under the surface
Urban OUtitters is a high street stOre at the higher end Of the market which high qUality clOthing and high end brands with prices tO match. the target market fOr this brand is yOUng cOllege/University stUdents between the ages Of 18-24. the typical Urban cUstOmer is artsy, intelligent and a little bit qUirky, a persOn whO strives tO lead an interesting life and expresses this thrOUgh the art Of clOthing bUt alsO everything else Urban OUtfitters has tO Offer. Urban OUtfitters aims tO be a life style brand and sOmething mOre than sOmewhere peOple gO fOr jUst On trend clOthing, Offering hOme wear, vintage cOllectiOns, cameras, bOOks, mUsic and mUch, mUch mOre. the cOmpany’s main cOmpetitOr is Other strOngly american branded cOmpanies sUch as american apparel and abercrOmbie & fitch, whO have Other things tO Offer that Urban OUtfitters may lack, sUch as american apparel’s Usa factOries and fair treatment tO the wOrkers whO make the garments. research has been gathered thrOUgh the Use Of sUrveys, interacting with Urban OUtfitters cUstOmers, the Use Of primary and secOndary research in Order tO cOme tO a sOlUtiOn and directiOn in which Urban OUtfitters shOUld take their cOmpany. cUrrent market trends affect all retail bUsinesses bUt sOmeOne like Urban OUtfitters whO is at the higher end Of the high street it is impOrtant they keep ahead and remain leaders Of the market. market trends that will affect Urban OUtfitters are things sUch as UniqUe in stOre experiences, increased fOOtfall, the Use Of new technOlOgy, Online and sOcial media presence, UniqUe atmOsphere. these are all things that Urban OUtfitters shOUld be wOrking On if nOt, imprOving in Order tO remain a leader Of the high street market whilst their cOmpetitOrs dO the same. bOstOn matrix techniqUes have been Used tO analyse Urban OUtfitters’ prOdUcts lOOking at what dOes well, what dOesn’t sell as well and what needs imprOving, sUggesting ways in which imprOvements can be made. the research Used tO gather these cOnclUsiOns is sUrveys, interviewing Urban OUtfitters’ cUstOmers and pUtting a sUrvey Online tO a wide range Of peOple whO shOp here. this gave accUrate, realistic infOrmatiOn and allOws the reader tO Understand what sOme shOppers gO tO Urban OUtfitters fOr as well as Understand where else these peOple shOp fOr the same things. it is impOrtant tO Understand the internal wOrkings On Urban OUtfitters, lOOking at hOw the cOmpany wOrks frOm the inside. annUal reviews prOvided this infOrmatiOn in which they talk abOUt the cOmpany’s aims and cUrrent pOsitiOn as well as pOsitiOns inside the bUsiness. here yOU can Understand what different pOsitiOns are wOrking On and hOw this will affect the cOmpany, it was then impOrtant tO lOOk at the Other end Of the scale and think abOUt external inflUences that Urban OUtfitters cannOt cOntrOl bUt will still effect sales all the same, bOth Of these sides have been analysed. this piece Of wOrk will alsO lOOk intO the way that Urban OUtfitters Use marketing and prOmOtiOn as a way tO gain and pUsh cUstOmers tO spend withOUt Using the traditiOnal fOrms Of tv, written Or radiO adverts, thinking fOr accUrately tO target the cOnsUmer in fOrms that they are mOre likely tO find effective and find direct. these fOrms inclUde sOcial media, Online platfOrms and especially the Use Of direct emailing Once they have gOtten a cUstOmer tO create an accOUnt with them. this then leads On tO talk abOUt hOw Urban OUtfitters cOllate cUstOmer data and Uses this effectively, lOOking intO their techniqUes tO get a cUstOmer tO sign Up with them and what the dO after this. Urban OUtfitters being mUch mOre than a clOthing cOmpany it was impOrtant tO lOOk at Other sectiOns sUch as vinyl sales, at what is happening in that market, as well as analysing in depth the high street market. this allOws the reader tO cOme tO their Own cOnclUsiOns as tO what Urban OUtfitters cOUld dO tO pUsh sales On their vinyls and mUsic. finally tOwards the end yOU read abOUt what Urban OUtfitters is dOing nOw tO wOrk On pUshing the cOmpany and sales, as well as adapting and embracing the cUrrent market trends, these kind Of things invOlve changing the style Of their stOre in their newest Opening in new yOrk and sUstainability. the cUrrent cOnsUmer is becOming mOre and mOre aware Of the impOrtance Of sUstainability and Urban OUtfitters have realised that reselling vintage clOthing and Using paper bags isn’t enOUgh tO cOmpete with what Other cOmpanies in the market are dOing. this then leads On tO lOOk intO what they cOUld tO mOre Of, lOOking at hOw the cOmpany can imprOve, sUggesting what directiOn the bUsiness shOUld lead intO.
Image from urban outfitters europe’s pinterest 2014
execUtive sUmmary
URBN INC. Historical Context Urban Outfitters is a clothing and lifestyle brand within
Urban
Outfitters Inc. It shares a position in the retail company with Anthropologie, Free People, Terrain and BHLDN all of which aim to reach the target comsumer and connect with them on
an emotional level. It all began with Richard Hayne, Scott Belair, and Gabriel Tham-Morrobel who founded the company in 1976 and as of today more than 150 stores in the United States, Canada and Europe, all offer the wide variety of merchandise.
ANTHROPOLOGY GRADUATE RICHARD HAYNE AND HIS FORMER ROOMMATE AT LEHIGH UNIVERSITY SCOTT BELAIR CREATED THE BUSINESS AFTER HAYNES HAD RETURNED FROM A TWO YEAR TRIP TO ALASKA WORKING WITH ESKIMOS AS A VISTA VOLUNTEER. BELAIR WAS THEN A SECOND YEAR STUDENT AT WHARTON SCHOOL OF BUSINESS AND WAS IN NEED OF A PROJECT FOR HIS ENTREPRENEUR WORKSHOP. TOGETHER OVER BEERS THE TWO CAME UP WITH THE IDEA OF A STORE FOR STUDENTS AT COLLEGE OR WHO’D GRADUATED, SELLING INEXPENSIVE CLOTHES AND DORM ROOM OR APARTMENT ACCESSORIES. GATHERING $5,000 THEY OPENED A STORE IN PHILADELPHIA, NEAR THE CAMPUS OF THE UNIVERSITY OF PENNSYLVANIA NAMING IT THE FREE PEOPLE STORE OFFERING SECOND HAND CLOTHING, INDIAN FABRICS, SCENTED CANDLES, T-SHIRTS, DRUG PARAPHERNALIA AND ETHNIC JEWELLERY. THE FIRST STORE, THAT WOULD LATER BECOME A WORLD WIDE PLACE FOR YOUNG PEOPLE TO SHOP, WAS 400 SQUARE FEET DECORATED WITH PACKING CRATES AND BEAT UP FURNITURE.
“I WAS THAT MARKET” RICHARD HAYNE ADMITTED DISCUSSING THE TARGET MARKET TO THE NEW YORK TIMES 1994 “EVERYONE ASSOCIATED WITH THE STORE WAS THAT MARKET” BLAIR REPORTEDLY RECEIVED AN A FOR THE PROJECT AND WENT ON TO WORK AT WALL STREET, RUNNING HIS OWN BANKRUPTCY BUSINESS WHILST HAYNE STAYED WITH THIS BUSINESS EXPANDING THE PRODUCT LINE. MERCHANDISE SUCH AS COFFEE MUGS AND GLASSWARE WERE ADDED AND IN 1976 HE MOVED TO LARGER QUARTERS CLOSER TO THE UNIVERSITY CHANGING THE NAME TO URBAN OUTFITTERS AND INCORPORATED THE COMPANY.
Image from urban outfitters europe’s pinterest, collective: the uo Journal
In 1980 wIth sales at around $3 mIllIon, hayne decIded to open a secOnd stOre, this time in cambridge, massachUsetts clOse tO several cOlleges. in 1987 hayne hired kenneth cleeland as chief financial Officer. cleeland, a gradUate Of geOrge washingtOn University, had held financial pOsitiOns with several whOlesale and retail cOmpanies. Urban OUtfitter’s in-hOUse brands inclUde kimchi blUe, bdg (bUlldOg), pins & needles, sparkle & fade, silence + nOise, cOincidence & chance, deena & OZZy, ecOte and staring at stars. in stOre yOU will alsO find One Of the largest cOllectiOns Of vinyls arOUnd, designer wear, accessOries, shOes, hOmewear, bOOks and vintage clOthing. as haynes Opened new stOres, they all kept the Original “cOUntercUltUre” apprOach, which is still relevant in tOdays stOres. the cOmpany trUsted their interesting interiOr and bUildings tO entice the target cOnsUmers intO the stOres, hOping that Once they’ve entered they will leave having pUrchased sOmething.
hayne told the washIngton post In a 1993 feature
“WE ALWAYS USE RENOVATED BUILDINGS. OTHER STORES WILL GO INTO A MALL AND OUT THEIR IMAGE INTO A SPACE, WHERE WE USE AN EXISTING SPACE TO ENHANCE OUR IMAGE. NONE OF OUR STORES LOOK ALIKE. WE GO INTO THESE OLD BUILDINGS AND ADAPT THEM FOR OURSELVES.” in washingtOn d.c the cOmpany tOOk Over a wOOlwOrth’s stOre, cOmplete with wOrn wOOden flOOrs, expOsed brick walls and a steel staircase which lead tO a basement. the image this stOre creates is very similar tO that Of the existing stOres tOday. the ann arbOr stOre was established in an Other theatre and Other lOcatiOns inclUded a fOrmer back and stOck exchange, every time Urban OUtfitters managed tO create the perfect branded envirOnment.
all staff that hayne hired were based arOUnd the targeted age grOUp and selected On their persOnal style in Order tO gUide merchandising tasks. staff chOse the mUsic that wOUld be played, bringing in their Own cOmpact disks, allOwing the envirOnment tO be appealing fOr the yOUnger generatiOn. hOUsewares manager sUsan dUckwOrth, 27, explained in
“it’s the Only place i’ve wOrked where yOU can bring an Old crate tO wOrk, make sOmething OUt Of it and the bOsses lOve it.” sala pattersOn, an 18 year Old sales assOciate explained “we try tO appeal tO the mainstream and thOse whO want tO crOss the line every Once in a while; we dO stay abreast Of fashiOn trends” the washingtOn pOst,
Image fromhttp://www.pinterest.com/pin/474496510712407004/ originally posted to http://tmomanagement.wordpress.com
consumer the typical urban outfitter’s male age: 18-24 ocupation: student interests: art, music, sports, travelling, readings, socialising, fashion location: likely to live in the city what does he want?: on trend clothing, lifestyle products. to be adorned in a way that expresses them as an individual. what factors may the consumer consider before buying?: cost, the prices must be affordable to students or at least reasonable. trends, the items must be on trend and current. fuctionalitly, the product must always benefit the consumer in the correct way. Image from Urban Outfitters Europe’s pinterest 2014, Collective: The UO Journal
overview of the typical urban customer:
the typical urban outfitters customer lives a busy lifestyle. they are likely to be a student and be interested in travellng a lot, socialising and have a fast pace way of life.they will be young from the ages of 18-24 and being on trend is very important. the consumer will use social media such as instagram, twitter, facebook, tumblr and blog just to name a few and urban outfitters are aware of this using it to their advantage in order to understand their customer and gather customer information. urban outfitters also understands that their target consumer is likely to be a student, influenced into buying by promotions and discounts, always offering student discounts online and instore as well as online promotion codes through emails and text.
analysis the typical urban outfitter’s female
age: 18-24 ocupation: student interests: fashion, art, socialising, music, travelling, reading Location: likely to live in the city what does she want?: to buy on trend clothing, accessories and shoes. feel that they are dressed in a way that the expresses them and their lifestyle. what factors may the consumer consider before buying?: cost, the prices must be affordable to students or at least reasonable. trends, the items must be on trend and current. fuctionalitly, the product must always benefit the consumer in the correct way.
the urban outfitters’ customer is likely to be buying for themselves unless novelty products, which are often used as presents for freinds. the brand focuses on the youth. the customer needs on trend, unique clothing and to feel as though their clothes are current but without feeling as though they are in the exact same clothes as everyone else. urban outfitters wide range of brands and urban renewal collections allow the consumer to feel comfortable they are on trend but still expressing themselves as individuals. information on the consumer has been gathered through the use of surveys and interacting with customers in store, enganging with customers in a friendly way.
strengths
weaknesses
Urban OUtfitters stOres are lOcated in ideal lOcatiOns wOrldwide, Often chOOsing city centres and accessible pOsitiOns. the stOck isn’t clOthing fOcUsed and UO is perceived as a lifestyle brand, selling hOme wear and electricals as well as being knOwn fOr their vintage and vinyl sales. the brand image that has been created thrOUghOUt the existence Of Urban OUtfitters is nOw very strOng, lOOking at main cOlOUrs such as orange and blue, 90’s prInts and interesting artwOrk. the price range is reasOnable and many prOmOtiOns help the stUdent target cOnsUmer affOrd the items designed fOr them. the higher prices are mainly frOm designer cOllabOratiOns and different brands that share a rOOf Under Urban OUtfitters, making designer wear mOre accessible fOr yOUng peOple.
One Of the weaknesses Of Urban OUtfitters is the fact they lack in stOres when they are cOmpared tO Other cOmpanies that the find themselves cOmpeting with, sUch as american apparel and gap. tO date, there are nO instOre brands which wOUld allOw Urban OUtfitters tO excel fUrther rather than fOcUsing On the prOdUcts Of Other brands. price is sOmething Urban OUtfitters is Often criticiZed fOr, even when it cOmes tO their Urban/ vintage renewal cOllectiOn, cOmparing tO their cheaper cOmpetitOrs sUch as h&m. this alsO can make the persOn qUestiOn the accUracy Of their cOnsUmer prOfile which is based Up On stUdents, can all stUdents affOrd Urban OUtfitters prices, Or are they waiting fOr prOmOtiOns and sales?
OppOrtUnities
threats
in Order tO imprOve sales Urban OUtfitters shOUld take OppOrtUnities sUch as Opening mOre stOres, wOrldwide, expanding the amOUnt Of stOres they have dOtted On the map. expanding their website even fUrther wOUld create mOre attentiOn tO their Online prOfile as well as increasing the pOpUlarity Of their website. experimenting fUrther with sOmething Urban OUtfitters are knOwn fOr example designer cOllabOratiOns, a pOssible OppOrtUnity that wOUld imprOve the bUsiness cOUld be bringing mOre designers tO the shelves whilst expanding their ranges. althOUgh the stOre envirOnment sUits the cOmpany perfectly and is very relaxed, tO imprOve the shOpping experience fOr all cOstUmers, peOple may enjOy the idea Of a persOnal shOpper Or stylist. this cOUld especially be helpfUl cOnsidering the type Of cOnsUmer Urban OUtfitters target, allOwing them a little help with chOOsing their clOthes.
things that cOUld threaten Urban OUtfitters as a bUsiness inclUde the financial climate and rates getting higher. the cUrrent financial climate will affect Urban OUtfitters and every Other bUsiness greatly as the less mOney peOple have, the less they will be able tO spend. sOmething else that Urban OUtfitters shOUld be aware Of is the scenariO that sOme designers may nOt want tO cOllabOrate with the brand anymOre, taking a lOt Of stOck Off the shelves Of stOres and website. if cOstUmers were tO have less dispOsable incOmes, their mOney will nOt be able tO gO tOwards spending On clOthes and accessOries, this is especially a threat cOnsidering the age grOUp Urban OUtfitters target. whilst stOcking vintage clOthing is a massive selling pOint fOr the cOmpany, the qUality Of the clOthing is a threat as if the items are tOO wOrn they will nOt sell.
sWot
strengths weaknesses OppOrtUnities threats
sWot
strengths weaknesses OppOrtUnities threats
Image from urban outfitters pinterest 2014, uo shoots
Overall Urban OUtfitters has many things tO be prOUd Of, tO wOrk On and tO lOOk OUt fOr. things that have pUt Urban OUtfitter’s in a gOOd light are things sUch as the lOcatiOns they chOOse, always appealing tO their target cOnsUmer, whilst they cOntinUe tO charge higher prices fOr their clOthing than their cOmpetitOrs. the cOmpany targets a very specific cOnsUmer, nOt tOO interested in appealing tO thOse whO dOn’t fit in tO their stereOtype, making enOUgh prOfit frOm thOse whO dO. One Of the main OppOrtUnities Urban OUtfitters cOUld benefit frOm wOUld be imprOving the cOnsUmers experience as a whOle, as sUggested a persOnal shOpper Or styling wOUld make this mUch mOre beneficial fOr yOUng peOple develOping their style. anOther way Of dOing this cOUld be adding a cafe, hairdressers, Or nail bar, tO name a few examples similar tO what stOres sUch as fOrever 21 (cOsta inside sOme stOres) tOpshOp (bleach lOndOn hairdressers inside, and the repOrted primark nail bars that may be hitting stOres sOOn. sOmething fOrever threatening Urban OUtfitters is simply, the law. Urban OUtfitters is fOrever appearing intO the pUblic eye, and nOt fOr gOOd things, Often fOr reasOns that make the pUblic qUestiOn the cOmpany mOrals. things sUch as the glamOriZatiOn Of depressiOn Or eating disOrders appear On the shelves time and time again, Only tO caUse cOntrOversy whilst pUtting them On the pUblic eye, every time.
Image from urban outfitters europe’s pinterest 2014
unDerstanDinG urban outFitters results FroM custoMer surVeY surVey DesigneD For urBan outFitters customers targeting ansWers to unDerstanD WHy PeoPle sHoP at tHe store, WHere else tHey liKe to sHoP anD WHat tHey tHinK is missing. By asKing tHese Questions it maKes it easier to unDerstanD tHe BranDs comPetitors, WHat is WorKing For tHe comPany anD WHat sHoulD Be neXt For tHem.
WHat WoulD you liKe to see in urBan outFitters?
WHere else Do you liKe to sHoP?
WHat encourages you to sHoP at urBan outFitters?
tHis Question asKs sHoPPers WHat maKes tHem sHoP at urBan outFitters, Pointing out WHetHer sales are truly imProVeD By Discounts, sales or tHe trenDs tHat are stocKeD. ansWers sHoWeD tHat sales are mainly DriVen By tHe tyPe oF clotHing in store But sales anD Discounts also DriVe a lot oF PeoPle into stores.
Do you FolloW urBan outFitters on social meDia?
Here you can unDerstanD WHat tyPes oF social meDia are most successFul WitH tHe customers i HaD asKeD, sHoWing instagram tHat urBan outFitters uses Daily is tHe main one, FolloWeD By tWitter. altHougH a large Portion oF PeoPle stateD tHey DiDn’t FolloW urBan outFitters, suggesting a PossiBle Place For imProVement.
is urBan outFitters oVer PriceD? Do you tenD to sHoP online or instore?
WHat items to you go to urBan outFitters to Buy?
tHis Question is BaseD arounD Boston matriX anD unDerstanDing WHat ProDucts sell Well anD WHat may Be HolDing tHe comPany BacK. tHis sHoWs tHat tHose PeoPle WHo ansWereD tHe surVey Were more liKely to Buy Vintage clotHing anD lingerie tHat Vinyls But tHis Doesn’t account For all urBan outFitters sHoPPers. tHings liKe on trenD clotHing anD accessories liKe sHoes, aPPear to also Be stars.
WHere Do you go to Buy Vintage clotHes?
Vintage clotHing Being one oF urBan outFitters uniQue selling Points is sometHing tHat tHe comPany sHoulD Be aWare oF WHen it comes to comPetitors.
MarKet Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
position
WHere is urban outFitters positioneD in tHe MarKet? urban outFitters is a HiGH street store WHicH is in tHe HiGHer enD oF tHe MarKet. urban outFitters Has a FeW MarKet sections it is iMportant to analYse.
HiGH street
Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
topsHop, riVer islanD, ForeVer 21, aMerican apparel, Gap, H&M, priMarK
aMerican apparel is a top coMpetitor For urban outFitters, beinG in a siMilar MarKet position to tHeM. aMerican apparel Has HiGH QualitY clotHinG MaDe in aMerica bY FairlY treateD WorKers, MeaninG tHe prices are also at a HiGHer enD oF tHe scale, altHouGH tHe prices are More DeFineD tHan otHer places WHo cHarGe HiGH eXpenses but use cHeap WaYs oF proDuction. tHis tHen leaDs Me on to Gap WHo is also oF a HiGH QualitY branD WitH FairlY HiGHer prices tHan urban outFitters (DepenDinG on tHe branD). urban outFitters anD Gap laY in prettY siMilar places in tHe MarKet Map as urban outFitters’ prices VarY FroM branD to branD. in Gap You WoulD be looKinG at arounD £39-50 For a pair oF Jeans WHere as urban outFitters WoulD start at arounD £40-£100 DepenDinG on tHe branD. riVer islanD anD topsHop are beloW urban outFitters, in siMilar positions, bearinG in MinD tHat topsHop Has MoVeD up sliGHtlY in tHe MarKet Due to it’s More luXurious topsHop uniQue collection anD Kate Moss collaboration WHicH puts it sliGHtlY aHeaD oF riVer islanD in terMs oF price anD QualitY. beloW riVer islanD in terMs oF botH QualitY anD price is H&M WHicH is MucH, MucH loWer tHan tHe HiGH branDs oF tHe HiGH street MarKet, Despite preVious DesiGner collaborations in WHicH QualitY is better, prices are alWaYs MucH More aFForDable tHan tHose in aMerican apparel. ForeVer 21 anD tHen priMarK FolloW H&M, GettinG into tHe Value stores, WHere QualitY oFten lacKs as stocK is bouGHt in bulKs.
aMerican apparel
HiGH QualitY
loW price
ForeVer 21
H&M
urban outFitters Gap
topsHop riVer islanD
priMarK
loW QualitY
HiGH price
WHo sHops at urban outFitters?
tHe urban outFitter’s tarGet MarKet it tHe tYpical colleGe stuDent WHo is creatiVe anD aroun tHe aGe Group oF 18-24. tHe custoMer is alWaYs on trenD anD looKinG For soMetHinG to Help create tHeir inDepenDant, uniQue looK. tHe custoMer is soMeone WHo is VerY passionate about tHeir appearence anD tHe branDs tHeY use, WearinG on trenD clotHes WitH a spin. tHis custoMer liKes VintaGe clotHinG anD otHer on trenD stores sucH as topsHop, H&M anD Gap,as Wel as taKinG to cHaritY sHops anD VintaGe stores For tHeir More uniQue iteMs. tHis Means tHat it is iMportant to also position tHe VintaGe stores tHat eXist.
VintaGe
cHairtY HairtY sHops, coW VintaGe, asos MarKet place, ebaY, inDepenDant stores, topsHop boutiQue
HiGH QualitY urban outFitters asos MarKet place coW VintaGe topsHop boutiQue inDepenDant stores
HiGH price
loW price ebaY
cHaritY sHops
loW QualitY
online V HiGHstreet
surVerY results sHoW tHat Most urban outFitters sHoppers sHop botH online anD instore eXplaininG tHat soMetiMes tHere are online eXclusiVes tHat You WoulDn’t be able to FinD in store anD WitH tHe VintaGe clotHinG, You MaY not FinD tHe saMe KinD oF proDucts online as tHeY are all one oFF. More sHoppers saiD tHeY sHoppeD MainlY instore tHan online saYinG tHat tHis Was because i liKeD to trY tHe clotHes on anD see tHeM in real liFe, especiallY WitH VintaGe iteMs. also tHeY claiMeD tHat tHeY liKe tHe instore eXperience as tHe sHop is VerY uniQue insiDe, it is a Fun place to sHop WitH a VerY calM anD relaXeD, cool atMospHere. sHoppinG instore also Means tHe custoMer Gets tHe proDuct tHere anD tHen anD Doesn’t HaVe to Wait or paY For DeliVerY. on tHe otHer HanD DeliVerY is soMetHinG tHat MaKes tHe otHers sHop online More, WitH proMotions anD Free DeliVerY constantlY creepinG up in eMails. urban outFitters Get’s custoMers to siGn up in WHicH You put Details sucH as Your eMail aDDress anD nuMber, tHis alloWs tHeM to contact You WitH proMotions anD oFFers tHat are online (soMetiMes instore) encouraGinG You to sHop tHere anD tHen. clotHes are alWaYs launcHeD online Faster tHan instore anD iF tHe iteM isn’t in store tHis Means tHe custoMer can reFer to online iF tHeY still Want tHe proDuct. bY brinGinG custoMers online tHe coMpanY’s online Data collection Will increase WHilst tHe FootFall instore MaY Decrease. it is iMportant tHat tHe coMpanY Gets a steaDY balance betWeen FootFall anD online, so tHat neitHer lacKs anD sales reMain HiGH.
Image from urban outfitters europe’s pinterest 2014
places liKe ebaY anD cHairtY sHops MaKe VintaGe FasHion VerY easY anD accessible. tHe prices are VerY loW but tHe QualitY is neVer proMiseD as tHe iteMs are sourceD FroM all sorts oF places WHicH Means WHilst soMe stocK MaY be oF HiGH QualitY, otHers MaY be tHe opposite. inDepenDent stores sellinG pure VintaGe stores Will be reasonablY priceD anD GooD QualitY VintaGe but soMe iteMs MaY HaVe obVious siGns oF Wear. on tHe otHer HanD altHouGH places liKe coW VintaGe are siMilar to tHese sMaller stores, tHeY HaVe a proGraM in WHicH tHeY reWorK tHe stocK to MaKe it More sellable. saMe Goes For asos MarKet place anD topsHop boutiQue anD tHis is WHere tHe prices beGin to increase as HiGH street stores MaKe tHe Most out oF one oFF iteMs. tHe QualitY at tHis point Will be better tHan FounD in a cHaritY sHop but tHis Means tHe prices Will be HiGHer too. WHen MappinG VintaGe stores urban outFitters coMes up as Quite HiGH up in QualitY anD in price. urban outFitters reWorKs tHeir stocK MaKinG all tHeir VintaGe iteMs eVen More interestinG anD on trenD, aDJustinG tHe pieces sliGHtlY to MaKe tHeM More appealinG to tHe tarGet consuMer.
cUrrent high street trends that may effect Urban outfItters are: UniqUe in stOre experience increased fOOtfall technOlOgy Online presence/sOcial media atmOsphere UniqUe in stOre experience the cUrrent market are cOmpeting against each Other with nOt Only trends bUt with what their stOre has tO Offer. many stOres in central cities are nOw Offering mUch mOre than jUst a shOpping experience. in Order tO Offer the Ultimate shOpping experience fOr cUstOmers and keep them in the stOre fOr as lOng as pOssible many stOres are beginning tO Open in stOre shOps, sUch as hairdressers, nail bars and cafes. an example Of this is OxfOrd street tOpshOp, a big cOmpetitOr fOr Urban OUtfitters, whO has bleach lOndOn hair stylists, a nail bar and a barbers all inside One stOre. in the recent mOnths Urban OUtfitters has fOUght back in an attempt tO be seen mOre Of a lifestyle brand, adding featUres like a hair salOn, cafe, and areas fOr their cUstOmers tO dwell time in. increased fOOtfall in Order tO imprOve sales, fOOtfall mUst alsO imprOve as the mOre peOple Urban OUtfitters can get intO stOre, the mOre sales they are likely tO make. Urban OUtfitters cOUld get mOre peOple in stOre by the Use Of prOmOtiOns and sales. anOther way that wOUld sUit Urban OUtfitters is events, by hOlding events, maybe mUsic Or arts events wOUld get the right kind Of cOnsUmer in tO the stOre, encOUraging sales. a final thing that will make a difference is weather and the time Of the year, if weather is bad, peOple are gOing tO want tO be inside and may nOt want tO travel, bUt On the Other hand if peOple are OUtside and the stOre is the clOsest cOver, peOple will take shelter in stOre, therefOre lOcatiOn is always key. technOlOgy as technOlOgy imprOves it is impOrtant that Urban OUtfitters keeps Up with the times. the pUblic are gOing tO be mOre and mOre advance with technOlOgy sO it is vital Urban OUtfitters is tOO. this can gO fOr sOcial media apps, and the Use Of the internet bUt alsO instOre sUch as the tills and pOssible visUals. a pOssible idea fOr the fUtUre cOUld be self service checkOUts mOving intO retail shOps tOO. which ever it is Urban OUtfitter’s cOnsUmer is the yOUth that will be first tO be Using the newest technOlOgy sO the cOmpany mUst always be One step ahead. Online presence/sOcial media Urban OUtfitters is already One Of the key leaders when it cOmes tO Online presence and embracing sOcial media platfOrms, having a presence On every app and website yOU cOUld think Of and many mOre. bUilding Up an Online presence is very impOrtant fOr a brand like Urban OUtfitters whO’s cOnsUmer is all abOUt Online. fOr Urban OUtfitters a way tO embrace this even fUrther wOUld be tO create mOre mObile phOne apps dedicated tO the brand Or create an interactive twitter where they can easily cOmmUnicate with cUstOmer qUestiOns. atmOsphere atmOsphere is a key market trend at the mOment and sOmething many stOres are trying tO achieve. it is impOrtant that Urban OUtfitters carries On it’s strOng brand image thrOUgh tO the atmOsphere in the stOre. yOU cOUld describe an Urban OUtfitters stOre and qUite relaxed and calm, this is sOmething that is carried thrOUgh by staff, mUsic and visUal presentatiOn. the mUsic is always appealing tO the target cOnsUmer and is Often the mUsic that they sell On vinyl, chOOsing interesting artists that they knOw the cOnsUmer likes. tO pUsh this atmOsphere and make cUstOmer feel mOre welcOme Urban OUtfitters shOUld make areas in all stOres where the cUstOmer can spend time. the lOnger the cUstOmer is in there the mOre likely they are tO stUbble acrOss sOmething they want tO bUy. anOther idea tO create the perfect atmOsphere is develOping a persOnalised smell that the cUstOmer can always be reminded Of the stOre and assOciate with Urban OUtfitters.
Image from urban outfitters europe’s pinterest 2014
MarKet trenDs
anOther brand highly inflUenced by vintage trends, targeting yOUng peOple Of bOth sexes is american apparel. american apparel is a hUge threat tO Urban OUtfitters as it nOt Only targeting a similar grOUp Of peOple bUt is a cOmpany that seems tO cOnstantly prOgress.
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Image from american apparel’s website 2014
avOid
after analysing american apparel as a cOmpany as well as a cOmpetitOr it is ObviOUs this is a cOmpany Urban OUtfitters cOUld dO with avOiding rather than attacking. american apparel has a very strOng brand image, stOcking Only clOthes frOm their inhOUse brand and vintage cOllectiOn. they have a wide sOcial media fOllOwing, Using things sUch as instagram and tUmblr heavily in Order tO cOnnect with and infOrm their cUstOmers. american apparel always has strOng mOrals, Using Usa factOries Only which ensUres all clOthes are at a high qUality and the wOrkers are treated (and paid) fairly, whilst Urban OUtfitters admits tO Using Over sea factOries.
s t r e n g t h s - Usa factOries, with fair wages and treatment - strOng brand image - stOre lOcatiOns are always gOOd - large sOcial media fOllOwing - sUppOrts gay marriage and immigratiOn rights - big advertisements
w e a k n e s s e s - bad pUblicity, fOr example Over sexUalised advertisements - media rUmOUrs - peOple sOmetimes find prices tOO expensive
O p p O r t U n i t i e s - cOUld Open mOre stOres - make smaller stOres larger - create a better shOpping experience, fOr example cafe inside stOre - persOnal shOpper
t h r e a t s - Other stOres targeting same age grOUp (18-24) fOr example Urban OUtfitters, tOpshOp - Other stOres mOving tO lOcal factOries, making american apparels campaign less UniqUe
s t r e n g t h s
e-commerce: amerIcan apparel has two onlIne stores, americanapparel.cOm and califOrnia select, their ebay which accounts for around 15% of total onlIne retaIl sales. InteractIve advertIsIng: amerIcan apparel delIvered 483 mIllIon dIsplay ad vIews In aprIl 2008 whIch reached 49 mIllIon internet Users On average Of 9.9 times dUring that mOnth.
One Of the reasOns american apparel is sUch a big threat is dUe tO the strOng pOsitive actiOns the pUblic are aware Of, sUch as american factOries creating the clOthes. american apparel alsO are knOwn fOr sUppOrting gay rights and immigratiOn rights, reqUesting eqUality with their “legaliZe gay” and “legaliZe la”. On the Other hand Urban OUtfitters has a darker histOry where sweatshops and supplIers are concerned. In 2008 longvIew funds, a mutual fund company Urged Urban OUtfitters tO adOpt internatiOnal labOUr standards bUt the Offer was declined. this mean Urban OUtfitters refUsed tO jOin the fight fOr internatiOnally recOgnised hUman rights, instead released a statement saying they “expect sUppliers tO adhere tO chid-labOr laws”. even thOUgh american apparel is seen in a pOsitive light when it cOmes tO the prOdUctiOn Of the clOthing, the advertisements afterwards cOnstantly caUse a stir, sOmetimes even been banned. recently in an attempt tO prOmOte their back tO schOOl cOllectiOn they Used a girl in schOOl like lOcatiOns leaning intO a car allOwing the cameras tO see Up her skirt. this isn’t the first time american apparel are in the pUblic eye fOr sexUalising wOmen, even their ceO is rUmOUred tO have taken advantage Of staff.
attack
after bench marking abercrOmbie & fitch and Urban OUtfitters it is ObviOUs that a & f are strUggling tO appeal tO a certain type Of cOnsUmer in the same way that Urban OUtfitters is which means that Urban OUtfitters cOUld target cOnsUmers whO are maybe bOred Or less
bencH MarKinG abercrombie & fitch Image, business Insider, abercrombie’s biggest Initiative of the past five years Is failing, http://www.businessinsider.com/abercrombie-is-in-trouble-2013-2?Ir=t
abercrOmbie and fitch is One Of Urban OUftitters biggest cOmpetitOrs
and threats in the indUstry. abercrOmbie & fitch cO. was fOUnded in 1892 in new yOrk, becOming a cOmpany whO sells a brOad array Of prOdUcts. abercrOmbie and fitch’s sales cOme frOm casUal spOrtswear apparel, knit and wOmen skirts, graphic t-shirts, fleece, jeans and wOmen pants, shOrts, sweaters and OUterwear. they alsO stOck Underwear, persOn care prOdUcts, accessOries and childrens cOllectiOns. the cOmpany Operates in three segments: u.s, stores, InternatIonal stores and dIrect-to-consumer. as of februsary 1, 2014, the company operated 843 stores In the unIted stores and 163 OUtside Of the U.s, this is a significant amOUnt mOre than Urban OUtfitters.
snapshot from abercrombie & fitch app 2014
abercrOmbie and fitch recently had tO create a mObile app which still dOesn’t cOmpare with Urban OUtfitters strOng sOcial media presence that cOvers every platfOrm pOssible. abercrOmbie were fOrced tO create this app having watched their sales cOntinUe tO drOp there was a desperate need tO Understand their cUstOmer better. althOUgh abercOmbie’s app lacks in-stOre exclUsives Unlike Urban OUtfitters in-app news feeds, rewards and access tO sOcial media platfOrms which allOw their cOnsUmers tO cOntact and cOmmUnicate.
STRENGTHS ABERCROMBIE AND FITCH HAS A UNIQUE WASY OF PROMOTION, USING BRAND REPRESENTATIVES. MIKE JEFFERIES HAS MANAGED TO TURN TO BRAND INTO A POPULAR APPAREL FOR THE YOUNG CONSUMER AFTER THE COMPANY HAD STRUGGLED. THE RETAILED ALSO OWNS HOLLISTER AND GILLY HICKS, WHICH IS FINANCIALLY HELPFUL WHILST GIVING MORE AND MORE OPTIONS TO THE TARGET CONSUMER, ENSURING THEY SHOP WITHIN RATHER THAN NEEDING TO VENTURE OUT TO OTHER BRANDS. FOCUSES ON PRINT ADVERTISEMENTS BY HOPING CONSUMERS WILL FEEL INSPIRED TO LOOK LIKE THE MODEL IN THE PHOTO, BRINGING THEM IN STORE. THE STRONG SENSE OF SMELL THAT HITS YOU WHEN YOU WALK INTO AN A&F STORE CREATES AN EMOTIONAL ATTACHMENT, SPRAYING ALL PRODUCTS WITH THIS ALLOWING YOU TO AUTOMATICALLY THINK OF THE BRAND WHEN YOU SMELL THAT SCENT.
WEAKNESSES ABERCROMBIE AND FITCH SEEM TO BE LOOSING APPEAL FROM THEIR ONCE POPULAR “BEACH LIKE APPEARANCE” TREND WHICH WAS POPULAR OVER THE 1990’S AND EARLY 2000’S. THE TARGET MARKET SEEMS TO HAVE AGED AND THE CONSUMERS GROW OUT OF THE BRAND, LOOSING INTEREST IN THE STOCK. APPEARS VERY DISCRIMINATORY, SOMETIMES SUGGESTING ONLY A CERTAIN TYPE OF PERSON CAN WEAR THEIR PRODUCTS. IN 2006 JEFFERIES SAID “WE GO AFTER COOL KINDS, WE GO AFTER THE ATTRACTIVE, ALL-AMERICAN KID WITH A GREAT ATTITUDE AND LOTS OF FRIENDS. A LOT OF PEOPLE DON’T BELOND IN OUT CLOTHES.” THE COMPANY ALSO ONLY GOES UP TO A WOMEN’S SIZE 10 AND MEN’S SIZE 34. ALTHOUGH BOTH URBAN OUTFITTERS AND ABERCROMBIE AND FIT TARGET A VERY SPECIFIC CONSUMER, URBAN OUTFITTERS MANAGE TO ADAPT WITH THE CONSUMER NEEDS WHEREAS A & F ARE ALMOST STUCK WITH THEIR LIMITED STYLES.
OPPORTUNITIES NEW OPPORTUNITIES HAVE ROSE SINCE JEFFERIES MANAGED TO BUILD UP THE BRAND IMAGE INTO SOMETHING THAT APPEALED TO YOUNG ADULTS AND MADE THEM APSIRE TO BE MORE IN TUNE WITH THE PRODUCT. HAVING ALREADY TURNED THE BRAND AROUND ONCE THIS MEANS THAT IT WOULD BE DOABLE TO REINVENT THE COMPANY AGAIN IF IT ALLOWED THEM TO FOCUS ON NEW CONSUMERS AND THEIR NEEDS, TODAY. INDUSTRY TRENDS ALSO GIVE ABERCROMBIE AND FITCH OPPORTUNITIES TO BUILD A BIGGER CUSTOMER RANGE WHILST BEING UPDATED WITH TECHNOLOGY COULD ALSO IMPROVE THE BRAND. URBAN
THREATS ABERCROMBIE AND FITCH FACE A LOT OF THREATS ESPECIALLY SINCE THE CEO HAS SAID MANY DISCRIMINATING STATEMENTS THAT HAVE OFFENDED CUSTOMERS, FORCING THEM TO SHOP ELSEWHERE. EVEN THOUGH BOTH URBAN OUTFITTERS AND ABERCROMBIE AND FITCH TARGET A SPECIFIC TYPE OF PEOPLE, URBAN OUTFITTERS ARE MORE SUPPORTIVE OF OTHER STYLES WHO MAY FALL INTERESTED IN THE BRAND WHEREAS A&F SEEM TO PUSH THOSE WHO DON’T FIT THE STEROTYPE AWAY. ANOTHER THREAT IS THAT THE CONSUMERS ARE NO LONGER AS INTERESTED IN THE BRAND IMAGE THAT ONCE WAS VERY
ABERCROMBIE AND FITCH IS A MAIN COMPETITOR FOR URBAN OUTFITTERS. ALTHOUGH IT HAS MORE STORES, URBAN OUTFITTERS HAS MADE A BIGGER NAME FOR ITS SELF THROUGH THE USE OF SOCIAL MEDIA, ESPECIALLY IN EUROPE. BOTH COMPANIES TARGET THE SAME AGED CONSUMER FROM 1830 YEARS BUT FROM DIFFERENT PERSPECTIVES. ABERCROMBIE & FITCH TARGET THE “COOL, ALL-AMERICAN KIDS” WHICH OFTEN IS VIEWED AS DISCRIMINATING FOR THOSE WHO WANT TO SHOP THERE BUT DO NOT FIT THE STEREOTYPE CONSUMER. URBAN OUTFITTERS ALSO TARGETS A SPECIFIC TYPE OF PERSON, THAT COULD BE DESCRIED WITH A VINTAGE STYLE YET ON TREND, QUIRKY AND EVEN HIPSTER. THE DIFFERENCE IS THAT URBAN OUTFITTERS MANAGES TO FOCUS ON A GROUP OF SPECIFIC PEOPLE WHILST STILL GAINING CUSTOMERS FROM OTHERS AND MAKING THEM JUST AS WELCOME, AN EXAMPLE OF THIS IS STOCKING UP TO LARGE SIZES, WHERE AS ABERCROMBIE’S WOMENS WEAR STOPS AT SIZE 10.
coMpetition Direct anD inDirect
in Order tO Understand Urban OUtfitters pOsitiOning in the market it is impOrtant tO lOOk at the cOmpetitiOn they face. cOmpetitOrs may be direct Or indirect bUt bOth types are impOrtant fOr Urban OUtfitters tO cOntinUally watch.
Direct:
abercroMbie & FitcH, aMerican apparel,, topsHop
inDirect:
H&M, VintaGe stores, iKea abercroMbie & FitcH:
when yOU cOmpare abercrOmbie and fitch with Urban OUtfitters they are very different cOmpanies bUt with similar target cOnsUmers. abercrOmbie and fitch target a typical “all-american” yOUng cOnsUmer whilst Urban OUtfitters lOOk at what can be described as hipsters. abercrOmbie and fitch have mOre stOres than Urban OUtfitters Overall. abercrOmbie & fitch alsO have a very strOng brand image that makes them instantly recOgnisable One Of these things is Using representatives, Or certain faces in their advertisements which are limited tO magaZine.
aMerican apparel:
american apparel is a direct cOmpetitOr tO Urban OUtfitters as they both target a sImIlar consumer between 18-30, male and female. american apparel have strOng campaigns that pUt them in a gOOd light in the media, sUch as american factOries where the wOrkers are treated and paid fairly, this resUlts in high qUality clOthing, whereas Urban OUtfitters admits tO Using many Oversea factOries in Order tO get their clOthes made and in stOres as qUickly as pOssible. amercian apparel alsO stands fOr gay and immigratiOn rights which wins them cUstOmers dUe tO their pOsitivity whilst Urban OUtfitters is Often seen On the cOntrOversial side Of the media. american apparel have a very large sOcial media fOllOwing which is anOther reasOn that Urban OUtfitters shOUld feel in cOmpetitiOn with them, nOt fOrgetting their strOng brand image.
topsHop:
tOpshOp has shOwn tO be a bigger cOmpetitOr than expected after sUrvey resUlts shOwed mOst Urban OUtfitters shOppers claimed tO alsO shOp at tOpshOp Often. tOpshOp is a typical high street stOre which gains cUstOmers fOr being On trend and fairly reasOnably priced. tOpshOp is a threat becaUse it has a very large fOllOwing On sOcial media as well as invOlving many celebrities in the cOmpany, fOr example, kate mOss x tOpshOp. tOpshOp alsO has a vintage range rOckit vintage/tOpshOp bOUtiqUe where they cOllect vintage items and rewOrk them in the same way that Urban OUtfitters dO, making them mOre sellable and On trend. this is a threat tO Urban OUtfitters as they are targeting the same cOnsUmers with similar techniqUes meaning Urban OUtfitters
Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
H&M:
sUrvey resUlts have shOwn that a lOt Of Urban OUtfitters shOppers tend tO shOp at h&m as well, their reasOns being it is cheaper. h&m stOres seem tO be smaller and dOtted arOUnd city centres whereas Urban OUtfitters mainly have One big stOre that is lOcated in a prime pOsitiOn, clOse tO yOUth. Urban OUtfitters is well knOwn fOr its sOcial media presence and cOnstantly Updated website where as h&m’s website has a lOt Of catching Up tO dO tO be anywhere near the standards Of Urban OUtfitters and Other cOmpetitOrs. On the Other hand h&m is alsO knOwn fOr its sUccessfUl designer cOllabOratiOns, like Urban OUtfitters except these cOllabOratiOns get a lOt mOre media cOverage and are Often with bigger labels sUch as the mOst recent One, alexander wang.
VintaGe stores/cHaritY sHops:
anOther Of Urban OUtfitters in-direct cOmpetitOrs inclUdes all vintage stOres and even charity shOps! tOday there are sO many thift stOres and charity shOps arOUnd yOU can get vintage fashiOn qUickly and inexpensively. whilst Other places like tOpshOp and asOs alsO stOck a vintage renewal brand (which is anOther type Of cOmpetitiOn fOr Urban OUtfitters) the Original thift stOres still exist and mOst Of the time fOr cheaper prices. sUrvey resUlts shOw that many Of Urban OUtfitters cUstOmers alsO shOp at places like we are cOw and charity shOps and there is a pOssibility Urabn OUtfitters cOUld lOOse pOssible cUstOmers tO these places if they remain cheaper.
iKea:
market niche, slightly different tO Urban OUtfitters bUt is hUge within the hOmewear indUstry. sO big that Urban OUtfitters is repOrting tO be rebranding their anthrOpOlOgy brand tO make it mOre like the sweedish cOmpany. they’re aiming tO fOcUs On the idea Of being a lifestyle stOre by adding a dining area Or a pOssible salOn. in Order tO cOmplete this strategy urban outfItters wIll need to maKe the stores 3 tImes larger than they already are with the Ultimate gOals Of dOUbling sales by 2020. IKea Is also an In-dIrect threat to urban outfItters as uo runs the threat Of being knOwn mainly fOr it’s clOthing brands, lOsing pOssible cUstOmers tO places like ikea Or even next fOr hOmewear pUrchases.
Images from urban outfitters europe’s website 2014
vintage renewal cUrrent trends lingerie
general
casH coWs
stars shOes hOmewear accessOries nOvelty items
Dogs
ProBlem cHilDren
designer items
bOOks vinyls
emily reece’s survey on urban outfitters2014
WomensWear
sUrvey resUlts shOw that stOck sUch as vintage renewal, cUrrent trends and lingerie are cash cOws and are what sell best fOr the cOmpany. this is what Urban OUtfitters get’s the mOst prOfit frOm, therefOre where it is safest tO invest. the stars inclUde shOes, hOme wear, accessOries and nOvelty items. these are all things that alsO sell well bUt may nOt bring as mUch prOfit tO the cOmpany as the cash cOws. the sUrvey has shOwed dOgs tO be the designer items and a reasOn fOr this may be the target cOnsUmer Urban OUtfitters have which is the stUdent. Only the very lUcky stUdents can affOrd designer items which may be a reasOn fOr less peOple admitting tO pUrchasing these items. finally bOOks and vinyls appear tO be the prOblem children, the things that aren’t bringing enOUgh prOfit tO the cOmpany and in retUrn are the things Urban OUtfitters shOUld think abOUt carefUlly prOmOting and marketing if they want tO appear mOre Of a lifestyle brand than a clOthing brand.
mensWear
casH coWs
stars
casH coWs
stars
skirts tOps dresses lingerie vintage renewal
shOes jeans/trOUsers designer items cOats/jackets
tOps jeans/trOUsers shOes vintage renewal
cOats/jackets nOvelty items
Dogs ProBlem cHilDren accessOries t-shirts
nOvelty items
Dogs ProBlem cHilDren designer items
accessOries
here wOmenswear and menswear have been seperated Using sUrvey resUlts which allOws yOU tO Understand mOre accUrate prOdUcts that peOple are bUying. fOr wOmen it is the basics and vintage renewal that sell best whilst men are likely tO bUy shOes, tOps and trOUsers, Often vintage renewal. the prOdUcts that tend tO strUggle with wOmen are nOvelty items, peOple whO answered the sUrvey said these tend tO be presents and jOke bUys rather than actUal presents when as men seem tO enjOy these items mOre. accessorIes tend to struggle also, especIally wIth men, wIth 0% of the males who answered the sUrvey admitting tO bUying accessOries frOm Urban OUtfitters where as the percentage Of wOmen whO bOUght accessOries was mUch lOwer cOmpared tO clOthing trends and lingerie. designer item bUys are alsO higher with wOmen than men which may be becaUse Urban OUtfitters targets these brands mOre tOwards wOmen, fOr example vivienne westwOOd cOllectiOns fOcUs On bags and pUrses,
Urban OUtfitters needs tO imprOve the prOblem children as a matter Of Urgency as many peOple whO answered the sUrvey said they dO nOt gO tO Urban OUtfitters fOr bOOks and vinyls and Once male and female bUying patterns were analysed yOU cOUld see that the prOblem children here were nOvely items (Only with wOmen) and accessOries.
imProVement on ProBlem cHilDren & Dogs Order tO imprOve Urban OUtffiters cOUld try fOcUsing a cOllectiOn Of nOvelty items mOre tOwards wOmen which may encOUrage them tO bUy, alsO incOrpOrating trends intO this, sO pOssibly nOvelty items that fOllOw the same trends as fashiOn, picking Up On prints and fabrics. in general bOOks and vinyls sales seemed tO be lOwer with the peOple whO answered the sUrvey bUt having read Urban OUtfitter’s anUal review their sales On vinyls are very steady. bOOks On the Other hand cOUldi imprOve slightly by simply expanding the range fUrther and stOcking mOre independant bOOks that will still appeal tO the cOnsUmer, bUt can’t be bOUght elsewear. mOving On tO the sales Of the dOgs, althOUgh designer items are exciting On Urban OUtfitters as they make the cOnsUmer feel mOre privalidged, the target cOnsUmer may Often nOt be able tO affOrd
Boston matriX
Images from urban outfitters europe’s pinterest 2014
Images from urban outfitters europe’s pinterest 2014 collective: the uo Journal
in
HoW Do urBan outFitters collate customer Data?
Image from urban outfitters europe’s pinterest 2014, exclusives
Image from urban outfitters website, snapshotted tuesday 28th october 2014
Image from urban outfitters website, snapshotted tuesday 28th october 2014
Urban OUtfitters cOllect cUstOmer data thrOUgh many different ways with the pUrpOse Of Understanding their cOnsUmer better than ever. this allOws their marketing team tO fOcUs On the cOrrect type Of persOn tO make their prOmOtiOns accUrate which will drive sales fUrther. One Of the ways Urban OUtfitters cOllects yOUr data is thrOUgh literally asking yOU tO sign Up in stOre, all Urban OUtfitters cUstOmers wOUld have experienced at least Once what happens when they get tO the till tO pay fOr the pUrchase and the shOp assistant asks yOU tO sign Up. this generally will be a card asking fOr infOrmatiOn sUch as yOUr name, which will allOw them tO persOnally address yOU, gender, age and email. all these details will allOw fUtUre cOmmUnicatiOn sUch as emails prOmOting the cOmpany as well as allOwing them tO analyse their cUstOmers in detail. anOther way that Urban OUtfitters cOllect infOrmatiOn is thrOUgh sUbscribing and accOUnts. Often in Order tO pUrchase items frOm the website yOU have tO have an accOUnt and in Order tO access prOmOtiOns yOU have tO sUbscribe. here yOU are Offering even mOre infOrmatiOn sUch as where yOU live, yOUr mObile nUmber and this will alsO allOw Urban OUtfitters tO mOnitOr hOw Often yOU are bUying frOm the website, cOnnecting this infOrmatiOn with yOUr age grOUp and gender. sOcial media alsO plays a part in cOllating data, when yOU fOllOw the cOmpany they can access yOUr accOUnt, see what yOU lOOk like, what yOU wear, what kind Of persOn yOU are, they can see anything yOU let them! this alsO is a way Of ensUring the cOmpany prOmOtes tO cOrrect grOUp Of peOple, if yOU want tO see Urban OUtfitters Updates, yOU fOllOw them. here yOU can alsO interact with the cOmpany, cUrrent sOcial and market trends allOw yOU tOday tO cOmmUnicate in ways that befOre were simply nOt pOssible. an example Of this is hashtags, if yOU hashtag sOmething tO dO with the cOmpany they can see and are nOtified Of this, Often this infOrmatiOn can be Used tO help Understand the cOnsUmer and their needs. a cOmpany that is better at this way Of data cOllectiOn is asOs. this is becaUse they have a specific twitter designed fOr cOmpany tO cOnsUmer interactiOn, here if yOU mentiOn asOs in a tweet with an issUe they will aUtOmatically respOnd, nOt Only dOes this help resOlve issUes and allOw the cUstOmer tO pUt mOre trUst intO the cOmpany bUt it allOws asOs tO see whO is bUying their prOdUcts. a final way in which Urban OUtfitters cOllect infOrmatiOn is by creating cOmpetitiOns fOr which cUstOmers can feel invOlved and mOst impOrtantly get the details Of the cOnsUmer.
# uoonyou
urBan outFitters encourages instagram uses to Hastag tHeir PHotos Wearing urBan outFitters WHicH alloWs tHem to Feel incolVeD WitH tHe BranD, also alloWing tHe comPany to unDerstanD tHeir consumer FurtHer.
MartKetinG anD proMotion # uostyle
urBan outFitters also encourages customers in cHanging rooms to taKe a ‘selFie’ in tHeir clotHes anD Hastag urBan outFitters. tHis is again a Way oF interacting WitH tHe consumer, as Well as BuilDing uP an eVen Bigger FolloWing on social meDia , Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
FlicKr Pinterest songDroP tWitter youtuBe Vimeo tumBlr Blog instagram
DURING FISCAL 2014 URBAN OUTFITTERS C I R C U L A T E D APPROXIMATELY 29.4 MILLION CATALOGUES
URBAN OUTFITTERS USES HIGHLY EFFECTIVE MARKETING TOOLS ON THEIR WEBSITE, MOBILE APPLICATIONS, CATALOGUES, EMAIL CAMPAIGNS AND SOCIAL MEDIA. ALL MEDIA COMMUNICATION IS UPDATED DAILY IN ORDER TO CONSTANTLY KEEP THE CONSUMER FEELING UP TO DATE AND INFORMED. THIS IS ALSO REFLECTIVE OF HOW URBAN OUTFITTERS LOCATE THEIR STORES, ALWAYS HIGHLY VISIBLE AND ACCESSIBLE, ESPECIALLY FOR THE YOUNGER CONSUMER. INSIDE THE STORE VISUAL PRESENTATION IS KEY AS WELL AS ONLINE IN ORDER FOR CUSTOMERS TO UNDERSTAND, WANT AND PURCHASE THE PRODUCT. URBAN OUTFITTERS RELIES ON THESE FACTORS AS WELL AS A STRONG BRAND IMAGE WHICH IS CONSTANTLY UPDATED IN ORDER TO DRAW CUSTOMERS TO OMNI-CHANNEL OPERATIONS, RATHER THAN USING TRADITIONAL FORMS OF ADVERTISING. THIS MEANS THAT URBAN OUTFITTERS STAYS AWAY FROM PRINT, RADIO OR TELEVISION ADVERTISING AS THE COMPANY BELIEVES THIS WAY OF “ONE-WAY” COMMUNICATION IS NO LONGER ENOUGH AND TODAY THE CONSUMER NEEDS TO HAVE ALMOST HAVE A CONVERSATION, AND BE INTERACTED WITH DIRECTLY. THE COMPANY USES FACEBOOK, TWITTER, PINTEREST, INSTAGRAM AND URBAN OUTFITTERS MOBILE APPLICATIONS TO UNDERSTAND AND SERVE THE CONSUMER NEEDS, ALSO USING A BLOG TO CONTINUE THE CONVERSATION. BY USING A BLOG THIS NOT ONLY ALLOWS THE COMPANY TO COMMUNICATE THEIR INSPIRATIONS BUT ALSO DEVELOPS A RELATIONSHIP WITH THEIR CUSTOMERS IN WHICH THEY CAN UNDERSTAND WHAT INSPIRES THEM.
Urban OUtfitters rely heavily On their ability tO spOt cUstOmer tastes and changing fashiOn trends as they need tO adapt tO these rapid changes cOnstantly. they state that their sUcsess depends On whO effectively they can predict and then respOnd tO change in trends and cOnsUmer demands, translating this tO apprOpriate prOdUcts ready tO sell. their inability tO effectively determine these changes cOUld lead tO an increase in seasOnal inventOry levels as well as a fUtUre need tO increase markdOwns. cOmpared tO their retail segment, the whOlesale segment is mOre sensitive tO adapting tO fashiOn trend changes becaUse Of the lOnger lead times in the manUfactUring and sale Of items. their fashiOn decisiOns and reactiOns will cOnstantly have an adverse effect On their financial cOnditiOn.
internal Influences:
at Urban OUtfitters the retail stOres are Organised by brand intO geOgraphic areas Or districts that each have a district manager whO is respOnsible fOr mOnitOring several stOres and sUpervising stOre managers. stOre managers are respOnsible fOr Overseeing the daily OperatiOns Of One stOre whilst there is alsO a visUal manager, several department managers, fUll and part time sales and visUal staff. with each member Of staff being allOcated specific tasks and managerial rOles, internal factOrs sUch as illness Or staff leaving Urban OUtfitters are threats. this alsO means Urban OUtfitters have tO cOnstantly cOnsider the recrUitment prOcess and their staff’s skills in Order fOr stOres OperatiOns tO rUn as smOOthly as pOssible. Urban OUtfitters stated in their mOst recent anUal repOrt that they Offer a nUmber Of retentiOn prOgrams that Offer qUalitative and qUantitative perfOrmance based incentives in Order tO keep all emplOyes enthUsiastic and On task.
external Influences:
external inflUences sUch as the ecOnOmy and hOw dispOsable the cOnsUmers wages are will affect Urban OUtfitters as a bUsiness, the less mOney peOple have the less they can spare On shOpping. in their mOst recent annUal repOrt Urban OUtfitters explained they Use nUmerOUs fOreign and dOmestic vendOrs tO pUrchase their merchandise frOm which means stOck travels Overseas. this accOUnts fOr a large pOrtiOn Of stOck and they mUst cOnsider being aware Of factOrs that cOUld prevent Or slOw dOwn this prOcess sUch as bad weather cOnditiOns, impOrt restrictiOns, terrOrism acts and natUral disasters. alsO the threat that Other cOUntries financial Or pOlitical stability cOUld affect their cOmpany thrOUgh the sUppliers, nOt fOrgetting things sUch as the increases in the cOst Of fUel Or decreases in the valUe Of the U.s. dollar relatIve to foreIgn currencIes. durIng fIscal 2014 urban outfItters saId they had purchased merchandIse from approXImately 4,700 vendors and no sIngle vendor accounted for more than 10% of the merchandIse.
KeY DriVers
oF urban outFitters political:
current pollical inFluences FroM political pressures sucH as tHe use oF sWeat sHops. enVironMental reGulations, taX policies, eMploYMent laWs anD saFetY reGulations, political stabilitY
econoMic:
tHe iMpact tHat WorlD econoMics HaVe sucH as rises in taXes, eMploYMent WaGes, eXcHanGe rates, less Disposable WaGes MeaninG less spenDinG
socioloGical:
looKinG at HoW cHanGes in societY HaVe iMpacts sucH as celebritY inFluences, FasHion trenDs anD its cHanGes, Disposable WaGes anD consuMers spenDinG beHaViour, tHe use oF social MeDia
tecHnoloGical:
neW anD eMerGinG tecHnoloGY aFFectinG tHe inDustrY sucH as tHe use oF enerGY costs, neW inVentions anD DeVelopMents in tecHnoloGY, liFe cYcle oF tecHnoloGY, tecHnoloGY trenDs, cHanGes in internet usaGe bY tHe consuMer
Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
naVaJo
sues urban outFitters.
in 2012 urban outFitters caMe Face to Face WitH laW WHen tHeY Were sueD For traDeMarK Violations anD Violations oF tHe FeDeral inDian arts anD craFt act. tHe branD Were cauGHt atteMptinG to sell arts anD craFts in a WaY tHat FalselY suGGesteD tHeY Were MaDe bY aMerican inDians WHen in Fact tHeY Were Mass proDuceD. urban outFitters createD a naVaJo-branDeD collection oF clotHinG anD accessories, particularlY unDerWear anD a liQuor FlasK WHicH tHe tribe itselF FounD “DeroGatorY anD scanDalous”.
tHe
KiDs pro-booZe tsHirts.
urban outFitters taGret consuMer is betWeen tHe aGes oF 18-30 WHilst tHeir biGGest sales Go to YoutH betWeen tHe aGes oF 18-24 FolloWeD bY tHe unDer 18 aGe Groups WHicH is WHY tHeir Was an uproar aFter tHe coMpanY createD ManY oFFensiVe alcoHol proMotinG tsHirts. to MaKe Matters Worse tHe tsHirts Were claiMeD to be MoDelleD bY unDer 21 FeMale MoDels Just in tiMe For bacK to scHool sHoppinG. tHe sloGans on sHirts incluDeD “i Vote For VoDKa”, “MiserY loVes alcoHol”, “i DrinK You’re cute” anD “usa DrinKinG teaM”
tHe “VintaGe” Kent state sWeatsHirt. tHe “JeWisH star” sHirt.
in april 2012 urban urban outFitters Most recent controVersY Was in outFitters stocKeD a t-sHirt WitH a siX-pointeD star baDGe, septeMber 2014 WHen it Was tHis tiMe cHarGeD aFter sellinG scarilY siMilar to tHe star oF DaViD patcH JeWs Were WHat seeMeD to be a FauX blooD splattereD “VintaGe Kent ForceD to Wear in naXi GerManY, leaDinG up to anD DurinG state sWeatsHirt” For $129. tHe sWeatsHirt oFFenDeD ManY tHe Holocoast. tHe sHirt FroM DanisH DesiGner WooD as it Was seen as a reFerence to tHe 1970 Kent state Massacre WooD Was on sHelVes For $100 to tHe DisGrace oF ManY. in WHicH Four stuDents Were sHot anD KilleD bY tHe oHio national GuarD DurinG a VietnaM War protest. onlY one sWeatsHirt Was aValiable anD sHortlY aFter buZZFeeD Wrote about tHe sWeatsHirt, soMeone purcHaseD it anD listeD it in MaY 2011 JeWellerY DesiGner steVe on ebaY For $550 or $2,500 buY it noW. urban outFitters Koerner FroM cHiacaGo caMe across one oF urban response Was: “it Was neVer our intention to alluDe to tHe outFitters JelWerY collections tHat looKeD iDentical to traDic eVents tHat tooK place at Kent state in 1970 anD We Her tWo Year olD WorlD/uniteD states oF loVe line. tHe eXtreMelY saDDeneD tHat tHis iteM Was perceiVeD as sucH”. DesiGner Wrote on Her bloG aFter sHe FounD out eXplaininG “MY Heart sanK a little, i unDer stanD tHeY are a business, but it’s not cool to coMpletelY rip oFF an inDepenDent DesiGner’s WorK.”. it Wasn’t until tWitter users cauGHt onto in 2013 urban outFitters’ neW tHe storY anD urban outFitters Was FaceD WitH social MeDia line oF sHot Glasses, pint Glasses, anD FlasKs cauGHt aGainst tHeM tHeY replieD saYinG tHat tHe WoulD looK into tHe attention oF ManY aFter tHe DesiGns reseMbleD it beFore QuietlY reMoVinG tHe collection FroM stores. prescription pill bottles. prescription DruG abuse is aMerica’s leaDinG cause oF acciDental DeatH anD to a coMpanY WHo tarGets sucH a YounG consuMer it Was seen GlaMourisinG prescription DruGs WHicH leaD to tHe proDucts beinG taKen oFF sHelVes sHortlY aFter.
tHe
tiMe tHeY stole JeWellerY DesiGns.
tHe
pill bottle-sHapeD alcoHol parapHernalia.
HoW laWs anD controVersY are eXternal inFluences anD soMetHinG urban outFitters reGularlY coMpete WitH?
tHe
Depression
t-sHirt.
tHe
“obaMa/blacK” t-sHirt option. in JanuarY 2010, urban outFitters
createD tWo colour options For one oF tHeir online t-sHirts, “WHite/cHarcoal” anD “obaMa/ blacK”. tHat MontH urban outFitters MaDe a stateMent saYinG tHeY HaD “sceWeD up, anD are sincerelY sorrY” eXplaininG tHat tHeY internallY DeVelopeD a colour calleD “obaMa blue” tHat acciDentallY appeareD on tHe Website.
taken from urban outfitters’ twitter.
anotHer More recent controVersY createD bY urban outFitters Was tHe “Depression” t-sHirts, t-sHirts coVereD in tHe WorD “Depression”. JanuarY 2014 urban outFitters Was ForceD Yet aGain to taKe to tWitter in orDer to apoloGise to tHe ManY custoMers tHeY HaD oFFenDeD. tHe tarGet consuMer oF tHe branD is so YounG it is alWaYs a concern tHat tHeY coulD be HeaVilY inFluenceD bY tHe tHinGs tHeY see in HiGH street stores, especiallY WitH urban outFitters HaVinG a larGe percentaGe oF custoMers WHo are unDer 18. tHis is WHat Was concerninG WHen urban outFitters Were seen once aGain GlaMorisinG Mental illness, HaVinG alreaDY createD a t-sHirt instructeD people to “eat-less” urban outFitters stateD in one oF tHeir apoloGetic tWeets, “We’re sorrY to tHose oFFenDeD bY tHe tee We bouGHt FroM tHe @DepressioncoMsG branD. We Were trYinG to support a sMall branD, not GlaMoriZe Mental illness in anY WaY.”.
tHe arMeD palestinian t-sHirts.
in 2008 urban outFitters useD a pHoto oF a YounG palestinian boY carrYinG a aK-47 assault riFFle anD tHe WorD “VictiMiseD”. tHis oFFenDeD tHe JeWisH coMMunitY anD leaD to urban outFitters reMoVinG tHe sHirt. tHis Wasn’t tHe First tiMe tHe coMpanY HaD FaceD controVersY WitH tHe JeWisH coMMunitY as in 2004 urban outFitters solD a t-sHirt WitH tHe WorDs “eVerYboDY loVes a JeWisH Girl” surrounDeD in Dollar siGns anD sHoppinG baGs.
tHe reMoVal oF “i support saMe tHe tiMe tHeY useD seXualiseD
pHotos oF a 15 Year olD. in auGust seX MarriaGe” t-sHirts. in 2008 DurinG 2011 tHe caliFornia MoDel HaileY clauson sueD
caliFornia’s Vote on GaY MarriaGe, urban outFitters beGan sellinG t-sHirts tHat reaD “i support saMe seX MarriaGe” but suDDenlY reMoVeD tHeM FroM sHelVes anD online WitHin less tHan a WeeK. a buYer later claiMeD tHat tHe t-sHirts HaD causeD “too MucH baD press”. tHe sHirt DesiGner tara littMan DeciDeD to looK into tHe baD press tHe t-sHirts HaD causeD but onlY FounD one neGatiVe bloG entrY.
tHe “eat less” t-sHirt.
in June 2010 urban outFitters oFFenDeD people GloballY WHen tHeY stocKeD t-sHirts WitH tHe WorDs “eat less” Written across it, MoDelleD bY tHin brunette paireD WitH a Mini sKirt. tHe t-sHirt oFFenDeD enouGH people to Force tHe coMpanY to reMoVe tHe iteMs FroM tHeir online store. tHe Main concern For tHis MistaKe is once aGain tHe popular aGe Group oF unDer 18’s WHo sHop at urban outFitters. tHe unDer 18 aGe Group is VerY inFluential anD t-sHirts tHat coulD be MisleaD anD especiallY DanGerous to HealtH are a HuGe risK For a coMpanY liKe urban outFitters.
urban outFitters For $28 Million aFter tHeY useD a pHoto oF Her on a sHirt WitHout Her perMission but to MaKe Matters Worst tHe “salacious” pHoto Was taKen WHen tHe Girl Was onlY 15 Years oF aGe. pHotoGrapHer Jason lee parrY pHotoGrapHeD clauson in sHort leatHer sHorts sittinG on tHe bacK oF a MotorcYcle WitH Her leGs spreaD. tHe pHoto Was oriGinallY not releaseD aFter clauson’s MoDellinG aGencY coMplaineD. not onlY Was tHis MoVe oF urban outFitters aGain,illeGal but concerninG consiDerinG tHe MoDel’s aGe DurinG tHe tiMe oF tHe pHotoGrapH.
“GHettopolY”.
in 2003 urban outFitters DeeplY oFFenDeD tHe aFrican-aMerican coMMunitY WitH a neW Version oF MonopolY tHeY naMeD “GHettopolY”. tHis Version incluDeD Features sucH as “cHeap tricK aVenue” anD “sMittY’s XXX peep sHoW”. You coulD Get bonus carDs tHat state “You Got Yo WHole neiGHbourHooD aDDicteD to cracK, collect $500.” once tHe GaMe HaD cause enouGH controVersY For tHe coMpanY to responD, tHe GaMe creator DaViD cHanG announceD “it DraWs on stereotYpes not as a Means to DeGraDe, but as a MeDiuM to brinG toGetHer in lauGHter. iF We can’t lauGH at ourselVes We’ll continue to liVe in blaMe anD bitterness.”
7. social MeDia 7. FeeDbacK, process starts aGain
4. proDuct pHotoGrapHY/GrapHics
5. launcH proDuct, eVents anD bloGGers
6. sales aVenues
internal processes anD inFluences 3. allocation/store DeliVerY
Image from urban outfitters europe’s pinterest, collective: the uo Journal
1. DiscoVer tHe trenD 2. source/buY FroM branD
inHouse oVerVieW:
urBan outFitters HeaDQuartereD in PHilaDelPHia naVy yarD r esearcHers- tHe people WHo FinD WHat trenDs to brinG to stores, sourcinG branDs to WorK WitH. DesiGn teaM- DesiGninG baseD upon tHe trenDs researcHeD, usinG Fabrics tHat are on trenD For tHat season. buYinG teaM- buYinG FroM otHer branDs, looKinG at collections anD sourcinG VintaGe iteMs oF clotHinG reaDY For reneWal collection. online teaM- Focuses on social MeDia, tHe Website, bloG entries anD interVieWs, use oF bloGGers pr aGencY- surGeY pr 1999-2007, to Date urban outFitters Has HireD tHeir oWn pr teaM WHicH incluDes pr ManaGer crYstal carroll
eXternal consiDerations internal consiDerations tHe use oF pr aGencies tHe use oF social MeDia politics anD tHe laW WeatHer trenDs WitHin tHe MarKet coMpetitor MoVes tHe use oF celebritY inFluences reVieWs
buDGets sales reports DeliVeries Finance recruitMent anD Hr tecHnoloGY staFF sKills coMMunication/operations
inflUences Or trends that are effecting sOciety, effecting Urban OUtfitters.
tOday fashiOn the way fashiOn is perceived is nearly cOmpletely cOntrOlled by sOciety. things that affect this inclUde celebrities, blOggers, the Use Of sOcial media and the cOmpany’s Overall brand image.
bloggers: Urban OUtfitters dOesn’t Use blOggers in the same way that less established brands dO, fOr example sending them clOthes in Order tO get a gOOd review. bUt Urban OUtfitters dOes Use blOggers in a way that benefits them sUch as inviting them tO events and Using them On their sOcial media platfOrms. a cOmmOn blOg entry Urban OUtffiters write is One named “wednesday watch” in which they list blOgs and instagrams that have recently cOme acrOss and enjOyed, in retUrn gaining pUblicity frOm that persOns fOllOwers, Often cOllabOrating with the creative Ones. celebrItIes: Urban OUtfitters again dOesn’t Use celebrities
in the way that tOpshOp dOes with cara tUmblr bUt again, they dO Often featUre interviews and shOOts with certain celebrities and mOdels. this is sOmething yOU will find On their blOg Once again, where they alsO featUre mUsicians in their “mUsic mOndays”.by dOing this they are selecting pUblic figUres that their cOnsUmers may Or already dO find interesting, this is a way Of cOnnecting with their cUstOmers and making them feel mOre like a lifestyle brand than jUst sOmewhere tO bUy clOthes. they Often Use bands and perfOrmers in stOre events Or laUnches tO gain pUblicity and create an even mOre enjOyable experience fOr their cOnsUmer.
socIal medIa:
the Use Of sOcial media is very effective fOr Urban OUtfitters, having an existance On pretty mUch every platfOrm yOU can think Or and even the Ones yOU can’t. Urban OUtfitters Use things like instagram and twitter tO prOmOte new cOllectiOns and shOw their inspiratiOns tO their cUstOmers. they Use their blOg in the same way bUt this alsO ensUres they are seen fOr sO mUch mOre than jUst a clOthing brand, shOwing interest in all things creative and everything that their desired cOnsUmer wOUld lOve.
facebooK boot post:
if yOU gO On Urban OUtfitter’s website Often yOU may find a small cOrner Of yOUr facebOOk Or yOUtUbe screen with the brands clOthes On. these are Often yOUr recently viewed pages, targeting the cOnsUmer and making sUre that even Once yOU’ve left the website yOU are almOst teased by being reminded Of what yOU haven’t yet bOUght.
#UOstyle/UOeUrOpe Urban OUtfitters stick signs On their changing rOOm mirrOrs encOUraging tO take a phOtO Of their OUtfit On instagram and hashtag it sO they can see. by dOing this they are making the cUstOmer feel invOlved in the brand whilst alsO prOmOting the clOthes and cOmpany. InsIght and Involvement In the brand: the Use Of Urban OUtfitters cOntempOrary inflUences, especially sOcial media allOw the cOnsUmer tO feel invOlved in the cOmpany, alsO giving them an insight tO it. their blOg ensUres the
Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
conteMporarY inFluences
vintage clOthing is alsO the start Of a mOre sUstainable cOmpany which is impOrtant tOday as mOre and mOre cUstOmers are aware Of the impOrtance Of sUstainability and hOw fashiOn needs tO play a part in it as sOOn as pOssible. by Using vintage clOthing Urban OUtfitters dO nOt need tO create whOle garments and Often Only slight adjUstments are created which happens in the Usa rather than sweatshOps Overseas. this alsO makes the cOnsUmer feel mOre cOmfOrtable wearing and bUying the clOthes than in sOmewhere where this type Of thing lacks. Urban OUtfitters has fOUr things that make their vintage renewal cOllectiOn sUstainable and bUyable, listing these On their website explaining in detail where the prOdUcts are frOm, if its remade, a classic, sUrplUs Or cUstOmised. this is the kind Of thing that the cUrrent cOnsUmer cares mOre and mOre abOUt and by explaining this On their website shOws Urban OUtfitters is taking an interest in the way clOthes are made, Understanding what theUr cOnsUmer cares abOUt.
Images from urban outfitters europe’s website 2014
VintaGe reneWal
Image from urban outfitters pinterest 2014, uo shoots
sUrvey resUlts shOwed that many peOple whO shOp at Urban OUtfitters alsO take interest in independant vintage stOres, places like cOw vintage, asOs market place and nOt fOrgetting charity shOps. it is impOrtant that Urban OUtfitters prOmOtes their vintage wear as mUch as they dO their brands as this is sOmething that their cOnsUmer is very passiOnate abOUt. Urban OUtfiters Use sOcial media in Order tO prOmOte these UniqUe pieces Of clOthes as they Understand that the type Of persOn whO bUys vintage clOthing frOm them is likely tO alsO Use things sUch as twitter, tUmblr and instagram. Urban OUtfitters Often dedicate whOle sectiOns Of their stOre tO the vintage sectiOn, adapting their visUal merchandising tO embrace hOw fashiOnable vintage clOthes are.
Vinyl sales
the fact Urban OUtfitters sells bOth new and Old vinyls is sOmething that seperates the brand frOm any nOrmal high street stOre, pUshing tOwrds that lifestyle brand they strive tO be knOwn as. bUt hOw sUccessfUl are vinyl sales? are Urban OUtfitters hOlding the largest share Of the market where vinyls are cOncerned?
Image from urbanoutfitters.co.uk Image from urbanoutfitters.co.uk Image from urbanoutfitters.co.uk
Up Until recently Urban OUtfitters believed that they held the title fOr the biggest share Of the vinyl market, claiming that they sell the mOst vinyls in the wOrld. chief administrative Officer calvin hOllinger stated in a meeting Of wall street analysts "mUsic is very, very impOrtant tO the Urban cUstOmer... in fact, we are the wOrld's nUmber One vinyl seller." bUt recently tO Urban OUtfitters disappOintment resUlts Of a sUrvey carried OUt by billbOard.cOm shOw that actUally amaZOn hOld the title, at least in america, which is likely tO say a lOt fOr the rest Of the wOrld. amaZOn have been prOved tO hold 12.3 percent of the marKet In america whilst Urban OUtfitters Only shares 8.1 percent Of the market. belOw Urban OUtfitters is hastings entertainment which has 2.8 percent fOllOwed by hOt tOpic at 2.4 percent, finally independent Us recOrd stOres maKe up approXImately 50 percent Of the market shOwing that these are the real cOmpetitOrs. a way Of increasing vinyl sales fUrther and pOssible Owning mOre Of the market share than amaZOn Or independant bOUtiqUes wOUld be ensUring that their vinyl selectiOns are prOmOted as effeciently as the clOthing ranges are, taking tO sOcial media tO annOUnced new vinyls in stOres Or remind them Of the classics. alsO, mOre events that are made pUblic sUch as having bands Or mUsicians play in stOre as a laUnch fOr their mUsic On vinyl , this way the cUstOmer will feel cOnnected and invOlved, pOssibly discOvering new mUsic almOst prOmOsing a sale.
Image from urban outfitters europe’s pinterest 2014, uo homewears
Image from Urban Outfitters Europe’s pinterest 2014, Collective: The UO Journal
pr public relations
hOw dOes Urban OUtfitters Use pUblic relatiOns tO their advantage? Urban OUtfitters Once Used a external agency called sUrgery pr frOm 1999 Until 2007 when they decIded to use an Internal pr. sInce then urban outfItters have been in the pUblic eye fOr sOme Of the mOst cOntrOversies since the cOmpany was created. their Use Of sOcial media helps gain recOgnitiOn bUt Urban OUtfitters cOnstantly manage tO get intO the news Or trending On twitter fOr sOmething that even if everyOne else disagrees, their cOnsUmer will find entertaining.
the kent state “vintage” sweatshirt.
the mOst recent pUblicity stUnt Of Urban OUtfitter’s wOUld be the kent state “vintage” sweatshirt that appeared Online with blOOd spatters, referencing bacK to 1970’s school shootIng. the cOmpany pUt Only One jUmper Online, stating there was Only One avaliable at $120. after a report was wrItten onlIne, One persOn pUrchases the sweatshirt, Only tO pUt it On ebay. this gained sO mUch pUblicity fOr Urban OUtfitters, in perfect timing fOr the back tO schOOl shOp.
the
miley
cyrUs
tweets
miley cyrUs tOOk tO twitter tO write abOUt Urban OUtfitters in a negative way. she makes pOints that target the way Urban OUtfitters has Used the designs frOm Other artists and are against gay eqUality. even thOUgh this pUblicity is negative it cOUld still be seen as a pUblicity stUnt as attentiOn was still bOUght tO the cOmpany .
the
bad
lOgO
Urban OUtfitters cOnfUsed everyOne with a sUdden change Of lOgO which lOOked similar tO sOmething yOU cOUld create On pOwerpOint. as sOOn as Urban OUtfitters Updated their website with this new fOnt that was very different tO what cUstOmers are Used tO. the cOmpany UsUally Uses graphic design artists tO design fOnts that are artistically perfect fOr the cOmpany’s image which is why this lOgO mUst have been a pr stUnt. straight away this tOOk the internet by stOrm with lOads Of articles being wrOte abOUt it, bringing an endless amOUnt Of peOple tO the website, it is Unlkely mOst didn’t have a little gaZe at the prOdUcts and maybe even pUrchase whilst they were there..
Image from urban outfitters europe’s pinterest, collective: the uo Journal
ProDuct Place Price Promotion
eXample: marKetIng strategy for vintage renewal prOdUcts
prOdUct
lOOking at the prOdUcts Of Urban OUtfitter’s vintage renewal cOllectiOn. this prOdUct has the fUnctiOns Of being On trend which is sOmething that is impOrtant tO the cUstOmer. all the vintage items are rewOrked and made tO sUit the cUrrent trend, alsO imprOving the qUality, which means that the needs Of the cUstOmer are met. the prOdUct has a UniqUe selling pOint as every single item is a One Off bUt has been slightly adjUsted tO make it even mOre appealing tO the cOnsUmer. Urban OUtfitters packaging cOnsists Of a paper bag which is Often cOvered in lOgOs Or cOlOUrfUl artwOrk, by Using paper bags Urban OUtfitters is benefiting the envirOnment and being sUstainable instead Of Using plastic in the same way as a lOt Of their cOmpetitOrs.
price
prIces for a vIntage dress range between £40-£52. the cost to maKe thIs wOUld be very lOw as the item wOUld be sOUrced and Only slightly adapted rather than cOmpletely made. this means that large prOfits cOme frOm the vintage items as the prices are fairly high. a reasOn fOr the prices being high is becaUse this cOllectiOn is in high demand and peOple are willing tO pay this mUch fOr One Off pieces.
place
these prOdUcts are sOld bOth Online and in stOre, with sOme Online items being Online exclUsives. this means that the cOnsUmer feels privalidged if they pUrchase the One Off item.in stOre Urban OUtfitters deicate a whOle sectiOn fOr the vintage renewal cOllectiOn designed fOr the cOnsUmer it appeals fOr, here will be a mixtUre Of jackets, trOUsers, skirts, dresses and vintage accessOries. the prOmOtiOn Of these items is mainly thrOUgh belOw the line techniqUes where they target the specific cOnsUmer they’re trying tO appeal tO. this is thrOUgh things sUch as instOre magaZines bUt Urban OUtfitters main prOmOtiOn is thrOUgh the likes Of sOcial media sUch as twitter, tUmblr, instagram and pinterest. they Use these techniqUes as they Understand that this will appeal tO their cOnsUmer mOre than a tv Or radiO advert wOUld, alsO by advertising like this it reaches Only the peOple they try tO sell tO.
Image from urbanoutfitters.co.uk
prOmOtiOn example On instagram
Image from urban outfitters’ instagram
Image from urban outfitters europe’s pinterest, collective: the uo Journal
prOmOtiOn
Image from urban outfitters europe’s pinterest, collective: the uo Journal
looKIng at fIscal 2014 compared to fIscal 2013 net sales Increased from $2.8 bIllIon In 2013 by 10.4% to $3.1 bIllIon In 2014.
why? Urbn state that the grOwth in
their retail segment net sales durIng fIscal 2014 Is due to increases Of £144.2 milliOn Or 6.0% In retaIl sement comparable net sales which inclUde a direct tO cOnsUmer channel as well as $118.5 mIllIon In non-comparable and new stOre net sales.
urBn annual reVieW urbn annual report 2014, http://www.annualreports.co.uk/company/4713 [accessed 29/10/14]
urbn annual report 2014, http://www.annualreports.co.uk/company/4713 [accessed 29/10/14]
the tOtal Of Urbn stOres wOrldwide. here this shOws that the fOcUs is On the United states with 442 (176 urban outfItters) stores whIlst In the whole of europe stands a total of 44 (40 urban outfItters) stores. the global total of urbn branded stores Is 511, wIth 230 of these beIng urban outfItters, shOwing tO be the mOst pOpUlar stOre frOm the cOmpany. this highlights a way Of imprOving their bUsiness by pUshing stOres that are OUtside Of the United states. canada alOne has a tOtal Of 25 stOres, with 14 Of thOse Urban OUtfitters bUt when we mOve OntO eUrOpe the nUmber ranges between 1-6 stores wIth unIted KIngdom housIng the most at 31 urbn stores. when yOU lOOk at the Other types Of Urbn stOres yOU can see that in the United kingdOm there are 27 Urban OUtfitters, 4 anthrOpOlOgie stOres and nO Other brands. the United kingdOm hOmes the Only anthrOpOlOgie stOres in eUrOpe whilst free peOple, bhldn and terrain are nOt represented Once in eUrOpe. even in the United states these stOres are extremely rare, bhldn and terrain Only having twO stOres here meaning, glObally there are Only twO Of each Of these brands, meaning that these aren’t as easy tO spend mOney in as the cOmmOn Urban OUtfitters stOres that are dOtted in many easy lOcatiOns. in Order tO take the whOle Urbn cOmpany in a mOre pOsitive directiOn the cOmpany needs tO wOrk On bringing mOre stOres intO eUrOpe, creating a bigger glObal awareness fOr all Of their brands. when speaking tO cUstOmers instOre Of Urban OUtfitters, birmingham cIty centre , 9/10 of them were unaware that there were other stores that come under urbn but were aUtOmatically intrigUed Once learning and able tO feel that if they cOnnected with Urban OUtfitters then there is a large pOssibility that they wOUld enjOy what the Other brands have tO sell in Other areas Of life that aren’t jUst fashiOn.
suPPliers hOw dOes Urban OUtfitters Use Of internatiOnal prOdUctiOn Of prOdUcts affect the bUsiness Or create pOssible risks within the cOmpany?
in their mOst recent annUal review Urban OUtfitters talk abOUt their Use Of internatiOnal prOdUctiOn, explaining the risks invOlved with this way Of making the prOdUcts. a large pOrtiOn Of clOthing is frOm fOreign sOUrces, bOth directly frOm fOreign markets and indirectly thrOUgh dOmestic vendOrs that have fOreign sOUrces. any event that cOUld caUse the shipping Of these prOdUcts tO slOw dOwn is a threat that Urban OUtfitters face whilst Using this prOcess Of prOdUctiOn. these events cOUld inclUde terrOrism acts, war, impOrt restrictiOns as well as weather and natUral disasters.
if the prOcess is damaged the bUsiness will alsO be damaged.
if it became difficUlt Or even impOssible fOr prOdUcts tO be impOrted intO the United states dUe tO labOr issUes sUch as strikes Or nOt being able tO the cOmpany nOt being able tO bUy merhchandise frOm Other sOUrces at similar cOsts will have a knOck On effect On sales and prOfit margins. urban annual revIew, urbn websIte (2014), fy 2014 anual revIew (form 10K), http://Investor.urbn.com/phoenIX. Zhtml?c=115825&p=Irol-Irhome [accessed on 10/10/14] “the
flOw Of merchandise frOm OUr vendOrs cOUld alsO be adversely affected by financial Or pOlitical instability in any Of the cOUntries in which the gOOds we pUrchase are manUfactUred, if the instability affects the prOdUctiOn Or expOrt Of merchandise frOm thOse cOUntries” the cOst Of fUel changing wOUld affect the prOfit margin, nOt fOrgetting the valUe Of the U.s. dOllar cOmpared tO fOreign cUrrency decreasing cOUld increase the cOst spent On internatiOnal stOck.
Image from urban outfitters europe’s pinterest, collective: the uo Journal
strategy: urBan outFitters
oPens HeralD sQuare liFestyle centre
Images from wgsn article, 06.11.14, urban outfitters’ herald square lifestyle centre
reinVention anD aDaPtion Urban OUtfitters has made sOme adaptiOns tO their brand in the recent mOnths, creating mOre Of a lifestyle image rather than fOcUsing On fashiOn trends. the cOmpany still has a hUge fashiOn base bUt recently it is pUshing the things that make Urban OUtfitters different frOm their cOmpetitOrs like their hOmewear sectiOns. Urban OUtfitters hasn’t needed tO create a whOle new brand image, Only expand what they Offer when it cOmes tO what makes the cOmpany UniqUe, pUshing their strengths tO create a strOnger brand image and cUtstOmer relatiOnship. Urban OUtfitters has UnderstOOd their cOnsUmer needs nOt jUst fOcUsing On fashiOn and what they want tO wear bUt hOw they want tO live. this means fOcUsing On hOmewear as at the ages Of 18-24 many cOnsUmers may be mOving OUt and in need Of hOme decOr. this cOnsUmer is very active and enjOys sOcialising, Urban OUtfitters has adapted tO all Of these needs in their newest stOre in new yOrk.
earlIer thIs year urban outfItters opened a 57,000sQ ft IndustrIal and rustIc feelIng store, callIng It a “life-style space”. this stOre cOncept aims tO bring the cOnsUmer in tO spend mOre time in the stOre itself, Offering all sOrts Of prOdUcts that fOcUs On lifestlye and hOmewear. this is all based arOUnd what Urban OUtfitters have called the “millennial cUstOmer”, Offering everything Up tO a cafe. the stOre artistic wOOden fixtUres, cOncrete flOOrs, and interesting rOpe displays Used in their visUal merchandising. the first flOOr is dedicated tO all things vintage, featUring the intelligentsia cOffee cafe, and a sectiOn filled with fUji cameras, alsO hOme tO the repUrpOsed vintage line Urban renewal. in the stOre is alsO a lOs angeles themed hair salOn lOcated next tO an expanded cOsmetics area fOr the beaUty side Of all every cOnsUmer. prOving that Urban OUtfitters is edging mOre tOwards a life style strand than ever, the stOre has an active area, designed tO replicate campind grOUnds, Offering the cOmpany’s newly laUnched withOUt walls cOllectiOn alOngside prOdUcts frOm brands sUch as nOrth face, saUcOny and nike.
Of cOUrse, the target cOnsUmer lOves mUsic sO a sectiOn dedicated tO mUsic is neccessary, having over 400 vIntage vInyls eXclusIve to thIs locatIon, as well as perscrIptIon eyewear dIsplayed In an instOre, shOp. phOtO bOOths (inclUding an instagram featUred bOOth On the first flOOr) vending machines and lOUnge areas On every flOOr make the stOre nOt Only sOmewhere tO shOp fOr jUst abOUt everything, alsO sOmewhere tO relax and sOcialise, which is impOrtant tO their targeted cOnsUmer as well as prOmOting them tO engage and dwell time in stOre. wOmen’s apparel, lingerie, fOOtwear and hOmewear is all lOcated On the first flOOr whilst the menswear and mOre hOme decOr is On the lOwer flOOr alOng with new yOrk style sOUvenirs. the shOp alsO featUres a cUstOm cOnverse statiOn. this store Is new yorK’s 13th locatIon, targetIng here the tourIst consumer. thIs area wItll also see a new h&m arrive in the aUtUmn which cOUld caUse fUrther cOmpetitiOn sO in Order tO remain abOve, Urban OUtfitters mUst pUsh what makes their stOre different, and what yOU can bUy here and can’t bUy elsewhere.
Images from urbanoutfitters.co.uk
the collection is carefully appealing to both sexes putting no limits on who can where what by showcasing the products styled on a male and a female. this is also showing urban outfitters as viewing sexes equally, which is something past controversies have put doubt on the brand. this is appealing to both sexes and supporting equality as well as promoting sustainability.
strategy:
URBAN OUTFITTERS X SUSTAINABILITY
Image from urbanoutfitters.co.uk October 2014
Image from urban outfitters’ instagram
here is the prOmOtiOn strategy and Use Of sOcial media thrOUgh instagram which Urban OUtfitters Used tO prOmOte their newest and mOst strategic cOllectiOn, as well as Other fOrms Of sOcial media they Used instagram here as way Of making the cUstOmer feel invOlved and Updated in the prOcess, ensUring they were aware Of the cOncept behind the cOllabOratiOn. the first pOst made cUstOmers feel impOrtant as Urban OUtfitters claimed the pOst was “a first lOOk at OUr fOrthcOming exclUsive cOllabOratiOn”, making it sOmething fOr them tO feel excited abOUt, after that Urban OUtfitters pOsted weekly Updates and snippets Of the cOllectiOn befOre annOUncing the pOp Up shOp at space ninety8 and finally the Online laUnch.
in Order tO keep Up with the market Urban OUtfitters has had tO assess all areas Of the cOmpany, even dOwn tO where the clOthes cOme frOm, whilst cOmpetitOrs sUch as h&m have recycling prOgrams already rUnning it is vital that Urban OUtfitters creates a similar campaign which prOmOtes sUstainability, sOmething essential in this day and age. Urban OUtftitters has adapted tO this market trend Of sUstainability as they are aware this is sOmething that will affect their cOnsUmer and sOmething many cUstOmers may be passiOnate abOUt therefOre, appealing tO nOt Only the envirOnment bUt the cOnsUmer tOO. althOUgh sOme adaptiOns have been made, this is Only a cOllectiOn frOm a cOllabOratiOn sO there is still plenty Of rOOm fOr a mOre permanent resOlUtiOn. Urban OUtfitters cUrrently has it’s renewal vintage cOllectiOn which is a fOrm Of recylcing clOthes and Uses paper bags instead Of plastic bUt in Order tO cOnnect with the cOnsUmer Of tOday and cOmpete with the cOrrect cOmpetitOrs. Urban OUtfitters dOesn’t need tO cOmpletely reinvent bUt tO be prepared fOr the fUtUre market befOre their cOmpetetiOrs they shOUld make this cOllabOratiOn a permanent cOllectiOn, sOmething that defines their cOmpany, expanding it intO the hOme decOr sectiOns tOO.
reinVention anD aDaPtion at the end of october 2014 urban outfItters’ urban renewal laUnched a cOllabOratiOn with lOs angeles bOUtiqUe, rth fOr bOth men and wOmen. the cOllectiOns UniqUe selling pOint is sUstainability. the clOthes are all recylced, redUcing waste, prOtecting the envirOnment. clOthes are cOnstrUcted by Using repUrpOsed vintage fabrics and fOcUses On being envirOnmentally friendly, sOmething many Of Urban OUtfitters cOmpetitOrs are becOming therefOre making this cOllabOratiOn strategic bUt effective. the cOmpany alsO makes a pOint Of saying this cOllectiOn is all sOUrced, sewn and created in the Usa, similar tO what cOmpetitOr american apparel dO which makes them sO appealing tO the cOnsUmer whO cares abOUt where the clOthes cOme frOm.
Urban OUtfitters to double sales by
plans 2020.
the cOmpany’s five year strategy has revealed they want tO dOUble sales by the year 2020. on september 25th, 2014 In a webcase urban outfItters annOUnced they plan On dOing this by driving sales by grOwing the prOdUcts they Offer and making it mOre avaliable fOr everyOne, develOping a bigger netwOrk Of stOres, wOrking On direct-tO-cOnsUmer and whOlesale divisiOns. the plan is tO expland existing categOries whilst laUnching new Ones thrOUgh the brands. grOwth in hOmeware is essential tO this expansiOn in sales bUt the cOmpany alsO wOUld like tO laUnge a beaUty range, which wOUld appeal tO a wider range Of cOnsUmers that may nOt already shOp at Urban OUtfitters. the cOmpany’s beaUty and fOOtwear ranges have plans fOr imprOvement as sales here have the ability tO increase, as nOted in the bOstOn matrix earlier. if these areas cOUld be imprOved fUrther tO allOw new cUstOmers tO find Urban OUtfitters and existing cUstOmers tO find things they didnt nessisarily need bUt nOw want, the pOssibility Of dOUbling sales becOmes very pOssible. this alsO gOes fOr the lingerie in which the cOmpany feels they cOUld imprOve and this imprOvement cOUld help drive sales. Urban OUtfitters cUrrently stOcks a fairly wide range Of fOOtwear frOm many different brands bUt imprOvement cOUld be made here as these shOes (sUch as dr martens, vagabOnds etc) are avaliable elsewhere meaning that Unless the ranges aren’t larger peOple may gO tO Other places fOr these shOes if a specific shOe isnt in stOre. enlarging these cOllectiOns cOUld bring Urban OUtfitters bigger sUccesses.
“URBN Vision 2020”
strategy:
WHat’s neXt? Urban tO sales
OUtfitters plans increase hOmewear to 22% by 2020.
whIlst plannIng on doublIng salres by 2020 urban outfItters’ ceo rIchard hayne In the same webcast on tuesday 25th september 2014 annoucnhed. the current sales of homwear lIe at 17% but urban outfItters belIeve that can achIeve their new prOfitable targets by pUshing sales On hOme decOr, dedicating their anthrOpOlOgie stOres mainly tO this. their plan here is tO egment will cUt apparel from 71% of Its offerIngs to about 53%, and refocus on home furnIshIngs. the cOmpany claimed that these cUrrently are bOUght as gifts rather than with the aim Of cOmpleting rOOms. each lOcatiOn will be tailOred tO the lOcal market, and the plan Is for 25 to 50 large format locatIons In the top u.s. marKets. these stOres will alsO Offer services sUch as dining, beaUty treatments, hOme decOrating and gardening which will keep the cUstOmer instOre fOr lOnger than they are at the mOment, Offering them with mOre OppOrtUnities.
Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
WHat’s neXt?
Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
urBan outFitters’ Plans: a grOwth strategy repOrted in Urban OUtfitters annUal review states that grOwth will depend On their ability tO Open and Operate new retail stOres On a prOfitable basis. they mUst be able tO effectively extend the existing stOre leases and then their OperatiOn cOmplexity will increase whilst the stOre base grOws. dUring this Urban OUtfitters may face challenges in managing fUtUre grOwth which will reqUire them tO cOntinUe tO expand and imprOve OperatiOn capabilities. expansiOn prOspects alsO depend On a nUmber Of Other factOrs which alsO are external, beyOnd their cOntrOl sUch as ecOnOmic cOnditiOns and cOnsUmer behaviOUr.
this is what Urban OUtfitters’ makes plans tO imprOve as they are aware it cOUld benefit their bUsiness by gaining mOre internatiOnal cUstOmers. this wOUld alsO make them fUrther ahead Of main cOmpetitOrs, abercrOmbie & fitch and american apparel. at the mOment althOUgh Urban OUtfitters as a wOrldwide presence there is still plenty Of rOOm tO expand fUrther as they have admitted and made plans tO theirselves. in Order tO dO this Urban OUtfitters needs tO Open bigger stOres in bigger cities, pUshing their lifestyle stOres with the UniqUe shOpping experience.
in Urban OUtfitters’ latest anUal review they discUssed
expanding
internatiOnally
Urban OUtfitters admit, they may nOt be sUccessfUl in expanding their bUsiness On an internatiOnal level. cUrrent grOwth strategies inclUde plans tO cOntinUe Opening new internatiOnal stOres Over the next several years. they have limited experience when it cOmes tO Operating internatiOnally where they cOme face tO face with established cOmpetitOrs. internatiOnal stOres alsO have different OperatiOnal characteristics tO what Urban OUtfitters are Used tO inclUding emplOyment and labOr, transpOrtatiOn, lOgistis, real estate and legal reqUirements. nOt fOrgetting cOnsUmer tastes and behaviOUrs may be different internatiOnally meaning that sales may nOt be as sUccessfUl simply becaUse stOck may nOt appeal tO internatiOnal cOnsUmers. their ablility tO cOndUct bUsiness internatiOnally may alsO be damaged by pOlitical and ecOnOmical risks, jUst as mUch as the glObal ecOnOmy. a risk faced by Urban OUtfitters decisiOn tO expand internatiOnally may alsO reflect On existing OperatiOns as impacts On financial cOnditiOns are affected.
hOw they cOUld stOres, fOcUssing
Open new On eUrOpe
analysis Of Urbn stOres shOwed a hUge lack Of stOres in eUrOpe and a fOcUs On the United states fOr new stOre Opening. Urban OUtfitters shOUld bring mOre stOres tO places where they are rare which wOUld encOUrage thOse whO have an interest in what the brand has tO Offer bUt dO nOt have lOcal stOres. the Opening Of a stOre has great pOtential fOr creating brand awareness and stOre awareness and Urban OUtfitters shOUld dO this in a way that interests their cOnsUmer. keeping in mind that the Urbn cOnsUmer typically enjOys art, sOcialising and mUsic, creating an Opening event fOr the stOre than invOlved these things wOUld bring a large aUdience Of pOssible cUstOmers in stOre, ensUring the right peOple are aware Of the Opening. Urban OUtfitters cOUld have live mUsic events frOm bands Or mUsicians that their cOnsUmer enjOys, which wOUld alsO bring their fans intO the stOre, pOssible cOnsUmers whO may nOt have been there befOre. whilst having several live mUsic events gOing On, Urban OUtfitters cOUld make this an all day tO evening event, almOst like an inside fesitval, serving fOOd and alcOhOl tO Over 18’s/21’s with id, encOUraging the sOcial side Of the cOnsUmer. pysical activities shOUld be encOUraged tOO tO get the gUests invOlved in the prOdUcts, this cOUld inclUde artistic activities sUch as designing their Own tshirts/shOes/bags etc, getting pOpUlar instOre brands invOlved in this, giving away freebees and even Using things sUch as phOtObOOths tO make the event rememberable fOr all whO attend. finally the cOmpany shOUld hOld cOmpetitiOns within the event Offering peOple OppOrtUnities that will raise the brand awareness sUch as tickets tO gigs, festivals, free items Of clOthing Or persOnal shOppers next time they shOp instOre.
reinVention anD aDaPtion Image from urban outfitters europe’s pinterest 2014, collective: the uo Journal
WHat’s neXt?
in Order tO imprOve their brand Urban OUtfitters shOUld fOcUs On the things that make their bUsiness different tO thOse they’re in cOmpetitiOn with, pOssibly their hOmewear cOllectiOns. becOming mOre Of a life-style brand wOUld benefit the cOmpany by gaining new cUstOmers and making the mOst OUt Of their artsy lifestyle stUdent cOnsUmer they target. lOOking at the market trends nOw it is impOrtant that Urban OUtfitters keeps Up tO date and remains a step a head when it cOmes tO technOlOgy, bringing the right levels intO stOre tO make the cOnsUmer shOpping experience as interactive as pOssible.they cOUld achive this with mOre technical graphics and visUals. the final way that cOUld bring mOre sUccess tO Urban OUtfitters and meet the fUtUre needs Of their cOnsUmer is sUstainability. Urban OUtfitters new cOllabOratiOn with rth was a mOve in the right directiOn Of sUstainability and their Use Of paper rather than plastic bags and vintage renewal all invOlves the act Of recycling. in Order tO imprOve and pUsh this fUrther Urban OUtfitters shOUld take this as a mOre permanent thing rather than jUst the Odd cOllectiOn, creating a new brand image Of a mOre sUstainable and envirOnmental friend cOmpany. it is impOrtant that Urban OUtfitters remains as cOnnected with their cOnsUmers as they cUrrently are, maybe even trying tO imprOve this by bringing mOre instOre interactiOn sUch as mOre Of the herald sqUare stOre layOUt, that inclUded a cafe, hair salOn and fUcUsed On the lifestyle cOnsUmer. Urban OUtfitters cOUld Use visUal merchandising and presentatiOn Of hOmewear in Order tO pUsh hOmewear sales. if yOU walk intO a standard Urban OUtfitters stOre there will Only be a few hOme decOr items and tO date mOst Of these are Online exclUsives Understanding that the instOre cOnsUmer is likely tO be fOcUsing On fashiOn. bUt a way tO pUsh their fOcUs OntO hOmewear and make them think abOUt Using Urban OUtfitters tO decOrate their hOme wOUld be fOrcing them tO view them. pUtting a large hOmewear set Up at the frOnt Of the stOre wOUld fOrce the cUstOmer tO walk thrOUgh it, creating a welcOming atmOsphere as sOOn as yOU walk in. placing bOOks and mUsic On tables with sOfas and chairs arOUnd wOUld encOUrage the cUstOmer tO sit and sOcialise here, Using the items which cOUld lead tO them being mOre interested in them than if they were jUst Online exclUsives. in Order tO wOrk On their technOlOgy Urban OUtfitters shOUld be planning fOr the fUtUre tO ensUre they are One step ahead Of their cOmpetitOrs when new technOlOgy cOmes ahead, especially cOnsidering their cOnsUmer is gOing tO be fUlly aware Of these Updates. things sUch as self sevice checkOUt systems may well be an OptiOn in the very near fUtUre and it is impOrtant Urban OUtfitters is at least One Of the first tO embrace this kind Of thing. this cOUld invOlve interactive design sOftwear where the cOnsUmer can design Or plan a piece Of clOthing there and then and the technOlOgy will create it fOr them. this will be sOmething UniqUe that the stOre has as well as UniqUe fOr the cOnsUmer whO Understands that nO One else cOUld have the design that they have created. if the technOlOgy tO be able tO create a print Or design fOr prOdUcts and have this created within secOnds the Urban cUstOmer wOUld deffinitely be the type Of persOn whO wOUld benefit frOm these UniqUe ideas. finally sUstainability. sUstainability is becOming a bigger thing every day with mOre and mOre cUstOmers Understanding the impOrtance and the damage that fashiOn is dOing tO the earth. if the cOnsUmer Understands that items are sUstainable yet still On trend this is gOing tO dOUble their need fOr the item and pUsh them tO bUy with Urban OUtfitters mOre than Other stOres whO dO nOt have the same mOrals. Urban OUtfitters recently annOnced their cOllabOratiOn with rth in which all fabrics Used were sUstainable and invOlved minimal waste. this cOllectiOn alsO stated that the prOdUcts were created in the Usa, which is sOmething impOrtant fOr cOnsUmers mOrals. mOre cUstOmers tOday are alsO aware Of the hOrrOs that happen in sweatshOps, Understanding that this is mOrally wrOng. when a cOnsUmer heres that the persOn whO created their garment is paid and treated fairly, this alsO increases the need fOr the item mOre than if they think a persOn may have sUffered whilst creating a garment fOr their pleasUre. these are all ways in which Urban OUtfitters cOUld take their cOmpany in a new directiOn, bringing new cUstOmers intO stOres and embracing the new market trends that are likely tO cOme alOng qUickly.
REFERENCING FRONT COVER IMAGES: Urban Outfitters Europe’s pinterest, Collective: the UO Journal LOGO FROM URBAN OUTFITTERS’ WEBSITE 2014 HISTORICAL CONTEXT URBN Website (2014), Urban Outfitters, http://www.urbn.com/profile/urban.html [Accessed on 1/10/2024] Funding Universe (2014), Urban Outfitters, Inc. History, http://www.fundinguniverse.com/compa ny-histories/urban-outfitters-inc-history/ [Accessed on 1/10.14] IMAGES: Urban Outfitters Europe’s pinterest, Collective: the UO Journal Pinterest 2014, http://www.pinterest.com/pin/474496510712407004/ originally posted to http://tmomanagement.wordpress.com CONSUMER ANALYSIS IMAGES: Urban Outfitters Europe’s pinterest, Collective: the UO Journal SWOT ANALYSIS IMAGES: Urban Outfitters Europe’s pinterest, UO Shoots SURVEY RESULTS Survey carried out by author (Emily Reece) on surveymonkey.com October 2014, https://www.surveymonkey.com/s/ZN5F99F IMAGES: Urban Outfitters Europe’s Pinterest 2014 MARKET POSITION IMAGES: Urban outfitters europe’s pinterest 2014, collective: the UO Journal Survey carried out by author (Emily Reece) on surveymonkey.com October 2014, https://www.surveymonkey.com/s/ZN5F99F MARKET TRENDS IMAGES: Urban Outfitters Europe’s Pinterest 2014 BENCH MARKING Rebecca Weiser, (2014), Urban Outfitters, http://rebeccaweiser.com/plan_urbanoutfitters.pdf [Accessed on 1/10/14] Lauren Johnson (March 12th 2014) Mobilecommercedaily.com, Abercrombie & Fitch aims to recoup losses with new loyalty, merchandising strategy, http://www.mobilecommercedaily.com/abercrombie-fitch-aims-to-recoup-losses-with-new-loyalty-merchandising-strategy [Accessed on 3rd/10/14] Richard Duprey, (October 10th 2014), Fool.com, Urban Outfitters Wants Anthropologie to be Like Ikea, http://www.fool.com/investing/general/2014/10/10/urban-outfitters-wants-anthropologie-to-be-like-ik.aspx [Accessed on 12/10/14] Lauren Modery, (April 12th 2013), Hipstercrite.com, URBAN OUTFITTERS VS. AMERICAN APPAREL: WHICH HIPSTER BRAND IS MOST ETHICAL? http://www.hipstercrite.com/2013/04/12/urban-outfitters-vs-american-apparel-which-hipster-brand-is-most-ethical/ [Accessed on 13/10/14] Sarah Lewinger, (Saturday March 19th 2011), Why NOT to shop at Urban Outfitters, purplewombat.blogspot.co.uk http://purplewombat. blogspot.co.uk/2011/03/why-not-to-shop-at-urban-outfitters.html [Accessed 12/10/2014] IMAGES: American Apparel website, 2014, “Our Ads” Abercrombie & Fitch Image, Business Insider, Abercrombie’s Biggest Initiative Of The Past Five Years Is Failing, http://www.businessinsider. com/abercrombie-is-in-trouble-2013-2?IR=T COMPETITION IMAGES: Urban Outfitters Europe’s pinterest, Collective: the UO Journal Survey carried out by author (Emily Reece) on surveymonkey.com October 2014, https://www.surveymonkey.com/s/ZN5F99F BOSTON MATRIX Survey carried out by author (Emily Reece) on surveymonkey.com October 2014, https://www.surveymonkey.com/s/ZN5F99F IMAGES: Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 17/10/14] Images from Urban Outfitters Europe’s Pinterest 2014 Collective: The UO Journal COLLATION OF CUSTOMER DATA Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 27/10/14] IMAGES: Urban Outfitters Pinterest, Exclusives Snapshots taken from Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 27/10/14] MARKETING AND PROMOTION Urban Outfitters Annual Report, 2014, http://www.sec.gov/Archives/edgar/data/912615/000119312514125999/d667513d10k.htm IMAGES: Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal KEY DRIVERS IMAGES: Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal URBN Website (2014), FY 2014 Anual Review (Form 10k), http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-irhome [Accessed on 10/10/14]
EXTERNAL FACTORS The Week Staff, (September 15th 2014, -oigingally published October 15 2011, last updated September 15th, 2014), Theweek.com, 13 Urban Outfitters Controversies, http://theweek.com/article/index/220370/racist-navajo-attire-and-7-other-urban-outfitters-controversies [Accessed 14/10/14] Elicia Fonseca, (3/02/2012), Huffingtonpost.com, Urban Outfitters Lawsuit: Navajo Sues For Using Their Name On Clothes, http://www.huffingtonpost.com/2012/03/02/urban-outfitters-lawsuit-_n_1316963.html [Accessed 14/10/14] Ellie Krupnick, (1/06/2014), Huffingtonpost.com, Urban Outfitters Pulls ‘Depression’ Shirt From Shelves, Says It’s Sorry (Again), http://www. huffingtonpost.com/2014/01/06/urban-outfitters-depression-shirt_n_4550875.html [Accessed 14/10/14] Juana Poareo, (Jaunary 7th 2014), Guardianlv.com, Urban Outfitters Chose Depression, http://guardianlv.com/2014/01/urban-outfitters-chosedepression/ [Accessed 14/10/14] IMAGES: The Week Staff, (September 15th 2014, -oigingally published October 15 2011, last updated September 15th, 2014), Theweek.com, 13 Urban Outfitters Controversies, http://theweek.com/article/index/220370/racist-navajo-attire-and-7-other-urban-outfitters-controversies [Accessed 14/10/14] Ellie Krupnick, (1/06/2014), Huffingtonpost.com, Urban Outfitters Pulls ‘Depression’ Shirt From Shelves, Says It’s Sorry (Again), http://www. huffingtonpost.com/2014/01/06/urban-outfitters-depression-shirt_n_4550875.html [Accessed 14/10/14] NTERNAL PROCESSES AND INFLUENCES URBN Website (2014), FY 2014 Anual Review (Form 10k), http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-irhome [Accessed on 10/10/14] IMAGES: Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal CONTEMPORARY INFLUENCES IMAGES: Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal VINTAGE RENEWAL Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 27/10/14] IMAGES: Urban Outfitters Pinterest 2014, UO Shoots Survey carried out by author (Emily Reece) on surveymonkey.com October 2014, https://www.surveymonkey.com/s/ZN5F99F VINYL SALES Lisa Wright, (September 30th 2014, 8:27) NME.com, Billboard confirms Urban Outfitters’ claim to be world’s biggest vinyl retailer is false, http://www.nme.com/news/various-artists/80068 [Accessed 27/10/14] Ed Christman, (September 29th 2014, 3:42), Billboard.com, Urban Outfitters Doesn’t Sell the Most Vinyl, http://www.billboard.com/articles/6266616/urban-outfitters-doesnt-sell-most-vinyl [Accessed on 27/10/14] IMAGES: Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 29/10/14 Urban Outfitters Europe’s Pinterest 2014, UO Homewears] PR Jenna Sauers, (27/5/2011), Jezebel.com, Miley Cyrus Bashes Urban Outfitters For Knock-Offs And Anti-Gay Politics, http://jezebel. com/5806253/miley-cyrus-bashes-urban-outfitters-for-knock-offs-and-anti-gay-politics [Accessed on 20/10/14] Lauren O’Nizzle, (November 10th 2010), The “new” Urban Outfitters logo” http://laurenoutloud.com/main/index.php/2010/11/10/the-newurban-outfitters-logo/ [Accessed on 24/10/14] Fred McConnell and Laurence Topham, (Thursday 18th Septemeber 2014] TheGuardian.com, http://www.theguardian.com/fashion/video/2014/sep/18/urban-outfitters-bloodied-kent-state-university-video [Accessed 24/10/14] IMAGES: Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal PRODUCT, PLACE, PROMOTION IMAGES: Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 27/10/14] Screenshot taken from Urban Outfifitters’ Instagram October 2014 Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal ANNUAL REVIEW URBN Website (2014), FY 2014 Anual Review (Form 10k), http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-irhome [Accessed on 10/10/14] IMAGES: Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal Urbn Annual Report 2014, http://www.annualreports.co.uk/company/4713 [accessed 29/10/14] STRATEGY URBN Website (2014), FY 2014 Anual Review (Form 10k), http://investor.urbn.com/phoenix.zhtml?c=115825&p=irol-irhome [Accessed on 10/10/14] Aria Hughes, (06/11/14), WGSN, Urban Outfitters opens Herald Square lifestyle centre http://ezproxy.bcu.ac.uk:2264/content/search/#/ urban%2520outfitters 57,000sq ft [Accessed on 21/10/14] Urban Outfitters website, (October 2014), RTH x Urban Renewal, http://www.urbanoutfitters.com/urban/catalog/category.jsp?id=W-RENEWAL-RTH#/ [Accessed 26/10/14] Tiffany Holland, (September 29th 2014), Retail-week.com, Urban Outfitters plans to double global turnover by 2020, http://www.retail-week. com/sectors/fashion/urban-outfitters-plans-to-double-global-turnover-by-2020/5064673.article [Accessed on 27/10/14] Susan Dickenson, (25th September 2014), Furnituretoday.com, Urban Outfitters to boost home category, http://www.furnituretoday.com/ article/492000-urban-outfitters-boosting-home-category [Accessed on 27/20/14] IMAGES: WGSN Article, 06.11.14, Urban Outfitters’ Herald Square LIfestyle Centre Urban Outfitters Website, 2014, urbanoutfitters.com [Accessed 26/10/14] Screenshot taken from Urban Outfifitters’ Instagram October 2014 Urban Outfitters Europe’s Pinterest 2014, Collective: The UO Journal
emily jayne reece