisions for environmental
protection and conservation leads to a shift of fashion clothing market of UK towards more
eco0friendly and cotton made clothes. Further, the strict employment regulation act and new
pension provisions leads to a key relevant change in fashion clothing market of UK through
leading more emphasis on automation and digital platforms.
Thus, enhanced use of social media and other online platforms is a key relevant change seen
in the UK fashion clothing market along with intense competition that demands for more
innovative and exclusive products are resent changes seen in fashion industry of UK. Therefore,
following strategies and tactics could be used by New Look Retailers Ltd to respond to the major
changes occurring in the fashion clothing market of UK:
Innovative marketing and promotion strategy- Implication of more innovative and creative
marketing and promotion strategy is suggested for New Look Retailers Ltd as it lead to better
competitive position in fashion clothing market of UK. Use of social media platforms and online
channels could be used by New Look Retailers Ltd to attract and cater larger number of
customers along with leading better response to recent change in fashion clothing market of UK
(Kautish and Sharma, 2018). Further, collaboration with celebrities, designers and other fashion
influencers is also a viable strategy for New Look Retailers Ltd to respond to recent change in
social aspect of environment of UK to attract and cater larger number of customer.
Incline towards e-commerce- The another tactics and strategy that could be adopted by New
Look Retailers Ltd consist of more emphasis and incline towards e-commerce and online
platforms. This strategy of incline towards e- commerce is a viable way to respond towards the
resent technical and social change seen in the fashion clothing market of UK through use of more
efficient and latest technology which also ensures reduction in operation cost of New Look
Retailers Ltd to cope up with economics recession prevailing in the fashion clothing market of
UK (Blazquez and et. al., 2019). Further, making use of online websites and other attractive form
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of digital tool ensures better interaction and connection with target customers which ensures
enhanced understanding of taste and preference of customers which is vital for New Look
Retailers Ltd to attract and cater larger number of customers and also ensures effective response
to dynamic fashion industry and major changes occurring in the fashion clothing market of UK.
Eco-friendly products- The another suggestion and viable strategy for New Look Retailers
Ltd to response to major changes occurring in the fashion clothing market of UK is dealing in
eco-friendly products and clothes which are made up of pure cotton and dies not consists of use
of pure skin and fur of animals as they are boycotted by PETA boycott act. Further, eco-friendly
products will meet the demands of ethically and more environmental conscious customers that is
a resent change seen in the fashion retail industry of UK (Claxton and Kent, 2020).
Recommendations
With respect to above discussion more focus and emphasis towards e-commerce and other
online channels is highly recommended for New Look Retailers Ltd as it ensures better
connection and interaction with customers and lead significant response to enhanced competition
level in fashion industry of UK through ensuring a more creativity and innovative way of
marketing. Further, enhanced sell and purchase of eco-friendly products is also recommended for
New Look Retailers Ltd to attract and cater ethically and more environmental conscious
customers which has become a recent trend in fashion industry to cope up with the
environmental and legal change going in the fashion retail industry of UK.
CONCLUSION
On the basis of above assignment it has been concluded that fashion clothing market of UK
is highly dynamic in which rapid changes are going on leading significant modification in
fashion retail industry. These changes consists of development of more efficient and better
technology along with shift of society towards e-commerce and eco-friendly products. Further,
instability in political and economic environment are also leading significant changes in the
fashion clothing market of UK. At last, it can be summarised that adoption of more effective
marketing and promotion strategy along with incline towards e-commerce and eco-friendly
products are effective ways to respond on changes going on in the fashion clothing market.
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REFERENCES
Books and journal
Blazquez, M. and et. al., 2019. Exploring the Effects of Social Commerce on Consumers’
Browsing Motivations and Purchase Intentions in the UK Fashion Industry. In Social
Commerce (pp. 99-115). Palgrave Macmillan, Cham.
Chow, P. S., 2018. Contemporary Case Studies on Fashion Production, Marketing and
Operations. Springer-Verlag Berlin Heidelberg.
Claxton, S. and Kent, A., 2020. The management of sustainable fashion design strategies: An
analysis of the designer's role. Journal of Cleaner Production, p.122112.
Di Benedetto, C. A., 2017. Corporate social responsibility as an emerging business model in
fashion marketing. Journal of Global Fashion Marketing. 8(4). pp.251-265.
Fernie, J. and Grant, D. B., 2019. Fashion logistics: Insights into the fashion retail supply chain.
Kogan Page Publishers.
Giri, C., Thomassey, S. and Zeng, X., 2019. Customer analytics in fashion retail industry. In
Functional Textiles and Clothing (pp. 349-361). Springer, Singapore.
Kautish, P. and Sharma, R., 2018. Consumer values, fashion consciousness and behavioural
intentions in the online fashion retail sector. International Journal of Retail &
Distribution Management.
Nayak, R., Akbari, M. and Far, S. M., 2019. Recent sustainable trends in Vietnam's fashion
supply chain. Journal of Cleaner Production. 225. pp.291-303.
Ryding, D., Henninger, C. E. and Cano, M. B. eds., 2018. Vintage Luxury Fashion: Exploring
the Rise of the Secondhand Clothing Trade. Springer.
Sari, R. P. and Asad, N., 2019. New product development-processes in the fashion industry.
Journal of Islamic Marketing.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail Market?.
Journal of Commerce and Management Thought. 8(2). pp.234-264.
Zhong, Y. and Mitra, S., 2020. The role of fashion retail buyers in China and the buyer decision-
making process. Journal of Fashion Marketing and Management: An International
Journal.
Online:
PESTLE Analysis Of The Fashion Industry. 2018. [Online] Available Through:<
https://pestleanalysis.com/pestle-analysis-of-the-fashion-industry/ >.
New Look SWOT ( SWOT Diagram). 2020. [Online] Available Through:<
https://creately.com/diagram/example/ia7x0q9b1/New%20Look%20SWOT >.
The Macroenvironmental Factors Affecting the Clothing Industry. 2020. [Online] Available
Through:< https://smallbusiness.chron.com/macroenvironmental-factors-affecting-
clothing-industry-37254.html>.
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