INTRODUCTION
This research is aimed to provide comprehensive analysis of the retail sector in which the business aims to enter. To gain Piranhas’ attention so that the business could be provided with investment, a brief justification of the retail sector is provided for investors to have an idea regarding the market. For this purpose the retail outlet will be opened in the fashion retail segment in UK and the name of the outlet will be ‘Fashion for you’.
Fashion retail market has been showing tremendous increase in the profits and growth over the years. Owing to the increase demand of different fashion products the ‘Fashion for you’ will provide the customers with the customised and up to date fashion products.
In such a volatile and fragile market, it is important to pinpoint each and every aspect of the industry and for the very reason the target market and the competitive advantage offered by the business will also be discussed. In addition, the range of products offered at the new chain would be identified along with the pricing strategy that will be implemented. For the business to operate successfully in a cut-throat competitive market, location plays an essential role. The research would highlight the location that the business would take under consideration. This will help to assure that the investment made by the Piranhas would not be wasted. Recommendation will be provided for every aspect that the business would consider. Lastly, employability skill would also be indentified and taken into consideration before the recruitment of the employees that would help the business to accomplish its short-term and long-term goals.
ANALYSIS OF SUGGESTED RETAIL SECTOR
Retail Industry Overview
It has been continuously observed that the retail industry is facing one after another problem due to economic fluctuations. The economy of UK is infected due to the recession and global downturn. The growth rate of retail industry is low and it is 1.2 percent in the year 2012 which has been the third lowest in 40 years (SAS, 2012). The retail development in particularly UK has fallen by 50 percent from the year 2007 i.e. the beginning of the economic crisis followed by increase in unemployment rates and uncertainty (Davis Langdon, 2010).
In addition, the retail industry has also weakened to a great extent due to the weak consumer spending as more of the consumers are now focusing on saving rather than spending on luxurious items and other in the market. The retail market has been deeply affected due to which most of the retailers in the market had to windup their businesses. Some of the well known retailers in the market that were forced to withdraw were Comet, Jessops and JJB.
Fashion Retailing:
The sector that would be focused by this business is the fashion sector. This is the particular sector that has not been affected by the economic crisis. Fashion sector is one of the most popular sectors among men and women. In addition, it was noticeable that lion’s share of income is constantly being spent on this particular sector every month. It was interesting that almost two-third (i.e. 65 percent) of women’s income is spent on fashion accessories monthly whereas, the income spent by men in such sector was just a quarter of the income (i.e. 24 percent) (Davies, 2012).
Women on average spend £2,462 a year on fashionable clothes and other accessories related to such sector. On the other hand, this study also revealed that men on average spend £1,786 a year on clothes (Huffing ton Posts, 2012). Shoes were the most popular and purchased item in the sector. It was indicated in the report that 49 percent of females and 38 percent of males purchased shoes online in earlier years (Briggs, 2012).
Consumers are spending less of food and more on clothes and fashion accessories. The Office of National Statistics has indicated that consumers are cutting back £35 weekly on average so that the consumers can spend more on fashion accessories (Wallop, 2012). This indicates that clothing for consumers in UK is far more important that their stomachs. In addition, it has also been indicated in the report that the biggest area that consumers are cutting back is food and beverages. This could be observed through the figures indicated in the research. With focus on the purchase of fashion accessories, the consumers are spending £6.40 on food and about £3.20 on eating out at restaurants. Even during the severe recession period in 2009, the consumers were able to spend £9.60 more on clothes and footwear as compared to 2007. It was further indicated that such obsession with the purchase of fashion accessories led to the decline of spending on food and beverage i.e. £11bn during the month of August to September 2011 (Wallop, 2012). The online purchasing trend has also played a major role in the success of the fashion sector. Women spend more on fashion and clothing with an average of £315 compared to £188 by men (Briggs, 2012).
Based on such analysis, it could be said that the obsession of consumers regarding the purchase of fashionable accessories would be the major reason for the business in this particular sector. This sector in the retail industry is full of growth opportunities and can lead the business to its desired position in several years. With accurate implementation of the strategies to attract customers in the fashion retail sector, the business would be able to accomplish its desired goals and objectives in some years.
DESIRED IMAGE
Some of the recommendation for the business regarding the desired image including store name are as follows;
- The retail store should be designed in such a way that the desired image could be achieved i.e. high quality fashion accessories.
- The name of the retail store should reflect the fashion products offered by the retail store at premium price.
- The image or persona of the retail store could be portrayed with the help of marketing strategies adapted by the organisation. By using the marketing strategies, the organisation would be able to create awareness regarding the brand in the market along with developed interest in the consumers.
TARGET MARKET
Both male and female are interested in the purchase of shoes and clothes, the target market for such business would be males and females between the ages of 18-35. In particular, this age group would be selected as the target market of the business due to their high frequency of purchase in terms of fashionable accessories. The other reasons for the selection of this particular target market would be the increasing awareness level of the consumers regarding the fashion accessories and the rising impact of fashion accessories on both males and females.
As females and males between the ages of 18-35 are frequently engaged in shopping of shoes and clothes, this would be the best opportunity for the business to take advantage of. In addition, this target market spends nearly most of their income on clothing and other fashionable accessories which makes this target market the best option. Females on average spend 65 percent on fashionable clothing meanwhile men spend nearly quarter of their income on such products. It has also been considered that women spend more on fashion and clothing with an average of £315 compared to £188 by men.
COMPETITIVE ADVANTAGE OFFERED
In order to attract the consumers in the fashion market, it is essential for the business to have competitive advantage in the market. With the help of such advantage, the business would be able to attract more consumers in the market. The competitive advantage of the ‘Fashion for you’ in the fashion sector would be the outstanding customer service offered to the customers. Since the level of service offered by the business is taken under consideration by most of the customers, it would allow the business to attract customers in the stores. In order to enhance the level of customers’ service, the employees would be provided with extensive training which will help the business to enhance the customer’s satisfaction level. Along with the high level of customer service, high quality of products would also be one of the competitive advantages of the business in the fashion retail sector. Extensive research and development regarding the needs and wants of the consumers would also act as competitive advantage for the business. By identifying the needs and demands of the consumers, the business would be able to provide them with latest and high quality clothes and fashion accessories to satisfy their unmet demands in the market. Innovation and creativity would also act as a competitive advantage of the business in the fashion sector in the retail industry. By offering the customers with creative footwear and clothes, the business would be able to remain ahead of competitors in the market.
MERCHANDISE RANGE FOR THE NEW CHAIN
Variety in the product line is one of the most essential factors for a retail business and especially for fashion sector (Cuthbertson, 2012). To be successful in the fashion sector, the business would offer variety of merchandise including men’s wear, women clothes, high quality designer shoes, ladies handbags along with cosmetic products. Some of the other elements that would be considered before the opening of new chain are as follows:
The Store Layout
For the business to be successful, the store should be properly planned and organised (Howard, 2012). Some of the recommendations for the store layout are as follows;
- For exposing the maximum of the merchandise to the consumers, the angular store layout should be considered. With such store layout, the consumers would find it easier to move from one place to another. In addition, this store layout would help in better traffic flow throughout the retail store.
- The resources or the merchandise would be allocated proper space so that the consumers can find their desired product easily.
- High margin merchandise should be placed in its specific area i.e. high traffic areas.
Store Atmosphere
In order to attract and encourage the customer to shop at the store, it is essential that the store atmosphere should arouse the emotional responses of the customer (Walters, & White, 1990). Some of the recommendations to attract and influence the purchasing decisions of the customers with the help of store atmosphere are as follows;
- The store should use proper lightening to highlight each product. The dressing room should be equipped with right lightening so that the clothes and other accessories should be displayed at its best.
- Right colour should be chosen for the wall as it can change the mood of the consumers.
- The dressing room should be equipped with large and clean mirror.
- In order to provide the consumer with the perfect atmosphere, soothing odour and freshener will be frequently used. This would enhance the experience of the consumer in the store.
Visual Merchandising and Sales Promotion
Visual merchandising and sales promotion are some of the essential elements that provide the business with an ability to generate sales (Zentes, Morschett, & Schramm-Klein, 2011). Some of the recommendations for the business regarding visual merchandising and sales promotion are as follows;
- The exterior presentation of the business would be designed in such a way that the consumers would be able to predict that high quality fashion accessories are available in the store. The exterior presentation would be lavish with an aim to invite the customers in the store.
- Banners would be used as a tool of sales promotion. With the help of such tool, the awareness would be created regarding the retail store and the products being offered.
- In order to attract the customers, window display would be used. In order to develop interest in the potential consumer, high quality goods would be presented at the window display. This would help the business to attract attention of the consumers within first 11 seconds.
Customer Service within the Store
High quality of customer service would be provided within the store. This would allow the business to provide the consumers with an enriching experience and higher customer satisfaction (Weitz, & Bradford, 1999). Some of the recommendations regarding the customer service are as follows;
- The consumers would be provided with self-checkout counters. This would help the consumers in the store by reducing the waiting lines and queues.
- Staff would be available to guide the consumers within the retail store. The staff would also assist the consumers with the trials so that the consumer could make the right decision regarding the purchase.
- In order to provide high quality customer service, the staff should be empowered. This would help the staff to be honest and to take decisions regarding customer service on the spot.
LOCATION
Location is the most crucial in the success of retail store due to which the business should take extensive care in making such decision. Some of the initial recommendations for the business regarding the location of the retail store are as follows;
- In order to attract most of the consumers in the market, the location will be selected based on the level of consumer traffic in the area. This will provide the retail store with an opportunity to attract the consumers in the market.
- The store will be located in niche areas as the products offered by the retail store would be of premium price. By selecting the wrong location for the retail store, the business would have to suffer loss.
- Store will be located at malls and high traffic markets. This will allow the business to attract consumers in the market.
EMPLOYABILITY SKILLS
For a fashion retail store, employee skills and knowledge about the product offered by the business is quite important. Sales of fashion accessories are at its peak in the market but to make the sales and to attract the customers, employees play an essential role. Some of the skills required by the employees in such a fast moving market are as follows;
- Confidence in the employee. Confidence in the employee can lead the business to success and can attract potential consumers in the market.
- Information regarding the products offered at the retail store. By having the knowledge of the products available at the store, an employee can guide the consumer within the retail store. This would help the business in enhancing the customer service.
- Team work is also an important skill in retail store. With the help of this skill, an employee can assist other employees that are having hard time at their counter.
- Self-motivation is a core skill that is essential for every employee working in the retail store. With such a skill, an employee would be able to tackle difficult situations at hand and can help the business in indentifying the opportunities available in the market.
- Flexibility is a crucial skill for an employee. As the demands of the customers in the market are constantly changing, it becomes essential for the employee to be flexible so that the situation can be managed.
CONCLUSION
For an organisation to initiate a business, fashion industry would be the best option. For the retail store to create and achieve the desired image, marketing strategies should be implemented. This would help the business to portray the important side of the image in the market and would eventually help in attraction of the consumers. As it has been observed that both men and women are obsessed with clothes and fashion accessories, the target market would be based on demographics i.e. male and female between the ages of 18-35. The competitive advantage of the retail store would be its ability to provide the consumers with high quality brands in the market along with some others. This would help the business to create interest in consumers and would influence consumers to purchase from the retail stores. The location strategy would be to open retail stores in high consumer traffic areas. This would help the business to attract consumers in the niche market. In addition, stores should also be opened in malls and high consumer traffic markets.
References
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