Nagina Hottak
P1 describe the characteristics of the target markets of two different fashion retailers
Nagina Hottak
In this assignment I will be describing the characteristics of the target markets of two different fashion retailers and the retail outlets that I have chosen is ASOS and Zara.
What is Fashion / Fashion Retailing / Fashion Marketing? Fashion is something we deal with every day. Even people who say they don’t care what they wear choose clothes every morning that say a lot about them and how they feel that day. It is about expressing your identity, showing someone who you are through your fashion choices and using your clothes to tell someone something about you.
Fashion Retailing consists of the sale of goods/merchandise for personal or household consumption either from a fixed location such as a department store or kiosk, or away from a fixed location and related subordinated services. In business, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end user customers, usually in a shop, also called store. Retailers are at the end of the supply chain.
Nagina Hottak
Fashion Marketing is part of the business side of the fashion industry, and it is just as important as the creative side of a fashion house. Even if you have a great product, it won't go far unless you do a significant marketing to create awareness. The different types of fashion retail outlets are Zara which is a chain store and ASOS that is internet shopping. Market segmentation is is the first step in defining and selecting a target market to pursue. Basically, market segmentation is the process of splitting an overall market into two or more groups of consumers. Each group (or market segment) should be similar in terms of certain characteristics or product needs. The idea of market segmentation was first identified by Smith back in the 1950s. He was one of the first to recognize the importance of market segmentation, as shown in the following quote: “Market segmentation is based upon developments on the demand side of the market and represents a rational and more precise adjustment of product and marketing effort to consumer or user requirements.” There are many different methods when using market segmentation, they are as followed.
Geographic segmentation is when a business divides its market on the basis of geography. There are several ways that a market can be geographically segmented. You can divide your market by geographical areas, such as by city, county, state, region, (like the West Coast), country, or international region, (like Asia). You can also divide the market into rural, suburban, and urban market segments. And, you can segment a market by climate or total population in each area.
Demographic segmentation is market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education. Demographics can be segmented into several markets to help an organization target its consumers more accurately. With this type of segmentation, an organization can categorize the needs of consumers.
Behavioural segmentation divides a population based on their behavior, the way the population respond to, use or know of a product. Consumer behavior is a subject studied in depth over time in marketing management. This is mainly because there are several factors which a consumer takes into consideration before taking a decision. Thus consumer decision making is affected by his behavior and that is exactly how the behavioral segments are targeted.
Psychographic segmentation is dividing your market based upon consumer personality traits, values, attitudes, interests, and lifestyles. Segmentation will allow
Nagina Hottak
you to better develop and market your products because there will be a more precise match between the product and each segment's needs and wants.
Types of Retail Outlets
Department Stores- A departmental store is a large retail trading organization. It has several departments, which are classified and organized accordingly. Departments are made as per different types of goods to be sold. For example, individual departments are established for selling packed food goods, groceries, garments, stationery, cutlery, cosmetics, medicines, computes, sports, furniture, etc., so that consumers can purchase all basic household requirements under one roof.
Malls- Also called shopping mall, a large retail complex containing a variety of stores and often restaurants and other business establishments housed in a series of connected or adjacent buildings or in a single large building.
Speciality stores- Specialty stores are retail businesses that focus on specific product categories, such as office supplies, men's or women's clothing, and carpet. For example, a store that exclusively sells cell phones or video games would be considered specialized.
Supermarket- a large retail market that sells food and other household goods and that is usually operated on a self-service basis.
Discount Stores- A department store which offers its items at a lower price than many other retail stores. Discount stores are often able to drop their prices due to efficient distribution methods.
Warehouse Stores- A warehouse store or warehouse supermarket is a food and grocery retailer that operates stores geared toward offering deeper discounted prices than a traditional supermarket. These stores offer a no-frills experience and warehouse shelving stocked well with merchandise intended to move at higher volumes.
Internet Shopping- Internet shopping allows consumers to buy products or services from a seller over the internet using a web browser. An example of this would be the leading British online fashion and beauty store, ASOS. ASOS sell over 850 brands as well as its own range of clothing mainly aimed at young adults.
Haute Couture- Haute couture is high end, expensive, fashionable clothes produced by leading fashion designers. An example of this would be Giorgio Armani, a multibillion dollar, global company. Armani designs, manufactures, distributes and retails haute couture clothing.
Nagina Hottak
Market Stalls- A market stall is a small shop with an open front which goods are sold in a public place. They majority of market stalls are placed together in a specific area; this is what is referred to as a village market. An example of this would be Camden Town who have a wide range of stalls selling products from clothing to food.
Mail Order- Mail order is the purchasing of goods or services by mail delivery. The buyer places an order with the merchant from a catalogue from the same merchant. An example of this would be Shop Direct, previously known as Littlewoods, Shop Direct sell clothing, electronics, furniture etc.
Two Retail Outlets ASOS is a British online fashion and beauty store. Primarily aimed at young adults, ASOS sells over 850 brands as well as its own range of clothing and accessories. ASOS.com is a global online fashion and beauty retailer, offering womenswear, menswear, footwear, accessories, jewelry and beauty products. ASOS has websites targeting the UK, Australia, USA, France, Germany, Spain, Russia, Italy and China. It also ships to over 140 countries from fulfilment centers in the UK, US, Europe and China. They sell over 80,000 branded and own-brand products through localised mobile and web experiences, delivering from our fulfilment centres in the UK, US, Europe and China to almost every country in the world.
The fact that ASOS is a treasure trove of labels is almost immaterial when you look at how good ASOS White is; the price and the cuts totally defy the price points and I rely on it. I also love the digital journalism and the ASOS magazine has stunning editorials with some of my favorite emerging photographers” Sunday Times Style “ASOS continues to deliver a wealth of choice that surpasses the rest of the high-street. Ahead of its game when it comes to convenience, its USP is undoubtedly its ability to speak to a whole host of customer groups. The site is snappy, youthful and immediate: prerequisites for any 21st century success story.” Evening Standard “The ASOS collection, cleverly edited trend stories and diversity of brands plus the impeccable premier delivery service ensures that ASOS is a go-to site. This year we launched a ‘New In’ app in the UK and Denmark, an Apple Watch app and a new mobile news website, ‘ASOS Likes’, which provides customers with daily inspiration, pop culture and lifestyle news. In addition, we ran our first ever mobile-only promotions with encouraging customer take-up. ASOS also wanted to lure lapsed customers back to its website. It targeted these individuals with tailored content that aimed to remind them why they had previously shopped online for designer and high-street clothing.
Nagina Hottak
ASOS’ target market are mainly young adults, there is a wide variety of clothing for both men and women on the online shopping site with many different styles of clothing due to over 800 brand names available on the website as well as ASOS’ own clothing line. ASOS have clothing for many lifestyles as there are items that are considered to be very classy and others that are considered to be very casual for both men and women. ASOS’ have many different models modelling their clothes who all look very different. They are all different ethnicities and different sizes, this could be considered as purchasing motivation as many consumers many feel more comfortable buying a piece of clothing if the model looks similar to them. Asos.com targets its offer at a specific market segment of young (16-34) fashion-conscious consumers. This market segment now accounts for 20% of the Internet shopping population in the UK. According to the market research organisations Mintel, women aged 2024 are more likely than any other segment to spend their money on clothing and footwear. The average spend per head on clothing increased by 76% in 2006 to £1,208. Asos.com offers an extensive and diverse range of products for men and women. Its departments cover:
own brand clothing brands high-street and designer footwear accessories, for example, sunglasses jewellery swimwear
The clothing ranges also cater for narrow market segments, for example, for petite women (under 5”3´?). As well as its own brand, asos.com also enters into collaborations with designer labels. This enables it to provide well-known brands that appeal to its young, fashionconscious target market. Asos.com stocks over 400 brands including:
Diesel All Saints Fred Perry Levis Adidas French Connection
ZARA is a fashion retailer that offers a wide range of clothing for men, women, young adults and children. They offer a wide range of clothing that fit the needs of the market and follow the “instant fashion2 trend which puts them right in the middle of the highly competitive fashion market. Zara’s approach to fashion is very unique, responding only to the current trends as oppose to the future trends in the industry thus, continuing to be competitive. Zara first location was opened in 1975 in Coruna, Spain and has now become one of the key players in
Nagina Hottak
the fashion industry. The expansion into different parts of the world in countries including Mexico, Japan and recently, in Canada shows their potential and great success of the business. ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable” Mission Statement “Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts.” Target Market & Price Zara sells apparel, footwear and accessories for women, men and children. Product lines were segmented into these three categories, with further segmentation within the women’s line as it was considered the strongest out of the three, with an overwhelming majority of women in the target market (78%). Zara’s consumers are young, value conscious and highly sensitive to the latest fashion trends in the industry. An advantage that the brand has over conventional retailers is that they do not define and segment their target market by ages resulting in designs and styles that can reach a broader market. Zara offers cutting edge fashion at affordable prices by following the most up-to-date fashion trends and identifying consumers’ demand, and quickly getting the latest designs into stores. Segmentation Zara’s segmentation can be described by the principles of demographic segmentation. The target customer is usually aged 18-40, with-ranged income. As part of his/her occupation fashion trends is usually on top. But not only from a demographic view Zara segments its targets, their products are designed based on a psychographic view based on its customers hectic lifestyle which means that they are usually busy people or with some kind of intense activity which combines with Zara’s tactic, making the customer to buy by instinct. There is a list of Zara’s segmentation:
Small sized customers Plus sizes shaped garments Demographic segmentation
Nagina Hottak
Aged 18-40 Mid-ranged income Interested in fashion trends Lifestyles segmentation
Hectic lifestyle Small sized customers Plus sizes shaped garments Targeting & Positioning When targeting and positioning. Zara’s business model cannot be avoided. Customers – They are the starting point for all Zara’s activities. It has a leading role on the business model since it’s a customer oriented brand. They provide excellent customer care and are frequent to see campaigns to collect customer’s opinions.