Tuesday, October 15, 2019
Topshop Case Essay Example for Free
Topshop Case Essay Introduction A company that’s does business domestically and internationally runs on strong values and foundations. Whenever the thought comes up, of opening up a franchise in a new location, it becomes mandatory for research to be done. The research intensifies when the franchise is supposed to be open in a new country. The following report will give an in depth analysis of the popular clothing retail company â€Å"Topshop†as it would assess the company and shed light on where the corporation stands now.                  The report would also indicate the marketing possibilities of the company of opening up its franchise in Thailand based on assertive theories and research. This would help assimilate about the company’s future motive of continuous prosperity. Company Profile Topshop is one of the leading retail clothing and apparel store for men and women in the world. It success and attribution in UK is very high. Topshop is an apparel retail group of Arcadia owned by Sir Philip Green. Topshop operates more than 300 stores in United Kingdom itself and boast of more than 50 outlets in other countries. Its 90,000 square foot store in London at Oxford circus is an iconic store on its own. The organization has a website from which it takes thousands of orders every day. ‘Topshop is the fashion destination on the British high street. Selling an average of 30 pairs of knickers a minute, 6,000 pairs of jeans a day and 35,000 pairs of shoes every week, its an unrivalled, iconic brand. Blending cutting edge style with purse-friendly prices, Topshop attracts women from their teens to the 40s searching for a weekly fashion fix’ (Topshop).  Company Mission  ‘Our core values relating to any of our activities are integrity, dialogue, transparency, excellence and innovation’  (Topshop). Company Portfolio  Topshop has the best ranged street clothing Great Britain. It has a varied collection of tops, dresses, shoes, knitwear, outerwear, skirt, trousers, accessories, jewellery, lingerie, nightwear and many on hand latest dresses by the famous designers. Financial performance and management  The company after being launched had always done substantial business, by the early 1990’s there was a major dip business. The Topshop was addressed with names and was reckoned to fail. Jane Shepherdson joined the company at a basic level and with hardwork and talent she climbed up the ladder of success ultimately becoming a brand director in the year 1999. Under her guidance and arc, the company blossomed and started having a massive turnover of  £500million of the entire Topshop outlets. Currently Jane Shepherdson has resigned form the post and Kate Moss is now responsible for running the creative designing part. The above graph represents an estimated dip in sales of Topshop from the year 2005 to 2007.The above figures is in Pounds and represent in millions. Price  Topshop price is mid ranged and has a very affordable line of clothing and accessories Marketing Strategy  Topshop has a very definite ‘hit’ marketing strategy.  It believes in conceptualizing the ‘in thing’, in fashion. It basically works on a strategy that takes has high speed and development technique. The following will give a hint of the marketing strategy occupied by Topshop: ‘Young celebrities style themselves in a way that’s moved on to the next season. A year ago when Sienna Miller wore that gilet, we had to pull them forward fast and bump up the order. If you’re in the fashion business, you have to be fast to take the risk out of it. Part of (our success) was that we brought a lot of our production closer to home. We source about 60% of it from Eastern Europe now as opposed to the Far East’ (Jasmine Smith 2007).                   The above piece indicates that, Topshop uses a strategy which is based on celebrities and also which is considered as one of the running things in the fashion industry. Also it produces a similar line and range which goes around as the latest gimmick, and all this is manufactured in Eastern European countries which is logistically faster to reach the stores and outlets in Great Britain. Promotion  Topshop using a very street smart strategy doesn’t really have to stress on its promotion much. Time and again it associates themselves with celebrities and all they do is showcase their product in magazines and newspapers. Also already having carved a niche as a brand that promotes the ‘in fashion’, buyers flock into stores and its outlets and it has been seen a no. of times that the fashion stock get purchased in a matter of hours. Also Topshop’s product marketing through has been considered as one of the biggest hit promotional scheme for the company, as it seen thousands of female buyers associating with the brand purchase merchandise online itself. Selling Ambience  Topshop’s outlet and stores have a pretty decent ambience, that entices customers and the feel good factor is shelved in them by the color scheming of the interiors. Its 4 storied monstrous and elegant store at Oxford Circus is magnificently built to lure customers. Topshop’s major shop is also its website, which also is very smartly developed and the customer seeing the verified credentials of purchasing safely, makes the customer feel safe, which is one of its reasons of having thousands of orders to fulfill via the internet.  Topshop’s unique merchandise  Topshop has always founds ways of alluring customers of all fronts. It has gained expertise in making maximum profits by targeting females of all ages and sizes. One of the most unique collections of Topshop is its maternity collection, where popular designs of the store are tailored for pregnant females. It is a unique concept in wooing pregnant females and their range for them is also considered to be one of the best. Topshop also has a very unique collection known as ‘vintage’, which highly reciprocates the collection of the yesteryears, thus providing customers with a choice of clothes between today and yesterday. The biggest hit concept is however the â€Å"tall and petite†, concept, where an entire line is devised for tall and short women. Also the organization is one of the very few in the world who along with clothing line have a very standard and fashionable line of shoes, whose range changes every year.                               This unique merchandise has made Topshop a hot favorites amongst people, and because of this diversity, customers have a very high rating for the store. Topshop Staff  Topshop’s strength can be assessed because of its staff. The company’s employees are the biggest boost, when the customer approaches the store, it is these employees who treat them equally and since they have a certain amount of fashion knowledge; they suggest and help customers to choose products from the store. Also with ever pleasing personalities, they help customers during rushes and are look after giving customer refreshments, when the buyer is scanning through the company’s products.                    A happy staff can be considered as the pioneer of any company and since the company has very transparent rules for promotion, the staff at Topshop becomes more working as they know that higher performances can bag them upper jobs in the company, of which Jane Shepherdson is a prime example, as she had joined the company on entry level and she got opportunities to ultimately become a brand director of the organization. Customer Segmentation  Topshop because of its all time varied clothes line and shoe range, it has a very solid customer background which can be demographically stated from teenage to females above 40s. However a correct demo graph cannot be branded as the no. of females who buy from the company is a lot more than one can imagine. Its high brand awareness and positive strategy has actually not spared many females in the United Kingdom who haven’t ventured into Topshop even one once.  Strength Weaknesses Opportunities Threats Has a sound reputation in the market Lack of financial planning  Can diversify into more new ventures Could distract from core business Topshop till now has been operating in more than 30 countries. Till date it has had a successful stint with its franchises in other countries and to confirm it as one of the leading members of the worldwide retail industry, it becomes mandatory for companies of Topshop’s ability to keep increasing its franchises and explore its product into new countries. In the following part of the report, it will be seen of Topshop’s future in Bangkok and its marketing capacity will be assessed for this venture. Bangkok  Bangkok, the capital of Thailand is one of the leading metropolitan cities of the world. It is often considered as one a city with high amount of tourists and an empowering nightlife. Bangkok is considered to be the gateway of Asia and is a unique mixture of development and tourism. Bangkok market  The city is famous for high purchase of clothing and along with the locals, the foreigners who visit the place too shop for clothes. The clothing retail sector still relatively is untapped for bigger names like Topshop, though merchandise of most of big names is available in the city. Topshop’s marketing mission  The company has a marketing mission to enhance and produce their goods in all parts of the world. PESTLE ANALYSIS  Political- the capital of the country always faces worse fate than the country. The country in its initial days was under monarch rule and it was only in the year 1997 that the constitutional amendment was made for holding general election. Thailand has been a country of political uncertainty, but somehow it has not caused much of a hassle to the retail market or to its tourism. The elected of Tahksin was deposed by a military coup in 2006, due to the allegation of the  government being highly corrupt. The latest condition of the political scene is as follows: ‘The National Legislative Assembly (NLA) Wednesday passed a government draft bill to lift a ban on registering new political parties by 149 to 4 votes. The draft law is soon expected to take effective after receiving royal approval’ (The Nation politics). Because of the coup the market was affected, but every country has got its fair share of problem, and though there is a mount of political uncertainty, it is expected from the nation to let the markets and shops and tourism prevail in peace. Economic    Bangkok is the high earning capital city of the nation. Thailand’s  economic can be assessed from the following :  ‘With a well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand appears to have fully recovered from the 1997-1998 Asian Financial Crisis. The country was one of East Asias best performers from 2002-04. Boosted by strong export growth, the Thai economy grew 4.5% in 2007. Bangkok has pursued preferential trade agreements with a variety of partners in an effort to boost exports and to maintain high growth. By 2007, the tourism sector had largely recovered from the major 2004 tsunami. Following the military coup in September 2006, investment and consumer confidence stagnated due to the uncertain political climate that lasted through the December 2007 elections. Foreign investor sentiment was further tempered by a 30% reserve requirement on capital inflows instituted in December 2006, and discussion of amending Thailands rules governing foreign-owned businesses. Economic growth in 2007 was due almost entirely to robust export performance despite the pressure of an appreciating currency. Exports have performed at record levels, rising nearly 17% in 2006 and 12% in 2007’ (CIA world fact book).Bangkok can be considered as a metropolitan city as it has the infrastructure that is required can be compared to other western nations. Socio Cultural  Bangkok like any other metropolitan city has its chare of foreigners staying, thus enriching the culture and the heritage. Out of the total population it is estimated that 94% are Buddhists, the rest are Muslims, Christians and Hindus and also some other religions. Apart from the usual partition of the rich and the poor, Bangkok and also the whole of Thailand also suffer from the heat of AIDS. The no. of AIDS patients has increased tremendously, killing mostly the young people of the nation. The people of the city however are avidly interested in different types of cuisines and also shopping. Most of the generation of the country is pretty much young and also the female population is higher than the men in the country. The country’s educational trend can be assessed by the following: ‘The adult literacy rate among Thailand population too has gone up from 78.6 in 1970 to 95 percent in 1997. The trend, however, reversed after the economic crises, as the literacy rate went down to 93.1 in 2000. It is estimated that literate population of 15 years and above will reach to 97 percent in the year 2010’ (World health Organization).  Technological    The country and especially the city rides on technology. The latest technology is all grasped by the youth and the city can be seen using technology well for its advancements. Environment     As most of the cities in the world, Bangkok is also fighting a losing battle with pollution like the rest of the major cities. However it is still less compared to that of other cities like Beijing and New Delhi, but still the rate of pollution is pretty high. Bangkok has beautiful flora and fauna and tourists from all over the world flock the city and around it to get mesmerized in its beauty. Marketing Strategy Bangkok is a place that is booming with the retail sector and more and more people are getting attracted to it. Thailand over the period of years has seen a huge rise in the purchase power of the consumer. The following will help cement the fact about budding scope of retail business in Bangkok: ‘The retail sector has been active throughout the year while protests from small local retailers against national discount stores were growing. However foreign retailers shrugged off the protests and continued to open stores nationwide. The biggest retail development is Siam Paragon, a joint venture between Bangkok Intercontinental Hotels Co (BIHC) and the Mall Group’ (Amazing Thailand). The hunger for having more and more retail stores is endless in the city. It is has been planned of having the outlet in ‘Siam Paragon’. This edifice had been constructed after the tearing put a star rated hotel and the way it has been constructed has been a marvel for most, a sit it is considered as one of the best malls in Asia. This mall caters to the rich and the moderately wealth people. To have a store in the edifice would firstly mean that the That the organization could cater to people who are well to do and also mainly the people who come in the upper middle class section. With thousands of people visiting the mall everyday, the shop couldn’t be in any better place in Thailand for that matter. Topshop has a tradition of delivery fashion quickly. This is possible because of manufacturing units being in nearby locations or in nearby countries. Topshop can also open up a manufacturing unit in Thailand, as here the labor is considerably cheap. This would have two major advantages, which are as follows. The basic cost of the clothing line would come down, which in turn would increase more profits at lower costs. From Malaysia, Topshop can export to other Asia countries that are closer like Malaysia and Singapore. The entire export unit would have to face lower costs for manufacturing and warehousing as costs compared to eastern European countries and United Kingdom is much cheaper hence Topshop would have an outlet at the busiest and the most happening mall of Thailand and would have costs that would be marginal as local labor and resource would be used to get the trade moving. The creative department can also do something for the clothes lineups on the basis of Thai silk, which is supposed to be the best and affordable silk in the world.                         The announcement of the arrival of Topshop can be made with a lot of fanfare, which would include local celebrities as brand ambassadors and also lots of publicity can be arranged through the print media. Competitor Analysis Bangkok has many outlets of leading brands, but most of them are not legal bands and a huge population of branded clothes available is duplicate with made in China references. Topshop frankly doesn’t have much competition to face in the city, as the brand itself is very popular on its own. However it would have to watch out for not getting into the piracy and duplicity scandal of clothing line going well in Thailand. Integrated Marketing communications  The publicity of Topshop can be done with popular links and websites of the nation. SEO’s can be put up in websites which has gaming to newspapers to current trendy social networking sites of the city. This kind of publicity would strengthen the integrated marketing campaign of the company and would ensure more and more orders via the internet.  Strength Weaknesses Opportunities Threats Location of the outlet Brand still unknown in Asia  Can use the labor, and start the in fashionable line up for Bangkok at nominal costs Could become a victim of duplicity of clothes lines. Conclusion  It can be assessed from the following report the current situation of the company and its desire to open up an outlet in Bangkok. Bringing the outlet in Thailand would globalize the company on Asian terms, as Bangkok is one of the major access points of Asia. Not only Asians but also people from all over the world come and visit this enticing city. Bringing an outlet to a place where it could get recognition from all four corners is one of the best business future expansion a company can have.                                                  The company from here can only expand, if it can keep a check over a few shoddy elements. Once the market of Bangkok is captured, then it can be assumed that Topshop has made its major entry in Asia, even though it has its outlets in other Asian countries. Works cited: Topshop official website. Accessed on April 28, 2008 from site http://www.topshop.com/webapp/wcs/stores/servlet/TopCategoriesDisplay?storeId=12556catalogId=19551 The nation politics, â€Å"Ban on political activities lifted†. Accessed on April 28, 2008 from site http://www.nationmultimedia.com/2007/07/18/politics/politics_30041398.php Central Intelligence Agency, The world fact Book, â€Å"Thailand†. Accessed on April 28, 2008 from site https://www.cia.gov/library/publications/the-world-factbook/geos/th.html World health organization, â€Å"TRENDS IN SOCIO-ECONOMIC DEVELOPMENT†. Accessed on April 28, 2008 from site http://www.searo.who.int/EN/Section313/Section1525_10862.htm Amazing Thailand, â€Å"Thailand’s economy†. Accessed on April 28, 2008 from site http://www.amazing-thailand.com/Economy.html â€Å"Siamparagon’s official website†. Accessed on April 28, 2008 from site http://www.siamparagon.co.th/v3/index2.html â€Å"Political crisis in Thailand†. Accessed on April 28, 2008 from http://www.anu.edu.au/thaionline/Political%20Crisis%20in%20Thailand.pdf Hadley freeman, â€Å"Topshop will open in New York, with help from Moss†. November 29th Accessed on April 28, 2008 from site http://www.guardian.co.uk/uk/2007/nov/29/lifeandhealth.fashion RUTH LA FERLA, New York Times, â€Å"But Will It Play in Manhattan?†July 21st Accessed on April 28, 2008 from http://www.nytimes.com/2006/06/21/business/worldbusiness/21topshop.html Jasmine Smith, â€Å"Topshop’s turnaround†. June 6th Accessed on April 28, 2008 from site http://www.insideretailing.com.au/articles-page.aspx?articleType=ArticleViewarticleId=651
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