PRODUCT LIFE CYCLE

The product life cycle is split into four stages that a product will go through in the retail market. These four stages are called the introduction, growth, maturity and decline. Figure 9 shows how products move through these four stages as it’s life in the retail market continues and how it’s popularity is related to the four stages.

Stage 1 is the introduction, where the product is made available to consumers via the company’s website, and fashion leaders will begin to adopt the new item. This stage will be the most expensive of the four as the retailer will need to promote the new products with advertising. During this stage the sales will be lower as the market is smaller until other consumers become aware of this new product.

Stage 2 is the growth stage where the brand will normally take the most money from this new product. They need to ensure high stock levels to accommodate this and the product will begin to promote itself as the advertising starts to work and word of mouth communication between consumers grows.

Stage 3 is the maturity stage; the product has become established and sales are steady. The brand will begin to remind consumers about the product, for example through their ‘trend’ section on the website, newsletters or push the ‘new in’ section when consumers open the website. More stock may be ordered at this point if a product is selling well.

Stage 4 is decline, where consumers begin to get bored of the item or it is replaced by a new product. The market for this product shrinks as new trends are introduced and the product is slowly phased out, it would normally be put into sales or put into a less expensive production method.

(PLT 2021) (H&M 2021) Figure 9 (Bargh, M 2018)

Research from the competitive shop shows that Bershka are the middle price point between their two close competitors Pretty Little Thing and H&M. The denim skirt shown in the competitive shop is just under a mid-price point at £19.99. As this skirt is a staple item, it will generally stay at full price until the next season’s items come in and then will get discounted to around £13.99 (30% off).

Bershka’s low costs will make consumers assume that their products are low quality, however this could be positive if Bershka’s core consumer (students and young teenagers) see the prices. Consumers that are cautious about price will be attracted to Bershka and their cheap garments, it will also attract consumers who are not bothered about sustainability.

Bershka as a brand need to begin to consider the possibility of recycling garments, and creating more sustainable garments. As the world moves into more sustainable initiatives, fast fashion brands such as Bershka need to be able to keep up. Offering a service where customers could send their unwanted garments back to the warehouse in exhcnage for store credit or a gift. These unwanted garments could then be sent to people who need them, or recycled to create new garments for Bershka.