SHEFFIELD HALLAM UNIVERSITY BA (HONS.) FASHION MANAGEMENT AND COMMUNICATION BRAND MARKETING REPORT FOR TOPSHOP BY AIMEE BEECHAM
CONTENTS
1. EXECTUTIVE SUMMARY 2. INTRODUCTION 3. MACRO ECONOMIC A N A LY S I S 4. BRAND MARKET POSITION 5. COMPETITORS 6. CONSUMER DEMOGRAPHIC 7. PRODUCT SELECTION 8. SOCIAL MEDIA AND I N F L U E N C E R M A R K E TING 9.MARKETING MIX 1 0 . P R O P O S E D S T R ATEGY 11. BIBLIOGRAPHY 12. APPENDIX
EXECUTIVE SUMAMARY
Topshop is a well-established high-street brand targeting young women aged 16-30. Being extremely popular with the younger generation, Topshop has opened hundreds of stores nationwide and is the only high street brand to ever appear in London Fashion Week. Attracting many celebrity clienteles, Topshop has had a handful of collaborations with very well-known designers and celebrities. The brand marketing report will explore the current marketing techniques that Topshop uses to cater to its current demographic of consumer. Discussing whether or not Topshop are successful with their ways and see how I could potentially re brand the entire of appearance and demographic of Topshop to attract an entirely different consumer. We conducted our research through various means and methods and of course the most substantial way was through news articles and websites. From our research we found that Topshop has a diversity problem and has had issues with sweatshops when collaborating with celebrities. As well as the ethical issues Topshop has, we also found them to be very lazy and boring with their marketing techniques, perhaps because they are already established enough that they can afford to do this.
INTRODUCTION
The way Topshop currently stands within the fashion industry it is evident that Topshop has become very comfortable with their current aesthetic and has become somewhat lazy with their marketing techniques resulting in a loss of interest from its customers, with the ever-growing desire to stand out in today’s society we have concluded that rebranding Topshop to something far more unconventional would have the most positive outcome. This report with analyse and outline, in detail Topshop’s current issues surrounding its appearance and aesthetic and look at what changes could be put in place to improve/resolve said issues through a proposed strategy. Topshop’s current demographics, market position and competitors will all be up for discussion to be able to efficiently execute this brand marketing report. To successfully rebrand the aesthetic of Topshop we will have to look at what would make them stand out from their current competitors and just how far we can push the appearance from that of its current one. Initial research began by looking at the current appearance Topshop currently has on its Instagram and produce a survey to find out people’s opinions on said appearance and whether they would like a change. As well as primary research, secondary research was conducted to investigate Topshop’s current online presence and whether this is affecting their sales with their consumer demographic. With all of the research combined, a series of recommendations was produced which would effectively boost sales and custom for the brand.
M A C R O E C O N O M I C A N A LY S I S
POLITICAL As Britain attempts to leave the European Union, British companies would find it increasingly more difficult to purchase and distribute fabrics outside of the United Kingdom. The European Union is the UK’s largest export market for apparel and textiles, accounting for 74 percent of exports. Brexit would also mean it would be harder for companies to expand their companies worldwide as a result of free movement across Europe being jeopardised. A survey gathered over the time frame of three months found that 80% of people felt that Brexit would have a negative impact on Fashion in both the EU and UK. ECONOMICAL Topshop reported that they had suffered a £10.9 million loss in 2017 compared to previous years when they were making a profit of around £59.4 million. This is potentially a result of their lack of interesting online presence with the ever-growing online shopping market. If Topshop doesn’t make a change to this then they could continue to lose custom, especially in younger customers which is actually their target market. SOCIAL Sir Philip Green, a chairman of the Arcadia group has faced issues regarding claims of harassment. These allegations are detrimental to the sales at Topshop. One shopper told sky that if the allegations were proven true then they would take their custom elsewhere and stop shopping at Topshop and Topman. In addition to this, in April 2017 Topshop received backlash for their mannequins being too thin and promoting an unhealthy ‘ideal’ body type.
TECHNOLOGICAL Technology is a huge thing in the fashion industry, it is used to boost sales, Topshop has both an App and a website that you are able to purchase their products from. As well as this they also have an Instagram account to promote their products. However, they are losing sales with online competitors such as Boohoo and Misguided who have a stronger online presence and are continuously growing. “Topshop has become a little less distinctive” (Richard Hyman 2017) ENVINRONMENTAL With fashion being the second biggest polluter in the world, Topshop contributes to this with them being a fast fashion brand. Topshop’s highest selling products is their jeans. It takes around 2,000 gallons of water to make a pair of jeans meaning just their jean sales alone brings about huge amounts of environmental issues. LEGAL The Arcadia group have their own code of conduct guidebook. This is to ensure that all employees within the group and manufacturers are all abiding to the current fashion laws. This is easily accessible on their website and they ensure that everyone understands it.
BRAND MARKET POSITION
STRENGTHS With Topshop having 620 stores and franchises worldwide (in over 40 countries), it is evident that they have a firm positioning in the high street brand sector. This high number of stores brings in a lot of customers weekly with London’s Oxford Circus store attracting 400,000 customers alone each week, representing the sheer popularity of Topshop. They hold a strong presence in the fashion industry and have a very recognisable name. The popularity of the brand isn’t just on the high street, Topshop is the only high street brand to ever show in London Fashion Week with its ‘Unique’ range showing in 2015. WEAKNESSES Despite its popularity in store. Topshop have their weaknesses; their lack of online presence is causing a decreasing popularity with its younger consumers; they would rather shop at more exciting online retailers such as ASOS. The demand of online shopping continues to increase as more and more people are buying fashion items online as it fits in with their lives more, people enjoy how little effort it takes to online shop and Topshop of failing to keep up with this demand. Their website and app are relatively plain and are difficult to navigate. As a result of this shoppers will refrain from shopping at Topshop decreasing sales OPPORTUNITIES Topshop has a leaves little room for diversity within its brand, they do not have a plus size range and their sizes have only just recently gone up to a UK size 18, I order to cater to a wider audience Topshop could develop a plus size range. Changing Topshop’s aesthetic and appearance could also be a huge opportunity to change to something that they haven’t done before to boost publicity and possibly open the brand up to a more niche market, thus creative positive attention surrounding the brand. THREATS Online retailers have better engagement with customers and younger customers are more likely to shop at these online retailers due to this, resulting in them being a huge threat to Topshop as they are struggling to keep up with them. Despite Topshop being around for longer than these online retailers, Topshop Instagram following falls short of that of their competitors.
and BRAND POSITIONING MAP
COMPETITORS
Given the ever-growing demand of fashion amongst young consumers, Topshop has many competitors. Based on statistics of price range and target consumer, we decided that the most prominent store competitors of Topshop are River Island, Urban Outfitters, H&M and House of Fraser. Not only does Topshop have store competitors, but they also have online competitors such as ASOS, Misguided and PrettyLittleThing. Referring to our Brand Positioning Map, it is evident that despite the low quality of PrettyLittleThing’s garments, Topshop will always struggle with their online competitors due to their lack of exciting online marketing etc. With Topshop failing to offer more diversity within the brand, such as offering a plus size range, maternity or a kid range, some customers might feel more inclined to shop else where such as new look, where they offer a plus size, tall, petite, maternity and kids clothing. When a brand does offer a wide range of clothing, customers will feel more included and in turn will take their custom there. Topshop’s advertisement campaigns also lack diversity unlike its competitor River Island, who in 2018 did an advertisement campaign including diverse models, some models were in wheelchairs and some had down syndrome. This represents a true diversity within the brand making them far more approachable unlike Topshop who consistently use similar looking models to model their products.
This mood board shows Topshop’s current competitors.
CONSUMER DEMOGRAPHIC
The average consumer at Topshop is a female aged 16-25, fashionable and style conscious on a budget, independent and aim for a unique look. They stated that they target anyone who ‘loves fashion, regardless of age or income.’ Topshop has always been very biased towards its younger consumers backed up by their offer of 10% student discount available in all stores and online, juxtaposed to Zara one of their competitors who have never offered student discount as they cater to a more mature consumer. In 2017, 54% of Topshop’s consumers were aged 16-24, 23% were 25-34 and 29% were over 35. Seeing a 4% increase in shoppers ages 25-34 in the last year, this is potentially due to Topshop developing a more mature look and showing in London Fashion Week. Their main demographic will students with a low income or no income (excluding their possible student maintenance loan). They will spend their time and money on quick food to eat as they are mostly busy with university work and also go out with friends quite frequently and therefore will require outfits for going out.
Mood board created to represent the current consumer demographic of Topshop, this shows their style and interests.
PRODUCT SELECTION
Topshop offers a wide selection of clothing in store and online. The stores are usually split up into sections; shoes, jeans, bags, underwear and loungewear, and then clothing is sorted accordingly. Accessories are often on independent stands which are in various places throughout the store. Primary research found that clothing was often put with other items that could be bought and worn together. The most popular item purchased from Topshop is their jeans. It is reported that they sell a pair every 10 seconds, one every minute in their Oxford Street store alone. This popularity is present further up the country too with their store in Nottingham dedicated to just denim taking up double the amount that underwear and loungewear takes up. Topshop do not have a plus size section or a kid’s section, they do however have a tall and petite section in addition to their standard range of clothing. In 2017 Topshop expanded is clothing sizes from UK size 16 to a UK size 18 but however received backlash from many fashion bloggers for not catering to plus sized women enough. ‘Cosmo UK reported that of the 1,456 tops on the website, only 195 came in a size 18 and of 800 dresses, only 67 are available in the new size’ Not only do Topshop sell their own brand they also house and sell many other well-known brands such
SOCIAL MEDIA AND I N F L U E N C E R M A R K E T-
The use of social media is imperative in order to execute success with huge fashion brands in todays society. Although Topshop does use social media platforms in order to promote their products, they don’t do it particularly very well. Topshop has been an established fashion brand for years longer than PrettyLittleThing for example, but Topshop however has 9.7 million followers and PrettyLittleThing has 10.5 million followers. This is most likely a result of Topshop’s lack of interaction with their consumers, they don’t deliver anything particularly interesting or do anything that would make them stand out from their competitors. However, Topshop does make use of Instagram’s tools, working with many influencers such as Lauren Crowe, they post an image of the influencer and then use the shop link feature on Instagram to tag a link to the clothes they are wearing. This way of marketing works as customers will be able to easily find the outfit or article of clothing that they like and at the same time they get to see it worn by someone they could possibly relate too more as opposed to when the products are seen on a fashion model.
MARKETING MIX
A mood board showing Topshop’s current marketing mix and other communications.
PRICE For the quality of clothing you receive from Topshop, their products are priced mid-high with the average item costing on average between £20-£60. Topshop does however have a boutique range which is considerably more expensive, with their most expensive product being £745. Compared to its competitors Topshop does cost a fraction more. PRODUCT Topshop sells a range of products from simple cami tops to coats. Topshop specifically caters towards women, but they also have a Topman section within most stores that sells menswear. Topshop offers a huge range of denim products with their most popular item being their jeans. Unlike its competitors, Topshop fails to offer a plus size range, kids clothing and even maternity which in turn will reduce the diversity of their custom. In addition to its clothing, they also offer a variation of accessories, bags, shoes, underwear and make-up. PLACE Topshop has 620 stores and franchises worldwide (in over 40 countries) with 300 alone in the UK. Additionally, they also have concessions in department stores such as Selfridges and Outfit. Topshop stores are usually located in city centres and in shopping centres. Topshop also has an online store and an app where you can purchase their products. PROMOTION Topshop promotes themselves through various means and methods online and instore. Topshop has an Instagram where they promote their products through a series of images each day, the account is not particularly captivating, but it is however a good way to promote given the fact that 90% of 16-24-year olds now have a smartphone with access to Instagram. Topshop seems to focus their attention on their instore promotions however, with their oxford circus store housing many other things in store such as a cupcake stand, a nail bar and also offers the opportunity to have your own stall in there which you can rent from £286 a day. Its not just Topshop’s huge stores that offer other experiences in store, Topshop Nottingham also offers things such as Gypsie Shrine, which is a small stall that sells glitter and gems and they offer make overs which will draw more people into the store.
P R O P O S E D S T R AT E G Y
This mood board gives insight into the potential content and aesthetic Topshop should be portraying on social media platforms as it would show Topshop as a far more interesting and niche brand that would excite people and sequentially result in individuals bringing more custom to the brand and would also aid Topshop into having a far more influential online presence matching that of its competitors. It is believed that this type of content would increase engagement with a young and niche target market as it is not something that many mainstream retailers such as Topshop has ever ventured into
With the information gathered from primary and secondary research and analysis made from these findings, some recommendations have been suggested to boost Topshop’s customer interest so the brand can continue its success within its sector. With Topshop already having a strong dominance within the fashion industry, said recommendations will work to sustain this. Topshop have become complacent with their appearance and doesn’t deliver anything particularly exciting to customers. As a result of this, said customers are slowly starting to choose online retailers such as ASOS and PrettyLittleThing over them, both of which have a consistent and engaging aesthetic. To overcome this Topshop should invest more time into developing an appealing aesthetic which would in turn create positive attention surrounding the brand. It was suggested that Topshop should take inspiration from digitally made and ‘PC’ art for their advertisements and imagery. In doing so they would cater to a far more niche market therefore creating excitement. With peoples increasing desire to stand out in today’s society, communicating their brand and products in such a way would be a success. Despite Topshop’s target market being aged 16-25, Topshop has seen a 4% increase in sales from customers aged 25-34 and a decrease in that of the younger age bracket. We believe that this is because over the years Topshop has become a far more mature looking brand. With Topshop regularly hosting student lock in’s and always offering 10% student discount, this mature appearance does not match the excitement of student life. If Topshop delivered a far more excited image to its customers then younger customers would feel far more inclined to shop there.
This mood board represents the proposed demographic of customer that would shop at Topshop. They would be a fashion-conscious female with the desire to stand out. Bright colours and patterns are something which they enjoy and live a party lifestyle. This is quite different to the current demographic of Topshop. With the proposed strategy of incorporating PC and digital art into their Instagram and advertisement campaigns it has been said that this is the desired demographic of customers that would bring their custom to Topshop.
P R O P O S E D S T R AT E G Y C O N TINUED
Here is an example of how Topshop’s imagery, aesthetic and editing would look like. The images would often be digitally warped giving them a more rugged yet refreshing appearance. Topshop would focus equally on both the art direction behind their imagery as opposed to just taking a clean image of the clothing that they wish to promote like they do now. By taking the extra time to edit their images in such a way would also make it appear that Topshop is taking more pride and interest in communicating their products in a creative way. People will no longer be bored of looking at the same thing all the time that Topshop are currently producing (see appendix 5). From a survey that was conducted to find out consumers opinions, just over 90% of respondents said that they would like to see Topshop incorporate digital art into their imagery (see appendix 1). With this information it is safe to say that changing what Topshop currently looks like into something more complex but well executed would be extremely successful. With Topshop then communicating their products in a more creative way, it was recommended that with the successful execution of the new editing and aesthetic that Topshop could then progress onto making a curated zine or magazine every season to portray the imagery, this way it would create a buzz around what they are doing each season and young creatives would start to take more of an interest in the brand. Topshop sending out a curated zine or magazine will create more of a relationship with its consumers compared to lack of with them now. If consumers see that Topshop is more serious about their products and far less complacent like they are now, they will start to become loyal to the brand as it becomes less of just a high street brand and more like a community celebrating the art that is fashion.
Some of Topshop’s current competitors produce quite low-quality clothing for a cheap price. The recommendations that have been made to change the aesthetic of Topshop’s imagery would bring about new competitors. This mood board shows the potential competitors for Topshop and they all produce clothing of significantly higher quality than its current competitors. As well as the higher quality of products, they all each have a more interesting and engaging aesthetic which is the aim for Topshop.
https://www.arcadiagroup.co.uk/brands/topshop http://academic.mintel.com/display/926186/?highlight#hit1 http://elliedigitalpublishing.blogspot.com/2016/02/topshop-customer-profile.html https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2015/cmruk-2015 https://www.cosmopolitan.com/uk/fashion/news/a50139/most-popular-item-topshop/ http://www.topshop.com/en/tsuk/category/brands-4210405/brands-a-to-z-4210612/ home https://www.thisisinsider.com/topshop-expanded-its-sizes-but-plus-size-customersare-outraged-2017-4
https://www.theguardian.com/fashion/2018/oct/31/is-it-time-to-stop-shopping-atphilip-greens-topshop-or-topman https://www.telegraph.co.uk/news/2017/04/05/topshop-criticised-parents-too-thinmannequins-look-like-famine/
BIBLIOGRAPHY
https://www.businessoffashion.com/articles/intelligence/triggering-article-50-whatdoes-brexit-mean-for-fashion
https://www.drapersonline.com/retail/analysis-is-topshop-losing-its-shine/7018587. article
http://sites.psu.edu/math033sp15/2014/10/16/how-much-water-does-it-take-to-makea-pair-of-jeans/ https://curiosity.com/topics/there-are-2000-gallons-of-water-in-your-jeans-sort-ofcuriosity/ https://www.arcadiagroup.co.uk/fashion-footprint/codeofconduct http://www.topshop.com/en/tsuk/category/clothing-427/topshop-boutique-6924724
https://www.appearhere.co.uk/spaces/topshop-oxford-circus-ground-floor-boutique https://www.newlook.com/uk/womens/curves-plus-size-clothing/c/uk-womenscurves-plus-size-clothing
https://www.cosmopolitan.com/uk/fashion/style/a23276892/river-island-diverse-ad-
https://en.wikipedia.org/wiki/Topshop
1. https://www.businessoffashion.com/articles/fashion-show-review/at-topshop-castingtrumps-clothes 2. https://www.instagram.com/p/BtUAVeOlXsy/ 3. https://www.instagram.com/p/BtY9aVslbEE/ 4. https://www.vogue.co.uk/gallery/topshop-autumn-winter-2018 5&6. https://www.instagram.com/p/Btgw5eRFBBJ/ 7. https://www.instagram.com/p/Bul6JnIjI9p/ 8. https://www.fashiongonerogue.com/topshop-spring-2018-campaign/ 9. http://www.topshop.com/en/tsuk/product/shoes-430/boots-6909314/hurricane-neon-high-ankle-boots-8492810 10. https://www.instagram.com/p/BurYWl_hYGB/ 11. http://www.topshop.com/en/tsuk/product/bags-accessories-1702216/bags-purses-462/kenya-tiger-tote-bag-8315764 12. https://www.instagram.com/p/But2TC_BB8L/ 13. https://www.pinterest.co.uk/pin/445223113143008477/?lp=true 14. https://www.whorange.net/whorange/oh_snap/
IMAGE REFERENCES
https://www.telegraph.co.uk/business/2018/05/23/topshop-posts109m-loss-grapples-tough-retail-environment/
3
APPENDIX 1
2
4
5
6