Unit 2 Retail Theory & Practice Level 5 Higher National Certificate
Unit 2 Retail Theory & Practice Level 5 Higher National Certificate
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Retail fashion industry is well grooming enterprise in present environment. In order to make it well and effective it is essential to understand the customer in market. In order to make it well known in market it is important to interpret the need and demand of current customers. Thus, it can be said that retail enterprise works as to combines number of strategic factors and this all are essential in order to gain overwhelming success. The present assignment will outline the activities of ZARA in relation to its market position as per fashion industry. It is inclusive of various activities as are Role of retailing in economy, theories in relation to retail change. Changes in retail environment, consumption and shopping tends etc. In addition to this the prices strategies in relation to fashion industry is need to be defined so that process in manner fashion industry can be taken out effectively.
Role of retailing fashion industry in economy.
The retail sector plays vital role in UK economy, the fashion industry plays the essential role in manner to earn large amount of profitability in market. Thus, it can be said that the creative and innovative fashion industry has much to offer. ZARA are having effective designers in market who are taking various initiatives in order to set the trend in market. Under this ZARA provides liberty to customer in relation to choose the products as per their choice and preferences in market. Under this it can be said that the UK, retail fashion industry are known for their high fashion standard. In addition to this, it can be said that the Growth of ZARA in UK has high impact on home-grown chains such as are Mark & Spenser etc. Although, ZARA which has arrived in the market of UK in the year of 1990, it only makes the UK top 20 list of Women wear retailer and it is based on its market share. With the help of steady growth, economic opportunities are helpful in relation to create innovative products in market. Zara can be taken as the most ethical and environment friendly clothing, it is one of the positive factor about it. Thus, it is gathering the attraction of widen range of customer in market. Hence, it can be said that the ZARA is having the larger contribution in the economic growth of UK. By the virtue of this fact, It cannot be denied to say that retail has occupies the important place in world economy.
Description on key relevant changes and retail changes.
Under this it can be said that it is very essential to understand the changes of fashion industry in UK market. The changes are essential in order to have growth in market. By understanding the relevant changes in the market need of the customer is need to be analyse so that effective steps towards it can be taken. The changes are very essential in order to enhancing the profitability and productivity. Thus, it can be said that ZARA is most global leading bran in this universe. The changes are the part of fashion industry. Thus, it is essential to give focus on it. The changes mean innovation in design of the product and services in the market so that customer can get attracted towards it. There are various kinds of changes which are to be taken place as are-
Technology & Innovation-
in this it can be said that the technology place the essential role in order to bring changes in the product and services. By adopting technological changes in the fashion industry, the fashion can be developed effectively. This is useful in relation to deliver product and services to customer in timely mode. Innovative result in organisation will be helpful to attract the customer and it will help to lead grater satisfaction. The technological changes in fashion industry and producing trendy products will be helpful to have enlargement in the activities of firm. This is also helpful in order to boosting brand image in market. ZARA is having various designers who works as to produce those goods which will be helpful in order to attract customers in market.
Identification of customer preferences-
This is one of the crucial and effective step in this the need of the customer is need to understand. The fashion industry is rapidly changing, in order to cope up with it is essential to set those high standard in which firm can operate its business activities affectively. With the help of this kind of factor there can be enhancement in the demand of products to firm. ZARA works as to takes feedback from customer about the quality and fashion trends from customer so that they can feel satisfied by knowing that firm is putting major focus over the need of customers.
Set clear objective and goals-
By setting the objective and aim that what is to be achieve within the specific deadline will be helpful to focus over business activities. ZARA is global leading brand thus, it is providing seasonal goods to customers and as per the changes required. In addition to this, it is essential to set goals in order to reach customer and their focus. This will be helpful in relation to enhancing the brand image in market. By providing seasonal good in time to the customer will be helpful to maintain customer retention.
This is one of the most crucial aspects in order to deal with functioning of firm. There must be proper interaction between the departments of enterprise so that firm can operate it business activities smoothly. Without proper communication the firm is not able to undertake market functions in expertise mode.
In this it can be said that the measurement is need to be taken effectively between the planned and actual result. The better evaluation will be help out to bring positive result so that positive steps can be taken towards the operational function. ZARA need to focus over the specific strategies which will help out to have smooth functioning in firm activities.
Vertical strategies to compete in market-
vertical integration is also works as to creates the risk. In this firm can get involved in the new portion of value chain. In this manner it can be true to said that the distinctive strategies and it is helpful in relation to let the activities of ZARA to create the climate of scarcity and opportunity in order to develops the fast fashion system in market. Thus, the ZARA in house production works as to create rapid product turnover in market. This kind of approach plays attractive role when firm suppliers and buyers are having too much power over the activities of enterprise. This term is having the significant effect on the position of its business units with respect to its cost, differentiation and other strategies. Thus, it can be said that this kind of scope plays essential role in relation to corporate strategies of firm. There are various kind of vertical integration strategies as are-
Forward integration- This term means expansion of activities to the downstream that works as to company acquire its input supplier.
Backward integration- This term derived as expansion of business activities to the upstream that is company acquires companies in distribution chin.
Description on the ZARA's retail pricing strategies.
ZARA is well known brand in its high fashion. The pricing strategies of the ZARA is as per its products and quality services. The main concept of ZARA is to provide, it is low cost model. The ZARA works as to be well recognized as the fist class image, second class production and third rate price. The ZARA never given major focus to the have cheap labor cost, material cost and fast production schedule. This kind of factor are Retail theory & Practice (fashion Industry)enable to choose low pricing strategies by ZARA. In this manner the ZARA has adopted the two differed kind of pricing strategies as are-
The ZARA is having strong position in market, in this manner to sustains in market for longer period it is essential to adopt high pricing strategies. Thus, they aim to provide high quality products to customers. In this manner to have long termed sustainability of customer in firm it is essential to target the high income level people so that they are able to provide quality product to customers at reasonable price. The main aim of this firm is to not only the value proposition but it is also affordable to customers in market. The success factor of ZARA is depends on optimizing development and training cost. In this manner it can be true to said that the current pricing strategies is suitable for ZARA, as it is value based pricing strategies. The main aim of this strategy is to put major focus over the customer perception in terms to value rather than cost of company to set price. This firm are having the target customer whose focus is also on high price of luxury fashion brands.
Reason for change in the price-
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ZARA is not having the large fashion design team. In this manner the one of the major reason behind this is to forced the ZARA to have increment in the price in response to material and labor wages.
PESTEL Analysis of the Fashion Retail Industry:
A PESTLE analysis six factors effect a business. Fashion Retail Industry the success of understand the better environment. UK Fashion retain industry as a clothing industries. Is the retailing market of women's, men's and children's. Pestle analysis of fashion retail industry is the affect of political, economic, social, technological, environmental and legal.
Political : Political factors of the fashion industry of the biggest source. Political factors including tax policies, laws and regulation and the government policies of fashion retail industry. Fashion retail industry is the important part of political factors. Is the impact of fashion organization and the also effect of government policies. Political factor make the affect of government policy will be changed. The impact of tax will be increase and decrease for some company is the affect of direct is related to fashion retail industry. Political factor of affect of economic environment.
Economic : Fashion retail industry is economic impact to positive and negative. Is the biggest source of the industry. Economic factor is affect of smart decision to fashion retail industry to height. Is the affect of sales and profits of the retail industry. Is the connected of goods, services and money. Is the different place and different people the interest rates is affecting of the industry. The UK is one of the highest GDP in the world. Fashion retail industry affect of the economic factors.
Social : Is the growth of fashion retail industry is the important role of social factor affecting. The different culture of any society. The decision of consumer to buying the role of social factors. The social affect of the society will be change, If the social factors is the fashion industry of dress code of the style, looks and many others. Social changes is affect of demand of the fashion products. Social issue buying of the cloths the end of products to starting a new look. The social culture affect of people shop and decision. If social environment to own society.
Technological : Is the growth of fashion retail industry the affect of technology is important part of fashion. If the century of use of internet and mobile use for shopping the devices. This industry improved production the important technology. The technological developments is such of developing online business. Technological used such a company to consumer to better shopping options and the also open new retail market and shopping market. Fashion retail industry the company used the technology to connect their customers.
Environmental : Its is the external affect of a fashion retail industry. The fashion retail industry the important part of environment. Fashion retail industry carefully about that environmental and the using of friendly raw material of products.
Legal : Is the challenging part of fashion retail industry. Legal factors affect of fashion retail industry. Legal factors is affecting of fashion retail industry negative and positive of market actions The fashion retail industry to the large industry is employer will be large to applying labour laws the business apply to it. Is the affected of employees and workers rights to laws.
Define the strategies in relation to ZARA clothing market.
These as are-
The valuing of the item-
The cost of the item is should be advocated in the wake of seeing the kind of the item and to discover that this will help you to expand the development of the wares or not. With the assistance of this sort of the things they can take the successful choice.
Development of business-
the business can ready to develop in the market just when they can manage the different sort of the progressions. This will grow the measure of the market in the compelling way. The development will just conceivable if the market is prepared to take the advancement procedure, this will be useful keeping in mind the end goal to expand the abuse of the market.
This is exceptionally significant advance in this the item it should be changed after breaking down the need and needs of the customers in the market. With a specific end goal to have increase in the product offering the association can have augment in the deals and benefits of the firm. In this level the innovation factor assumes the imperative part by knowing the request of the customers in the market.
Hereby, it can be concluded that Retail fashion industry is well grooming enterprise in present environment. In order to make it well and effective it is essential to understand the customer in market. The present report has been focused on various activities as are Role of retailing in economy, theories in relation to retail change. Changes in retail environment, consumption and shopping tends etc. the prices strategies in relation to fashion industry is need to be defined so that process in manner fashion industry can be taken out effectively.
Gardetti, M.A. and Torres, A.L. eds., 2017.Sustainability in fashion and textiles: values, design, production and consumption. Routledge.
Thompson, K.H., Ellis, D., Soni, S. and Paterson, S., 2017. Attributes influencing clothing store choice for an emerging market’s Generation Y Twixter customers.The International Review of Retail, Distribution and Consumer Research, pp.1-17.
Kim, T.Y. and Lee, Y.J., 2017. Contemporary dandies: The behavioral characteristics of Korean male consumers in fashion multi-brand stores and tailor shops.Journal of Business Research. 74. pp.149-153.
Walsh, G., Schaarschmidt, M. and Ivens, S., 2017. Effects of customer-based corporate reputation on perceived risk and relational outcomes: empirical evidence from gender moderation in fashion retailing.Journal of Product & Brand Management. 26(3). pp.227-238.
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