Topshop is a british fashion retailer which specialises in clothing, shoes and accessories. This brand started in the basement of Peter Robinson in 1960. It’s first standalone store open in 1974. There are currently 300 shops in UK and nearly 100 stores across 40 different countries. Topshop is famous for it’s cutting edge fashion and unique design that follows the latest trend. Their target customers range from teens to the middle and the majority of them are female. Their customers usually have some interest in fashion, include early adopters and fashion followers.
The designs in Topshop range from casual style to semi formal, therefore their target customers can be a student or even people who works in office. Since Topshop belongs to the high street fashion, there are many competitors. Among the UK brands, Marks and Spencer can be their competition, yet it target different group of customers as Topshop. However, there are still brands like Zara, H&M, Mango that will compete with Topshop since they target similar groups of customers….. To begin with, high street brand such as Topshop is often affected by its country’s political decision.
Compare with other countries, UK has a stable political. Yet, Topshop has to be aware of workers’ right and their wages. They need to protect workers “right and give them safe working environment. As a multinational retailer, Topshop need to aware the cost and the regulation of export and import. Moreover, the government gives the fashion industry in UK a lot of support. For example, they set up the British Fashion Council which is an non profit organization that gives business support and sharing some knowledges. Furthermore, Topshop also needs to aware the economic environment.
For instance, if a country is going through depression or recession, the average income will decrease. The reduction of income will cause people not willing to spend their money. This will definitely affect high street brands like Topshop. The employment rate, interest rate should all be considered in Topshop’s marketing plan. UK’s economy is gradually recover from the latest world recession since 2013. UK has set proper fiscal and monetary policy which lead to a low inflation rate and liable economics. Although UK is one of the EU countries, they are still using the Pound (GBP) as their currency.
From the perspective of currency, GBP has a fairly stable currency. UK is now recovering from the recession, therefore the price will start to rise. This will also impact the price of some raw materials like cotton which will influence the price of Topshop. For the social and cultural influences, the population now in uk is 64. 6 million in mid of 2014. The data shows that there are 41 percent in the age range of 25 -54 which is more younger age. So, it is important that Topshop follows the latest trend and catch their customers preferences.
Womens’ population is increasing in UK which has a huge impact on the womenswear market. Topshop’s target market is mainly female so their market sales might increase. Compare to other countries, people in UK has a higher educational rate. People in this generation are more familiar with the E commerce and the digital age which influence Topshop’s online stores. Due to the report, UK’s standard of living rank the fourth highest in Europe. These data help Topshop to price their products in order to match the living standard of people in UK.
People who are willing to shop in Topshop are people who have higher interested in the fashion and they have a higher expectation. Also the Lifestyles and social participation data shows that british are willing to spend their leisure time on shopping, especially in the age range of 25-55. Technology is the driver of globalization for brand like Topshop. All these new technologies brought Topshop many new opportunities such as the development of online shopping and mobile shopping. They always keep their website update which brought more convenience to their buyers.
Therefore, consumers are more willing to spend money which makes more profit to the business. Topshop even have applications for people to download on their phone, not only locate stores but also help to track products. Topshop even provide TOPSHOP express that allow consumers to choose the speed of delivery. Topshop is advanced in using social media such as Twitter, FacebookInstagram Pinterest which gives consumers live information and communicate with them. For example, during the london fashion week, Topshop is partnering with Twitter to give instant information of next season’s trend.
Twitter technology will be able to give the latest information on the show, customers can also tweet @topshop as their hashtag. By using these technologies, Topshop will build a new connection with their customers and a way of advertising. Moreover, the ecological factors will influence Topshop. Most of the consumers are more willing to choose a brand that has positive image and eco-friendly. Start from 2008, the uk government plans on “green-initiative”project to increase people’s environmental awareness. Topshop launches the sustainable clothing action plan.
The company uses this to reduce the carbon, water and waste footprint. They will use SCAP footprint calculator to measure the total impacts of clothes that sell in UK. Topshop committed to the International Labor Organization’s core labor standard to ensure the working conditions of their workers. Topshop also collaborates with the Reclaim to Wear which clothing is created from up-cycle fabric. Topshop even requires their supplier to sign the animal welfare declaration. They have designed a new display window at its store on Oxford street to remind the exotic animals have been killed for their skins.
Lastly, some of the government legislation will impact Topshop in different ways. Due to the financial crisis, the government increase the tax which affect the prices of products and also the raw materials. Also, the consumer legislation can influence the retailer. For example, under the regulations, there are cancellation rights which is consumer can withdraw without giving any reasons in 14 working days. If the consumer uses the cancellation right, the retailer must return full refund include the delivery charges.
In order to operate a high street fashion brand successfully, Topshop need to aware the tax obligation, commercial licences, local rules and local labour code. In conclusion, all these external environmental factors will affect the fashion business. Gockeln (2014, p. 1) claimed that “The fashion industry is a dynamic and volatile place, continuously exposed to macro-environmental factors that trigger fashion business models to change” By knowing and analysing the macro environment, Topshop will be able to know the customer and make decisions in order to fit consumer’s preference.
