APPENDIX
TED S PESTEL Analysis
Political
The cost of corruption in EU has been estimated its cost to the EU economy at EUR 120 billion per year, which exclude social and cultural cost. (Levi, M.,, 2014)
Service sector easing policies foreseen in UK China Meeting. (BBC, 2013). This may result in easing of the customer service market for brands. (BBC, 2013)
With the increased awareness about global changing economy, the UK politics needs to be more open with openness towards multilateral agreements and open economic policies in trade. According to the discussions held in UK Labour day, as a country that continues to benefit enormously from its openness to trade, investment, people and ideas, Britain's role is to be a champion and protector of this openness, and the liberal values that sustain it, around the world ( BBC UK, 2013 ).
While the UK and China are open to trade relationships, UK still has a negative trade deficit with China. (BBC, 2013)
The so-called Bali package hammered out by World Trade Organization (WTO) negotiators which aims to streamline customs procedures worldwide including cutting red tape, speeding up port clearances (Barrie 2013) SEZ in China launched near Shanghai.(BBC, 2013). This have the potential to open up manufacturing units in Shanghai to support retail.
While UK has been quite pro-American and share common cultural views, it can be said that UK is quite neutral to China and does favour the Chinese political views as well (Fisher, M. , 2013) The trade between UK and China is at a record high. China has overtaken US as the major exporter as reported in the third quarter of this financial year (Roland, D., 2013, Financial Times, 2013) British passport rules for China have been relaxed. This was done keeping in mind the increased tourism from China to Britain and increased travel of UK citizens to China for business purposes. It was also observed that UK was losing money due to stringent passport restrictions as tourists would shop from Paris instead of London (Thomas, N., 2013)
The major political constraint that will affect Ted Baker is that ‘‘Chinese consumer’s financial motive to buy abroad is strong, mainly because taxes on luxury goods in China range around 20%-70%, depending on the category.’’ (Atsmon. Y, Ducarme. D, Magni. M, Wu. C, 2012,22) The increase in tax could potentially harm Ted Baker retail sales which could have a negative effect. Scottish independence may pose huge threats on UK economic development and status of the world. (BBC, 20/1/14) UK government signed up free trade agreement with Korea, which may make Ted’s business there easier and more price competitive. (GOV. UK,23/8/13) Landmark trade deal between the EU` and Canada will benefit the UK economy and businesses by over £1.3 billion a year.(GOV. UK,18/10/13) EU - US Free Trade Agreement. The barriers removal may help British companies export more goods and services to America.(GOV.UK, 18/03/13)
EU has established trade barriers with nonEU membership-such as Australia; which could minimize Ted’s competiveness with local brands or brands from the countries which have free trade agreement with Australia. The terrorism in Lebanon more frequently may discourage people’s confidence of country safety and reduce consumption in Ted’s business in Middle East. (The guardian, 3/2/14). Despite large oil revenues in Kuwait, the economy has been badly affected by the global financial crisis because economic policy-making has been disputed between royal family and parliaments. (BBC,29/10/13)
Global The decline in real earnings looks set to continue for at least one, if not several more years to come. Indeed the outlook for 2013 inflation has worsened since this time last year” (Shah, 2013)
Ecomonic
Global economic retail industry growth continues with at 5.7% to 5.9% (Deloitte, 2013). The top 10 retailers of the world has an expansion of an average 16.7 countries. Revenue from foreign operations contribute 1/3rd of the retail revenue. This is in line with Ted Baker’s operations as 65% of Ted Baker’s revenue in from UK. The brand value of apparel category increase 21% on the top of a 13% rise a year ago.
Australian
UK and Europe
“Australian retail sales excite with a 1.2% rise in February. Apparel sales rise 1.6% with department store sales ahead 2.6%. It included especially strong growth for department store sales – up 2.6% month-on-month – and for apparel sales – up 1.6% - although footwear and personal accessory sales were flat” (WGSN, 2014).
As the GDP shows 0.7% growth in the fourth quarter, the UK economy grew by 1.9% in last year which presents its strongest rate since 2007 (BBC, 2014). Also, the retail sales in UK rose 2.6%, up 6.1% on a year ago and this figure shows the strongest annual rise in nine years (EUROMONITOR, 2014). But the Eurozone inflation fell to 0.7% in January and it has raising the concerns of suffering potential deflation (BBC, 2014). The possible deflation could make the price of goods and assets in long-term decline and also make consumers to delay purchases. The Eurozone manufacturing activity hit a 32-month high in January, driven by Germany (BBC, 2014). Likewise, the unemployment rates in Europe are showing real signs of improvement. For example, the UK’s dropped from to 7.4% in 2013 down from 8.0% in 2011 (MARKIT, 2014). However, the major problem is that wages are either stagnating or declining in real terms, and not keeping pace with inflation or the rising costs of living (LENNARD, 2014).
Australian retailers have a scope of expansion as the interest rates are low. However, the labour market remains weak. This, however have been further supported by Research firm Roy Morgan which reports that in the last 12 months, Australians spent an estimated $3.4 billion (up from $2.4 billion in the previous year) shopping for fashion online (Phillips Carli, 2014)
“Since the financial crisis and the depths of the recession, substantial progress has been made in restoring the economy to health” (BBC News, 2014). Sales in UK High Street shops have grown strongly since last February, rising at their fastest pace since June 2012, according to a CBI survey ( BBC news business, 2014 ) There is a decline in credit market in countries like Spain, Portugal, Italy and Greece. This has led retail brands to curtail capital spending in these areas (Deloitte, 2013). The depreciation of value for euro has led to increased competitiveness in the export market(Deloitte, 2013). The Andean countries, sub-Saharan countries of Africa and countries like Indonesia and Philippines have managed to grow strongly. The growth is likely to continue and an acceleration in modern retail format is expected in these regions(Deloitte, 2013).
The fashion goods showed the highest selling margin in 2011 across all sectors(Deloitte, 2013). L a c k o f c l a r i t y ov e r t h e l u x u r y s e c t o r’s performance in 2013 and prospects for 2014 caused a dip in the first half of January (Mallevays, Pierre 2013). It was further stated that there has been a 15% dip in the luxury spending of the Chinese consumer. However, growth was reported by LVM and Swatch group. The clear winner was Michael Kors with a growth percentage of 42.5%. UK economic seems to recover and will grow by 2.5% this year and 2.1% next year because of unemployment rate drop and wage increase; which may increase disposable income of British people. The general EU economy has a slight recovery since May, 2013, strengthening consumer and retail trade confidence.( europa.eu, 30/1/14) The growth of China’s economy has been slowing down; however, it reveals that its economic growth is coming into stabilization. (BBC, 20/1/14).
North America The Associated Press reported that one in five Americans become affluent with household income of $250,000 or more, which made up mainly of older professionals, working married couples and more educated singles (WGSN, 2013). However, the apparel only accounts for 2.5% of the total Personal Consumption Expenditures (PCE) in 2012 as every man, woman, and child in the US purchase 62 garments and spent around $898 on average (Barrie, 2014). The 2013 clothing and footwear demand in US continued to rise in both value and volume terms, which was slower than the growth during 20102012 (Textile Intelligence, 2014). In the first, second and third quarter of 2013, the expenditure on clothing and footwear were increase 2.3%, 3% and 1.8% respectively, compared with 4.8% in 2012 (Textile Intelligence, 2014). In Canada, the Leisure Trends reported that the sales for men’s clothing segment are up 18% across all channels, especially the sales of men clothing for aged 20-35 in department store have increased 64% over the past year (Russell, 2014).
Baring a fiscal convulsion, the US economy is projected to accelerate(Deloitte, 2013). With increased supply and reduced price of natural gas and petroleum, US energy intensive companies are becoming more intensive. (Deloitte, 2013). As a result it can be projected that US will continue to be leader in synthetic textile manufacturing. The U.S. economy finally breaks out of its doldrums. Growth exceeds 3 percent and the unemployment rate moves toward 6 percent.( wallstcheatsheet.com,11/1/14).
Asia The growth in the East Asia and Pacific is weakening and moderated to 7.2% in 2013 (World Bank, 2014). Euromonitor International (2014) predicts that the retail growth in Asia Pacific will increase 4.7% in 2014 which is slightly higher than 4.3% in 2013. Most Asian economies are forecast to perform stronger in 2014 lead by China which accounted for 41% of 2013 retail sales in Asia Pacific and follow with Vietnam, Indonesia, India, Thailand (Moreau, 2014). Trade deficit, which has rose to $112bn in 2013 may cause Japanese currency drop more than 20% and generate the difficulties of imported products. (BBC, 2014). South Korea record fastest economic growth in 3 years because of the increase of domestic demands The Chinese have a strong passion for luxury brands. The research by World Luxury Association showed that during January 2012, Chinese customers spent $7.2 billion on luxury goods ( World Travel Online, 2012 ).
Corporate revenue increased in China while the export oriented companies are struggling to maintain competitiveness(Deloitte, 2013). 48% of China’s investment are in fixed assets which have resulted in loss to the Chinese banks. Sustainable growth can be achieved by shifting the resources towards consumer spending(Deloitte, 2013). Declining wages in Japan have resulted in declining purchasing power (Deloitte, 2013). China’s economy is growing and Shanghai is at the heart of it, ‘‘Shanghai is the capital for international Chinese, with more of the top international Chinese entrepreneurs settling here than any other city’’ (Herun Report, 2012). This suggests that the demand for luxury goods is set to increase in China.
World
Social
According to the World Health Organization (WHO), obesity rates have doubled since 1980. So, enlarge the size ranges might be the trend of Ted’s. Demand for large size clothing is increase. “Rates of obesity within the population are forecast to double by 2050, to half the female population, meaning that there will be a greater demand for plus-size clothing” (Sender, 2013). Women like spend more money on clothing. “Women’s clothing sales have risen 14% over the last five years to reach £20.7 billion in 2012 as clothes remain high up on their spending priorities” (Sender, 2013). Shoppable content, disrupted loyalty and service reimagined are just three of the key retail trends that will come to the fore in 2014 ( WGSN, 2014 ).
Consumers shop clothing from a broad portfolio and different level of brands such as an affordable dress match with a luxury accessory. They sought value which is either good quality at a fair price or an exceptional quality at premium price. They have more realistic expectations of personalised experiences like receiving a thanks on Twitter, attending an exclusive fashion show (BrandZ, 2013). The phenomenon called “Apple Effect”, which delivers a standard for design, functionality and service in both physical and online stores, also indicates that consumers expect excellent, flawless brand experience (BrandZ, 2013). The ethical concerns of sourcing and safe labour standard is increasingly important after the disasters at Bangladesh. According to the survey by KPMG LLP, nearly 70% of consumers older than age 18 and below age 30 would consider social issues before making a purchase, such as sustainability, human rights and fair trade. This outpaces the less than 50% of consumers overall who feel the same way (WGSN, 2013).
Though paid search stimulates a small amount of online sales increment, it does not help lift instore spending. (Deloitte, 2013). While young consumers aged 16-24 and they are increasingly buying more clothes online than in-store, two fifths of over-55s have not browsed for, or bought clothes online. A November 2013 BNP Paribas report entitled “Category Dynamics,” found: “Different product categories have seen materially divergent fortunes in the past ten years. Leather, and handbags in particular, has been the rising star, moving from 18 percent of the personal luxury goods market to 27 percent. Conversely, two categories have contracted: fashion from 29 percent to 26 percent and fragrances and cosmetics from 26 percent to 20 percent. We calculate that in-season, fullprice sell-through is 50 percent for ready-towear and 90 percent for leather and hard luxury.” (MELLERY-PRATT, R., 2014). Men’s grooming market grew at twice the rate of the men’s clothing sector in 2012.” (Mintel,2013)
More people around the world feel pressured for time in their lives, so Ted’s could shorten the times of buying processes.( http://www.prweb.com/). Experience-based consumption has been awaken recently; therefore, making more enticing and unforgettable in-store shopping experiences is key issue for Ted’s.
Australia “Australian males are spending a far greater amount on high-end and luxury brands. It is anticipated that this segment will continue to grow and expand in the coming years”(UKTI,10/1/14); which may benefit Ted’s – the high quality and detail-oriented brand. “Children’s and infant clothing has experienced exponential growth in Australia over the past five years, growing faster than the industry average.” (UKTI,10/1/14) ; which is a potential opportunities for Ted’s, which is developing children wear recently. The strong growth and market size in clothing sales helped China remain in high top, as did a vibrant e-commerce market plus brisk trade in fast fashion and luxury (WGSN, 2013) China's census shows their population increased to 1.34 billion by 2010, with a dramatical increasing in the age over 60 (BBC Radio, 2011).
The demographic growth of the Chinese labour is slowing down. This has resulted in brands shifting their manufacturing to countries like India, Mexico and Vietnam (Deloitte, 2013) The emphasis on personal appearance, both at work and in finding a spouse, has helped fuel China’s $22 billion (134 billion renminbi) cosmetics industry. 73% percent of Chinese men in China’s leading cities told consumer research firm Kantar Worldpanel that looking good was essential for success with both women and work (Larson, C, 2014). Chinese consumers are becoming more sophisticated and brand-conscious. China’s overall GDP may slow, but the middle-class is growing,’’ (Daily. J, 2012) as the middle class grows so does the target market.
UK The current UK consumers are cautious and prepared to pay more but it is important for retailers to offer products with right quality and price, engagement with consumer online instantly, and easy sale process (Jobling, 2013). The spending of mature buyers who over 50s on clothing, footwear and accessories are accounts for 41% of the total market. For UK, there is an estimated £300bn contributed by over-50s but 42% of their spend going on discounted items (WGSN, 2014). Women and men had have completely different values for clothes. “Quality is more important to women than price, with Mintel’s latest research showing that female consumers are ten percentage points more likely to disagree with the statement ‘Price is more important to me than product quality’. Men, on the other hand, are split over the importance of price and quality, according to Mintel’s Menswear – UK, March 2013. This highlights the changing attitudes of women in the price-versus-quality equation, since data for 2012, found that over half of females saw price as the most important factor when shopping for clothes, compared with four in ten males” (Sender, 2013).
Young women is the major clothes shoppers. “While young women aged 16-24 are still the main clothes shoppers, with around half shopping two-to-three times a month, they are beginning to rein in their spend” (Sender, 2013). Many British citizens are willing to embrace British-made products.
Ratings and reviews can make or break season shopping. “Nearly half (48%) of shoppers were always or frequently influenced by online ratings and reviews” (WGSN, 2014).
Technology
“Turkey plays to its strengths, building on its high quality levels, proximity to Europe and flexible approach, and it is doing very well” and “With retailers requiring a fast turnaround of new stock and new designs, Turkish companies that are able to deliver on innovation and fashion are wellplaced to benefit, because they can offer quantities and lead times that cannot be matched by Asia.” (Jobling, 2014). Technological micro environmental factors affecting the clothing industry include availability of resources, demand and production. For example, the scarcity of certain materials, such as leather, may force retail and wholesale clothing companies to sell more faux or substitute leather products (Suttle, 2014).
With a rapidly changing in businesses over the past years, the technology become a key strategy to gain competitive advantage in the market. The new technologies enable major corporations to develop and establish stronger relations with customers and other businesses based on the quick movement of the information and the quick response to customers' requirements (Arvaniti, C., 2010). Overseas consumers shopping online flock to British brands. The products sold by department stores were particularly popular- up 78% on smartphones and up 46% on tablets ( WGSN Newsteam, 2014 ). Technology is like breathing now that we cannot live without it. The parallel of devices, content and distribution systems, and the omnipresent are indispensable for winning brands (BrandZ, 2013). The market research of Verdict Retail shows that online spend via mobile and smart devices will grow from £7.9bn in 2013 to £23.1bn in 2018 in UK (Drapers, 2013).
Twitter is planning to build a new venture called Twitter Commerce which allows their 232 million users to buy product directly from seeing a picture on twitter (WGSN, 2014). UK retailers attracted a large number of interest from oversea online shoppers with a 64% yearon-year increase in the number of searches via smartphone. The fastest growth of those searches came from 231% in Germany, 145% Russia and 137% in Argentina (WGSN, 2014). KPMG found in a survey of 10,200 online consumers in China that the respondents spent an average of 1,397 yuan (US$229) on their most recent purchase of a “luxury or premium” item. Almost three-quarters of survey respondents said they preferred to shop online because they could land a better deal, while 55% said they preferred it because it’s less time-consuming. Another 47% said it guarantees authentic American or European origin of goods (Chow, J., 2014).
Chinese consumers outspent American shoppers online last year for the first time, and by 2015, the country’s online shopping market is projected to reach $540 billion, or 7.5% of all retail transactions in the country with cosmetics being the most popular items bought online (Chow, J., 2014.). While Emarketer predicts that e-commerce in the apparel and accessories market will grow at an astounding 17.2 percent annually between now and 2017, reliable projections show offline sales accounting for less than 75 percent of total apparel and accessories sales for the foreseeable future. However, Forrester predicts that by 2017, 60 percent of all retail transactions in the United States “will involve the Internet in some way.” (Bloom, A., 2014). E-commerce is now becoming the more popular method for luxury brands to make sales, ‘‘digital sales are set to power so much of the industry’s growth in the next five years, it is a connection that luxury good companies have to get right.’’ (Doran.S, 2013).
Virtue mannequins’ software, which is virtual fitting rooms based on online shoppers basic physical measurements, might not only reduce return rate from online shopping but increase the turnover because many returned products tend to turn into the discounted.(BBC,21/1/14). State-of-the-art designing program might let Ted’s designer test their products on 3D interface before sending them into catwalk in order to reduce the chance of wrong makings and can be seen the virtual finished products on computers. (BBC,4/9/13) Using the latest technology might create interactive in-store environment to make shopping experiences more interesting. (BBC,4/9/13) Ted’s might combine their traditional skills with 3d printed technology to create more innovative and attractive products in terms of knitwear or shoes. (http://www.thecoolist.com/the-tech-offashion-10-ways-technology-drives-tomorrowsfashion/)
Laser Etched Fashion could be the future considerations in applying on women’s dress and men’s shirts. (http://www.thecoolist.com/the-techof-fashion-10-ways-technology-drives-tomorrowsfashion/) Partners with testing and optimization technology might make easier to understand what consumer doing on website from different countries and efficiently make improvement in online customer services. (retail technology, 27/1/14)
New UK employment laws could see firms saving £200 per employee in employment tax because they no longer obliged to pay National Insurance contributions.(http://www.lawfuel.com/). Firms have hailed Brazil’s new anti-corruption laws as a route to encourage more trade with the country.( lawgazette.co.uk,6/2/14). This also may encourage Ted’s to business in this emerging market.
Legal
The industry has repeatedly been affected by issues such as workers' rights and child labor laws. Union workers in clothing manufacturing plants may picket their employers, especially if their wages or medical benefits are less favourable than workers in comparable industries (Suttle, 2014) “Buying counterfeit goods might be seen as a victimless way to get presents for family and friends on the cheap, but many of these items will have a long back story of criminality, often involving violence” (BBC News, 2014). There are some new rules have been published in Version 4.0 of Global Organic Textile Standard (GOTS) including the ban on using genetic engineering, nanotechnology, carcinogenic substances, virgin polyester and angora (Woodard, 2014)
“Illicit trade also hurts businesses in Scotland very hard. People choosing bargains at markets, car boot sales or on the internet impacts hugely on retailers and manufacturers - less genuine goods being sold closes businesses and puts people out of work” (BBC News, 2014) Growing pressure from developed countries, especially the EU and the US, to meet global standards on labour has pushed Indian apparel manufacturers to take legal compliance matters in their own hands to change the image problem plaguing the country (Amiti Sen, ET Bureau, 2012). India, which is known as the child labor capital of the world, has been blacklisted for the third consecutive year by the US government for continued use of child labour in various sectors (Amiti Sen, ET Bureau, 2012). The Russian government proposed regulations about international ecommerce which Russian shoppers purchase around £820 and over from non-Russian brands have a duty charge levied on them (Drapers, 2014)
Sourcing trends ”The economics of Pakistan give its industry plenty of optimism, with its low cost base and easy access to raw materials considerable strengths” (Jobling, 2014).
Environmental/Ethical
China is currently the world's largest cotton buyer, as well as its largest producer, so any industry policies have the potential to be internationally significant. “China's cotton production actually fell by 7.7% in 2013 , figures from the National Bureau of Statistics show, with the decline attributed to lower cotton prices and higher costs. Imports were also down close to 20% in the year” (Jobling, 2014). According to the Department for the Environment, Food and Rural Affairs, the clothing and textiles sector in the UK produces around 3.1m tonnes of carbon dioxide, 2m tonnes of waste and 70m tonnes of waste water per year. Whilst this is less than 1% of the total UK CO2 emissions and 2% of waste it is still a huge amount ( Rick Awdas , 2012).
After a video shot of angora fur extraction process in China released, dozens of retailers halted the sourcing of product containing angora wool and many other retailers suspend the placing of further orders (WGSN, 2013) Changing weather patterns ensured a very intense winter in the US and resulted in a high demand of winter goods with the supply running low (Davis, A.P., 2014). A very warm and long Summer is expected in UK confirming the changing weather patterns globally (McCloskey, J., 2014). Such changes will definitely affect the shopping patterns of the consumer.
TED S SWOT Analysis
Ted Baker offers a wide range of collections including: Menswear, Womenswear, Global, Endurance, Pashion, Langley, Accessories, Fragrance, Skinwear, Footwear, Eyewear and Watches (Ted Baker, 2013).
Strength
The chief executive Ray Kelvin establishes distinctive style from management to company culture and he has as much a presence on the design floor as in the boardroom, which effectively poses the brand’s alter ego to focus on product design (Taylor, 2012). Founded as a shirting specialist, Ted Baker utilize its British heritage to become a quintessentially British brand through design detail, distinctive pattern and colour, store interior and advertising (Ted Baker, 2013). Ted Baker tailors each store uniquely to reflect their own style and the immediate surroundings and accompanies high level of customer service which they called retail theatre (Balmford, 2012). As Ted chooses not to advertise. Ted Baker is one of the fastest-growing leading lifestyle brands in the UK. The collections have expanded rapidly (Ted Baker.com)
Ted Baker is successful because it has a strong brand identity and brand personality which is rooted in the founder Ray Kelvin’s own quirky nature. (theguardian.com 2013) The company has strong market presence with very strong stock market trends as ROI is one of the best in the market sector. With multiple channels of distribution and using e-supply chain processes, the brand has kept up with the pace. The global expansion has helped to minimize the risk. The last quarter reported an increase in the overseas revenue. Group revenue in the 28 weeks ended August 10 rose 30.9% to £155.2m, while pre-tax profit drove 49.7% higher to £11.6m. Retail sales including e-commerce grew 30.2% on a 12.4% increase in average square footage. (WGSN, 2013). The brand has strongly invested in plant and equipment and in an e-commerce platform. Strong visual merchandising and brand semiotics reflected in the product and brand experience. Clear seasonal subjects and complete look book browsed online gives a strong message regarding the design vision of the brand.
The operational expense is on an increasing trend. This can be attributed to the global expansion and also to the increase in incentives to the US team (Ted Baker, 2014). The receivables account has also been increasing which may lead to a cash flow situation. (Global Data, 2013).
Weakness
The brand has licensed operations across categories and in certain territories (Ted Baker, 2014). It might be difficult for the brand to control and communicate the required brand message by maintaining consistency throughout its channels. Concessions globally open might cause consistency issue like music, confusing layout, lower customer service (David jobber and John fahy, 2009 ). Also, Ted Baker has consistent sizing throughout the world i.e. the UK sizing system which is not suitable for the global demography. The Ted baker pricing is inconsistent throughout the world even after the currency conversion. The key part of Ted Baker’s brand identity is the British culture as well as the irreverent sense of humour which may encounter challenges when enter new international market with different culture (Balmford, 2012). There is lower brand awareness of Ted Baker Outside UK.
The brand has very similar identity to the luxury brand Paul smith but commands lower market level that the same which in turn dilutes the brand value by not attracting higher profile consumers.
Global expansion – while Ted Baker is already planning to expand in Latin America(WGSN, 2014) and creating a larger presence in developing countries such as China and India (Ted Baker Website, 2014, Global Data, 2013), the oversea sale revenue of Ted Baker accounts for 30.5% in 2013 and 25.2% in 2012, which still has plenty space to achieve more global presence (Ted Baker, 2013).
Opportunities
Trends in retailing is to improve customer experience ( WGSN, 2014). Taking this further, Mickey Drexler, the chairman & CEO of J Crew Group, advocated the approach that rather than focusing on Omni channel, retail businesses should spotlight the strong design and creative product which will give them a competitive edge (Rumsey and Saunter, 2013). Increase more intriguing and interactive in-store shopping environment and holding more brand activities on social media will definitely gain more publicity for Ted Baker. These include “Virtual Mannequin” or “3-D sketch” technology. Retail marketing via social media and smartphone apps can be done to enhance brand recognition (Michael Levy etc., 2004)
Ted Baker has invested in a new e-commerce site and aims to use the new system to operate all of its international websites from one platform, paving the way for digital launches planned in Australia and the US next year. As part of the revamp a number of new online and offline functions that allow customers to search for products, carry out online purchases and access customer services areas have been introduced (WGSN, 2013). Communication between people who speak different languages is difficult. The new e-commerce platform has the capacity to host separate country and language sites. (WGSM, 2013). With the market expansion, Ted baker has the opportunity of widening its product ranges and creating different core products catering to different markets by adding more cultural features in their product designs. The brand can also think of sub-brand creation or brand diversification, such as coffee shop, hotel, theme park etc. Celebrity endorsement or design competition to enhance public relation
Find cheapest place to produce, “Bangladesh is the cheapest place to produce, so we have a chance to have a good price� (Jobling, 2014) In China, consumer tastes shift away from conspicuous consumption and more than 75% of consumers favour to try new brands, which generates new market opportunities for premium, contemporary and fast fashion brands (Chu, 2014).
Awareness is strengthening about ethical production. While labour wage is fickle, one of the major issues with outsourcing work in the fashion industry, in particular, is the lack of oversight for businesses sending the work elsewhere (Belcher, n.d.) Fast fashion brands are dominating the market Retailing space are shrinking in UK
Threats
More and more luxury brands are developing sub brands while to develop sub-brands local brands are burgeoning adding to competition. Ted Baker has strong competitors. Its main competitors are L.K. Bennett, Paul Smith, All Saints or Polo Ralph Lauren (4-Traders, 2013). There is a strong competition by applying new technologies in fashion industry (Michael Levy etc., 2004). Poor service quality might lead to difficulties in consumptions (David jobber and John fahy, 2009 ). Ted Baker is not spend any money on advertising (Ted Baker, 2013).
The Europe economy is complex and uncertain which may bring Ted Baker threats as their year revenue in Europe accounts for 80.2% of total by January 2013 (Ted Baker, 2013). Ted Baker may lose its authorized identity of quintessentially British brand when Ted Baker enters Chinese market as 45% of their manufacturing made in China in 2012 (Made-By, 2012).
Reference: 4-Traders, 2013. Ted Baker: The small English opens to international. 4-Traders.com, 19 June 2013. [Online] Available from: http://www.4-traders.com/TED-BAKER-4001696/strategies-strategies/Thesmall-English-opens-to-international-36802/ [Accessed 23 February 2014].(BZ) Amiti Sen, ET Bureau, 2012, The Economic Times: Indian apparel manufacturers to take legal compliance seriously to change 'child labour' image[online]. Available at :http://articles.economictimes.indiatimes. com/2012-05-08/news/31626841_1_garment-exports-apparel-export-promotion-council-aepc(MD) Angela Rumsey, WGSN, 2014, Retail trends 2014: top 10 (LM) Annual Report and Accounts, 2012/2013. Ted Baker PLC [online]. 24 May 2013. Available via: http:// www.tedbakerplc.com/ted/uploads/results/TedBaker_AnnualReport2013.pdf [Access: 6 March 2014](RL) (MD) Anonymous. 2014. [online] Available at: http://www.ft.com/cms/s/0/4a7c74aa-83cf-11e3-aa6500144feab7de.html#axzz2vOy0jrSF [Accessed: 8 Mar 2014].(PL) Aria Hughes, WGSN, 2013, Trend Analysis(LM) Arvaniti, C., 2010, The Evolution of E-Business Environment in Fashion Sector (LM) Atsmon. Y, et al, Luxury Without Borders: China’s New Class of shoppers Take on the world The McKinsey Chinese Luxury Consumer Survey, McKinsey Consumer & Shopper Insights, 1-40 (KC) Balmford, G., 2012. Q&A: Ray Kelvin – Founder &CEO – Ted Baker, Retail Focus [online]. 10 December 2014. Available via: http://www.retail-focus.co.uk/qanda/1034-q-a-ray-kelvin-founder-ceo-tedbaker [Access: 26 February 2014](RL)
TED S Questionnaire
TED S Focus Group
1. How old are you? 2. Do you know the brand Ted baker? 3. What kind of clothes do you like to wear and do you have a favourite designer? 4. What do you like about Ted Baker products? 5. What do you dislike about Ted Baker, anything? 6. Which factors would you concern when buying Ted’s product? 7. Do you think the price of Ted Baker products is fair? 8. Do you think Ted baker is one of the fastestgrowing leading lifestyle brands? 9. How much of quality shirts are reasonable for you? 10. Which products would you pay more on Ted’s product? 11.Do you often buy Ted’s product on full or discount price? 12. Would you like to pay more on exclusive or unique products on Ted’s? 13. Would you like to buy product sets in value price or just buy single product?
14. Make a score degree when considering buying fashion products? Quality, Feature, Designs, Package, Brand name. 15. Make a score degree when shopping fashion products? Installation(VM, Interior design), Delivery time, After-sell service, Warranty(Ethical statement), Shopping experiences. 16. Which kind of product line might be adds in Ted’s ranges in the future? 17. Which way do you prefer to shop a. Online through brand website b. Online through websites like Very and Asos c. In exclusive Ted Baker outlets d. Ted baker outlets in chain store like Selfridges, Harrods, Debenhams etc e. Any other. Please specify____________________________ 17. The Ted Baker exclusive stores give better shopping experience than the Ted Baker kiosks in Selfridges’, Harrods etc. a. Strongly Disagree b. Disagree c. Neither Agree nor disagree d. Agree e. Strongly Agree 18. Would you like to get the Ted Baker experience through ser vices like personal grooming sessions or holiday services? a. Yes b. No
TED S Street Interview
1. How do you think the in-store shopping experiences or environment about Ted’s? like stressful or pleasant ……. 2. After purchasing, how about satisfaction of service or product performance?
9. Which occasion you would go to grooming? 10. Which products you would prefer to purchase in gift ( Fashion goods) 11. Which place you would like to shop?
3. Which factors drive you purchase Ted’s products?
12. Which celebrity would stimulate your shopping most?
4. Which type of looks you would like to try or wear? by mood board
13. Which reason to buy clothing?
5. How often buy Ted’s? Which products frequently to buy? 6. How many % in salary you would shop fashion goods averagely? And Which factors may affect you reduce shopping ? 7. Have you ever get compliments by wear Ted’s product? 8. Which daily rituals you most wear blazer or shirts / dress ?
14. Which approach of information search you often to use when considering buying fashion goods? 15. Which brand you like when needing a blazer/ shirts or dress? 16. Which products you prefer to pay more attention on researching information, Which not?
TED S Consumer Profile
TED S Manchester Research
TED S Liverpool Research
TED S Birmingham Research
1 High street Brands Ted Baker ( own store ), Jack Wills, White Staff, Oasis Urban Outfit, Ware House. 2 Bullring centre Brands Ted Baker ( concession ), Oasis, Paul Smith, Top Shop, All Saints.
TED S Six R s of Purchasing
TED S Consent Form