Alex Stoddart
Brand Report Urban Inc. & Urban Outfitters
This report is a factual investigation into URBN Inc. whilst thoroughly highlighting Urban Outfitters. This report highlights areas such as market development, target market and product insight. I have chosen this brand for my report, as along side this I will be creating a film that will be a promotional campaign for Urban Outfitters. The film will be stylised as to represent the brands S/S 14 clothing, it will appeal to Urban Outfitters target market, and will recognise their fashion trends and seasonality. The aim of this report is to gain skills in brand research and analysis. Previous to this report I had not conducted such extensive research, investigating into a company has enabled me to gain and develop these skills. Having an interest in marketing has meant this report has been extremely beneficial, researching into e-commerce advertising and direct marketing has deepened my understand of a companies strategies. This study examines many of the aspects that have built Urban Inc. into a successful company; it will also include the weaknesses and opportunities the company hold. I will look briefly into each brand within the company and I will look into their ability to understand and resonate with their target audience. I will look into Urban Inc.’s eclectic store design and eclectic mix of merchandise differing across each brand.
Urban Outfitters as owned by Urban Inc. is an American high street brand. By aiming its merchandise at the youth market, Urban Outfitters have unique marketing tools that may differ from other British high street brands. Rather than advertising through print, television media, and billboards Urban Outfitters are much more subtle. They operate a direct marketing channel which incorporates sending catalogues to customers who registered for this, an interactive website, they also send emails to customers to alert them of new brands joining the company/ website, sales and also new products. The question is, is this enough? Companies spend a serious amount of money researching into the youth, trying to understand how they can make their messages relevant to today’s youth audience. They aim to completely understand their target market’s life, habits and attitudes. Young people are key to numerous markets, especially students, who account for around half the UK youth population, they contribute roughly £20 billion to the UK economy every year. By Urban Outfitters targeting young adults aged 18 to 28 they have a clear and strong market, this specificity means they are easily able to focus and cater to their consumers. These students are the next generation, are the next generation, if Urban Outfitters capture their commitment and interest now they could secure a relationship with them for life. It is extremely apparent that young people are big users of social media - 97% in the Guardians recent survey use Facebook and 45% are on Twitter. Although less is known about what the youth really want and expect from brands through these platforms. As a customer of Urban Outfitters, and a student within the youth market, I am able to see the strengths and weaknesses of Urban Outfitters. As a brand they offer a wide variety of merchandise, this is a major advantage,
customers are able to buy clothing, make-up, rugs and hip flasks in one place. Regarding the advertising, it is not necessary for Urban Outfitters to advertise via television media, radio or billboards, when in London I am able to access Urban Outfitters in 3 of the most popular places to shop, Covent Garden, Oxford Street and Kensington. This is how most of my friends and I discovered the store, through no forceful advertising; this is one of Urban Outfitters aim. Their blog and Pinterest is also very interesting and stimulating, it is a way their audience can converse and interact with them; the blog is also humorous and entertaining. Despite this Urban Outfitters lack expansion, having only 25 stores in the UK is a disadvantage, they are yet to make such an impact as H&M or Zara for example, they are not taking full advantage of the youth market and the recognition of their brand. 7 of these stores in the UK are situated in London; this is not appealing to the mass market, as said before students are key to their market, Manchester has the largest population of students, so here is a place they should be expanding. Urban Outfitters should also be expanding to Asia, as many other high street brands are, the wealth is new and developing and they are craving fashion. They have also recently been tied up in many lawsuits, for example The Navajo Nation filed a lawsuit against UO after they released several products bearing the tribe’s name, such as “Navajo Hipster Panty” and “Navajo Flask”. This was offensive and careless on Urban Inc.’s part. Also in late 2008 Urban Outfitters released a “I Support Same-Sex Marriage” t-shirt, then withdrew them a week later when a buyer cited “too much bad press” as the reason. It then came to air that Richard Hayne, founder and CEO of the company, has contributed to the campaign of anti-gay senator, Rick Santorum and his Political Action Committee. Santorum has publicly bashed homosexuality, as he rejected the need for civil partnerships. This bad press is apparent in the USA, however in the UK this information is not so widely known, they need to clear up there American image incase it spreads over to the UK.
Through this brand report I will look into factual information only regarding Urban Inc. and Urban Outfitters, I will examine the factors that have enabled them to establish an American and European presence. I will research factually into how they appeal to their target audience regarding store design, merchandise and location. I will also look into the overall elements and workings of the company.
Market Development
Urban Inc. operate a direct marketing channel, this generates sales directly through websites and catalogues. Urban Inc. believe their Directto-Consumer channel increases the reputation and recognition of their brands with our target customers and help support and strengthen their store operations. When combining all brands, the Direct-to-Consumer sales increased 1.3% to approximately 20.4% of consolidated net sales in fiscal 2012, as compared to 2011. Urban Inc.’s social media initiatives and web marketing contributes significantly to their Direct-to-Consumer sales growth. They plan in fiscal 2013 to increase investment in web marketing and social media initiatives for all brands. These increases will be based the continual evaluation of the customer’s rate of response to web marketing initiatives. During fiscal 2012 Urban Inc. circulated approximately 47.9 million catalogues across all brands. The catalogue circulation levels are driven by the evaluation of the response rate to each individual catalogue. Then based on the evaluation, they adjust the circulation and frequency of the catalogue as needed. Urban Inc. also evaluate the buying pattern of their Direct-to-Consumer customers, this is to determine which customers respond to the catalogues. Consequently Urban Inc. plan to decrease their catalogue circulation to roughly 44.7 million catalogues across all brands in fiscal 2013.
Urban Outfitters are planning to open more stores over the next few years, some of which may be outside the United States. Urban Outfitters’ North American and European store sales accounted for roughly 31.4% and 5.9% of consolidated net sales for fiscal 2012. Anthropologie plan to open additional stores over the next several years, some of which may be outside the United States. Free people also plan to open more stores in the next coming years, some of which may be outside the United States. Terrain anticipates opening a second garden centre during the first half of fiscal 2013. Urban Inc. opened a second BHLDN store in the first quarter of fiscal 2013; this store is located in Chicago. All brands combined, Urban Inc. plan to open approximately 55 to 60 new stores during fiscal 2013, this will include 23 Urban Outfitters stores, 16 Free People stores, 14 Anthropologie stores, 1 BHLDN store and 1 Terrain garden centre. Moreover for their Anthropologie, Urban Outfitters and Free People stores, they plan to administer a location expansion strategy in fiscal 2013; this is similar to their strategy in fiscal 2012.
History
Urban Inc. are a leading lifestyle specialty retail company that operates under the Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN brands. Moreover they operate a wholesale segment under the Free People brand. These are retail stores that offer various collections of fashion clothing, accessories and home products. Urban Inc’s core strategy is to “provide apparel, accessories and home goods in inviting and dynamic store settings. To provide unified store environments that establish emotional bonds with the customer.” The company Urban Inc., founded by Richard Hayne and Scott Belair, opened its first store in 1970 near the University of Pennsylvania campus in Philadelphia. It was originally operated by a predecessor partnership. They were incorporated in Pennsylvania in 1976, and then went on to open a second store in Harvard Square, Massachusetts in 1980. Anthropologie was first opened in a suburb of Philadelphia in October 1992. Their business in Europe started in June 1998, with their first European Urban Outfitters store located in London. The first Free People store opened in the Garden State Plaza Mall in New Jersey in November 2002. The first Terrain garden centre opened in Glen Mills, Pennsylvania in April 2008. Urban Inc. opened their first
European Anthropologie store in London in October 2009. In August 2011, Urban Inc. opened their first BHLDN store in Houston, Texas. In 1984 Urban Inc. established the Free People wholesale division to develop, connecting with Urban Outfitters, private label clothing lines of young women’s apparel that could be effectively sold at attractive prices in Urban Outfitters stores. As of January 31, 2012, Urban Inc. employed approximately 17,000 people. Approximately 41% of these people were employed full-time. Due to seasonal needs, the number of parttime employees fluctuates. Approximately 1% of the total employees work in the wholesale segment, and the remaining 99% work in the retail segment. In addition to retail stores, Urban Inc. offer products and market their brands directly to customers through e-commerce websites; www. urbanoutfitters.com, www.anthropologie.com, www.freepeople.com, www.urbanoutfitters.co.uk, www.urbanoutfitters.de, www.urbanoutfitters.fr, www.anthropologie.eu, www.shopterrain.com and www.bhldn.com. They also sell through Urban Outfitters, Anthropologie and Free People catalogues. They have achieved increased annual sales growth of approximately 15% over the past five years, with sales of approximately $2.5 billion in fiscal 2012.
Target Market
Urban Inc. is a retail company that operates under the Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN brands. Each brand has a different profile and therefore a different target market. Urban Outfitters targets young adults aged 18 to 28, they define their target customer as “culturally sophisticated, self- expressive, individuals that are urban minded and educated.” They offer a lifestyle-specific shopping experience for those with an interest in contemporary art, music and fashion; they have established a reputation with these young individuals. Anthropologie aims its merchandise to “sophisticated and contemporary women”. This lifestyle brand targets women aged 28 to 45, their inviting store stocks a unique and eclectic product assortment. For their target customer Anthropologie is an escape from the everyday, their products are aimed at customers with an appreciation for art, good design and travel. The Free People retail stores primarily offer Free People branded merchandise, they target contemporary women aged 25-30. They define their target customer as carefree, curious and confident. Terrain is a unique brand; founded in 2008 Terrain is designed to appeal to men and women interested in a creative, sophisticated outdoor living and gardening experience. Inspired by the ‘greenhouse’ the Terrain garden centre is a celebration of nature, operating 20,000 square feet as well as two acres of outdoor selling space; Terrain is an experience for the senses. BHLDN, unveiled on Valentines Day in 2011, is a brand that emphasises every element that contributes to a wedding, from lingerie to decorations. BHLDN’s target customer is the smart and creative woman.
Retail
As of January 31, 2012, Urban Inc. operated 197 Urban Outfitters stores, 157 of these were located in the United States, and 10 in Canada and 30 of these stores were located in Europe. During the financial year of 2012, 21 new Urban Outfitters stores opened, 13 of which were located in the United States and 8 were situated in Europe. Urban Outfitters’ North American and European store sales accounted for approximately 31.4% and 5.9% of consolidated net sales, proportionately, for fiscal 2012.
centre sales accounted for less sales for fiscal 2012.
As of January 31, 2012, Urban store; this store was located in BHLDN store opened in the first store sales accounted for less t sales for fiscal 2012.
As of January 31, 2012, Urban Inc. operated 62 Free People stores; all of these were located in the United States. 20 new Free People stores were opened during Fiscal 2012. Free People’s retail store sales accounted for approximately 2.7% of consolidated net sales for fiscal 2012.
Urban Inc.’s aim is to create a stores; so then through this the bond with the customer. Urban preferences of their target custo element of the environment is t Urban Inc. stores incorporate m creative scenes; this offers their at an authentic lifestyle. The ov modified to reveal architectural organic. Visual merchandising is stores; the display techniques le store design, the products and strive for the perfect ambiance components may include playing their target customers. They em and identify with the target cust
As of January 31, 2012, Urban Inc. operated one Terrain garden centre, this was located in Glen Mills, Pennsylvania, and the site is large and free standing. The Terrain garden
Anthropologie considers it impor individual store shopping experie achieve this by providing an inv
As of January 31, 2012, Urban Inc. operated 168 Anthropologie stores, of these 160 were located in the United States, 5 were situated in Canada and 3 were in Europe. During fiscal 2012 15 new Anthropologie stores were opened, 13 were located in the United States, 1 was located in Canada and 1 was located in Europe. Anthropologie’s North American and European store sales accounted for approximately 32.8% and 0.9% of consolidated net sales, proportionately, for fiscal 2012.
than 1.0% of consolidated net
Inc. operated one BHLDN Houston, Texas. A second t quarter of fiscal 2013. BHLDN than 1.0% of consolidated net
unified environment in their ey can establish an emotional Inc. consider the aesthetic omers in every store, every tailored to the customer. The merchandise into displays and r customer an entire look verall store is designed and details; the style is raw and vital to Urban Inc. and their end the connection among the also the customer. Urban Inc. within their store, fundamental g music, and this appeals to mploy staff that can understand tomer.
rtant to create a tailored and i ence for each customer. They viting and pleasant shopping
atmosphere, they employ attentive sales staff, including, in many stores, in-store customer care managers, this is a rarity. A few Anthropologie stores are placed in unique and nontraditional retail locations. A majority of our Anthropologie stores opened during fiscal 2012 were located in upscale street locations and enclosed shopping centres. A few Urban Outfitters stores are situated in unconventional retail spaces, this includes a former movie theatre, a bank and a stock exchange. The majority of Urban Outfitters stores that opened in fiscal 2012 were located in upscale street locations, specialty retail centres and enclosed shopping centres. Free People retail stores that are currently open are primarily located in enclosed shopping malls; specialty retail centres and upscale street locations. The Terrain garden centre is a free-standing location, it is situated over ten acres of land. The Houston BHLDN store is located in a specialty retail centre.
Online
Urban Inc. operates 5 websites, Urban Outfitters is their biggest website, the site accepts orders directly from customers. The website captures the spirit of the store by offering a similar yet broader selection of merchandise as found in the store. Urban Outfitters Urban Outfitters operates a website that accepts orders directly from customers. The website captures the spirit of the store by offering a similar yet broader selection of merchandise as found in our stores. Urban Outfitters operates three websites targeting our European customers, offering again a similar yet broader selection of merchandise as found in our European stores. The website has recently been changed and improved, the site is now simpler and much more attractive. The products are displayed on models, models are well styled and this gives the customer an insight into the product, what will look good alongside their chosen merchandise. There is a lot of online exclusive merchandise available, ranging from underwear to speakers and headphones. The site offers a large range of brands, over 80 brands are sold, and this is many more that could be stocked in a store. This is extremely appealing to customers as some of these brands can be difficult to find, such as New Balance and Clarks Originals for women. They offer brands that are fresh and up and coming, they are aware of what their target market is craving. In a statement recently, Richard Hayne chief executive officer said there had been about a 30 percent increase in traffic from last year on the company’s web and mobile sites. Urban Outfitters increased its web-exclusive offerings by 75 percent from last year, which helped boost sales, Hayne said. The company increased dress styles available online by 50 percent this year from 750 across all its brands last year, Hayne said.
Marketing intiatives
Urban Inc. believe they have highly effective marketing tools within their websites and catalogues. They regularly refresh this media as often as daily, through this they aim to reflect the freshest changes in fashion and culture. Urban Inc. also believe that extremely visible store locations, creative store design, extensive merchandise selection and visual presentation are essential enticements for customers. All of these components together are reasons for the consumer to enter and explore the stores and buy merchandise, therefore rather than relying on traditional forms of advertising such as print, radio and television media Urban Inc. rely on these factors to draw customers into their store. Urban Inc. also rely on their brand recognition created by their direct marketing activities to entice customers. Urban Inc. create marketing activities for each of their retail stores, these include special event promotions, and a variety of public relations activities designed to create community awareness of their stores and products.
Marketing activities for each of the retail store concepts include special event promotions and a variety of public relations activities designed to create community awareness of their stores and products. Urban Inc. have increased their focus on the expanding area of social media and blogs. They believe that the traditional method of a one-way communication to customers is no longer enough. Urban Inc. feel by instigating a conversation and interacting directly with their customers, especially via Facebook and Twitter, they are more effective at understanding and serving their consumers fashion needs. Urban Inc. are a big believer in blogs, and they feel that their blogs continue this conversation. Each brand through a blog can communicate what inspires them as a company, for example art fairs, interior space, and videos. Blogs also allow their customers to communicate what inspires them. This social element fosters their relationships with their customers and encourages them to continue shopping with Urban Inc.
Urban Inc. expenses the costs of advertising when the advertising occurs, except for direct-to-consumer advertising, which is capitalised over its expected period of future benefit. Urban Inc.’s advertising costs primarily relate to their direct-to-consumer marketing expenses which entail web marketing, printing catalogues, paper, postage and other costs related to production of photographic images used in their catalogues and on their websites. As Urban Inc. operates a direct marketing channel the advertising element is extremely different to most companies. They do not advertise using print, radio or television media; instead they rely heavily on location, store design and visual merchandising. Urban Inc. believe these aspects are enough to draw in customers, the company is not forced upon customers it is there for them to discover themselves. In London Urban Inc.’s stores are in great locations, for example Urban Outfitters is situated in Covent Garden, Marble Arch and on Oxford Street, and these stores are hard to miss. Urban Inc. also believe strongly in the power of their social media, investing a lot of time in their blogs, Facebook and twitter. The Company has the ability to measure the response rate to direct marketing early in the course of the advertisement based on its customers’ reference to a specific catalogue or by product placed and sold. The average premium period for a catalogue and related items are typically three months. If there is no expected future benefit, the cost of advertising is expensed when incurred. Advertising costs reported as prepaid expenses were $3,586 and $3,323 as of January 31, 2012 and 2011. Advertising expenses were $71,684, $58,336 and $46,827 for fiscal 2012, 2011 and 2010, proportionately.
Product Insight
For Urban Inc. to serve their target customers and to recognise changes in fashion trends and seasonality, they purchase merchandise from many foreign and domestic vendors. Urban Inc.’s vendors are located overseas and they rely on overseas sources for a large portion of their merchandise. During fiscal 2012, Urban Inc. purchased from roughly 3,400 vendors. No single vendor accounted for more than 10% of merchandise purchased during that time. While Urban Inc. is certain of their vendors have limited financial resources and production capabilities, they do not believe that the loss of any one vendor would have a material effect on their business.
Urban Inc. have 5 product lines, therefore their merchandise differs from brand to brand. Urban Outfitters for example, targets young adults aged 18 to 28, they define their target customer as “culturally sophisticated, self- expressive, individuals that are urban minded and educated.” They offer a lifestylespecific shopping experience for those with an interest in contemporary art, music and fashion; they have established a reputation with these young individuals. This clothing is hip and trendy, focusing on bright colour; their clothing is influenced by many eras such as punk and hippy. Some of the clothing they stock is daring and aimed for the most expressive young adults. Spiritual movements such as Buddhism influence accessories, the jewellery is adorned with symbols and animals, and there is an element of culture and travel through their clothing. “The wide breadth of merchandise offered by our retail segment includes national third-party brands, as well as exclusive merchandise developed and designed internally by our brands. This selection allows us to offer fashionable merchandise and to differentiate our product mix from that of traditional department stores, as well as that of other specialty and directto-consumer retailers. Merchandise designed and developed by our brands generally yields higher gross profit margins than third party branded merchandise, and helps to keep our product offerings current and unique. The ever-changing mix of products available to our customers allows us to adapt our merchandise to prevailing fashion trends, and, together with the inviting atmosphere of our stores, encourages our core customers to visit our stores frequently. We seek to select price points for our merchandise that are consistent with the spending patterns of our target customers. As such, our stores carry merchandise at a wide range of price points that may vary considerably within product categories.”
Gross profit rates in fiscal 2012 decreased to 34.8% of net sales, or $861 million, from 41.2% of net sales, or $937 million, in fiscal 2011. This decrease was mainly due to increased merchandise markdowns to clear the slow moving inventory, primarily associated with women’s clothing inventory at Anthropologie and Urban Outfitters, as well as deleveraging of store occupancy expense as a result of negative comparable store net sales.
S.W.OT
By choosing Urban Outfitters as a brand to analyse it is clear to see the many strengths they have. Urban Outfitters stores are situated in great locations over the world, 7 stores are found in some of the most desirable hot spots of London. There are 11 in Europe, outside of the UK, for example in Stockholm, Berlin and Copenhagen, very trendy and fashionable areas. Urban Outfitters also have a very strong brand image, ask 90% of young adults if they know of Urban Outfitters and the answer will be yes. There clothing is known to be edgy, current and reasonably priced. It is inspired by travel and culture, this is obviously shown through the pattern and fabric they use, this is unlike most high street stores. Urban Outfitters also have a large product range, there is a lifestyle range incorporating kitchenware, furniture and bedding, this diverse range turns into a one-stop shop. Urban Outfitters weaknesses could be the fact that they do not have many stores globally as others. For Urban Outfitters to grow and develop they must have the ability to expand and open new retail centres. Urban Outfitters has opened more than 25 stores annually for
the past three years, and in recent years URBN Inc. has opened retail locations in Europe. However many retailers are starting to establish a presence in Asia, there is new wealth developing in the region and the fashion industry is booming, companies want to profit from the new wealth developing there. H&M, one of URBN Inc.’s competitors, has 13 stores in China and 2 in Japan. Despite this URBN Inc. has no plans to establish a presence in Asia, this means it is missing out on a chance to profit from this developing market. Although URBN is already well established in America, its lack of an Asian presence can be a disadvantage, especially since its competitors already have a head start. Urban Outfitters has the opportunity to take advantage of digital media. On their blogs there is not much video footage to be seen and this is surprising. They should feature more promotional films on their site, showing the customers 10 new items they have chosen to sell on the website, this could happen every two weeks, this way the brand will develop an even stronger connection with their consumers. This element will give the consumer an insight in
how to style their chosen products; this could then lead to a bigger profit for Urban Outfitters, this would also drive their social networking following even further. Cotton consumption exceeded cotton production for the fifth year in the row, making cotton prices increase by 80.5% from last year. Moreover Natural disasters also severely damaged crops in many large cotton producer countries, such as China, India, and Pakistan, and this led to decreases in cotton exports from these countries. Due to limited cotton supplies and rising prices, companies will either have to consume these higher material costs, redesign the composition of their clothing and use less cotton, or pass these higher costs to its consumers. Higher clothing prices or lower quality clothing could possibly discourage consumer spending, and this will result in decreased net sales. Urban Outfitters clothing contains a substantial amount of cotton, usually 30-40% cotton based. While premium price and established brands may be able to pass their higher costs to their consumers, value based companies may not fare as well and may suffer from lower profit margins.
Competitor Analysis
In the UK Urban Inc. have quite a few competitors, especially since their main stores are situated in focal points over London. Focussing on Urban Outfitters, companies such as H&M, INDITEX, and the Arcadia Group are the brands biggest competitors. Topshop owned by the Arcadia Group, and Zara owned by INDITEX are prominent in the same locations as Urban Outfitters over London, they also have a similar target audience and product range.
a celebrity to collaborate with that would appeal to both countries as well as other parts of Europe. However H&M do not provide innovative products, and their product range has no particular focus as they are aiming their merchandise at a large target market this means there is no strive for a particular consumer. This is unlike Urban Outfitters, they have a clear target audience and consumer this is a strength of theirs.
H&M as one of Urban Outfitters main competitor holds many collaborations. Stella McCartney, Lanvin, Anna Dello Russo and Maison Martin Margiela are a few of some of the designers that have collaborated with H&M. This is an extreme strength; this aspect provides the company with exclusivity, it creates hype and craze. This is an element Urban Outfitters is lacking; due to their direct marketing they do not have an allowance for this type of advertising. As they are prominent within the USA as well as the UK they may feel it is difficult to find
Topshop is another main competitor of Urban Outfitters; Topshop has over 300 stores in the UK and over 140 stores internationally. Topshop has a major following outside the UK, it has and will continue to expand into Asia, recognising the developing marketing and the development of wealth. Topshop has recently opened a store in Hong Kong and it will cover 12,000 square feet, this shows that Topshop’s global growth is continual. Unlike Topshop, Urban Outfitters has no plans to expand into Asia, it has many stores in the USA but only 18 in Europe, and this is a downfall. To develop as a company they need to establish an Asian presence. The fashion industry is booming, Urban Outfitters as well as Urban Inc. need to take advantage of this.
Conclusion
Overall the success of Urban Inc. as a company is apparent, however some brands within the company are yet to fulfill their full potential. They have effectively translated their concepts, style and ethic from the USA to Europe, Urban Outfitters particularly, considering the brand has a bold American influence their presence in the UK is strong. Urban Outfitters is their most popular store in the UK, Anthropologie has 2 stores in London, 1 in Edinburgh and a concession in Selfridges, the rest of the brands are yet to expand to the UK, relying on their webpage for UK customers. However they are yet to expand to Asia, and this is a main weakness I have highlighted through this report, many of their competitors are in the midst of this expansion, and therefore they have had a head start. As a company, they are missing the chance to take advantage of this developing market, despite this they do have plans to continue to open stores internationally. As a brand they feel they have limited prior experience operating internationally. International stores have different operational characteristics, such as, employment, labour, transportation and legal requirements; this means they are less open to expanding into unfamiliar territory. This extreme international expansion could have an adverse impact on their financial condition; they must consider political and economic risks, and the overall global economy. Furthermore, consumer demand, taste and trends differ internationally; they would have to put in a considerate amount of research to ensure their merchandise is successful. It is obvious that expansion, to Urban Inc. is a big decision, they are content within the USA and Europe, this is fine, however, they may fall behind in the market. The brand image of the company has been emphasised through this report, and this is a strength of the company. They have a concise target market, the youth, and this means their merchandise has direction, they can focus on one market rather than trying to cater to a varied audience. There stock, aimed at the youth, also includes lifestyle, such as kitchenware, cushions, and rugs, and they display this within the store. The diverse range of products means they are providing, ultimately, a one stop shop, this element is interesting and exciting for the customer. Urban Outfitters also stock various brands, in store but mainly online. The introduction of new brands and stock means they are current and fresh, they are able to adapt to the prevailing fashion trends, this encourages customers to visit the store. Through investigation it is clear Urban Inc. is a promising and prosperous company, with many great strengths, they have a secure and dedicated audience, they just need to prevent contentment and exploit their opportunities.