Nike's Strategic Adaptations and Challenges in UK Fashion Retailing

This report provides an analysis of Nike's operations within the UK fashion retail market, focusing on key changes, the microenvironment, and strategic adaptations. The introduction outlines the context of the retail industry, highlighting its evolution from traditional models to modern formats, and introduces Nike as a major player. The main body delves into significant shifts within UK fashion retail, such as ethical consumerism and digital innovation, and examines relevant changes in the microenvironment, including customers, organization, and suppliers. Furthermore, the report suggests and discusses various strategies and tactics, including website optimization, mobile application promotion, and social media integration, that can be employed by retailing industries. The report concludes with recommendations derived from the analysis. The report covers the changes implemented by Nike, particularly in response to ethical concerns, gender equality, and market demands, including the introduction of new product lines, the use of digital platforms, and the collection of customer data. It also analyzes the micro-environmental factors affecting Nike's retail business, such as customers, suppliers, and the supply chain management. Finally, it proposes strategies such as improving online presence, leveraging mobile applications, and engaging with social media to enhance sales and customer engagement.

FASHION CLOTHING RETAILERS IN UK

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................1
KEY RELEVANT CHANGES WITHIN UK FASHION RETAILS.........................................1
RELEVANT CHANGES WITHIN MICRO ENVIROENMENT..............................................2
SUGGEST AND DISCUSS STRATEGIES AND TACTICS THAT COULD BE USED BY
THE RETAILING INDUSTRIES...............................................................................................3
RECOMMENDATIONS.............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Retailing is all about the process of selling of goods and services through multiple
channels of distribution. In this the product and services are directly sold with the consumers and
involvement of other third parties is not there. The retailing industry provides many small units
of products and services to large number of individuals. The retailing industry have an ancient
history. The retailing work was started “itinerant peddlers”. By passing many centuries, the retail
work was done by “rude booths”, but they have spreaded among many retail stores, outlets,
supermarkets and retailer's shop's. Retailer's plays a very major role in the sales if the products
and services produced by any company. This is because the company only thinks about making
their product and service innovative, but “ how the product will reach to its end users” is decided
by the retailers. Retailing industries needs many sales person's to get connected with the end
customers for the sale of companies products.
The retail industry on which we are focusing on the Nike, Inc. It company was
established in 25 January 1965 by Bill Browerman and Phil Knight, having the headquarter in
Beavertor, Oregon. It is an Sports fashion house and have many channels of distribution across
the world. It is world's largest supplier of sports shoes and other wears. Their major product,
which is highest in demand are its sports shoes. The average revenue generated by the company
during its fiscal year 31 may 2012 was US $ 24.1 billion. In year 2012, the company recruited
approximately 44000 employees from world wide to expand their business across the world. The
brand value of nike was $29.6 billion according to the year 2017. In the terms of revenue, the
fortune 500 list of largest united states corporation, the nike stood at the position of 89 in the
year 2018. Other then manufacturing of sports wear and equipments, the company also operates
in the retail store market which was named as the “Nike Town”. The trade mark of the company
is “Just do it” and the logo is “Swoosh”. The “swoosh” is a logo which shows a curved check
mark, which became famous all over the world and made its own identity which was known for
its brand image. The company opened its first retail store in the year 1966 and the first product
launched by the company were the shoes under the brans name “nike shoes” in year 1972. The
company has its retail outlets in more than 170 countries. The nike's success was owned to
endorsement by many athletes namely Tiger woods, Mia Hamm, Micheal Jordan and Roger
Federer.

MAIN BODY
KEY RELEVANT CHANGES WITHIN UK FASHION RETAILS
The Nike's has made many changes in the retailing sector of their company. The major
changes made by them were as follows. Firstly, the nike became a top news in the “ethical
consumer magzine”, that the comapany is changing its corporate culture as it is the worlds
biggest sports wear company whose products are weared by olympic players while they are
playing for their nation. Second was that the comapny's working environment was not having
equality and justice for both the genders. The female employees of the company were not
provided with the equal roles and responsibilities of the work of the organization. Because of
this, the payments and salaries paid to the employees was also not same. So, this work culture
was being changed by the company and after that an level of equality was made in the
organization. The third change done by the company was that the company nike made a tagline
for their brand naming “just do it” which was recognized by “edit to amplify growth”, which
helped a lot in the putting the 25% fewer styles into the market to make space in order to amplify
sales. It included the steaming distribution to only those who deliver the fastest and most
profitable growth in the history.(appliDavis and et.al., 2017). The fourth change made was the
introducing a new product, which was a hoodie and a sweat t – shirt. These hoodies and sweat
shirts were produces only in two colours and they were black and white. The product was
produced by keeping the male customers in target because the product is purchased more by
males. The product was made in such a way that women can also wear them. During the time of
production, it was kept in mind that 70% of its manufacturing is done according to male body
structure and 30% was done according to the female body structure. As the product was an
branded product and the manufacturing company was well known, the sales of the product
increased in very high level. People thought that it looks cool and trendy on them. The fifth
change made in the fashion retail was digital innovation, in this the company was having a 20
social networking sites connections by which they were connecting with their customers with the
help of chat box, messages and e-mails(Davis and et.al., 2017). It was generally made on the
Facebook where the customers can easily get the complete information about the companies
strategies and way of work. In today's scenario the customers are investing the shares and other
investment bodies of the company whereas e the competitive companies and firms are still
figuring out how to satisfy needs and wants of their customers. In today they can chat with the
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worldwide stores and can match the accessories and products which they wants to purchase from
the stores. The sixth change made in the retail industry was collecting the customer data and their
feedbacks. In this the company In this the customers shares their data with the company so that if
any new arrivals comes in their stores, they could easily inform their customers. The company
not only inform the customers about the new products and services but also helps in matching
and suggesting the best cloths which will suit them and will tell appropriate accessories and
jewellery(Pantano, E. ed., 2015). The company had 40 differentiated partners, which were both
online and physical retailing system. This gain an access to the most popular products of the
company including the exclusive marketing dollars to draw shoppers away from undifferentiated
retailers.
RELEVANT CHANGES WITHIN MICRO ENVIROENMENT
The retail industry of the Nike's have many micro environment activities which goes
daily and continue sly with the flow of time. In this the company have many micro elements such
as customers, organisation, markets, intermediators and suppliers. The retail industry deal not
only with these elements but also with the suppliers, salesmen, third parties, producers,
distributors and other employees who are engaged with the supply chain management of the
company. In this micro environment, the activities which runs under the supply chain
management are counted (Pantano, E. ed., 2015). They do not involve any feedback, reviews,
needs, expectations and other wants of the customers. They are dealing only with the interior of
their retail business. In this the recruitment for salesmen for the distribution and other job
profiles are done by the retailers only and not by the companies HR department of the
companies. The channel of distribution is made by the suppliers and retailers of the retail
industry. The retail industry has an different identity or a firm which have tie ups with the big
and famous companies. They get product from these companies at a fixed price ( which is
decided by the company) and then they distribute them in customers with keeping the profit
margin of their retail industry and the company with which they have tie ups(Martino, and et.al.,
2017). The company will give the full description about the product and services to the vendors.
Then the supply chain management. The product and their description changes with time and it
the vendors have to change the supply chain because the customers of those products also
changes with their taste and preferences(Gao, R. and Yang, Y., 2016). In the supply chain
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system, the work is divided among many employees and the changes occurs due to change in
price of the goods, changes in whether, changes in number of employees, changes with
miscellaneous activities, changes in transportation cost, changes in government policies, change
with tax duties etc. There are also many other factors such as development of the retail sector.
The work stops because if the development and renovations of the retail outlets. Many times
technical problems occurs and because of that the retail business gets effected. When the retailers
will not be able to transfer the goods and services because of internet and network issues, then
the micro environment will get effected. Many times the demand of a particular product or
service is very high and the retails don't have enough units with them, then the retails stores faces
problems. The same can happen in opposite case also. Many times a product fails in the market
or the demand for that product goes very down, then the retailer have to sell that product at very
low cost. Hence they don't earn any profit from that(Gupta, A., 2017).
SUGGEST AND DISCUSS STRATEGIES AND TACTICS THAT COULD BE USED BY
THE RETAILING INDUSTRIES.
The retailing industries especially in the fashion market can use many strategies to sale
their products to the customers. Though we already know that fashion products are always in
huge demand and it is the most attractive product which attracts all the genders towards it. As the
most demanded product it is, the suppliers and the producers don't really need to make many
strategies but as there is a lot of competition the market, the companies and the retailers have to
make their product different and useful in the eyes of the customers. So the strategies used by
them are firstly to make an official website as Nike's is already having it. The customers can
serve that site can do online shopping easily by this. These websites should have different
payment options so that customers have the option to pay according to their choices. On this
official website, The products will be shown on laptops or pc screens, they must be matching
their wants, taste and preferences. This can be done by many methods and one of which is giving
filter options in which the customer well put filter according to their choices. Another way to
comfort the customers while doing online shopping is maintaining a record of all the services
and products viewed by them on the official website. After doing this, the pop up ads should be
shown to the customers and make him reminded that they should purchase this product(Vecchi,
A. ed., 2015). The another measure is by notifying the price drop alert to the customers who that
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viewed the same product many times. This can be reminded by sending the e-mails, Facebook
notification, notifications on the official websites of the company etc. By doing this the customer
will visit that product again and it may change their mind the sales can be made. Second is
creating a awareness about the mobile application and its benefits. In this modern era, the
maximum work is done on the phones(prov davis and et.al., 2015ided). As there are many
facilities by the mobile industries like android phones and IOS which makes the mobile
shopping very easy for the customers. Nowadays the fashion industries are making large amount
of profit because of the shopping done through the mobile application. A very less amount of
times people operate the shopping sites from the laptops and personal computers. The third
strategy can be done by joining the social world. The social world plays a very major role in the
in the marketing strategies. By visiting the social networking sites, people make an connection
with the company. These social networking sites help a lot in building good relations with
customers. This well lead in the profits to the retailing industries also. If the product is order
from the mobile application, then the profit will be made to the online shopping site retailers and
companies retailers. And if the product is ordered from any social networking site, then the
retailing industries of that site will earn the profit(Davis and et.al., 2017). At the end, the orders
made by the customers depends the delivery time and process of ordering the product. The fourth
strategy that can be used is by attaching an influencer to the brand. This is one the best part
which an fashion retailer can do in the retailing industry. While distributing the products to the
customers, the retailer can influence the customer by giving them pamphlets or the knowledge
about the products which will best fit with them. This can be done by the “word of mouth”
strategies. So these are the major strategies that an retailer's can perform in their organization.
RECOMMENDATIONS
The recommendations which can be given for this are that retailing industry should
improve the speed of the delivery of good to its final customers. The taxes included in the in the
product other the actual price of the product should be reduced. The company should deliver the
correct product to the suppliers and they should make sure that the product is not a defective one.
If mistakenly the product comes defective to the retailers, then it is the duty of the company to
exchange the product or refund the amount given by retailer's(Simões, C. and Sebastiani, R.,
2017). In case if the product is being returned then the new product should be delivered to
retailer's on time. The more recommendations given according to the government policies. For
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example, when they demonetization was done in India, many retailers business got effected
because the old currencies were not accepted by stores or outlets. At this point of time, the
retailing industry should have taken this initiative to accept the old currencies and make the
exchange of them at their own. This well help them to do their business successfully, hence it
will not effect their businesses. By doing this, the chances of facing loss decreases and the
customer's needs and wants (which never ends) will also be satisfied.
CONCLUSION
As the mentioned in the report, the changes made in the fashion retailing of the industry
of UK were helpful in bringing a good business for the fashion industry. The changes were
made on time to time so that it will match with the competitors strategies and work efforts. The
other step taken by the fashion retailing industries was making changes in micro (internal) chain.
Positions of the suppliers, retailers, salesmen etc. were discussed in that. With changes with time
all the work became digital in the organisation. There are many strategies such as use of mobile
apps, payments, doing marketing of substitute products etc. became the major source of
developing strategies for the retailing industry company also made strategies which were unique
and different from their competitors in the market and it helped a lot in making a different
identity of company in the market. At last the recommendations were given to improve the
services of the retail market. Many kinds of customer friendly recommendations were provided
to them.
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REFERENCES
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preference.
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Organized Retail Industry of Ahmedabad City. Gavesana Journal of Management. 9(1/2).
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organizational citizenship behavior on US fashion retail organizations' sustainability
performance. Corporate Social Responsibility and Environmental Management. 25(5).
pp.939-947.
Maloney, B.C., 2015. The economic impact of the fashion industry. In Joint Economic
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and corporate sustainability: Evidence from the retail industry. Business Ethics Quarterly.
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Simões, C. and Sebastiani, R., 2017Gao, R. and Yang, Y., 2016. Consumers’ decision:
FashionSimões, C. and Sebastiani, R., 2017 Omni-channel retailing. Journal of
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Vecchi, A. ed., 2016. Handbook of research on global fashion management and merchandising.
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