THE MACRO ENVIROMENT

Findings

One of the key findings was that the vast majority of respondents mostly prefer to try on clothing before purchasing it. Therefore should Boden consider opening more physical stores? Other online retailers, such as Asos, have already introduced the concept of ‘try before you buy’, this system allows the consumer to pay for the product once they have decided to keep it, and eliminates the need for a refund (Mason, 2017).

Graph 1.

Graph 2.

This finding suggests that the consumer perception of Boden is weak and therefore they should improve their online promotions in order to maintain an awareness of the brand to increase the number of customers.

One of Boden’s main USP’s is their catalogue. When Johnnie Boden first introduced his business, his catalogue featured 8 hand-drawn menswear designs. To this day Boden continue to utilise the catalogue as a platform to sell their product. However when asked, ‘State 3 brands you think of first when you hear the words catalogue/mail order’ only 11 out of 84 stated Boden. This highlights that that the Boden brand is possibly missing out on a significant section of the market.

Graph 3.

Graph 4.

Graph 3 and 4 indicates that consumers are changing the way they shop. 67% of respondents answered they would rather use an online catalogue. This would seem to suggest that saving time and convenience are a top priority to the consumer.

THE MACRO ENVIROMENT

PESTLE

Politcal

Following Brexit, fashion business supply chains arrangements may encounter increased tariffs and customs duties (Sidkin, 2017). Boden has suppliers from outside and inside the EU, such as China and Italy (Boden. co.uk, 2017). Therefore Boden may find new custom agreements will impact their business and they will need to find ways to maintain tarifffree trade with the EU (Sidkin, 2017).

Economic

Social ‘The State of Fashion 2018’ reported that these ‘geopolitical’ affairs, such as Brexit, are a ‘risk to growth’ due to the lack of confidence and unpredictability (Amed et al., 2017). If agreements on the current situation of free trade change in the UK (Sidkin, 2017) it will mean additional costs for Boden and they will need to be able to strategically adjust to the constantly changing enviroment. Economic growth is reported to be shifting into emerging markets in the southern and eastern parts of the world (Amed et al., 2017) This could suggest a potential new market for Boden to tap into.

Social attitudes towards gender stereotypes are shifting. An opinion that children should be free to construct their own identities and not be labelled to a specific gender is emerging (Newbold 2017). Although Boden have begun to introduce prints that are not stereotypically associated with girls (Boden.co.uk, 2017), the boys section still continues to reinforce what a boy should be interested in (Boden.co.uk, 2017). There could be an opportunity for Boden to introduce a new line which doesn’t differentiate between girls and boys clothing and allows children to make their own choices.

Technological

Consumer behaviour has changed considerably in the fashion industry this year and the mainstream shopper is comfortably using digital channels for their purchases as well as switching to offline touch-points during their path to purchase (Amed et al., 2017). As Boden offers a catalogue, website and physical stores (in the UK) it is important they keep each channel consistent to their brand as The Business of Fashion’s Annual Report predicts this is will be a key expectation of the consumer in 2018 (Amed et al., 2017).

Legal

Businesses are required to comply with several laws. (Reiff-Marganiec et al., 2012). Boden is attentive to the ethics and sustainability throughout its business and its supply chain. Partly in an attempt to create an ethical brand image. Legal compliance is vital and the brand has spent capital throughout its system including the supply chain. In 2008 Boden joined the Ethical Trading Initiative (ETI) and acquired the ETI base code. All suppliers for Boden sign up to this ethical commitment, which shapes part of their terms and conditions of trade. (boden.co.uk 2017) Factories producing Boden products are monitored through independent ethical audits to ensure they stick to to the strict code of conduct (boden.co.uk,2017).

Environmental

It is predicted that in 2018 sustainability will go from being used as a marketing tool for ‘corporate social responsibility’ to a significant concept in constructing a circular economy that is implemented across throughout (Amed et al., 2017). It has been reported that brands are arranging for sustainability to begin at the very initial step of the supplychain and will continue on throughout it (Amed et al., 2017). Boden have attempted to become sustainable to some extent by using recycleable and renewable products for their catalogue. They also state, ‘Wherever it is possible, we ensure that our packaging is recycleable and is made from recycled materials too.’(Clothing.boden.co.uk, 2017). However this ethos could be extended to the production of clothes (Amed et al., 2017).

KEY TRENDS THAT WILL SHAPE BODEN’S FUTURE

Personalisation

Personalisation is predicted to be the number one trend of 2018, according to the Business of Fashion (Bof) -McKinsey Global Fashion survey (Amed et al., 2017). Personalisation can range from customised products to advertisements and campaigns that engage with each unique consumer (Amed et al., 2017). New technologies allow retailers to collect data (Ohnemus, 2017) about consumers which then allows them to create a tailored customer experience, based on personal preferences, products aquired and shopping habits (Amed et al., 2017). It was noted in the Wall Street Journal that Boden, in order to compete with online advertising, were producing more personalised catalogues (Holmes, 2014). It has since been reported that Boden are personalsing their catalogue to fit with different consumers shopping habits and therefore can tailor the catalogue by changing, for example, the size or the discounts they offer (Montetate, 2017). Evidently Boden have already begun to adopt this trend and should continue to do so as a strategic marketing tool.

(Boden, 2017)

Integrating channels

15. Omnichannel retailing has proven to promote rapid sales (Deloitte, 2014). Boden’s three main channels are their catalogue, online website and their physical stores. Introducing technology-enabled strategies to grow their brand’s omnichannel approach would help construct a cohesive and engaging experience that diffrentiates them from their competitors (Intel, 2012). An omnichannel approach would consider all platforms and devices the consumer uses to interact with Boden (Accenture, 2015). An example of this would be by introducing an app so that if a customer saw something they wanted to buy instore, but their size wasn’t available, they could scan the barcode and buy it immediately. (Hounslea et al., 2017). This creates customer satisfaction and helps increase sales. Similarly for consumers who still prefer the catalogue, a QR code could be developed with every product, which would be scanned via an app and purchased instantly (Tode, 2013).

Sustainability and trasnparency is continually growing as a critical priority to consumers (Amed et al., 2017). For example openly acknowledging how supply chains work and who the suppliers are (Ditty, 2017). Boden already offer an ethical and transparent approach on their website. It Includes information on which countries their suppliers are based in and and how they are working with them to ensure they are attempting to reduce the impact their supply chain has on the environment (Boden, 2017). Boden could improve their sustainability principles by shifting to a circular economy approach, also known as, ‘circular fashion’ (Watson et al., 2017). At the moment Boden uses the common model “take, make, dispose” (Watson et al., 2017). A policy brief by The Fashion Agenda reported that this traditional linear model, ‘is reaching its physical limits’ due to rapid growth of the population and global garment production (Watson et al., 2017). A circular economy would enable Boden to reuse and regenerate products and resources (Watson et al.,2017). It would offer the opportunity to experiment with new technology and design and capture new consumers who highly regard the impact on the environment as an important factor when choosing products (Lacy., 2017).