UK fashion market - Coursework Example

UK fashion market Introduction UK fashion market involves various sectors and companies grossing 600 million pounds both in UK and abroad. The country’s fashion market is ranked to be the holding the fourth position in terms of size in the whole world. The whole world is worth 900 million pounds. The countries of United States of America with 5.2 billion pounds, Italy with 1.5 billion pounds as well as France with 900 million pounds are the rankings in this treatise. The market is considered to be consisting of offering employments to 1500 personnel and about 10,000 workforces are employed in the processes of machining, manufacturing, distribution, marketing, as well as retailing. Various British designers are accredited with the reputation and image par excellence and would create opportunities for augmenting the possibilities of being inducted in reputed professional companies overseas or abroad (Andriopoulos, C., & Dawson, P. 2009). Executive Summary There is a leading company in United Kingdom that is privately owned and involved in clothing as its primary business. The company is also designing and an expert in retailing its brands of label range wears of various segments regardless of age. Mr. David Reiss the owner of the company Reiss took over from his father and created an opportunity of narrowing the gap in mass market clothes of high street as well as designer wears. It is pertinent to note that narrowing down the gap translates into provision of good quality as well as stylish clothes for prices that are amazingly affordable. The strategy following the aftermath of success creates vistas for opening up expansion in Dublin the capital of Ireland. The strategy can be created by launching wide ranges of women’s wear and globalize the business along with Dublin. Even though the efforts are on for making penetration into various countries the headway has been successful in claiming establishment of 27 outlets of retail as well as concessions numbering to three in the United Kingdom until now. Mr. Reiss continues to be endowed with the capacity of a guiding influence with strength that is all pervasive in the company. The company Reiss is capable of creating a good brand value and an entry by creating an opportunity to internationalize the company in a manner that would be conducive for strategizing the brands and the segments. There has been successful expansion into the fields of new segments of wears including opportunities for children’s wears. This strategy should be further improved to create wide ranges of brands for encompassing a new scenario that would pave the way for newer vistas. This would empower various avenues for product positioning for expanding the markets with an emphasis on the development of business as well as profitability. Various aspects of liquidity as well as innovative pricing for creating more margins without revealing to competitors and create a strategy of combat against stiff competition from lower brands to position the branded market segment in a manner that ought to be planned and positioned in the right perspective. More efforts should be made for globalization of business by making frequent trips all over the world and assess the demand based on the company’s emails sent to various buyers and responses received for any orders or the kind of products the customers’ desire and the specifications in spite of reiteration of qualitative standards of delivery (Ranchhod, A. 2004). Sector Analysis The sector analysis involves quadruples of factors encompassing couture, international designers, diffusion as well as high fashion including segmentation of needs in the premium segments. The segments are based on various ranges of prices that would cater various qualities to the segmented people based on standard pricing for different segments. The first sector of couture means the designer of original market dominated with brands that are French based such as Chanel, YSL, Dior, as well as Givenchy. The second sector of international designers would involve labels with such brands such as Giorgio Armani, Calvin Klein, Ralph Lauren, as well as Donna Karan. The next sector segment involves diffusion that would involve ranges of high street cater to the needs of retailers of specific people, to name a few Debenhams as well as Jasper Conran. There are various other high fashion sectors that induce new designers to come up and endorsed with accreditation by celebrities (Andriopoulos, C., & Dawson, P. 2009). Macro Environmental Analysis The analysis of political factors cover the issues of European union, evolution of Europe, WTO in the context of repealing country quotes in the context of textile marketing, control of the central bank of bank of England on controlling rates of interest, international trading relationships of United Kingdom, legislations on trading in various regions and entry barriers due to labor costs such as Germany and Italy. Economic factors are based on rates of exchange, differentials in exchange rates, increase in disposable income and purchasing power in UK, infusion of raw materials, various costs of rising buildings as well as prime locations, economic indicators such as inflation, deflation, stagflation, and recession in western Europe. The various social factors are changing in behaviors of working tastes, choices and preferences of consumers. Lifestyle of people in UK and other countries is an important concept ranking priority over the factor of population. The change of profile of population in UK and other countries is important. Women’s wear in UK and other countries influences in various forms of fashion changes in style, products, sizes, as well as features between various countries as well as regions. Brand consciousness amongst consumers and ethics are important. Technological factors indicate direct original equipment manufacturer relationship on internet. Enhancement in usage of internet as an important media for various cross sections of consumers is important. Introduction of various new fabrics with qualities of non-creasing, easy washing, non-staining and use of modern gadgets is essential. There is a way of speeding up ordering systems through the medium of EPOs systems (Ranchhod, A. 2004). Issues happened in the past 3 years The year one for Reiss had to encounter no turnover during the project period and year two made an increase for more than 5% improvement in terms of turnover and year three registered a further increase of 25% over hereto in terms of turnover. The gross profit for year one was negative, was positive for year two and registered a significant increase in year three. The net profit also faced a similar trend and is pretty good in the third year of operations. The operating income is very decent and buoyant to withstand the existing operations as well as generating funds for expansions step by step (Ranchhod, A. 2004). Current and Future Issues The current and future issues also involve an analysis of the latest trends of fashion and the market demand pattern that would involve a positive thrust on the development of the company. The scope involves spend trend broad basing clothing and accessories of women and children including men for augmentation of market. Smaller retailers including Ted Baker, H & M as well as Republic create an accentuated market share throughout 2009 in spite of the climate of the economy. In spite of the fact that they are not low cost retailers of fashion, they have been successful in 2009. Hence, this company of Reiss is important for analyzing and evolving strategies for facing and combating competition for driving growth and development and sustaining a sizeable market share to become a leader and maintain leadership position. 2010 continues to be a challenging year with weak comparisons as well as higher inflationary levels including a forecast of having a shift towards the market of clothing in spite of facing of formidable problem of low increase in labor costs as well as their reluctance in carrying on production. It is essential under such circumstances the company should mastermind a wage and compensation plan within the budgetary levels of maintenance of profits. In three years the company because of the strategy awareness that came to surface in the year 2010 may have to be repeated including management by objectives and creating a good company budget for various functions. Implementation can be made by identifying direct, indirect and variable costs that can be allocated towards all functions including cost of production and employee cost to enable a good leeway for the company to tackle at production levels. Hence, employees’ morale will be kept high and the time of competition can be managed effectively. (UK Fashion Multiples 2010). The contingency plan for the future would involve a positive thrust for the development of the company manifold by widening the range of products as well as accessories to cater to the needs of all the segments. Another way of looking at development would be to bring about innovative marketing schemes and offers for wooing the customers to go avidly for the company’s products by professional means and stiff competitive strategy for the development of customers and give them value for money spent. Conclusion The clothing company Reiss is very triumphant when it has achieved the laurels of having succeeded in participation in the common wealth games in most countries. This effort has further been successful in providing accessories and apparatus for the common wealth games even in India and Canada. The company top man should go with the changes desired in policies that create tariff barriers and barriers due to political and governmental forces to the concerned dignitaries, presidents of chambers of commerce for making representations to the government for creating a favorable climate for the environment of the growth of the sector covering all the angles of PEST. References Andriopoulos, C., & Dawson, P. 2009. Managing Change, Creativity and Innovation (pp. 87-90). London: SAGE Publications Ltd. Ranchhod, A. 2004. Strategic Marketing in Practice (pp. 240-244). Massachusetts: Elsevier. UK Fashion Multiples 2010. (2010, February). In mindbrach. Read More