Retail Theory and Practice: Analyzing UK Fashion Market Changes Report

This report analyzes the UK fashion retail industry, focusing on key changes and trends impacting the market. It identifies significant shifts, such as increased customer engagement, the importance of sales exhibitions, and the adoption of zoned leasing strategies and social shopping. The study uses Asos.com as a case study. The report discusses strategies and tactics a large retailer like Asos.com could implement to adapt to these changes, including enhancing Customer Relationship Management, providing in-store experiences, and leveraging social media for marketing and customer interaction. The report also highlights the importance of understanding the economic strength of the fashion retail sector and its impact on businesses operating within the UK. The analysis provides a comprehensive overview of the industry's dynamics and offers practical recommendations for success.

Running head: RETAIL THEORY AND PRACTICE
Retail theory and Practice
Name of the Student
Name of the University
Author Note

1RETAIL THEORY AND PRACTICE
Table of Contents
Introduction:...............................................................................................................................3
Key Relevant Changes in the UK Fashion Retail Industry:.......................................................4
Strategies and Tactics:..............................................................................................................10
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12

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Introduction:
The dynamics of the modern fashion retail industry is observed to change in a
substantial manner in recent times. Majority of the companies are observed to convert their
traditional methods of business management to the new and modern techniques of business.
The main objective of the changes is to enhance the quality of the business management.
From the perspective of the business entities, the changes are observed to be pretty significant
as they have the potential to retain the customers for the companies in an intensely
competitive business industry. With a close look at the capability of the companies in
retaining the customers, it is visible that the modern trends of the UK fashion retail industry
are perfectly aligned with the probable actions that has the potential to play a key role in
retaining the customers. According to the comments of Saini, Gupta and Khurana (2015), the
modern fashion retail organizations are facing the heat of competition with increasing number
of new entries in the fashion retail industry and in such situation, the companies are finding
considerably little scope to attract the customers through their product offerings, In such
situation, the companies are observed to enhance the quality of their products.
On the other hand, the continuous application of the low pricing from the part of the
companies is also a substantial technique for ensuring efficient retention of the customers. In
addition to this, Kasemsap (2016), mentioned that the purchase intent of the customers are
largely dependent on the companies which have the capability to develop their products as
per the insights provided by the customers. As a result, these sort of changes or necessity of
changes are observed to play a massive role in changing the dynamics of the UK fashion
retail industry. The selected company for the study is Asos.com and the organization is one
the top most UK clothing retailer. The study is based on evaluating the key changes of the
UK fashion retail clothing industry. With an accurate understanding of the changes or the

3RETAIL THEORY AND PRACTICE
trends of the industry, the study develops certain strategies and tactics which have the
potential to improve the ability of the selected company in tackling the changes.
Key Relevant Changes in the UK Fashion Retail Industry:
Considering the UK fashion clothing retail industry, it is visible that the UK retail
market is associated with substantial growth in recent times and the growth is expected to
continue only. With a detailed focus towards the UK fashion clothing retail industry, it is
evident that the industry is associated with a year on year increment of 7.8% in their revenue
which is expected to make its revenue 25217 million US dollars in the year 2020
(Statista.com 2020). Considering the position of the nation in the global revenue ranking, it is
placed at the fourth position in terms of the revenue generation (Statista.com 2020). The
largest segment of the fashion market of United Kingdom is observed to be the Apparel
market which has an approximate volume of 17016 million US dollars in the year 2020
(Statista.com 2020). Apart from this, the market value of the UK fashion retail industry in the
year 2020, is expected to reach to 66.6 billion Euros (Statista.com 2020). Other than this, the
fashion retail industry of the nation is observed to be associated with a steady sales
considering the increment in the sales volume and that is prominent with 58.3 billion pounds
of sales volume in the year 2018 (Statista.com 2020).
With a precise consideration towards economic strength of the industry, it is
understandable that the fashion retail industry of the nation provides considerable amount of
growth opportunity to the companies that are operating in the same. However, the clothing
fashion retail industry of the nation is observed to be associated with considerable number of
changes over the years. One of the major trends affecting the clothing retail industry of the
nation is observed to be the engagement with the customers. The modern UK retail industry
is observed to be considerably focused towards interacting with the customers. As the

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companies are facing a high level of market competition from the part of the new entries, it is
becoming crucial for them to retain the customers in a professional manner. As per the
comments of Parker and Wang (2016), the success of the fashion retail companies is seen to
be primarily dependent on efficient interaction with the customers as it helps them in
ensuring smooth exchange of information. Along with that, the success of the companies in
engaging the customers helps them in a substantial manner in ensuring that the target market
or the customers are aware of their product and service offerings. In addition to this, the
efficient engagement of the customers with the companies enhances the capability of the
companies in providing an improved market limelight to their products and services. As a
result, the companies achieve a better position for increasing their sales. Hence the
importance of engaging with the customers and the prominence of the same amongst the
companies is pretty visible.
According to the comments of Hingley, Lindgreen and Grant (2015), the planning of
the strategies is as important as the implementation of the same and in such situation, the
success of the companies in improving their engagement with the customers is largely
dependent on their ability in enhancing the efficiency of their Customer Relationship
Management system. With the establishment of an efficient customer relationship
management system, the companies will be in a perfect position for achieving important
information regarding the behaviour of the customers and purchase preferences of the
customers. The information is significant for the companies in developing an attractive
customer journey map that can be utilized for increasing their sales and at the same time, the
effective management of the customer relationship system plays a crucial role for the
companies in ensuring that the ideas and opinions of the customers regarding the products
and services of the companies are well tracked for designing the products that effectively
develop a sense of belonging amongst the customers. Considering examples, the state of the

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art loyalty application from Harvey Nichols is pretty significant in replacing the card process
with new offers, surprise and products based on the preferences or shopping behaviour of the
customers (Retaildive.com. 2020).
Another significant trend that is affecting the UK fashion clothing retail industry is
seen to be the exhibition for sales. With a precise consideration towards the purchase
behaviour of the customers and the activities that the companies conduct for increasing their
sales, it is visible that the companies are considerably inclined towards providing a scope to
their customers for experiencing their products. According to the comments of Earley and
Goldsworthy (2015), Majority of the customers are observed to have a tendency of
experiencing the products and analysing the quality of the products prior to the conduct of the
purchase and in such situation, it becomes important for the companies to provide a physical
experience to the customers. Along with that, Moorhouse and Moorhouse (2018), mentioned
that the tendency of the customers towards the offline evaluation of the products is observed
to be notably prominent amongst the customers. As the companies are putting strong
emphasis on enhancing their store presence, the increasing emphasis on the concepts like
exhibitions for sales, is observed to achieve greater significance for the organizations. The
exhibitions for sales provide perfect scope for the companies to provide a real time view or
experience of their products and services to their customers (Moorhouse and Moorhouse
2019). Along with that, the exhibitions for sales provide the desired scope to the customers
for commenting regarding the quality of the products or the changes that are required for
enhancing the value of the products. As a result, the service of the exhibitions for sales
enhances the effectiveness of the companies in gathering increasing number of customer
insights for the formulation of their products. The exhibitions for sales increases the scope of
the companies in designing the bestseller products and along with that, it also enhances the

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capability of the companies in aligning the modern design trends of the market in their design
of the products (Lantz 2016). The trend primarily kicked off in the Japan.
Along with that, one of the significant trend of the industry is observed to be the
zoned leasing strategy. The strategy advocates for the design of specified locations as per
specific product offerings of the companies. The zoned leasing strategies play an important
role in creating an environment that has the potential to trigger the purchase intent of the
customers. Along with that, Gebeyehu (2017), mentioned that the development of such an
atmosphere is crucial for the companies in ensuring that the customers get a wide range of
product offerings to choose from. At the same time, it aligns the reputation of the region in
accordance to the products or the services that it offer. As a result, the reputation of the
region or zone effectively influences the customers to reach and conduct purchase from the
store outlets of the region. Hence, the formation of such a reputation plays the role of
marketing for the companies in a professional manner. For example, the convent garden of
UK is making considerable amount of approaches for designating King Street for the
contemporary products and at the same time, Henrietta Street is observed to be recognized for
the menswear products (Coventgarden.london 2020). Along with that, the James Street is
widely popular for the mid- market shopping activities.
In addition to this, the social shopping is observed to achieve greater significance for
the companies operating in the UK fashion clothing retail industry and that is visible with the
increasing participation of the fashion enthusiasts in various social media platforms. Along
with that, Boulianne (2015), mentioned that the usage of the social media by the modern
citizens of UK is considerably high. The Human Development Index of the nation increased
to 0.920 in the year 2018 and the increment in the Human Development Index of the nation is
pretty significant in stating the enhancement in the literacy rate of the nation (Hdr.undp.org.
2020). As a result, the acceptance level of the technology amongst the people of the nation is

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one of the fundamental factors that is promoting their presence in the social media platforms.
There are various style leaders with active social media presence in UK and they are seen to
provide important tips regarding fashion at regular intervals to their followers. In addition to
this, the creation of the blog contents for the promotion of the clothing fashion products is
seen to be associated with greater level of significance for the companies operating in the
nation. There are several companies such as Debenhams, Marks and Spencers, Next
Plc, New Look and Boohoo.com which are observed to be associated with various style
leaders for creating promotional contents in audio, video and blog contents with their
products (Marksandspencer.com. 2020). The usage of recognized style leaders helps the
companies in a substantial manner in enhancing the market limelight for their products and
the sales of the companies usually increase with such a promotional activity. In addition to
this, the companies are seen to be inclined towards developing strong presence in the social
media platforms for engaging the customers in a more professional manner. The social media
presence of the companies is seen to be crucial for the organizations in interacting with the
customers for the management of their grievances and at the same time, the usage of the
social media platforms adds value to the approach of the companies in promoting their
products and services offerings to the companies. As a result, the transformation of the
business from the brick and mortar store outlets to the online business activities is also an
important trend that is affecting the business activities of the companies functioning in the
UK fashion retail industry. The number of fashion e- commerce users in United Kingdom is
observed to increase in a rapid manner.

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(Information: Number of Fashion e-commerce users in United Kingdom from 2017 to 2024,
by segment (in millions))
(Information Courtesy: Statista.com 2020)
From the above statistics, it is visible that the e- commerce users for the apparel,
footwear along with the bags and accessories segment in the year 2017 was approximately
37.2 million, 25.2 million and 11.4 million respectively (Statista.com 2020). In the year 2019,
the number of users increased to 41.3 million, 29.3 million and 14 million users respectively
for the apparel, footwear along with the bags and accessories segment (Statista.com 2020).
As a result, the continuous expansion of the e- commerce is pretty prominent in the clothing
retail industry.
Along with that, the role of the fashion shows is seen to be substantial for the
companies in promoting their products to the customers for influencing their purchase
preferences. As a result, the company funded fashion shows where the products of the
organization will be promoted are associated with increasing significance for the companies.

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A new concept that is prominent in the fashion retail industry of the nation is seen to be the
body versus fashion concept where the companies are observed be inclined towards designing
their products with a precise consideration towards the body fashions of the customers which
includes the tattoos, ear piercings, hair dos and nose piercings (Entwistle 2015). The
customers are observed to be primarily inclined towards the companies that have the
capability to complement their body fashions with the design of their products. Other than
this, the reduction in the duration of the design cycles is also an important change that
affected the fashion retail industry of the nation. The companies prefer to increase the number
of their design cycles as that provides them the ease in matching the frequently changing
design trends through the design of their products (Mo 2015). The success of the companies
in matching the modern design trends is observed to be significant for them in increasing the
sales of their services or the products. As a result, the couture revival is one of crucial
strategies for the companies in acknowledging the need of fast fashion in a prominent
manner.
Strategies and Tactics:
With a precise consideration towards the modern trends of the UK fashion retail
industry, Asos is recommended to do the below mentioned activities:
The company has the necessity to improve their presence in various social media
platforms such as the Facebook, Instagram, YouTube and Twitter for engaging with the
customers in a more professional manner (Nash 2019).
The company is required to improve the efficiency of their customer management
system for enhancing their capability in developing a strong customer interaction.

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The company must participate in increasing number of exhibitions for sales and
fashion shows for promoting their products. Along with that, the company is in need to apply
the zoned leasing strategies for their product offerings.
Most importantly, the company is required to increase the number of design cycles for
their products. In addition to this, the company must prioritize the body fashion preferences
of their customers in their design of the products (Mo 2015).
Conclusion:
On an ending note, it is understandable that the companies are largely affected with
the changes in the trends of the UK fashion retail market. The changes such as exhibitions for
sales, couture revival, increment in the social media marketing and preferences towards the
body fashion is observed to play an immense role in improving the style of business for the
companies. The success of the Asos in conducting a sustainable business in the UK fashion
retail industry, is observed to be primarily dependent on the ability of the company in
improving their social media presence, enhancement of the efficiency of their CRM,
developing products that acknowledge the body fashion preferences of the customers and in
increasing the number of lead cycles of the product design for acknowledging the fast fashion
preferences.

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References:
Boulianne, S., 2015. Social media use and participation: A meta-analysis of current research.
Information, communication & society, 18(5), pp.524-538.
Coventgarden.london 2020. Henrietta Street Style | Covent Garden London. [online]
Available at: https://www.coventgarden.london/whats-on/henrietta-street-style
Earley, R. and Goldsworthy, K., 2015. Designing for fast and slow circular fashion systems:
exploring strategies for multiple and extended product cycles.
Entwistle, J., 2015. The fashioned body: Fashion, dress and social theory. John Wiley &
Sons.
Gebeyehu, S., 2017. THE CHALLENGES AND CONTRIBUTIONS OF INDUSTRIAL
PARK DEVELOPMENT IN ETHIOPIA: THE CASE OF EASTERN INDUSTRY ZONE
PLC, DUKEM CITY, OROMIYA, ETHIOPA (Doctoral dissertation, St. Mary's University).
Hdr.undp.org. 2020. [online] Available at:
http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/GBR.pdf
Hingley, M., Lindgreen, A. and Grant, D.B., 2015. Intermediaries in power-laden retail
supply chains: An opportunity to improve buyer–supplier relationships and collaboration.
Industrial Marketing Management, 50, pp.78-84.
Kasemsap, K., 2016. Retail marketing strategies and brand management: A global retail
industry perspective. International Journal of Social and Organizational Dynamics in IT
(IJSODIT), 5(2), pp.66-78.
Lantz, J., 2016. The Trendmakers: Behind the Scenes of the Global Fashion Industry.
Bloomsbury Publishing.