Textile Industry of UK Analysis - Essay Example

Introduction The Textile Industry, also known as the Rag Industry, deals with the manufacture of textiles, adorning the clothes with modern designs,earning by distributing them to the consumers and focusing the consumer demands and needs in the sector. The UK textile market The market value of the United Kingdom Textiles accounts for about $71 billion which comprises mainly of the Imports. The present import rate in UK is soaring at the rate of 13%. The United Nations Database recognizes United Kingdom as the second largest importer in RMG and fourth largest in the World (UK Textile Industry, 2009). The following report is going to discuss two companies and their growth - Lazy Oaf Company and Bay & Brown Company. These two companies are major UK textile and apparel manufacturers. This report examines the growth prospects for the two companies trends in fashion have been listed at the close of the report. The aim and objective is to analyze the growth of the industry as a whole with the two companies presenting the model for growth behavior. Lazy Oaf Company A company with a vision to originate unconventional, vibrant outfits and frills was well established back in 2001 in East London. It initiated its work by printing t-shirts in a different style called "Screen Printed T-Shirts" This innovation got great appreciation and got famous in no time. The brand for its quality and uniqueness became reputable and spread its network in Japan, Paris and Italy. Creative designs and distinct style distinguish it from other brands. The company has mission to en light your day with it diverse product range, catering to all ages (Lazy Oaf Company, 2009). Growth of Lazy Oaf Company The company since its inception in 2001 has done well by introducing its diversified product range in the market according to the requirement of people. The product range of the company includes: Accessories Bags Band T-shirts Belts Bottoms Brand T-shirts Cult T-shirts Gifts Hoodies Jackets Jeans Jumpers Polo Shirts Shirts Shoes (Product Range - Lazy Oaf, 2009) Witnessing the current economic downfall throughout the world the company has done remarkably well to maintain its place in the market by taking timely initiatives and launching campaigns and promotional offers that helped it securing its share in the market (Lazy Oaf Prices, 2009). The prices of products have been kept in accordance with the buying ability of masses, not to deprive them their right to buy quality brand. At this critical juncture the performance in terms of growth is uphill with innovation in Fashion stands as essential standpoint. Bay & Brown Company A UK design studio that promotes exclusive compilation of ideas, print designs and notions fabricate for UK and various international fashion industries. Bay and Brown is playing a key role in boosting the image of the company all over the world in terms of setting a benchmark regarding the fine prints and designs famous for their innovation and cost effectiveness (Bay & Brown Company, 2009). Comparison between Lazy Oaf Company & Bay & Brown Company I. Trend Setter Both the organizations are trend setters of their own particular type. Both have been initiating innovative ideas and setting a benchmark for the others to follow. This is not only limited to the borders of these countries but have certainly crossed other borders with convincing successes. II. Goodwill in the Market These leading organizations enjoy their goodwill in the market by providing and catering to the needs of the masses. The uniqueness of their brands has been one of the major factors contributing in their uphill goodwill. In this critical scenario of recession it is the most difficult work to keep up the brand name in the market but hats off to the companies which have been working for sustaining their brand names. III. Share in the Market Due to increased market goodwill these organizations enjoy a handsome market share as well. In their success the role of the goodwill is of key importance as it increases the share increases and vice versa. IV. Competitors There are various competitors but the companies are competing well in the market to maintain their image. Their policies and practices are worth mentioning in order to keep them on the top. V. Clientele These organizations have huge clientele throughout the world making yard stick ahead for them. This shows their reputation and the Standards they have set for the benefit of their customers. VI. Preferences In terms of preferences people now tend to prefer these companies for their vitalizing and mind blowing strategies for their benefit. VII. Number of Workers The companies provide employment to maximum number of employees enabling them to earn revenue for themselves and generate goodwill on the note of organizations. This is the secret of these organizations that they believe in their employees and have a firm faith that their employees are their strength in achieving what they have aimed for. Market Research Presently, the United Kingdom Textile Companies are facing a set back due to the tough over seas competition. This is the reason that many of the domestic companies are hiring overseas suppliers as well due to their low cost of commodities, infrastructure and other fundamentals. The UK market is also suffering extensively due to low sales for the same reason of high cost as compare to their overseas competitors who have produced the same product at a much lower cost and given the UK Textile company a hard bone to crack. UK Textile Company has discovered and followed the new trend of increasing their retailers' sales by decreasing costs compared to small investors who tend to produce the same product at a considerably higher rate. Almost one-fourth of the total retailers comprise of multiple shops and the rest like department stores, home shopping, discounters, sports shop, market shops, online shopping and market stalls contribute small percentages. The trend of autonomous shopping stores is at a decline as days are progressing and the trend of other stores is on rise (Jobs & economic growth, 2006). The other divisions that contribute to the textile sector of the country are silk and cotton, textile furnishings, household textiles and other textiles. Whereas, the clothing sector can be categorized into kids wear, women's wear and men's wear. These divisions share their part in helping the industry. The Fashion Industry - UK Markets The fashion industry is the most intricate one at this time where you cannot define what todays fashion is is all about The designers don't know what to design for consumers as they are so unsure whether people are going to buy their designed ware or not In general they cannot set a benchmark in this criterion. This industry consists of professionals, companies and modeling houses which are aware of this fact. Competition is there in the market where those products are also included which are being prepared locally. Masses are confined by their limited buying powers. In generic terms we can categorize this era as "The survival of the fittest" (Lazy Oaf Fashion, 2009). The following diagram displays the various sectors in the textile manufacturing and processing business. (Textile Process Categorization, 2009) It would be difficult to categorize Bay & Brown and Lazy Oaf Company into just one of the categories but it would be true that both companies lie in the making-up sector dealing in apparel and household textiles. Recession's effect on Global Fashion Industry Sumptuous spending practices of masses are and have been swapped by prudent buyers (Brue, 2006). The reason to this is that we are witnessing a drift in the tumbling budgets, joblessness and liquidity crunch all over the world. One of the things on which this recession has left deep imprints includes Fashion industry oppressing the apparels and fashion accessories. Industries are feeling the heat and most of them have also recorded liquidity problems whereas, we are also witnessing Bankruptcy cases as well (Samuelson, 2004). At this point in time we can see that: Net Losses are being declared due to which takeovers, mergers are in progress. Companies are conferring for partnerships and are looking for potential investors to go through this phase. Many events have been called off due to economic downfall where organizers fear that they may not get that return which they expect and their investment may go in vain as people will not turn up and won't buy in the expected figure. Fashion shows have been cancelled as a result and what the pervasive thought is the revival of old fashion. People due to lack of buying power are depending on simple and traditional attires. What we can predict from this turmoil is that change is essential and in near future we can see a drastic shift in this sector (Case & Fair, 2004). Tactics for Fashion Industry in 2009 Designer Wears have always been a sign of prestige for everyone in every era, but it involves great deal of money which is usually not allowed by the pockets of most of the people willing to buy it. The niche group commonly known as "the upper class" has both the willingness as well as the ability to buy those designer wears but this comprises very limited number of customers and it is confined within a limited class. Despite of this fact and the less affordability by most of the people willing to buy designer wears, the industry is booming steadily even in this era where inflation is a major issue. 1. We are all very much aware of the impact that has caused by the world economic recession. There has been so much cutting down on the salaries of employees and profit of the employers, hence this has result in less purchasing power for every individual. People are less likely to be spending on expensive items such as designer wears. There is a dire need to follow every possible strategy to withstand and to compensate the losses and also to focus on the stabilization in the prices of both, the market price as well as the inventory cost price to get upon a stable position (Lazy Oaf Prices, 2009). 2. By considering the fact as mentioned earlier that customer is a king so there is an immense need to treat them like a king. In this age of Information Technology, there is lot more that can be done to satisfy the customer by tendering through multiple touch point - stores, online, social-commerce sites, blogs, mobiles, etc. And also by adding value to the services such as, "buy online, return at stores" etc. This would help in building up profitable relationship among customers & brand, this relationship is commonly termed as "brand loyalty" which is a secret of a long-term endurance & win-win strategy for any brand. Promotions can also be done through television & other advertising schemes such as through leaflets, pamphlets, brochures, etc which helps in persuading the customers. 3. Term "Private Labeling" means selling off one's private product under the name of some recognized brand without compromising the quality of the product. Private labeling helps in providing diversity, higher profit margin, and highly flexible to the change in the fashion trends. Renowned brands have their own mediums which helps them to withstand on their own without depending on other channels. This thing gives them a comparative advantage over those firms which are newly established or are not enough to afford any mediums. Whilst the brands that cannot afford to have their own retailing medium they must go for private label suppliers to retailers of well known brands (Bay & Brown Company, 2009). 4. Creating brand awareness is quite essential at this point of time among masses enabling them to understand what value it can produce for them. We can take an example of Nike which bears a strong brand among people throughout the world in terms of Sports ware. The company works for the benefit of its consumers throughout the world and they are aware of what they are using and the value that has been produced for them. The company has done this just because of its global operations throughout the world having alliances and franchises. Anticipating and working in cohesion, understanding the needs and requirements of time has been an essential factor in its success. 5. We have to create value for our consumers by facilitating them in all the ways possible in ways of easy credit payments, use of technology like e-commerce activities. Mobile purchases, bonuses, promotional offers, Customer loyalty cards. 6. Competitive astuteness is of key importance because competitors must be aware of what its consumers' preferences are This can be carried out by conducting surveys, consumer timely feedback regarding price variations, preferences, responding to consumer complaints. 7. We can also establish Call Center concept in order to help out our consumers. Lodging their complaints and taking timely action on them in order to pacify our dear consumers. 8. While creating value for customers we have to respect their preferences by customizing to what their needs are. 9. Along with this particular scenario we also have to keep this thing in our minds not to forget our world. We need to do such works that are Environmental friendly and can really help others. We should not only look for benefit but must take such decisions that may help our world out. Conclusion One of the most important factors to be considered in the fashion industry is: firstly what a customers wants and secondly the instauration or the creativity in any brand (Household Textiles Market - UK 2008-2012, 2008). The customer is always a "king" as per said by many marketing scholars and by considering this fact customers must be given more privilege in the requirement as there is a need to follow policy regarding customers where they stand first. In spite of that the other factor that contributes highly is the creativity in any brand. There prevails high competition in the garments sector of the country and still provides room for designer products, improved quality, new ideas in terms of innovation and creativity. This sector is highly volatile and gives opportunities to new entrants assuring them promising prospects if they apply their skills to their fullest and contribute effortlessly to this struggling sector. What that is required in short is true devotion. On top of everything "Customer is Always Right" is the strategy to follow! In short, we can conclude that a company for its continued existence needs to create an inherent connection with its consumers so that both the consumer and the provider are in benefit. Bibliography Bay & Brown Company. (2009). Retrieved April 11, 2009, from http://bayandbrown.com/ Brue, S. L. (2006). Macroeconomics, 17th edition. New York: McGraw-Hill/Irwin. Case, K. E., & Fair, R. C. (2004). Principles of Economics. NJ: Prentice Hall. Economic Growth. . (2006). Retrieved November 26, 2008, from The White House Online: HYPERLINK "http://www.whitehouse.gov" t "_blank" www.whitehouse.gov Household Textiles Market - UK 2008-2012. (2008). Retrieved April 10, 2009, from http://www.marketresearch.com/product/display.aspproductid=1922273&g=1 Lazy Oaf. (2009). Retrieved April 9, 2009, from EBTM: http://www.ebtm.com/m-140-lazy-oaf-clothing-at-ebtm.aspx Lazy Oaf Company. (2009). Retrieved April 11, 2009, from http://www.thealternativestore.net/lazy-oaf.irs Lazy Oaf Prices. (2009). Retrieved April 11, 2009, from http://www.brightlemon.com/web-design/company/clients/lazy-oaf.php Product Range - Lazy Oaf. (2009). Retrieved April 10, 2009, from http://www.thealternativestore.net/searchStr=lazy+oaf Samuelson, P. (2004). Principles of Economics. Montana: Montana Publishers Inc. UK Textile Industry. (2009). Retrieved April 11, 2009, from http://www.ebtm.com/m-140-lazy-oaf-clothing-at-ebtm.aspx Read More