A strategic plan for the TOPSHOP chain to re-launch TAIWAN - part ONE.

01

thesis-1.indd 1

2011/7/5 4:47:20 PM

A STRATEGIC PLAN FOR THE

TOPSHOP TAIWAN CHAIN TO RE-LAUNCH

MA Fashion Marketing and Communication Supervisor Crosby Gillian MA course leader Yvonne Trew

thesis-1.indd 2

2011/7/5 4:47:23 PM

thesis-1.indd 3

2011/7/5 4:47:25 PM

thesis-1.indd 4

2011/7/5 4:47:32 PM

thesis-1.indd 5

2011/7/5 4:47:34 PM

ABSTRACT

In Taiwanese fashion, fast fashion has increased In recent years. According to fashion news and magazine reports, people can get much more information about foreign brands or understand the latest fashion trends, most Taiwanese people are informed about European fashion through watching TV programmes or reading fashion magazines such as VOGUE and ELLE. However, Taiwanese consumers find it difficult to buy European brands due to the lack of exposure of European brands. For example, If a Taiwanese wants to buy a H&M or Zara design, they must travel to Hong Kong or other places nearby which will result in not being able to see the product beforehand and only available to buy online which may be troublesome if it is not suitable.

There are three top European brands which have been successful over the years worldwide but have not entered the Taiwanese market, these are; H&M, ZARA and TOPSHOP. According

to news reported, H&M and ZARA will go to Taiwan by the end of 2011. Such news have been positively received which may lead to success in the opening of the new stores which will be located in a shopping district in Taipei along with other high-fashion luxury brands.

However, TOPSHOP has not had such a positive reception than its competitors and most Taiwanese consumers are not aware of the brand. the fact is they have been to Taiwan during 20002002, however sales were not good and thus they left. In European fashion industry, no doubt TOSHOP is a popular high street brand in the UK, however in Taiwan, TOPSHOP is not well known. One of the causes of failure in Taiwan was due to its high price which the majority of the consumers which were young females, were unable to afford. Moreover, they have no other stores nearby Taiwan such as Hong Kong which is considered as a favourite place to shop.

06

thesis-1.indd 6

2011/7/5 4:47:43 PM

Now, that ZARA and H&M will go to Taiwan, this will mean that Taiwanese consumers will be more aware and knowledgeable regarding European fashion brands and as a result, will be willing to spend more. This is an ideal time for TOPSHOP to reconsider and re-enter the Taiwanese market again. In 2009, Kate Moss designed some clothes for TOPSHOP which were reported by the media and as a result of that, Taiwanese consumers became aware of the brand and gradually were more exposed to the brand especially because fast fashion is an emerging trend. However, if they have not considered entering Taiwanese market again, this market will be carved up by other Europe brands or Japanese brands such as H&M, ZARA and UNIQLO. In order to understand how Taiwanese think about this brand, questionnaires and interviews were performed. Through that, people can understand the image of TOPSHOP of Taiwanese

consumers; moreover, understanding Taiwanese customer’s needs and how to improve the marketing strategies if TOPSHOP re – launches in the Taiwanese market.

This report will gives some recommendations and suggestions which will aim to improve the marketing strategies and awareness of TOPSHOP in Taiwan. TOPSHOP’s company – Arcadia Group is a successful retailer in the UK and have the potential to be successful in an international environment . Therefore, an extensive research into the Taiwanese market is crucial into the overall marketing strategy.

The research will reflect Taiwanese current fashion phenomenon and gives a good chance if TOPSHOP has any possibility to enter Taiwan again. cannot deny fast fashion is the current fashion trend, and TOPSHOP is an emerging popular brand and will continue to be in the foreseeable future.

07

thesis-1.indd 7

2011/7/5 4:47:51 PM

CONTENTS 02 04 06 08

Acknowledgements Abstract Contents Chapter 1 Introduction

10

14

24

1.1 Research Aims & Objects

Chapter 2 Methodology

2.1 Research Framework

2.2 Literature Review

2.3 Questionnaire

2.4 Interviews

2.5 Limitations

Chapter 3 Literature Review

3.1 Introduction

3.2 Consumer Behaviour

3.3 Taiwanese Consumer Behaviour

3.4 Current Fashion phenomenon in Taiwan – Fast Fashion

3.5 The Japanese influence

3.6 International Business

3.7 International marketing

3.8 Marketing Mix

3.9 Privately-owned companies

3.10 UK companies’ experience of entering the Taiwanese marke

Chapter 4 Background

4.1 T he British high-street fashion : TOPSHOP

4.2 T he relationship of Arcadia Group and TOPSHOP

08

thesis-1.indd 8

2011/7/5 4:47:52 PM

32

4.3 A typical case –TOPSHOP in Taiwan

4.3.1 TOPSHOP has been to Taiwan

4.3.2 Why Taiwanese girl love this British Brand–TOPSHOP

4.3.3 Why did TOPSHOP not work well in Taiwan

4.4 A successful case–TOPSHOP in Japan

Chapter 5 Primary Research 5.1 The Influence of Japanese design on the Taiwanese market

5.1.1 How different of clothing style between Japan and Europe

5.1.2 How do Japanese girls dress?

5.2 SWOT COMPARISONS

- TOPSHOP SWOT in UK

- Brands competitors

- TOPSHO SWOT in Taiwan

48

58 62 03 03 03 03

5.3 Competitor Analysis - which stores are major competitor?

Chapter 6 Market analysis 6.1.1 Online Questionnaire analysis

6.1.2 Questionnaire analysis

6.1.3 Interviews

6.1.4 Taiwanese females’ customer behaviour

Chapter 7 Discussion and Conclusion Chapter 8 Recommendations References List of illustrations Bibliography Appendices 09

thesis-1.indd 9

2011/7/5 4:47:53 PM

thesis-1.indd 10

2011/7/5 4:48:01 PM

Figure 2

1. Research Aims & Objectives Aims

Objectives

● o T

●T o

●T o

●T o

●T o

●T o

●T o

●T o

●T o

●T o

●T o

●T o

determine if the British high street fashion brand - TOPSHOP, can enter the Taiwanese market again and be successful this time; find the way to create a better marketing strategy in international business; explore the shopping environment and consumer behaviour in Taiwan; acquire an in-depth understanding of the trend which affects Taiwanese fashion; research what Taiwanese people would like if European brands want to enter the Taiwanese market; acquire an in-depth knowledge of how the current economic environment is affecting Taiwanese consumers’ behaviour;

●T o

propose recommendations for TOPSHOP who wants to re-launch and develop in Taiwan.

investigate the reasons why Taiwan is affected by fashion culture from Japan and the UK; examine the types of current shopping environments in Taiwan; explain the influence of Japanese culture on Taiwan; explore why the fashion style of Taiwan, Japan and the UK is quite similar; determine if British brands are likely to be accepted by Taiwanese people if they follow the latest trend of fast fashion; analyse why TOPSHOP failed in Taiwan, when other European brands succeeded;

●T o

determine whether TOPSHOP has a second chance to enlarge its Asian market in Taiwan, according to its previous experience.

11

thesis-1.indd 11

2011/7/5 4:48:09 PM

thesis-1.indd 12

2011/7/5 4:48:27 PM

thesis-1.indd 13

2011/7/5 4:48:46 PM

helps form an academic understanding of sustainable development, the Europe high – fashion background and Taiwanese local market environment issue.

2.3 Questionnaires This phase showing an interesting observation. Apart from two different type questionnaires, first one is online question which ask Taiwanese do they familiar with TOPSHOP and how their consumer behaviour in TOPSHOP. The other one is put two similar dressing photos which from TOPSHOP products and Taiwanese shopping website. This way is propose to analysis how Taiwanese customer choose products when they face almost the same products but different price and quality. The result show the first condition Taiwanese customer consider is how a product fashionable is, secondary condition is quality then the last is price. By these questionnaires, it means Taiwanese market is quite flexibility and people can accept new thoughts in design style, is not everything.

2.4 Interviews There are two people do the interviews for this project. Both of them are work in fashion field, one is Taiwanese local fashion news journalist and the other one is international

fashion news reporter. They give some good suggestions for TOPSHOP issue which is that should they can be successful if they want to enter Taiwanese market again. Depends on their individual occupation, they can Symbolize two different customer groups in Taiwan, one is very local and traditional and the other one is who they care price the most.

2.5 Limitations The limitation of this project is there is less information about TOPSHOP in Taiwan. The main reason is that TOPSHOP went to Taiwan for a long time ago, it is quite difficult to find some detail when it was there. Second, the commercial agent company have no idea about TOPSHOP, the team who run the TOPSHOP case has left this company already. Moreover, when TOPSHOP went to Taiwan, they did not do much advertising before, that is why most of customer has no expression about TOPSHOP. Besides of information is not too much, the other point is it is TOPSHOP is not really famous in Taiwan, notlike ZARA or H&M. Taiwanese people know ZARA and H&M due to this two brands have shop in Hong Kong. Hong Kong is a good shopping place and nearby Taiwan. Therefore, Taiwanese is not familiar with TOPSHOP, therefore it hard to explain how TOPSHOP fashionable is though it is a high street fashion brand in UK.

14

thesis-1.indd 14

2011/7/5 4:49:01 PM

Figure 415

thesis-1.indd 15

2011/7/5 4:49:15 PM

thesis-1.indd 16

2011/7/5 4:49:16 PM

Figure 5

3.1 Introduction

3.2 Consumer Behaviour

This chapter is divided into a few parts. The main concept of understanding Taiwanese consumer behaviour includes the latest trend, which is fast fashion, and some basic knowledge of international business and marketing; and an overview of how marketing communication contributes to brand strength, how consumer behaviour variables provide both a conceptual framework and a strategic direction for a practical segmentation of the market, and finally, how a promotion and advertising strategy can raise the sales volume. Moreover, the concept of fast fashion can provide some idea of why European fashion brands work well in the Taiwanese market, without limited to different fashion styles or cultural problems. Fashion is almost the same worldwide, because one country will affect another, so that there is a mutual relationship in the international fashion field.

Consumer behaviour study can be explained by this sentence: ‘’It is the study of the process involved when individual or groups select, purchase, use, or dispose, services, ideas, or experiences to satisfy needs and desires.’’ Which is from Rabolt Solomon (2009), especially in fashion field, Solomon and Rabort said (2004, p.2) consumer behaviour knowledge provides basic fashion concepts that should help you understand how consumers make decisions about new fashion products.

Consumer behaviour in fashion is always based on the theories of consumer behaviour. It analyses the target customers for some particular brands or fashion companies. According to Robolt Solomon (2009, p.28),consumers’ response is the final test of whether or not a marketing strategy will be successful, of course this is not the only 17

thesis-1.indd 17

2011/7/5 4:49:18 PM

way to evaluate a marketing strategy. Basically, consumer behaviour is a primary step to select appropriate marketing strategies to increase product sales. ‘’Consumer behaviour Is a process’’, ‘’Most markets now recognize that consumer behaviour is an on-going process, not merely what happens at the moment a consumer hands over money or a credit card and in turn receives some good or service. ’’ from Solomon and Rabort (2004, p.28).

This is an interesting situation in the buying process, from a consumer perspective, most of them will think about why they need a product, and how to collect related information about this product that they want to purchase. Then, when they get the ideal product they choose, the result will show in their mind: Is it a good purchasing experience or not? Moreover, they will be sure the product provides pleasure or perform its intended function. In addition, the environment consequences of this act are important as well.

However, form a market perspective, the first pre- purchase issue is ‘’How are consumers attitude toward a product formed and/or changed? What cues do consumers use to infer which products are superior to others?’’ from Solomon and Rabort (2004, p.28). Also, when they enter the purchasing stage, they will think of how to do a situational factors and how their store display will affect the consumers’ purchase decision. This is a mutually correspondence for

consumer and market.

In consumer behaviour research, demographic subcultures should be an important part. As my project research, I must not only research British brands but I also need to understand Taiwanese consumer behaviour in demographic subcultures in depth.

What is demography? Simple to explain, it includes age, race and ethnicity. As Solomon and Rabort explained: ‘’The era in which a consumer is born creates for that person a cultural bond with the millions of others born during the same time period. As we grow older, our needs and preferences change, often in unison with those of others who are close to our own age. For this reason, a consumer’s age exerts a significant influence on his or her identify.’’ (2009, p.2829). By demographic research, people can make a detailed analyse of consumer behaviour and customer level.

3.3 Taiwanese Consumer Behaviour As some online reports (Fashionguide, 2008) people can find a special condition showed in Taiwanese customer’s behaviour, which is the key reason connected with a question- why many famous western brands cannot earn money on the Taiwanese market?

In the past, for most of Taiwanese customers,

18

thesis-1.indd 18

2011/7/5 4:49:19 PM

people love shopping in department store. There are SOGO, Breeze Centre, New SOGO and many else, they used to buy much stuff in department stores because it is very convenient and there is a wide choice. Taiwanese department stores always operate quite brilliantly; they collect some top brands worldwide such as LV, Gucci, Prada or Chloe. Moreover, they have Japanese brands—this is a Taiwanese favourite, such as MUJI, UNIQLO or Plaza. (Blackwhitebuyer, 2008) People love to spend lots of money to buy a Birkin bag, however they don’t want to spend money in a designer’s T-shirt that can cost £25~£40, likes TOPSHOP. In Taiwan, people can spend a little money but buy good stuff in department stores, night market or online shopping, the average price for a T-shirt, is around £5-£15 is, up to £20 is a little expensive for Taiwanese general customers.

This is why ZARA and H&M cannot develop in Taiwan until now (includes TOPSHOP, even it has been to Taiwan for long time ago). For Taiwanese customers, those Europe brands are famous and fresh, people can skim over fashion stuffs in magazines, online websites or introduced by superstars and famous people. Fashion information runs very fast in Taiwan, which is the main reason why people are always looking forward for those brands entering Taiwan. But, it is a myth, Taiwanese people are crazy about the latest things, however when time passes by, they

Figure 6 Figure 7

Figure 8

Figure 9

19

thesis-1.indd 19

2011/7/5 4:49:25 PM

still go back to shopping on local market, low price still is the first thing they consider, and of course quality is not bad unless the price is very, very low.

Never theless, this situation becomes different. Following media reports and advertisements (Tao Fu won, 2007), Taiwanese people is in a period, which is starting to know what is Fast Fashion. Consumer level upgrades to young people area, they collect fashionable information by first hand, advocating western fashion style not just limited in Japanese style, when Taiwanese people saw a news-TOPSHOP into TOYKO in September 2010, they thought of why doesn’t TOPSHOP entre Taiwan. However, there is no evidence that shows that if TOPSHOP tries to entre Taiwan again, should they be successful or still impossible earn money likes before? Taiwanese clothing market is changing too fast during recent years, the clothing market seems already full, but still have many people hope that European brands enter into Taiwan to keep up with the world. (Tao Fu won, 2007)

3.4 Current Fashion phenomenon in Taiwan – Fast Fashion Fast Fashion is a key word to affect Taiwanese Fashion. The ephemeral nature of fashion ensures that what is" in" one minute is pass the next. Fast fashion, capitalizes on this

need to keep pace with constantly changing trends by providing high fashion clothing at a low price point. Quick production methods and up to the minute design values are integral factors to fast fashion's success, influence and retail dominance.

Fast fashion relies on an accelerated rate of clothing production and distribution known as "quick response." Streamlining the manufacturing process allows clothing to go from design to shop floor in as little as two weeks. Each style is created in limited amounts or "runs". Which for the customer, creates the sense that they must buy immediately rather than risk missing out on a particular item. This in turn eliminates the need for retailers to discount unsold stock. The constant restocking of new clothing also provides customers with an added reason to revisit stores and repeat the retail experience (Fast Fashion 2009).

Highly fashionable design is the second component of fast fashion. This is achieved by anticipating shifts in industry and consumer trends. Copied garments tend to provide the bulk of design ideas. For example, clothing seen on the catwalks of international fashion shows can be copied and appear in stores, quicker than the designer original. As can copies of celebrities' outfits at red carpet events. (Fast Fashion, 2009) Italian clothing company Benetton was the pioneer of fast fashion. Current prominent brands

20

thesis-1.indd 20

2011/7/5 4:49:25 PM

include Sweden's H & M, England's Top Shop and American retailers the Gap. However Spanish label Zara is the undisputed giant. Zara's fast production values, store deliveries of new stock twice a week and their ability to quickly identify fashion trends have ensured that Zara has become the most successful fast fashion label.

More, there is an intersection between fast and high fashion. Traditionally fashion designers presented two seasonal collections a year, but in line with fast fashion's short attention span and constant need for fashion reinvention, high fashion designers are adding more collections, like for example, resort wear to their repertoire.

The collaborations between high and fast fashion companies has created a hybrid between these two areas of fashion. H &M, has been at the forefront, working with designers Stella McCartney, Karl Lagerfeld, Comme Des Garcons and more recently Lanvin. Valentino is the latest design house to produce a limited edition collection with The Gap. Fast fashion has become a retail phenomenon. It has speed up the pace of fashion and the frequency with which we shop and ultimately impacted on fashion in the broader sense. Clothing by high fashion designers was previously exclusive to only the wealthy, but the egalitarian nature of fast fashion has given everyone the ability to own designer clothing.

(Fast Fashion 2009)

Figure 12

Figure 10 Figure 11

Figure 13 Figure 14

21

thesis-1.indd 21

2011/7/5 4:49:28 PM

3.5 The Japanese influence The Japanese culture began to influence Taiwan many years ago. An article by Rubinstein (2007) indicated that Taiwan had been under Japanese colonial rule for a fifty-one year period from 1845 to 1945. During the time Taiwan was a colony of Japan, the Taiwanese were forced to accept Japanese education and use Japanese as their first language. Meanwhile, the Japanese government developed the infrastructure of Taiwan, such as transport, harbours, agriculture, architecture, and water conservation reservoirs. Although Taiwan was a colony of a foreign regime, the older generation of Taiwan did not really dislike the Japanese, and a close relationship developed between Taiwan and Japan. In fact, during the fifty years of colonisation, Taiwanese culture adopted parts of Japanese culture.

Japanese dramas have had a steady audience since Taiwan repealed its law prohibiting the broadcasting of Japanese dramas in 1993.

The beautiful and fantastic urban setting and solid storylines of Japanese “trendy dramas” attracted Taiwanese teenagers to Japanese fashion and trendy music, and then created a Japanese sightseeing boom. (Kim, 2005) After Japanese dramas began to gain popularity, Japanese clothes, fashions, and styles also became popular. Because the Japanese cultural

phenomenon affects Taiwanese culture in depth, “made in Japan” is almost like a guarantee in the Taiwanese market. Because of this principle, Japanese brands usually sell well in Taiwan, and Taiwanese enterprises are willing to adopt Japanese marking strategies as a good model.

3.6 International Business In an ar ticle by Sletten, (1994, p.117) international business is discussed, particularly focusing on the reasons for entering international markets: he asks the question “Why export?” and suggests that “There are hundreds of reasons; all of them valid, but the principle one is business survival.” In a recession economy, consumers tend to be more sensitive about price, and have been cutting down on non-essential spending and women’s wear. When the domestic market conditions lead to a decrease in revenue, exports can help to minimize the impact and get a broader marketing bass (Business Insights, 2009).

3.7 International marketing International marketing communication management differs from domestic communication management in that one has to operate in a different environment with different demographic, economic, geographic,

22

thesis-1.indd 22

2011/7/5 4:49:29 PM

technological, political, and legal conditions.

Culture and legal differences between a company and its foreign marketplace can cause many problems and difficulties. Due to differences in the international marketing environment, a company has to consider what extent should it localize or globalize its marketing communications across different cultures (Pelsmacker et al., 2004).

Product

Price

Place

●

Benefits

●

List price

●

Channels

●

●

Features

●

Discount

●

Logistics

●

●

Options

●

Credit terms

●

Inventory

Quality

●

Payment

●

Transport

●

●

●

●

Design

●

Periods

●

Assortments

●

Branding

●

Incentives

●

Locations

●

Packaging

●

Services

●

Warranties

●

●

●

●

3.8 Marketing Mix Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create and exchange value, and satisfy individual and organizational objectives (Pelsmacker et al., 2004).

The tools of marketing plan have to be designed depending on the given marketing objectives and goals, then the target segments and the market position that has to be defined.

The marketer can create the instrument of the marketing mix to communication with consumers. Traditionally, these instruments are defined into four categories, called the four Ps of the marketing mix. In table 2.2 some of the tools of the marketing mix are shown (Pelsmacker et al., 2004).

Promotion

●

Advertising Public relations Sponsorship Sales promotions Directing marketing Point-ofpurchase Exhibition and trade fairs Personal selling Internet

3.9 Privately-owned companies A privately-held company or closed corporation is a business, which is owned either by a non-governmental organisation or a relatively small number of shareholders or company members, and which does not offer or trade its company stock (shares) to the general public on the stock market. Rather, the company's stock is offered, owned and traded or exchanged privately. Less ambiguous terms for a privatelyheld company are an unquoted company and an unlisted company. (Mintel) In most cases, the company is owned by the company's founders, management, or a group of private investors. On the other hand, a public 23

thesis-1.indd 23

2011/7/5 4:49:30 PM

company is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning that shareholders have a claim to part of the company's assets and profits. The main advantage of public companies is their ability to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (i.e. cash) for expansion and projects. ( Investopedia, 2008)

3.10 UK companies’ experience of entering the Taiwanese market A ccording to previously reported news (UK designers invite Taiwanese enterprises settle design centres, 2009) there are many UK brands that have already entered Taiwan. In the technology field, Vodafone is an excellent case which has a successful cooperation with Taiwanese local mobile company. In women’s clothing, Accessorize has been doing well in the Taiwanese market since 2007. In fashion clothing field, a big luxurious UK brand-Burberry is quite popular in Taiwan. Of course they have many big shops located in department stores.

On the contrary, there are some UK brands that did not work as well in the Taiwanese market, such as Marks & Spencer and TOPSHOP. Marks & Spencer was a special case. The brand stayed in Taiwan for just two years and therefore had

little chance of being successful in this time. Due to the brand just stayed in Taiwan not over two years, which proving it is quite seriously to see how a brand can be successful in a short time, if they cannot passes the challenge, would be failed.

Taiwan in cer tainly a good market for potential investment from European countries in recent years Indeed, Taiwan is a good market which worth to invest for Europe country in recent years, ‘’ It’s natural trading partners are its neighbours in north east Asia, and it can be a good stepping stone to the larger and more complex china market. Taiwan has a strong trading and investment relationship with the West, and is keen to diversify and build on its European links.

Taiwan imported £750m of British goods and £670m of services in 2009. The UK is highly visible in the Taiwanese domestic market, though locals may not realise that names such as Standard Chartered Bank and HSBC (to name but two companies with successful operations there) are in fact British.’’(Doing Business in Taiwan, p4).

For UK brands, Taiwan is a large importer of goods and services with a high level of consumption and purchasing power, higher than the European average. In addition, Taiwan has an excellent infrastructure and logistics system

24

thesis-1.indd 24

2011/7/5 4:49:30 PM

and it is a safe market in terms of intellectual property protection. Due to these advantages, British companies wishing to develop their businesses in the Taiwanese market are advised to undertake as much market research and planning as possible in the UK. It is a big challenge to invest money into the Taiwanese market indeed, the international road not to riches – or disaster. Marks & Spencer is a typical case. According to Sunday Time reported (Sunday Time, 2009), when Marks & Spencer was in Taiwan, they have made some mistake: -Lack of good food department provided in UK. - S maller-sized clothes demanded by Chinese shoppers.

The second problem also happened t o T O P S H O P. A c t u a l l y t h e p r o b l e m o f “size� is connected with market research, or lack of it. If UK companies had done more in-depth research and understood the requirements of the Taiwanese market they may have discovered that the size difference between Asian and British people.

However, in recent years, there are some UK brands starting to go to Taiwan step by step, such as Ted Baker and Cath Kinston. These two brands, all located in luxurious department stores in Taipei, have a different target. Ted Baker is focus on high-price premium consumer level.

The other is for teenagers or middle-age women.

It is hard to predict just how Cath Kinston will

perform in Taiwan as they have been there for a limited time. Generally in Taiwan people would rather spend their money on luxury brands such as Ted Baker. Taiwanese people think this is a very typical luxurious brand in the UK. For the same reasons Taiwanese people love Burberry and Vivienne Westwood. In fact, Taiwanese people can find some cheaper brands in the local market. Because of this they prefer to choose other middle-price Taiwanese fashion brands instead of UK fashion brands. (Taipei News, 2010) To sum up, if a UK company wants to enter the Taiwanese market, there are some challenges they have to face in the first instance (UK designers invite Taiwanese enterprises settle design centres, 2009): 1. language barrier (most local information is in Chinese) 2. l ocal regulations are very different from European standards 3.building up relationships 4.Taiwanese market research 5. In addition, The Taiwanese authorities welcome foreign investment where it helps the economic and social development of Taiwan, or involves hi-tech research and development.

25

thesis-1.indd 25

2011/7/5 4:49:31 PM

thesis-1.indd 26

2011/7/5 4:49:45 PM

Figure 15

4.1 The British high-street fashion : TOPSHOP TOPSOP has established a reputation for fashion credibility by converting catwalk styles into affordable clothing aimed primarily at 13-25-year-olds.The consumers rate it above the average for clothing stores on the characteristics ‘trendy’, ‘trendsetting’ and ‘stylish’. It has cultivated an image of affordable, ephemeral fashion linked to celebrity.

From 2007 to September 2010, the store collaborated with Kate Moss on collections carrying her name. Artist Stella Vine and the Shiatzy Chen brand have also previously worked on collaborations. Even though such collections developed with designers are only available in its flagship store at Oxford Street and online, it has helped boost the fashion credentials of its more mainstream collections.

Its recent glamorous store openings, in New

York’s SOHO, London’s Knightsbrige and Tokyo, have further added to the image of contemporary fashion and credible chic. Its flagship stores offer an indulgent but youthful shopping experience with extra services such as nail bars, one-hour tailoring and hair salons.

Features of its offer include: • T OPSHOP’s core range offers a wide range of clothing including tops, knitwear, dresses, jackets and blazers, coats, jeans, trousers, shorts and skirts as well accessories and footwear. Further ranges include: • The Boutique collection is geared towards mixand-match essentials for long-term usage, with neutral colours and quality fabrics ensuring these items can cross seasons for years.

Jumpers and dresses start from £55 with jackets priced up to £250. These items are likely to be appreciated by an older consumer than the core 13-25 demographic.

27

thesis-1.indd 27

2011/7/5 4:49:57 PM

• Unique is TOPSHOP’s own premium fashion brand that was launched in 2001 and has been shown on the London Fashion Week catwalk schedule since 2006. This avant-garde brand is also sold internationally at high-end and directional outlets such as Barneys in the US. Dresses from £38, dresses up to £200 and coats up to £250.

• Studio brands is a changing range of concessions launched in July 2009. Designers here have included CiCi, Yuki, Annie Greenabelle and AnnaLou. Primarily available only at the flagship stores, the range was made available through topshop.com shortly after its launch.

• The Designers collection features limited edition collections from designers including Michael Van Der Ham, Mark Fast, Jensen, Preen, Christopher Kane, Markus Lupfer and Emma Cook. Pieces start from £28.

• TOPSHOP also has Tall, Petite, Maternity and Mini (babywear) ranges, ensuring that the stores continue to attract a wide range of customers.

• S ince 2002, TOPSHOP has offered its own footwear collection, consisting of strong and innovative shoe designs. Footwear has also been included in the Unique and Designers ranges. Jewellery and accessories such as bags are also a strong growth category.

• Moto is the core jeans own-brand, but other well-known jean brands, including Levi’s, Wrangler, Pepe and Firetrap are also available.

(TOPSHOP websites, 2011) On the whole, TOPSHOP’s price points are generally positioned in the middle mainstream sector. However, some of the brand’s more exclusive collections such as Unique and Designers have higher price points.

*Proposition TOPSHOP retail proposition 2009 Brand Position

Midmarket, high street fast fashion

Target Market

Broad target 15-30 females Core group 18-25 fashion leaders,butattracts a broad range of custom from designer label shoppers to high street consumers

Product sectors

Women’s clothing & accessories plus footwear

Price Positioning

Midmarket. Predominantly non-promotional Multi-buys on basic jersey tops and knickers

Competitors

Young fashion high street retailers with a high design content such as Urban Outfitters, Miss Selfridge, Warehouse, H&M, and All Saints

Store Format,

Oxford Circus and regional flagship stores “provide the ultimate shopping ambience experience” Stores have a minimalist feel but are not too stark Young, fun, trendy, but not too intimidating Flagship stores hold events for customers including catwalk shows.

Café bars, chart music

Source: Verdict Research

VERDICT

28

thesis-1.indd 28

2011/7/5 4:50:11 PM

4.2 The relationship of Arcadia Group and TOPSHOP The Arcadia Group comprises eight retail brands; Burton, TOPMAN, Dorothy Perkins, Evans, Miss Selfridge, TOPSHOP, Wallis and outof-town format Outfit which retails a selection of these brands as well as other clothing labels.

All brands are positioned in midmarket price territory, but with different target customers.

The group has built up a vast portfolio of stores, most – with the exception of Outfit –situated in high footfall high street locations.

It thereby benefits from great economies of scale to be further enhanced by the imminent merger with owner Sir Philip Green’s other retail business, Bhs. (UK womenwear retailers, 2009 : 85) Their fast-moving business and modern retailing have become a good sample worldwide.

The past three years, Sir Philip Green has planned a major innovation of his business empire that would include spending £370m growing both the Arcadia and Bhs operations.

In all the brands of Arcadia Group, TOPSHOP is selling the best. Much of the expenditure will go on TOPSHOP, the biggest stable brand within the Arcadia. (FashionUnited, 2007) In 2007, despite a drop in operating profit of 8.1 percent to £300.6 for the year ended 2 September, retail tycoon Sir Philip Green remains upbeat about Arcadia Group's performance. "Our

operating margin at 16.7 percent is still among the best in the industry," he said. Group sales rose 1.8 percent to £1.8 billion, while like-for-like sales dropped 1.9 percent. Pre-tax profits fell £24.3 million to £357.5 million. Green maintained the results were buoyant despite a challenging retail climate. "This represents a strong performance when set against a competitive retail market, significant investment in new space by our competitors, and underlying costs inflation for retailers." Richard Ratner, analyst at Seymour Pierce, said that the result was "pretty decent given the environment." (FashionUnited, 2006) Moreover, it is worth to know that is the group's top performers were menswear chain TOPMAN and Wallis, with Arcadia's best known brand TOPSHOP continuing to give a strong performance. Arcadia recently announced the resignation of Jane Shepherdson, who is the brand manager for TOPSHOP. Shepherdson was credited with turning the brand into one of the most coveted labels on the high street. At the time, both Green and Shepherdson did their best to blast the rumours that her departure had anything to do with the signing of supermodel Kate Moss to co-develop a line for TOPSHOP. (FashionUnited, 2006) In fact, since Philip Green bought TOPSHOP in 2000, TOPSHOP and TOPMAN created a highly revenue for Arcadia Group. In 2006, Arcadia was planned to convert its high profile Miss Selfridge 29

thesis-1.indd 29

2011/7/5 4:50:23 PM

thesis-1.indd 30

2011/7/5 4:50:37 PM

Figure: Arcadia Group: Group financial performance, 2004/05-2008/09 Latest year-end: August 2009

2004/05

2005/06

2006/07

2007/08

2008/09

Group sales (£m excl. VAT)

1,770

1,801

1,859

1,848

1,979 (a)

Group sales (€m excl. VAT)

2,586

2,643

2,718

2,321

2,224

Operating profit (£m)

320

272

263

243

235

Operating margin (%)

18.1

15.1

14.1

13.1

11.9

From Mintel - Clothing Retailing - UK - October 2010

4.3 A typical case– TOPSHOP in Taiwan 4.3.1 TOPSHOP has been to Taiwan Yes, TOPSHOP went to Taiwan during 2000~2002, however they only stayed for short period of time because they didn’t sell well during these two year. During that time, they only had two shops in capital city of Taiwan—Taipei and in order to obtain Taiwanese young girl’s attention, they created TOPGIRL for teenage girl in Taiwan.

It only attracted some specific groups of people who have known TOPSHOP for a long time. But, for most general people, TOPSHOP is just a quite expensive British brand and their items are not suitable for Taiwanese people.

4.3.2 Why Taiwanese girl love this British Brand – TOPSHOP Fast Fashion is the latest trend worldwide, and of course will be found in Taiwan too. During

recent years, Europe fashion style influenced Taiwanese girl deeply. Many western models have become Taiwanese female consumer’s fashion icon, such as Kate Moss, Agyness Deyn, whom all have obvious individual characteristics.

Their styles showing modern girl’s independence spirit by mixing sexy or vintage elements, so more and more girls have started to learn their dressing style, and TOPSHOP has reflected this phenomenon. The other reason is that TOPSHOP promoted their seasonal items very fast. People can see their items from shop window or online websites, TOPSHOP seems to become dream for young girl because they all want to dress well likes Kate Moss.

4.3.3 Why did TOPSHOP not work well in Taiwan During that time, Taiwanese people cannot accept such a fashionable brand into their local market. People still prefer to buy Japanese brands and fashion brands from Europe are still 31

thesis-1.indd 31

2011/7/5 4:50:49 PM