Portfolio of Practical Project: The Fashion Industry - Coursework Example

PORTFOLIO OF PRACTICAL PROJECT of the of the Table of Contents Table of Contents 2 EXECUTIVE SUMMARY: 4 External factors influencing global fashion PEST analysis of the dynamic market (PESTEL) 6 POP UP 14 Pop up shop as a fashion event 14 Identify the pop up event 14 Beneficial outcome of the brand 15 How to use it to promote the brand 15 SECTION TWO 16 Brand overview 16 Anthropologies as the client for promoting the event 17 The aims and objectives of the event 19 Planning process of ANTHROPOLOGIE POP UP SHOP in China 20 EXECUTIVE SUMMARY: The fashion industry has been evolving from time-to-time. The changes associated with these trends cuts across issues like consumer preference, technology, ethics, climate change, environmental influence, and other trends that define the sustainability of the industry (Heller, 2014; Schaeffer, 2014). These changes define and dictate the consumer preferences and buying behaviors. When describing ethical virtues associated with fashion, there are so many items that one need to put into consideration. Ethical fashion cuts across items like purchasing behaviors, retailing, production, and even the way design is achieved. Issues captured by the ethical aspects include the animal welfare, the environment, sustainable production practices, and attainment of fair trades, issues associated with the exploitation, and working conditions of the employees (MailOnline, 2007). Ethical fashion is important because high street apparels accounts for a substantial number of customers. Given that the world is a global village, it means that people are able to make purchases in any part of the world with low cost and that the industries can grow the raw materials in large quantities, cheaply and quickly in any part of the world. Therefore, ethical fashion play a significant role in addressing the problems associated with how the fashion industry operates (Heller, 2014; Schaeffer, 2014). Some of the concerns raised by these perspectives include the exploitation of the workers to make cheaper clothing. Industrial players are required to adopt mechanisms that do not take advantage of the workers who make fashion for the high street apparel in order to make huge profits (Heller, 2014; Schaeffer, 2014). Others may resort to employing children, which is unethical. The environment of the manufacturing is also a part of the ethical consideration considering the fact that employees must be working in a safe surrounding. If the cost of the high street clothing is very low, it signifies that the employees working in the factories that manufacture the clothing must be paying very low wages to the employees, which is unethical. Some ethical forums champion the need to reduce the amount of chemicals used for the agricultural processes of the raw materials. For instance, the use of chemicals like insecticides should be below 10% because the employees are exposed to such toxic materials that endanger their lives. Besides, these chemicals are released into the environment to cause additional harm to the flora and fauna (Heller, 2014; Schaeffer, 2014). Therefore, environmental factors associated with climate change associates with ethical virtues of the fashion industry. Climate change on its own affects the trends of the clothing that consumers would purchase and therefore change in fashion (MailOnline, 2007; Environmental Leader, 2014; 2007). Experts in the fashion industry believe that the increasing changes in the patterns of the weather have a stake on the choice of the fashion and the consumer trends. When the weather becomes unpredictable, the apparel industry has the challenge of meeting the consumer changing trends occasioned by the unpredictable weather patterns (Environmental Leader, 2014; 2007). The changes in the fashion calendar would soon be dictated by the weather patterns, which worries fashion experts because the changes are unpredictable. The environmental impact for fashion has been increasing. For instance, cotton, which accounts for about 3% of the water usage, has created a gap that require immediate attention (Environmental Leader, 2014; 2007). If the trend is not addressed in time, it is postulated that by 2030, the amount of water to be used in the fashion industry will exceed the available supply by about 40 percent (Environmental Leader, 2014; 2007). Therefore, the fashion industry has challenges that need close attention. These challenges, from ethical perspective, environment, climate change, and even eco-friendliness may affect the life of the future generation, hence the need to involve all industrial players in devising measures that would make the industry sustainable. External factors influencing global fashion PEST analysis of the dynamic market (PESTEL) Analysis of the macro-environment requires identification of factors that affects essential elements of the business. In most scenarios, the analysis assesses the demand and supply chain levels, and how the external and internal factors may affect the two factors and influence the profitability (Lauring, 2012; Matsumoto et al., 2004). However, the analysis aims to establish the opportunities and take advantage while mapping the contingency plans for the identified threats. Besides, the analysis is an essential strategic plan for comprehending the trends in market in terms of decline or growth, operations, and potentials (Guoxin et al., 2012; Lingjing and Yanqun, 2012). Therefore, PESTLE analysis is a useful tool for businesses in creating a strategic plan that hopes to capitalize on the development of products and improving the performance of the origination in a particular business environment (Porter, 1985). Political and legal factors The political environment in Malaysis is very stable. A stable political regime offers a conducive environment for business to thrieve. Hostile environment for businesses are associated with unstable political trends. When the political regime is in charge and maintains a peaceful transition, the businesses in the environment has low risk of increasing their investments in such an area contrary to areas that have charged political tones, creating tension and therefore discouraging investments (Imeson, 2010). The leadership (multipart system) has played a significant role in fighting corruption hence creating a conducive environment for foreign organisations. The country adopts a British form of law, but applies harsher penalties than the British, which means that organisations must acquaint themselves with such laws (). The government involvement in the taxation policies (increasing VAT) increases the prices. These affect the market because buyers are very sensitive to the prices. The government encourages the inception of entrepreneurship. However, heavy taxations discourage many new entries. The market has ready employees, however, they are characterised with increasing strikes and demonstration (Imeson, 2010). The rate of inflation is low with a predictable trend. Besides, the current exchange rates are not favourable and stable because of low inflation. Economic The Malaysian market is characterised with increasing loan growth because it is a vibrant economy. The deposit outflow is growing as well, which indicates the growth of the consumer capabilities. However, the margins of the interest rates are constantly under pressure from the players like the banks. The increasing deposits led to increasing rates of interest. This has been the trend since 2011 and is expected to increase in 2015 (Imeson, 2010). The public consumption of the fashion apparels has been increasing slowly since 2012. Although the rate of increase has been slowing down, the market is feasible and provides excellent prospects of the investment in the fashion apparel. The economic growth is positive and expected to continue based on the existing trend for the past ten years growing at a rate of 7%. The industrial production has been on the rise and its attributed to the country’s economic growth (Imeson, 2010). The factors that affect economic trends have impact on the purchasing power of the buyers. Social and cultural aspects The changing trends of using online materials to access fashion and other clothing apparels is common in Chinese market. However, the young generations takes a larger percentage of the internet consumption owing to the growing social networks like face book, and twitter. The old generation prefer getting their information from the television and the radio. The society has a communistic perspective, which means that most people relates with each other very well. Culture defines their clothing choice; therefore, designers who take into account the cultural values have prospects of acceptance in the market. Technological factors The society is part of a global communication network. There is a rapid growth of utilising technology across the country. In fact, these trends make such trends cheaper than one would expect. These changes affect the dynamics of the business, so that many consumers would prefer using internet as a convenient way of transacting businesses. The environment requires competitive solutions to make use of these changes in improving service delivery (Burnett, 1993). THEORY BACKGROUND Interpersonal and organizational relationship management The consumers trends dictates the designers capabilities to come up with fashions that suites their taste. For instance, purchasing behaviors of the consumer depends on several factors that the designers and manufactures must comprehend to retain their market share (Burns and Ronalo 2000; Dibb et al., 2012). Some of these factors include the interpersonal attributes, brands, perceived status of the brand, and cultural values. Each of these factors play a significant role in determining the type of approach that the organization must use in their marketing strategy because they must use strategies that reach out to as many of the target consumers as possible. Marketing is one of the most important stages of creating awareness of the product to the intended consumers (Copley, 2004). The message would need tailoring and customization in such a way that it relays the message and communicates it in a simple and explicit manner to the target group. Therefore, market communication needs planning to attain these objectives. However, one cannot plan an effective marketing strategy without understanding the needs of the consumers and the target market (Jameson, 2007). The relationship at the organizational management dictates how the marketing campaign because most organization has a structure they follow when designing such trends (Moriarty and Sandra, 1998). In this case, the fashion apparels will require campaign strategies that captures the cultural values of the consumers to increase the reception and acceptance hence the purchasing behaviors (Moriarty and Sandra, 1998). The management roles and the needs of relationship—interpersonal roles, informational roles, decisional roles; Successful businesses require the environment where parties can converse freely and intermingle without hindrances. Creation of such an environment is important when planning to roll a campaign strategy for the fashion apparel using a pop u shop. The management plays a significant part in the realization of these decisions because flow of information from the top to the bottom level depends on the organizational structure (Bian and Forsythe, 2012). Therefore, creation of the relationship between the various levels in the organization affects the success of the campaign strategy. The management must instill the interpersonal virtues among the employees by involving the team in charge of the campaign strategy. The campaign team will reflects these virtues in their campaign undertaking hence the need for the process (Bruce and Daly, 2006). The information delivered during the marketing campaign has a lot to do with the items intended to be communicated, hence the need to tailor the message so that it reflects the specific items that must be shared with the target population. Therefore, the decisional role in choosing the medium of communication and the target message will depend on the survey analysis. For instance, fashion for the young populations commonly called the generation Y would most likely do well in the internet and other digital marketing platform as opposed to the conventional methods of marketing (Chan, et al., 2013). The baby boomers and the old population are likely to access most of their information from the conventional media platforms hence the need to understand the market, the target in making the decision for the choice of methods appropriate (Caine, et al., 1997; Wills and Midgley, 1973). Problem solving approaches of effective communication, negotiation and persuasion—decision theory Consumers are very sensitive to the quality of the product, the pricing models and the way service delivery takes place. These factors may also shape the communication strategies that relates to persuasion and negotiation. Negotiations are part of all business that involves interacting with the consumers. Consumers are always sensitive to the prices of the product. This means that they would engage the retailers in negotiating the price regimes. However, the most important aspect of this approach is the persuasive dimension, which requires the retailers to persuade the consumers on the importance of making purchase for a particular product (Peter and Olson, 2008). The best approach of ensuring the retailers persuade the consumer is by communicating the quality of the products through an excellent customer service. When consumers acknowledge that the retailers or the sales representative knows what they are talking about, their belief for the product is likely to translate into the purchasing behavior (Chung-Hoon and Gul, 2003; Gérard et al., 2011). In most cases, if the consumers understand the quality of the product, they are not likely to take the negotiation and the persuasive aspects to a lengthy conversation. Therefore, the most important aspect is the communication of the quality of the products to the consumers and the potential buyers through a well-structured campaign strategy (Czinkota and Ronkainen, 2010). The approach could involve illustrating the superiority of the goods advertised. These strategies play important role in solving problems associated with the effective communication during the campaign strategy because it communicates the most essential message to the consumers hence eradicating many doubts about the products. POP UP Pop up shop as a fashion event Conventional retail shops have designated stores that run throughout. However, the pop up store only opens for a shorter duration. In most cases, the pop up stores are created at unique and unusual places. They are called pop up because they can be found today and tomorrow they no longer exist. These stores best serve the seasonal demands for events and occasions like Valentine, Easter holiday, Christmas events or the Halloween celebrations. Identify the pop up event The timing of the event will coincide with the seasonal festive to ensure maximum return from the event. The pop up store will deal with various fashion apparels. The selection will be based on the market survey on the consumer preference for the Chinese market. Although the event will also have new and emerging high-end fashion apparels, it will attempt to assess the engagement of the consumers with the old fashions. The event accommodates various line of clothing from across the generation to ensure that all the target population is taken into consideration. However, the most important factor is the involvement of the population with the emerging and new clothing. Beneficial outcome of the brand The pop up event helps in the understanding of the consumer purchasing behavior and their perceived purchasing trends on a particular clothing or fashion. Pop ups play a significant role in getting the word out. In many cases, consumers would appreciate information when they can relate the piece of information with the materials. Pop ups store organized as events helps in achieving such objectives. Other functions of the pop up events are the unloading of the old inventories. When a retailer accumulates old inventories, organizing such events may play a critical role in reducing the load from the main retail store. However, the main aim of the pop up stores is the testing of new markets. When a retailer plans to make entry into a new market, they can use the pop up to achieve these objectives because it will give them the perception of the customers towards their products (Piron, 2006; Shen et al., 2012). Besides, the pop ups plays a critical role in when vetting a new business idea. The event assists in examining the prospects for the idea and areas that the retailer must put into consideration before making entry into the market. How to use it to promote the brand The best strategy of promoting the brand is by getting to interact with the consumers and get their view on the product. The pop up event provides exactly that, because it makes it possible to catch the attention of the consumers. The event offers the opportunity of understanding the specific concerns of the consumers and their attitude towards the product. During the event, the retailers may have the opportunity of understanding the unique needs of their target market and tailor their products based on those requirements. These trends help the retailer in designing methods of promoting the brand. Platforms and other conventional methods of advertisement hence increasing the strategies that aims to promote the brand. Example of successful pop up shop There are several successful stories on the pop up events. For instance, the Kelley Hall-Barr, which has items on interior design and fragrances. The success of their main stores is attributed to the pop up events that improved their marketing strategy in getting their brand out to their target consumers. Pop up stores helps organizations in communicating their products and brads to the intended consumers hence increasing their product turnover rate over time. SECTION TWO Brand overview The fashion line selected for the pop up event will cut across various outfits. The intention is to increase the turnover by targeting a larger proportion of the population. Therefore, the brand will consist of clothing fashions from the old generation and the emerging fashions. The aim of using the old generation fashion is to assess the attitude of the consumers on the two trends of fashion so that measures can be taken in maximizing from areas that competitors may not be in a position of venturing into (Dibb et al., 2012). Anthropologies as the client for promoting the event The urban company will be selected for the promotion of the event (http://www.urbn.com/profile/). The company deals with urban outfitters because it specializes in the several lifestyle merchandises that have specific customer orientation. The organization was selected for this promotional activity because of the established connection with the customers. The connection is at the emotional level, which provides the best avenue for getting important feedback on the products intended for the promotion. The establishment of such relationship makes it possible for customers to give their views and perception about the products on the promotion. Besides, the anthropologies have unique ways of designing methods of selecting a particular segment of the customers. Customers’ preference varies across several segments; therefore, it is important to capture these differences through an innovative design that resonates with the targeted consumers. For these reasons, anthropologies offer the best alternatives to reaching the customer and building an empathetic connection with the products to increase the purchasing attributes. Reviewing the current business situation Urban outfitters have a substantial market share in the luxury industry because it has unique ways and approaches that appeal to the consumers. Its main competitors are the AnnTayllor, Abercrombie and Fitch, American Eagle, and Gap (Trefis Team, 2010). The anthropologie brand of the Urban Outfitters is the main competitor for the AnnTaylor. The anthropologie brand is mainly in charge of the women apparels and other accessories. The brand contributes more than 25 percent of the over $40 price estimation, which associates with the Urban Outfitters. The anthropologie brand targets the career women who are at the peak of their career usually aged between 30-40 years. The average income for such families range from $150,000 to $250,000 per annum, besides, the store has diverse merchandise that resonates well with the intended theme (Trading Economics, 2012; Forbes.com, 2013). Anthropologies have the highest revenue in every square feet. For instance, during the recent recession, the store was leveraged on its consumer base in keeping the revenue per square feet high. The highest value maintained by the store was $750, which was the highest value in the industry during the entire recession period. The main strength of the anthropologie relates to the fact that it has its focus on increasing the sales using the existing customer number instead of increasing their count. The industry review of the China high-end market From the global perspective, fashion industry is considered on the most dynamic industry owing to the environmental, social, and technological changes that influence fashion industry (News.china.com.cn, 2013). The Chinese fashion industry has been growing and changing over time. The changes are associated with factors like consumer preferences, brand status, socio-economic aspects, and cultural values. Given that Chinese community belongs to the high-context culture, socialization forms the main tenet of their communication approach. Therefore, the analysis of PESTEL framework helps in the comprehension of the factors that influence brand choice, target segmentation, and trends in the market (Smith and Ze, 2011). The stable political environment in the Chinese market offers a conducive environment for the growth of business. The Chinese political regime puts more emphasis on fashion right from their education system. These create awareness on the fashion as a profession and as a venture. However, the most important aspect is the taxation regime. The government implements a heavy taxation for business, a fact that makes it difficult to make profit. However, the environment has cheap and easily available labor force that creates advantage for the entrepreneurs to get returns from their inventions. From the economic perspective, china has a positive industrial growth that cuts across the manufacture and retail industry. The fashion sector has been the main contributor of the growth accounting for about 5% in the last two years (Trading Economics, 2012). The ever-increasing deposit and consumer purchasing behaviours relates to these growths. The consumption has been on the rise since 2012, which indicates a potential market for the products. However, the large Chinese population provides the best alternative for the market (Trading Economics, 2012). Cultural orientation dictates the consumption of fashion products because most consumers in the Chinese markets are very delicate when it comes to issues related to culture and socialization (Zhang and Kim, 2013; Froese et al., 2012). The differences exist among the various population, for instance the generation Y prefer emerging fashion trends associated with celebrities. The generation also obtains most of their news from the digital and online platforms. Most fashion products are present in the online technology platforms. In fact, the market needs innovative methods that speed up the interaction between the retailers and the consumers (Imahori and Lanigan, 1989). The aims and objectives of the event China has a rapidly developing market across several sectors of the economy. For instance, the fashion industry is one the major contributor to its growth, which signifies the important of investing along the fashion chain. The women consumers show great desire on fashion trends and international fashion brands; the first objective would involve organizing pop up event for the women fashion apparels to evaluate their perception and purchasing attributes. The second objective would involve expanding the market into china because the area has a potential market and low source of labor. China was selected because of the dynamic perspective of the consumers, which provides a better option for growth. Besides, the market is segmented and therefore appropriate for introducing a particular line of fashion clothing. The strategy would use a digital platform for the campaign. The campaign would involve using the anthropologie platform to assess the consumer attitude towards the fashion line intended for the introduction in the Chinese market. Planning process of ANTHROPOLOGIE POP UP SHOP in China Prior to making the big entry into the market, the planning will involve putting in place strategies for a successful rolling out of the event (Mandelbaum, 2013; Gray, 2012). These strategies would involve seeking the approval of the relevant authority to legalize the event. The second stage would involve planning for the event through designing the effective marketing strategies with the intended message tailored to suite the target consumers (Mandelbaum, 2013; Gray, 2012). Understanding the preferences of the target consumers would help in designing appropriate marketing strategies. Segmenting targeting and positioning Given that the pop up store will target the women folks, the advertisement will be designed in such a way that it conveys a targeted information that suites the women. Such strategies are essential in ensuring consistency. Besides, the selection of the medium will depend on the audience, so that a method common to most of the target audience would have the priority as opposed to other methods with low access by the target consumers. Therefore, the primary research on the store environment and fundamental concept of the brand will give the guidance on the type of the message to be delivered to the consumers (Urban Outfitters, 2015; Mandelbaum, 2013; Gray, 2012). Location of the POP UP SHOP The location of the pop up store will be in the main cities of Shanghai and Beijing. These cities have huge population of the consumer with the awareness of fashion. The main way of getting the attention of the audience is through mainstream communication methods like the social media and the digital broadcast (Mandelbaum, 2013; Gray, 2012). The location selected for the event would have easy access in preparation for the expected traffic. Identify the target audiences; competitor analysis The target audience would be the women. The pop up store will begin with this population because of their close association with the fashion apparels selected for this process. Most women have a sense for the clothing that define their cultural values hence the need to convey a consistent message in the advertisement strategy to get the attention of the target population (Docstoc, 2011; Forbes.com, 2013). During the event, the retailers may have personal interaction with the consumers and deliver some of the most important messages that could not have been communicated through digital Marketing communication activities: promotion strategy and tactics To attract the target consumers, the event will offer promotions and incentives. Every item bought will have a ticket raffle for entering into the draw of winning a certain amount. The more a customer purchases, the more they have high chances of winning. Event schedule and interactive activities The strategy would involve creating a pilot operation that would precede the opening of the pop up store. 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