Analysis Business about Womens Wears in BOXPARK Shoreditch - Case Study Example

Analysis business about women’s wears n BOXPARK Shoreditch Contents Feasibility: Micro-market analysis 3 Target market size 3 Current Trends 3 Dynamics 3 Target Profile 4 Target Behaviour 5 Consumer profile 6 Feasibility: Macro market and drivers 7 Pestle Analysis 7 Feasibility: competitive environment and direct competitors 9 Porter’s 5 forces 9 References 12 Feasibility: Micro-market analysis Target market size The brand store of Freshion Tiny Boutique is located at BOXPARK Shoreditch. It is present in the East London area. The target market of this brand is East London area. This market is very much popular for highly fashionable clothes. Many retailers are present in this market for selling high quality of modern and designed clothes. The target market size of this company is large. Dressing style is very much advanced in this country. The women who like to wear trendy dresses according to their body size and shapes are present in the target market of Freshion Tiny Boutique. Current Trends Women of London wear simple yet sophisticated clothes which fit them properly. Many of the women like to wear designer clothes according to their taste and preferences. They prefer the dresses which are easy to carry and provide them comfort. Wearing simple and elegant designed clothes is the current trend of the woman staying in East London area. Fitness of the clothes is mostly preferred by the women. Petite apparels are purchased by the women frequently. This type of clothes is high in demand in London (Zhao, Luo and Suh, 2004). Dynamics The dynamics in women-wear industry changes very frequently. Many famous fashion houses are present in London and East London area which develop different types of designs and trends. Many boutiques are present in East London which manufactures unique designed clothes. The government of UK supports the growth and development of apparels industry. For this reason many companies are entering in the business of garments. Fashion statement of women is closely related with their dress. With the change of fashion statement their choices of dresses get changed (Pan and David, 2000). Target Profile The target profile of the customers is identified by conducting a survey. The women residing in East London were the participants of the survey. 20 women were randomly selected for the survey out of which 15 women were young and 5 were old. The similarities between the participants are as follows: Age: 18-35 years old. Occupation: Service holder, student, homemaker. Expenditure on clothes per month: Above £25. Trend: Important. Prefer to purchase clothes from stores or online. Prefer to buy Petite (Johnson, Scholes and Whittington, 2008). Target Behaviour VALSTM framework Innovator: The consumers who have high income and high self-esteem. This type of consumers expresses their tastes by creating their high profile image. For this reason proper fit clothes are preferred by them. Thinkers: The consumers who are motivated by the ideas of other are known as thinkers. Responsible, well-educated customers understand the trends and social change which affects their dressing styles. Believers: Some of the customers are influenced by the style of others. This type of customers favours local products than branded products. Achievers: The customers who are successful in their work purchase the products which help them to show off their status. Strivers: Some customers have high values but their economic psychological and social resources are low. They are influenced by the style of others. Experiencers: This type of consumers have huge amount of money and they purchase products for expressing themselves. Mainly young age customers are experiencers. They spent a huge amount of money on clothing. Makers: The low resource people motivated by self-expression are known as makers. They purchase the things which satisfy their requirements. Survivors: Customers having very low level of income are survivors. Mainly aged people fall under this category (Doole and Lowe, 2008). Consumer profile 16- 40 years old Students, service holders, home makers Like to attain parties. Conscious about their dressing styles. Trendy and modern (Cole, 2003). Feasibility: Macro market and drivers Pestle Analysis Political Tax system of London is high which can create problem in developing new business. Registration process of new apparels business is sometimes slowed down by the government which create problems for Freshion Tiny Boutique in expanding its business. The government of UK also supports the growth and development of women’s wear industry (Henry, 2011). Economic The GDP of UK is constantly increasing. It is one of the developed countries of the world. The economy of London is very strong and the per capita income level of the people is high. The women residing in London earns a huge amount of money which will help in the growth and development of Freshion Tiny Boutique’s new business. Inflation rate is low in London for which the pieces of Freshion Tiny Boutique will not fluctuate more. Disposable income of people is high for which they spent more money in purchasing clothes (Keller, 2008). Social Society of London is very much modern. People residing in this place follow the current trends for purchasing any product and services. Consumers spend huge amount of money for satisfying their requirements. People from different places reside in London. For this reason Freshion Tiny Boutique will get a wide range of customers. Women living in London wear Petite and clothes which fits them properly. They believe in showing off their style by wearing attractive and unique dresses (Lasserre, 2012). Technology The technology of UK is very much advanced. This will help the Freshion Tiny Boutique in solving the problem of the clothes which do not matches with the shape of the customers. With the help of advanced technology the Freshion Tiny Boutique will be able to manufacture clothes at a low cost and attract more customers. Designs and shapes of the clothes can be done properly by using modern technology (Kotler and Keller, 2012). Legal The legal system of UK is very strong. Freshion Tiny Boutique needs to follow the legal rules and regulations of the state for conducting its business properly. This will help the boutique in solving the problems related to clothes. The brand has to be concerned about the rules and laws of the state related to women garments (Perreault and MaCarthy, 2003). Environmental The boutique can manufacture clothes from various organic materials. For analysis and developing new business the brand needs to maintain the environmental rules and regulation of the state. The people residing in London are very much concerned about environmental issues. They prefer the companies or brands who take proper care of various environmental factors for doing their business. Therefore the products of Freshion Tiny Boutique need to be eco-friendly (Percy, 2008). Feasibility: competitive environment and direct competitors Porter’s 5 forces Threat to New Entrance (low to medium) New firms cannot easily enter in the market of women’s wear. This is because companies need to spend huge amount of money for establishing their business in London. Capital cost of the companies is very high for creating its position in the market. For this reason threat of new entrance in the apparels industry in London is low. Moreover many big players are present in London’s market whole hold a strong position in this industry (Onkvisit and Shaw, 2009). Buyers power (medium) The buyers cannot exert strong pressure on the companies which deal in apparels. The price of the products is fixed by the companies according to the quality and design of the clothes. Huge number of buyers is present in London for purchasing modern garments. So loss of single buyers does not affect the companies. Moreover the women of London are concerned about the looks they will get by wearing the dress. They tend to purchase the dresses which are of unique designs and fit them well. So they rarely create pressure on companies regarding the price of dresses (Picton and Broderick, 2009). Suppliers Power (low to medium) Huge number of suppliers is present in London who delivers good quality of raw materials and clothes to the women apparels manufacturing company. Therefore the bargaining power of the suppliers is low. The companies have many options to change its suppliers easily. If one supplier creates problem then the firm can shift to another supplier easily at a very low cost. The companies operating in this industry maintain a good relationship with the suppliers for getting the raw materials easily (Solomon, 2006). Threat of substitute There is no such direct substitute product of women’s wear. Many garment manufacturing companies manufacture products which fit the customer well. This can be the substitute of Freshion Tiny Boutique products (Zeithaml, 2010). Competitive Rivalry (high) Huge number of companies is present in the apparels industry of UK. Many of these companies have their stores in London. Therefore the women’s wear market of London has many companies who deal with same types of things. Not only companies many well-known boutiques like Boundary, 69b, Celestine Eleven, EC One etc. are present in East London. These famous boutiques will create strong pressure on the new business of Freshion Tiny Boutique (Wintzer, 2007). These companies have large customer base and produces high quality designer clothes. References Cole, G.A., 2003. Strategic management. Singapore: Cengage Learning EMEA. Doole, I. and Lowe, R., 2008. International Marketing Strategy, 5th Edition. Cengage: London. Henry, A., 2011. Understanding strategic management. New York: Oxford University Press. Johnson, G., Scholes, K. and Whittington R., 2008. Exploring Corporate Strategy, 8th Edition. London: Prentice Hall. Keller, P., 2008. Strategic brand management. New Delhi: Pearson Education India. Kotler, P. and Keller, K., 2012. Marketing management, global 14 Ed. Harlow, Essex: Pearson Education Lasserre, P., 2012. Global strategic management. Singapore: Palgrave Macmillan. Onkvisit, S. and Shaw, J., 2009. International marketing: strategy and theory. New York: Routledge. Pan, Y. and David, K.T., 2000. The Hierarchical Model of Market Entry Modes. Journal of International Business Studies. 31(4), pp. 535-554. Percy, L., 2008. Strategic integrated marketing communication. Oxford: Elsevier. Perreault, W.D. and MaCarthy, E. 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