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Retail Analysis: Cos and Reiss - Essay Example

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Collection of Style (COS) is a relatively new fashion brand launched by H&M in 2007. COS provides fashion apparel and accessories targeted at younger consumer markets (18-30) demanding contemporary fashions with upscale appeal…
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Retail Analysis: Cos and Reiss
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Download file to see previous pages COS was launched, according to one marketing representative of the business, to create new market opportunities by appealing to consumers who do not currently shop at H&M (Bengtsson and Vilic 2012). Offers a corporate press release: “COS splices its design flair with attainable prices for both men and women. These are immaculately produced wardrobe perennials: incorporating clean-cut accessible design with just a wink of character; a subtle design twist that lends each garment a modernist edge” (H&M 2007, p.2). The main product strategy at COS is to provide affordable, yet upscale fashion offerings to desired target consumers in the youth category, essentially bringing high street value to the ready-to-wear fashion concept. Collection of Style differentiates itself from competition in terms of quality. Reiss is a similar retailer with a radically different marketing and branding strategy than that of Collection of Style, however the product offerings are very similar and targeted at the same youth market ranging from 18 to 30. Reiss labels its own clothing line as “modern, iconic, sexy and design-led” (Reiss 2012, p.1). Reiss places significant strategic emphasis on the conceptions and benefits of design-led fashion offerings, dedicating a team of 20 designers to produce new fashion merchandise relevant to changing consumer lifestyle patterns. This retail organisation differentiates itself in terms of quality, similar to that of its competitor COS, but with a supplementary emphasis on detail and service (Reiss 2012). Both Collection of Style and Reiss work diligently to understand market characteristics, attempting to offer diverse merchandise offerings that are properly aligned to market needs and lifestyles. This report highlights the dimensions of retail strategy found within both retailing models, focusing on the influence of competitive forces, consumer attitudes, and industry conditions that influence strategy development. Research, both desk-based and with a qualitative observational methodology, indicated many strengths and weaknesses of the COS and Reiss retailing models. This report identifies these factors that serve to either hinder or improve business success in their desired youth target markets. 2.0 The position of the industry sector The retailing industry in which COS and Reiss attempt to thrive and differentiate is marked by several characteristics that influence retail strategy. In fashion retailing, the balance of power held by consumers is shifting favourably in the direction of the buyer, giving them much more leverage in driving transparency in the business models and with recurring threats of brand defection (Jackson and Shaw 2009). Cos and Reiss operate in highly saturated market environments, mature markets where many competitors maintain strong brand equity or, at minimum, brand recall associated with logo or other integrated communications developed by competition. Major competitors for both organisations ...Download file to see next pagesRead More
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