BRAND ANALYSIS COMPANY OVERVIEW Topshop is a British multinational fashion retailer part of the Arcadia Group which is a British multifashion house owned by Sir Philip Green. Topman, Dorothy Perkins, Miss Selfridge, Outfit, Wallis, and Burton Menswear are the other brands part of the Arcadia Group. Topshop/Topman is the highest profile of the brands within the Arcadia Group. In 2012, Philip Green sold 25% of Topshop’s stake to Leonard Green and Partner, so 75% of Topshop is owned by the Arcadia Group and 25% by Leonard Green and Partner.
BRIEF HISTORY Topshop was founded in 1964 as a youth fashion brand within the Sheffield branch of Peter Robinson which was a British department store. The success of the department store developed into Topshop opening its first independent store in 1970, with a menswear range launching the same year called Topman. In 1973, Topshop announced a division in its womenswear collection splitting it into two collections to be known as ‘Topshop’ and ‘Peter Robinson’. The aim of the division was for Topshop to focus on a younger target audience between 14-25 and the Peter Robinson collection to target the over 25’s.
STORES Currently, Topshop has around 500 stores worldwide, with 319 stores in the UK. The stores are across 37 countries including online operations. Their largest fashion store in the world is Oxford Circus, London and recent statistics show that more than 250,000 customers visit this store on a weekly basis.
COMPETITORS AND TOPSHOP’S USP Topshop’s main competitors are other high street retailers such as H&M, Zara, New Look, Urban Outfitters and River Island. It is the only high-street brand to show on schedule at London Fashion Week, it was showcasing items from Topshop Unique. Their Unique Selling Point is high end styled fashion that is affordable. Topshop is a global fashion and beauty destination that connects women with the new and the next in style and culture. Topshop is the original champion of individuality. The brand’s diversity is demonstrated across trend-led clothing in a range of sizes, from petite to tall and maternity, must-have accessories and an expansive, versatile denim offering which sees one pair of jeans sold every 10 seconds. - The Arcadia Group
MISSON STATEMENT “Topshop is all about refusing to be pigeonholed. Each customer is an individual and relies on the brand to deliver everything from basics to cutting-edge trends. It’s the brand spectrum of ever-changing collections that keep Topshop ahead of the style game.”
Topshop has a very varied demographic due to the fact it appeals to a wide range of individuals in varied professions or points in their life e.g. student, profession or A-List star. With this in mind they offer a variety of products and services in order to accommodate the diverse audience they draw in. They have their 'mainline' line, 'boutique' and 'unique' each reaching a different market. They're all at a different price range, which again demonstrates the varied audience. This customer profile is a generalised customer profile looking at customers who shop from Topshop’s main line.
Females aged 16-30. Majority are students but also young adults with a youthful outlook on fashion.
Fashion savvy/forward. Customer likes to keep up to date with the latest trends. But, they also have their own personal style. With Topshop products, they can create their own individual looks.
Likes other fast fashion retailers such as Mango and Zara. Spends around ÂŁ100ÂŁ150 a month on fashion.
Working Class with an average income. Part time workers they may be working at their first ever job or first job after graduating (Graduate jobs).
CUSTOMER PROFILE
Hobbies and Interests include makeup, reading magazines, using social media, Netflix, shopping, going to the gym, socialising with friends, going on holiday with friends and family.
Celebrities inspire them with fashion choices. Social media also influences them such as Instagram, YouTube bloggers, and Pinterest.
Likes good quality fashion, willing to pay more for the quality.
Officially our target market is 16-30 year old women, but internally we target every who loves fashion, regardless of age or income. I think the biggest change (in the high street since the 1970s) is one the consumers have driven, in that they are much more fashion-savvy these days, and demand much more than they did. The impact of the media has meant that everyone knows what the celebrities are wearing, where they got it, what the designers are showing on the catwalk and so on, they want a bit of it too. - Topshop
7 P’S PRODUCT Topshop have a very wide range of products which include clothing, shoes, accessories and cosmetics. Their collections cater to women of different shapes, sizes and ages with the petite, tall and maternity range. The clothing size ranges from a 4 – 16 and shoe sizes starting at 35 – 42 (size 2 – 8 UK size). Topshop also offer brands within Topshop such as, Topshop Unique and Topshop Boutique, these two brands offer a higher priced item with better quality materials used. The garments are not as massproduced and our are very exclusive to certain Topshop stores. In addition to this, Topshop also stock other in-house brands to be purchased on Topshop's website with other 50 brands available to purchase, ranging from Kurt Geiger to Olivia Burton. This helps broaden Topshop’s target audience meaning they can appeal to a bigger market of customers. A few of the brands that Topshop offer are celebrity endorsed brands which are exclusive to Topshop such as the ‘Kendall and Kylie’ collection and also the ‘Ivy Park’ sportswear collection by Beyoncé. The company also sells accessories including bags and jewellery. Topshop Beauty launched in 2010 and it sells a wide range of makeup products such as mascara, eyeshadow, lipsticks and highlighters.
PRICE Topshop’s price points sit at a mid-high end high-street market. Although Topshop is a fast-fashion brand, they set a higher price point compared to some of the other high-street brands for example H&M and New Look. Clothing at Topshop can range between £3.50 for a pair of socks and up to £695 for a shearling coat. However, the majority of Topshop’s prices tend to range between £20 - £60 for basic items such as jeans, dresses and tops. Topshop price their makeup products at a similar price to makeup products on the high-street (Boots and Superdrug). Topshop beauty prices range from £1 to £35.
PLACE Their stores are mainly located on the high street in city centres. Topshop has over 300 standalone stores in the UK and over 140 stores internationally. Topshop departments also sit in OUTFIT store, which is a store with departments of each of the Arcadia brands within. Topshop also have concessions in a number of department stores including Selfridges and John Lewis. Topshop have a very strong online presence which gives you the option to purchase through the Topshop website (www.topshop.com) and the TOPSHOP app which is free to download on smartphones and tablet devices. Topshop delivers to over 100 countries. The Topshop in Oxford Circus, London is their largest store with more than 250,000 customers visiting that store on a weekly basis.
PHYSICAL ENVIRONMENT All of Topshop’s standalone stores have a very consistent layout and appearance throughout each store. When walking into Topshop, the first thing you notice is the music, as this is very upbeat and trendy. The stores always have bright lighting and white minimal walls. Topshop’s visual merchandising is very consistent throughout the stores. The store has an easy navigation system as each category such as Petite, Tall, Maternity, Sleepwear and Lingerie are all positioned separately, making it easy for customers with specific needs. The interior layout allows customers to have more space to browse. Topshop offer personal shopping in all of their flagship stores: Oxford Circus, Knightsbridge and One New Change in London; The Arndale and Trafford Centres in Manchester; stores in Liverpool, Dublin, Edinburgh, Glasgow and New York. The personal shopping suite follow the same minimalistic theme with large sofas and its own large fitting room. Topshop’s e-commerce website was launched in 2000. The website is designed to suit their target market. The Topshop website is well organised, easily accessible and designed with easy navigation. Topshop follow this up as their website is updated daily. The company add 300 new products a week to the online page because of the consistent changes in fashion (fast-fashion). The website layout offers customers to browse easily, the first directed page consistently changes to new advertisement to promote Topshop and inform customers on new trends.
PEOPLE Employees play a crucial role in the consumer journey as interactions between the staff and the consumer will dictate and shape their perceptions of the brand. Topshop employ around 94,000 workers worldwide. Some of the job roles at Topshop include: Design, buying, merchandising, marketing & PR, finance (head office), and sales advisors, visual merchandisers, personal shoppers/stylists (retail store). Sales Advisors love Topshop and use their fashion knowledge to help our customers find the right products for them. They are fashion role models and love being part of a team. They play a massive part in helping Topshop create a fun and happy place to shop. Personal Shoppers know everything there is to know about the Topshop product. They are there to ensure clients receive a luxury shopping experience like no other. They are responsible for organising the appointments and ensuring a seamless operation for customers, being an integral part of their personal shopping journey. Global campaigns, evolving strategy and engaging projects – Marketing and PR teams make sure the brand remains at the forefront of the fashion industry. Always pushing boundaries, they connect with customers in innovative and exciting ways to maximise sales and drive brand loyalty.
PROCESS Topshop offer hot current trends for their customers meaning that the turn around on products is very quick. Arcadia doesn’t own any factories as a company. However, they like to have the freedom of operating in numerous factories. Arcadia products are currently manufactured in 1,034 factories and deal with 679 suppliers. Their most regular supplier currently provide 45% of their products. Topshop products are made in China, Turkey, Romania, India, Vietnam, however, certain products may be made in a different country if it is more suitable for the materials needed to make the product. Once the products have been designed and the factories have passed the quality control tests, they will get shipped to the UK warehouse in Milton Keynes, ready to be distributed into the stores or to the web. Then the products will be photographed and advertised online or in marketing campaigns to try and entice customers to purchase the products. Topshop products can be purchased in store where you can try on the products and check for the style and fit before purchasing it. Although online shopping is very convenient, a lot of customers still like to see the products and feel the fabric when purchasing. Once you have decided on the products, you can purchase the items in store and take them away with you that day. Topshop have branded carrier bags for purchases in store. Another way to shop with Topshop is online, which normally offers you a wider rage of products as Topshop have online exclusive products. When purchasing online, Topshop give you different shopping options to suit the consumer’s needs such as Click and Collect, Collect from Parcel Shop, Standard Delivery, Next Day Delivery and Express/Nominated Day Delivery. When you have placed your order online, Topshop continues to interact with you until you have received your purchase. This contact is done by email, you will receive an email to confirm your purchase and then also again when your item is dispatched, this service gives you the opportunity to track your items.
PROMOTION Topshop’s most used strategy to promote their brand is through the use of digital platforms such as Facebook, Instagram, Twitter, YouTube and Snapchat. Topshop have over 8.1 million followers on their Instagram account in which they regularly share images of fashion bloggers and celebrities wearing the latest collections. Topshop recently introduced a #topshopstyle which is to encourage customers to share their Topshop outfits on Instagram using the #topshopstule in the caption when uploading the image. The hashtag currently has 175,000 posts. Their website creates opportunities to connect with their target audience as there is a section on the page where you can upload a photo of yourself wearing a Topshop product. This allows the brand and the customer to interact with one another, and allow the shopper to become a part of the blogging industry. Topshop also uses celebrity endorsement to promote their brands. Topshop have worked with many famous celebrities over the years such as Christopher Kane, Kate Moss, Alexander McQueen, Beyoncé, and Kendall and Kylie Jenner. Topshop offer 10% student discount throughout the whole year. This discount fits really well with the brand, as the target customer for Topshop is a student. Topshop also do promotional discounts on certain style products, for example ‘20% off coats.” These discounts become available for a certain time period throughout the year.
AIDA MODEL AWARENESS Topshop attracts the attention of customers mainly through social media. They upload compelling images on their social media and website in relation to their latest campaigns, to grab the attention of their target audience. Subscribed customers receive emails weekly showing them the new in products, any discounts/promotions, and lookbooks for the current season.
INTEREST They keep their customers interested through CRM email marketing, for example, . If a user adds clothes into their basket but does not check out, they are emailed reminding them about the item and they try to persuade them to buy it. As a fast fashion brand with hundreds of new products added weekly to the website keeps Topshop customers interested as they are presented with new clothes daily. Topshop
also engage with their customers regularly on social media, regularly updating their sites with their new products to keep followers excited.
DESIRE Topshop convinces their customers that they need Topshop products through celebrity endorsements. When a celebrity is seen in an item of clothing, this makes the product more desirable and followers of that celebrity will become followers of Topshop. Celebrities connected with the brand such as Kate Moss, BeyoncĂŠ, Cara Delevingne and Kendall and Kylie.
ACTION Topshop encourages customers to take action and buy from them by sending emails to people who added items in their carts but didn’t checkout. In the email, they remind customers of the product and try to persuade them. They use below the line marketing as they send emails to subscribers informing them about when they have added new collections. In the email they provide the link to the website. On their social media pages, they also include the link to the website so people can directly go on it. Overall, Topshop have totally excelled in the digital element of promotion. If Topshop were to change anything about their strategy they could advertise competitions and events, this would encourage more customer interaction: whereas now their social media is just promotional videos and showcasing new products, it could be more innovative.
TOPSHOP DIGITAL MARKETING VIRTUAL REALITY CATWALK SHOW In 2014, Topshop gave shoppers at their Oxford Circus store VR headsets which enabled them to experience a 360-degree virtual world comprising a live-feed of the catwalk show, backstage-goings-on, VIP arrivals, set design and animated features. The actual show it self took part in the Tate Modern’s Turbine Hall during London Fashion Week. Topshop also streamed the show and content to its website. In my opinion, I think Topshop allowing their Oxford Circus customers to watch the Topshop Unique AW14 fashion show using VR headsets was creative and innovative. People with the VR headset got an all-round view of the fashion show and it makes them feel like they were in the front seats at the Tate Modern. This gave the customers a different experience which was exciting and engaging. It also opened the fashion show to a wider audience as more people were able to watch the show without having to be at the Tate Modern. The VR headsets were only available at Topshop’s flagship store, meaning that it was exclusive and also limited. It may have been better if more stores had VR headsets so more people would have been able to share the same experience.
PERSONALISED EMAILS Topshop sends personalised emails to subscribed customers but also customers who made a purchase instores and gave their email address for an extra copy of their receipt. On a daily basis, Topshop sends emails such as product recommendations (this is personalised as it recommends products tailored to the individual style but also persuading them with other items as well), emails that remind people of items that they placed in their basket when shopping online and emails that inform customers of any discounts happening. My Topshop Wardrobe is a feature on Topshop’s website that allows customers to take a quiz to determine their style and then they receive personalised suggestions. Having learned about the customer’s style, Topshop sends ongoing personalised emails celebrating their style with curated edits – keeping the intrigue alive. Furthermore, personalised results are saved in a ‘Wardrobe’; a permanent space on the site for shoppers to explore. Personalised emails is an example of CRM marketing as Topshop treats their customers as individuals. Emails are a great way to constantly communicate with customers and they are also cost-effective, fast and flexible. The My Topshop Wardrobe feature shows that whatever a person’s style is, Topshop can cater to it and Topshop products are the best products for them.
TOPSHOP NON-DIGITAL MARKETING HEARTS CHALLENGER VAN, NEW YORK In 2009, Topshop opened in New York City. To get customers excited about the debut marketers sent out a decorate van to roam around different locations in NYC. Topshop ambassadors handed out flyers, gift cards (values from $5 - $500) and free tote bags. The night before the grand opening, Topshop held a celebrity filled party where Jay Z, Jennifer Lopez, Kate Moss and others attended. This type of marketing is mass marketing and untargeted. The van was roaming around NYC so this means it could have been seen by the public, not just Topshop’s customers. I think this was a good idea because it promotes Topshop as a brand to the public and informs them about the new store opening. This was the first Topshop store to open in the US so the majority of the public wouldn’t have known about Topshop. I also really liked how ambassadors were giving people free gift cards, totes and flyers. The gift cards were the best gifts in my opinion because it encourages people to go into the store as they got a free gift card with a value of up to $500.
“HOW TO CYCLE IN STYLE” CAMPAGIN Once the store in New York opened, Topshop’s “How to Cycle in Style” campaign was launched to upload publicity and sales. For one week, New Yorkers could borrow one of 30 Topshop bicycles (for free) and cruise around the city on scavenger hunts. Photographs of the cyclists wearing Topshop products cycling around NYC locations were taken and posted on chictopia.com (a fashion online community), Flikr and Topshop’s Facebook page. The cyclists were encouraged to take pictures to take part in Topshop’s competition where they could win a bike of their own. This campaign encouraged customers to get involved and interact with the brand. It was a good way to encourage the building of a community around the brand, first by introducing people through a fun social activity, then by recording their interactions and activities. The fact that the pictures were uploaded on social networks including a fashion blog promotes the brand to more people. The competition kept the participants engaged and it could have also encouraged more people to get involved in this campaign. Also, the campaign was showing people that they could cycle in Topshop clothes while still in style and this makes Topshop clothing desirable.