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Siti Ramlan Unit 7-P1

Fashion retailing

Market Segmentation

Retail outlets

Siti Ramlan Unit 7-P1 What is fashion?

Fashion is something to deal with every day. It’s a popular section in a form of art industry or popular style. It is the existing styles in behaviour and newest creations of textile designers. There are many different types of fashion such as classy, vogue, trend, fancy and many more.

Fashion is a way to express individual’s personality and expressing style in their own way. For example it can be by using different types of unique form on creativity such as colours and match. On social media like on blogs it has ways on how to match clothes with different other items and keeping up with the newest products and seasons of trend. Social media when watching DIY videos on YouTube and other websites which makes people want to create something new and to keep up with the trend by using what people already have into making it. For example the new trend right now is with ripped jeans where people can use their normal jeans then it has videos and instructions on how to make it themselves.

What is fashion retailing?

Fashion retailing is a usually customer goods market. The meaning of retailing is known by selling goods to the public by retail however as opposite to a supplier or wholesaler, who normally sell their goods to another business. Retailing consists of the sale of merchandise for household or personal consumption either from a fixed location like a department store or stall, or away from a fixed location. It is characterised by short product life, many competitors, customer preferences, a numerous manufacturing, marketing and retail alternatives. In business, a retailer buys goods or products in big quantities from importers or manufactures where it would go through or directly to a wholesaler and then sells individual items or small quantities to the public like in stores.

What is fashion marketing?

A fashion marketer is an important part of the fashion industry because they are who works in with others in the field such as designers and artist. Fashion marketer is responsible for choosing which clothing items appear on the racks at retail stores. As marketing is promoting and selling products or services where fashion marketers are people who decide on which products will be suitable for each season and how to market those items in the competitive world of retail.

Siti Ramlan Unit 7-P1 Identify different types of fashion retailers (outlets) A retail outlet is a store t from manufacturers sells their stock directly to the public. Normally retail store sell discounted price items that are either outdate, irregular or have been produced in excess quantities.

Outlets stores are usually manufacturer-branded stores such as Nike, Ralph Lauren, Calvin Klein and Levi’s.

For example if someone wants to buy new pair of Nike fly knit trainers where he or she could just go to a Nike outlet store instead of going to a normal shoe store. A conventional store that sell Nike shoes too where they sell products made by many different brands all in one place like sports direct, JD and Foot Locker. It is better to go the Nike outlet store where is owned by the Nike Corporation and sells Nike stock directly from the company warehouse.

What is marketing segmentation?

It is a marketing plan that divide the market. The strategy outlines business plans in order to reach its proposed customers. The target market will divisions of businesses, customers or countries that have or are supposed to have priorities, interests and common needs. Then realising and designing strategies to target it. Retailers segment is easier to target customers and based on what they like such as similar taste as to cultural or something else. Normally it is share common target like easier for them targeting for example teenagers’ targets teenagers.

What is target market?

Target market is the procedure of identifying customers and promoting products and services to likely to reach customers. This is basically about when a business wants to sell its products and services and to who it directs their marketing efforts. It is about attracting customers who will buy what a business is selling. Sometimes target marketing is often productive than bigger types of marketing because it is made around specific customer preferences.

Retail outlets H&M is a multiples retail outlet. As a business, H&M is a retail-clothing company where their clothing is for men, women, teenagers and children. They have different range of products such as clothing, footwear, home, beauty and accessories.

TK Maxx is a discount store. They have range of men and women’s clothing, accessorises, shoes and handbags. They are a store with big brands and designer labels that sell products for cheaper. TK Maxx are manufacturing clothes themselves and inventing retail prices with certain designer brand to manufacture lower-priced lines.

Siti Ramlan Unit 7-P1 There are different types of retail outlets like: Discount stores- It is stores that that sell merchandise for cheaper than usual businesses price.

Discount stores normally have many named brand products and offers better price range on the products. Examples of discount stores are TK Max and Macy’s.

Department stores- It is a store that has varieties of products in one store but is organised into different departments. There are individual departments that is well-known however customers can find it easier to buy in a department store where is all under in one store such as cosmetics, electronics, furniture, groceries, clothing and sports equipment. Department stores always have eye-catching interior decoration and window display which is spent a lot on sales promotion through advertising, gift schemes and discounts. They have customer service which offered for customers such as home delivery and free parking spaces. Examples of department stores are Fenwick, John Lewis and Debenhams.

Supermarket- This is a retail market that sells groceries and household products. Supermarkets are a self-service store. In supermarkets they provide bakery section which are being baked and freshly made every day and offer fresh meat. Some supermarkets also provide their clothing line that is sold for men, woman and children. Normally customers can find cheaper school clothes in Tesco or Asda.

Examples of supermarkets clothing are Tesco F&F and Asda George.

Multiples- A retail shop that has multiple locations but has the same management and ownership often called a retail chain. The main objective of the multiple stores is to establish direct contact with customers by elimination a person who negotiates with large companies on behalf of personal clients. Multiples stores is appeared on high streets. Example of multiples is H&M, Zara, River Island and New Look.

Haute couture boutiques- The meaning of haute couture is ‘elegant’ or ‘high’ as for boutiques is usually expensive things.

Haute couture is the business of designing, creating and selling custom-made on high fashion clothes where they mostly do sewing. It is high fashion made by hand from start to finish with high quality and expensive fabric. Designs made to order for customer made are with one or more fittings. Normally with haute couture celebrities wear big brands that is custom made at special occasions like at award shows. Examples of haute couture are Gucci, Dior, Versace and Givenchy.

Market stalls- It is a stand, booth or compartment for the sale of goods in a market or large covered area. Usually market stall sells food or cheap clothing which merchandise is displayed for sale or some business is carried on. An example of a market stall is Camden market.

Mail order- It is a method of selling in which sellers and buyers do not make face to face contact. The seller offer is made through mass mailing of a catalogue or an advertisement placed in magazine, newspapers or from media including internet which then buyer places an order by mail. Examples of mail order are Very and Next.

Franchise- It is a form of business organisation in which a firm already has a successful product or service. Franchises have different shareholders which then they buy brand name and more than 1

Siti Ramlan Unit 7-P1 person it means that different people buy the name. Most of popular franchises are fast foods or shops. An example of franchise is Apricot.

Internet shopping- It is known as online shopping that allow customers to buy goods or services directly from a seller over the internet. Over the years online shopping has grown in popularity mainly because it’s easy to shop from home or office and people find it convenient. Once people have chosen the items they want it will go into a basket where then it will ask for a login and password. Then the business will have customer’s details such as contact number, address and email. People tend to shop online because it is accessibility and more variety where they have many items where sometimes it does not have in stores. Examples of internet shopping is Amazon, Miss guided and Boohoo.

Television sales- This is electronic retailing and home shopping channels industry. It allows customers to shop for goods from the privacy of their own home compared to shopping in stores. The way how television shopping works is that there will be people advertising on TV of products where there will be the prices and number to call in order to purchase. Examples of television sales are QVC, HSN and Evine Live.

Target market segmentation Age- It is a period of human life that is measured by years from birth. Age is the length of time that a person or thing has existed.

Gender- It is the state of being male or female. Gender is not determined physically, therefore sexual characteristics of either women or men, however it is constructed socially.

H&M has clothing for different age group. For example H&M divided is for women and men are part of their collection that comprises everything from the latest to update.

H&M mainly sells clothing and accessory items which makes different through different prices and styles. It allows H&M to appeal to a broader range of customers and target towards customers with different incomes. Customers want to buy products that are good quality and value for money which can be offered both at a high and low price range that H&M targets. The clothes in the stores H&M target towards young like teenagers and young adults because of the style of fashion and the brand which it sells. Also H&M provide different types of clothing that is aimed by age for women, men and teenagers where they do not aim for kids such as trend, modern classic, basics and premium quality.

As for kids H&M aim clothes for different ages from new-born to 14 years old.

TK Maxx is a value-oriented, footwear and casual clothing superstore. As discount retailers their products are aimed directly at customers with moderately low incomes and uppermiddle income customers that have an interest in luxury goods and designer. TK Maxx focuses on products that appeal directly to customers on low incomes. They target through all ages and genders where in their stores they targeted separately through the various departments. As gender business knows that males and females demand different types of the same product such as hairdressing, clothing and toiletries. As targeting age group TK max targets for all ages for example toys are aimed children and toddlers.

Siti Ramlan Unit 7-P1 Lifestyle- As lifestyle preferences often relate to people’s interests, tastes or hobbies. It is indicating products or advertising designed to appeal to a customer by company with a popular lifestyle.

H&M lifestyle is based on a world of inspiration. They do updates on fashion, beauty, pop culture and trend. H&M is known for fashion-forward apparel that is open on fashion which they are international retailer. They wide-ranging and bring new items into the stores every day so that customers can find something new.

TK Maxx gives people big brand with small price in order for customers to get the lifestyle they want.

They operate their own twitter account to provide customers and followers with fashion news. It allows TK Maxx to communicate new offers to its target market. TK Maxx uses RSS feed to publish frequently updates information for example if they want to tell people about new offer in the shops.

They have online appearance in the fashion blog which offers a variety of content in fashion and lifestyle.

Fashion merchandise Clothing- Clothes are items that people wear where it is made out of different materials and fibres worn to cover parts of the human body.

Examples of clothing are shorts, t-shirt, dress, coats, scarves and underwear. It is worn by almost every segment of the human population, even though the types of clothes worn by people differ widely around the world. Clothing is what H&M and TK Maxx provide in their business.

Footwear- It is to be worn on the feet. Footwear has many choices such as shoes, boots or slippers.

Along wearing shoes normally people wear socks, tights or stockings. H&M footwear has heels, trainers, pumps and boots. If the shoes are premium quality which are usually cost more than £40 that is made out of leather, leather linings and insoles or rubber soles. TK Maxx provide footwear for other occasions or activities such as snowboard boots, school shoes, golf shoes, riding boots, running shoes and sandals. They sell footwear for men, woman and children.

Accessories- It is a fashion accessory that is decorative item that add extra something to an outfit. Usually accessories are the final touch up in someone’s look and goes with the outfit.

H&M accessories that they provide are jewelleries like rings, necklaces, earrings and bracelets. Along with that there are handbags, scarf, hat, hair accessories, pencil case and watches. There are sold packs of rings or earrings where there is many choices for a good price and different materials.

TK Maxx has varieties of accessories that are with high brand but for less. They have handbags, purses & pouches, jewellery & watches, luggage and sunglasses. They have sunglasses for trendy looks and reading glasses with goods branded names that could save customers money. For example

Siti Ramlan Unit 7-P1 Saint Laurent sunglasses normally retail for £240 but at TK Maxx customers could get it only for £69.99 which saves them 71% of £170.

Retail policies The point of setting retail policies is to identify the way a retail establishment operates on a daily basis. In the retail policies it should provide customers and employees with ultimate resolutions to problems. It includes on policies to certain things such as refund or exchanges.

Pricing- It’s a method accepted by a business to set its selling price. It’s the recommended retail price or list price of a product that the price is at which the manufacturer suggests that the retailer sell the product.

The concept of retailing is that a retailer does not sell products in bulk as an alternative sells the merchandise in small units to the end users.

H&M aims to offer its products at reasonable prices and make it affordable. The pricing is to attract a wide range of buyers. H&M is designed found on their customers’ needs which are high fashion and low price. A way on how H&M combine their fashion and price is outsources of the production to countries where the labour cost is much lower.

TK Maxx is known for designer fashion brands that are discounted to high street prices. It is on selections of brand names and designers at prices up to 60% less than the original prices. They buy as close to season or need in order to benefit from the best deals. It allows TK Maxx to be better about trends where to respond to customer needs and sell exactly what they want and when they want it.

Opening hours- This is when the timing of business or a service that is available and opened to everyone. For example outlet stores and banks have opening hours on what time they open and close. On special occasions or season like Christmas holiday normally the opening hours does not exist but it opened back on Boxing Day. H&M and TK Maxx based on where the locations are at they do tend to close later on. Like H&M in central London it usually closes later on at 10pm on weekends and 9pm on weekdays compared to H&M at normal shopping centre at 8pm. TK Maxx usually open up at 9am to 9pm based on the areas and in a different area it could be closed at 8pm.

Visual merchandising displays- This is the presentation of shop which is to get on sales displays and develop floor plans. It is a display to show their features and benefits and attract customers with the displays of goods and services. This is beneficial because it will make sure to increase profit and sales and gain customer satisfaction. It includes things like special promotions and window displays.

H&M is known with fashion where their window displays is always updated with new clothes and following up the seasons. It gets to show people walking past the store on all the trends and having a great eye presenting their collections in an inspirational and commercial way.

TK Maxx usually has signs on their windows where it have their quote’ big labels, small prices’ and always up to 60% it can attract customers by the sales and make customers feel welcome. They

Siti Ramlan Unit 7-P1 have departments to make it easier for customers to go and where to find where things are.

Use of internet and other media- It is a way of ordering online which is using the internet or other media.

H&M has shopping online where customers have to be over 18 years older and provide a UK residential delivery and billing address. As customers items are in the basket it will be saved for about 7 days but it is not reserved so cannot wait too long. Price and availability will be displayed and can also edit orders. If customers are done with order then proceed to checkout.

TK Maxx does ordering online where there is tracked standard delivery where it is ÂŁ3.99 but if people spend over ÂŁ50 then it will be free. Next day delivery is ÂŁ5.99 but does not have any deals with it.

Conclusion In conclusion I have written about 2 fashion retailers and how they target market especially they do both do it differently. I have linked this to H&M and TK Max.