Section 1-SWOT Analysis Strength: It was observed that the different choices of cottons and the yarn count increases softness of the shirts from Superdry and that they offer ample size options. Furthermore, Superdry offers a wider range of color options and shirts, all of which are all made from 100% cotton. This could be beneficial to negotiating lower costs with suppliers because of bulk ingredient purchasing. (see Table 3, Table 4 and Table 8) Weakness: Superdry may be vulnerable to the fast-moving pace of fashion trends because most their shirts are plaid and check styles which may create range fatigue. Furthermore, there are no special cuts for shirts and they also only use single fabrics using in shirts, compared with other competitors in the industry. (see Table 6, Table 8 and Figure- d) Opportunity: During the economy’s recovering phase, customers may buy the cheaper offers with value or the purchase products with high durability especially male in the age of 25-34, as they tend to invest in quality items. (Mintel, 2013) And Superdry’s products, according to Superdry’s 2012 annual report, attract this type of customers. In addition, there will be an increasing amount of individuals aged 25-34 as this demographic with a lower unemployment rate than those aged 15-25. Moreover, the macro business environment is recovering and the individuals’ personal incomes are increasing which may suggest the rising market for high-priced products. This, may offer Superdry’s men’s shirts a good position to expand into its market because Rao and Monroes (1989) suggest that the perception of quality which is a top priority for customers has a positive relation with the price of the product. (see Appendix A, Table 1 and Figure c) Threat: The range of men’s shirts is facing a competition in the area of price range and product ranges. For instance, according to Mintel (2013), TOPMAN is penetrating the mid-market and offers wider ranges of shirts which contain different kinds of brands for customers to choose from. Ultimately, this helps TOPMAN reaches different customers. (see Table 2 and Figure- d)
Transcript
Section 1-SWOT Analysis
Strength: It was observed that the different choices of cottons and the yarn count increases
softness of the shirts from Superdry and that they offer ample size options. Furthermore, Superdry
offers a wider range of color options and shirts, all of which are all made from 100% cotton. This
could be beneficial to negotiating lower costs with suppliers because of bulk ingredient purchasing.
(see Table 3, Table 4 and Table 8)
Weakness: Superdry may be vulnerable to the fast-moving pace of fashion trends because
most their shirts are plaid and check styles which may create range fatigue. Furthermore, there are
no special cuts for shirts and they also only use single fabrics using in shirts, compared with other
competitors in the industry. (see Table 6, Table 8 and Figure- d)
Opportunity: During the economy’s recovering phase, customers may buy the cheaper
offers with value or the purchase products with high durability especially male in the age of 25-34,
as they tend to invest in quality items. (Mintel, 2013) And Superdry’s products, according to
Superdry’s 2012 annual report, attract this type of customers. In addition, there will be an increasing
amount of individuals aged 25-34 as this demographic with a lower unemployment rate than those
aged 15-25. Moreover, the macro business environment is recovering and the individuals’ personal
incomes are increasing which may suggest the rising market for high-priced products. This, may
offer Superdry’s men’s shirts a good position to expand into its market because Rao and Monroes
(1989) suggest that the perception of quality which is a top priority for customers has a positive
relation with the price of the product. (see Appendix A, Table 1 and Figure c)
Threat: The range of men’s shirts is facing a competition in the area of price range and
product ranges. For instance, according to Mintel (2013), TOPMAN is penetrating the mid-market
and offers wider ranges of shirts which contain different kinds of brands for customers to choose
from. Ultimately, this helps TOPMAN reaches different customers. (see Table 2 and Figure- d)
Section 2-Recommendations
New Range: Superdry should introduce the new (limited) collection as an approach to test
high-priced market. The new collection evolves with Superdry’s outdoorsy style and is in the
collaboration with the latest trends based on WGSN’s forecasting. (see Figure e and Figure g)
Style: The distribution of extant men’s shirts style should be plaid, check and casual each at
20%, and montage, denim, army and striped each at 10% in order to prevent the range fatigue. For
new collection, which is limited in quantity, it encompasses Formal, Montage and Geometric each at
33%. However, in terms of total quantity for shirts, it has to be reduced by 40%.
Fabric: Thus far, Superdry has only useed so far the same ingredient (100% cotton) in fabrics.
However, as for the new collection, adding an additional ingredient silk (55%) will create a different
texture while the major ingredient is still cotton (100%). The purpose of this is to help Superdry to
differentiate collections and to underpin the higher price point. (see Figure h)
Cutting and Sleeve Length: The extant collection should maintain no special cutting but as
for the new collection, the cutting should be slim cut to be able to cater to the increasing need of
special cutting and also to be able to remain competitive in fashion retailing industry. Moreover,
based on the weather in the UK, there should be 80% long sleeves and 20% short sleeves.
Size: The distribution of sizes for both new and existing collections should be peaked at L
size because L is the average dress size among UK males. (Dahlgreen, 2013)
Color: Based on PANTONE’s men’s fashion trend analysis that blue is still the dominating
color trend in menswear so Superdry could stick with its extant colors. (see Figure f)
Price: Price architecture should stay the same (£44.99£-£59.99). Because of Superdry’s
strategy in marketing, it is reluctant to engage in price wars. Further, the new collection should be
range from £89.99 to £99.99 not only because of the fabric but also to differentiate the new collection
from the extant collections. (see Table 2 and Figure h)
Section 3-Support Plans
Customers’ attention, retention and satisfaction and these are critical elements to retailer’s
success. (Pal and Byrom, 2003). However, to be more practical, the exit strategy should be set and
the benchmark for failure or success depends on comparing the current stock turnover rate with last
year’s to see if the rate has increased or decreased. Supporting plans are as follows.
First, the window display may help to attract customers to come and have a look at the
products. Therefore, the window display could be to creat an eye-catching new collection mixed with
the existing collection to demonstrate Superdry’s new collection. (see Figure i) Next, the store layout
of the shirts in Superdry currently uses the grid layout and disperses its shirts. However, the change
will be cutting down on the display of plaid and check style men’s shirts to avoid visual fatigue.
Further, because the price strategies for the new collection are higher, it would be better to allocate
the new collection from the existing collection and near fitting room within the store. (see Figure j)
Apart from the brick and mortar setting, during in-season management, Superdry has to
regularly check the sales to rearrange the display of the shirts. And because Superdry does not offer
regular discounts, those under-selling shirts could have mark down for Superdry’s annual
promotional sale. Moreover, the staff has to make sure of the availability by using the sales system
to monitor what is on the shelves in order to manage the inventory more effectively and prevent long
waiting times for certain pieces of its collection.
Next, Superdry has to increase its online marketing stimuli. For instance, Superdry should
be showcasing the advertising campaign for new range on the front page of their on-line store and
making suggestions such as Superdry Looks or helping match to customer favorites according to
the historical customer purchasing data.
If the new range failed, Superdry may elect to remove the new range. Approaches to do this
could be to write off, refurbish (e.g., turun long-sleeve shirts into vest shirts) or allocate to an outlet.
Section 4-Underpin the Change
Reductions on plaid and check types of shirt are plausible because as Schwartz (2006) offers
a concept that less is more. However, the Stanford Graduate School of Business (2006) offers a
counter argument that people tend to purchase products from brands that offer greater variety.
Hence, the balancing between variety and quantity is important.
The justifications for the new collection is that personal income is increasing and the
demographics of the UK will increase relatively larger the 25-34 age group than other age groups,
and people in this range tend to invest in quality items and become the most frequent buyers. (Mintel,
2013) Lastly, the unemployment rate among the individuals in the 25-34 age group is relatively low.
For pricing, according to Bizer and Schindler (2005), the 9-ending numbers can influence price
information processing. Next for supporting the range, as Tice (2012) states that window display are
used to create attractiveness and deliver the store’s image to the customer. The rationalisation that
allocation of the new collection should be next to the fitting room is that based on the research
conducted by retail consultant Envision Retail Ltd., they suggests if customers are trying on the
clothing, there is 67% chance that they will buy it.
The dispersal of the existing collection helps shoppers to go through the whole shop and the
shirts itself becomes a device to diffuse and keep the shoppers’ flow which is known as the pinball
effect (Underhill, 2009). Moreover, staffs have to ensure the availability to prevent customers from
fleeing to Superdry’s competitors or from developing negative shopping experiences. (Dudley, 2013)
In addition, in-season rearrangement for exposure is vital because INSEAD found out that the more
visible a product is, the greater the chance that it will be purchased. (Karabell, 2009)
Regarding to the online approach, a study conducted by Dawson and Kim (2009, p. 242)
reveals there is a positive relationship between the online sales and the amount of cues such as
promotional, sales, suggestion and ideas on the apparel retailer’s website.
Appendix A
Market Assessment and Competitors Identification: Superdry in its annual report (2012)
states “Superdry target the young fashion market with affordable, premium quality clothing and
accessories for both men and women in the 15 to 25 age bracket, although the brand has become
increasingly appealing to a much broader group.” This shows their ambition to expand their target
demographics. And interestingly, UK demographic is aging. (see Figure b)
Also, based on the Office of National Statistics UK research, the unemployment rate of the
males aged 18-24 dropped from 23.3% to 20.3% whereas for males from 25-34, the unemployment
rate decreased from 8.1% to 7.1%. Moreover,
personal income level is increasing so as
household income median level which reveals
that there are an opportunities for higher
markets. (Office for National Statistics, 2013)
Moreover, customers list quality as the top
priority when it comes to buying clothes. (see Figure
Table 1 Personal Income after Tax (UK) Source: ONS
Figure c
Combining the aforementioned information, Superdry has to retain the target market share
and at the same time expand to its addressable market. (males aged 25-3) Due to the economy of
UK and the constricted youth fashion market (Mintel, 2013), this market segment becomes much
more complicated because people start to trade up with products and the money.
Consequently, Superdry’s competitors have expanded from Abercrombie&Fitch (Hollister)
who shares the most similar target demographic (mid-premium market) to TOPMAN, Zara and that
are fashion conscious and offer low prices. Also, based on Mintel (2013)’s study, TOPMAN is
taking the majority of the market in terms of menswear and it takes the market share from those in
the mid-premium markets such Superdry. This report will focus on analyse product- men’s shirts
from four brands including Superdry, Abercrombie&Fitch(Hollister), TOPMAN and Zara.
Appendix B
Table 2 Price Analysis
Brand Superdry A&F TOPMAN Zara
Price Point (£) 44.99 (77%)
49.99 (12%)
54.99 (7%)
59.99 (2%)
84.99 (2%)
60 (74%)
68 (14%)
78 (10%)
88 (2%)
20 (7%)
22 (1%)
24 (2%)
25 (2%)
26 (5%)
28 (19%)
30 (25%)
32 (4%)
35 (3%)
36 (3%)
38 (3%)
45 (4%)
49 (0.3%)
50 (4%)
55 (6%)
59 (4%)
60 (0.3%)
65 (1.7%)
70 (1.7%)
79 (1%)
80 (1%)
85 (1%)
86 (0.3%)
96 (0.7%)
22.99 (9%)
25.99 (8%)
29.99 (79%)
39.99 (2%)
45.99 (2%)
Total item 180 pcs. 104 pcs. 294 pcs. 180 pcs.
Table 3 Size Analysis
Brand Superdry A&F TOPMAN Zara
Size Range XS (0.5%)
S (21%)
M (19%)
L (19%)
XL (20%)
XXL (20%)
XXXL (0.5%)
S (19%)
M (20%)
L (21%)
XL (20%)
XXL (20%)
XXS (10%)
XS (14%)
S (19%)
M (17%)
L (16%)
XL (15%)
XXL (9%)
S (23%)
M (23%)
L (23%)
XL (22%)
XXL (9%)
Total Items 737pcs. 511 pcs. 1332 pcs. 790 pcs.
Table 4 Colour Analysis
Brand Superdry A&F TOPMAN Zara
Colour Range Blue (44%)
Red (13%)
Navy (13%)
Green (7%)
White (5%)
Purple (5%)
Grey (5%)
Orange (3%)
Pink (2%)
Yellow (1%)
Brown (1%)
Black (1%)
Blue (47%)
Navy (12%)
Pink (9%)
Red (9%)
Green (9%)
White (4%)
Grey (4%)
Yellow (3%)
Orange (2%)
Olive (1%)
Blue (32%)
White (19%)
Black (13%)
Red (10%)
Mix (8%)
Green (7%)
Grey (6%)
Yellow (3%)
Brown (2%)
Blue (36%)
White (29%)
Black (14%)
Navy (9%)
Green (4%)
Grey (3%)
Yellow (2%)
Orange (2%)
Brown (1%)
Total Items 180pcs. 104 pcs. 294 pcs. 180 pcs.
Table 5 Attributes Analysis
Brand Superdry A&F TOPMAN Zara
Attributes Two Chest Pockets
Left Chest Pocket
Chest Pocket with Flap
Shaped Pocket
Button Down Collar
Shoulder Tabs
Rolled Sleeve
Shirt mixed with Hoodie
Two Chest Pockets
Left Chest Pocket
Chest Pocket with Flap
Button Down Collar
Shoulder Tabs
Rolled Sleeve
Du-fold
Half Placket
Two Chest Pockets
Left Chest Pocket
Chest Pocket with Flap
Shaped Pocket
Button Down Collar
Stand Collar
Contrast Collar
Double Cuffs
Rolled Sleeve
Concealed Button
Half Placket
Sporty Shirt
Two Chest Pockets
Left Chest Pocket
Zipped Pocket
Button Down Collar
Contrast Collar
Lapel Collar
Mao Collar
Layer Collar
Double Cuffs
Ribbon Front
Table 6 Cutting Analysis
Brand Superdry A&F TOPMAN Zara
Cutting No Special Cutting Muscle Fit Slim Fit
Classic Fit
Long length
Super Slim Fit
Slim Fit
Regular Fit
Tailored Fit
Table 7 Sleeve Length Analysis
Brand Superdry A&F TOPMAN Zara
Sleeve Length Long Sleeve
Short Sleeve
Long Sleeve
Short Sleeve
Long Sleeve
Short Sleeve
Long Sleeve
Table 8 Fabric Analysis
Brand Superdry A&F TOPMAN Zara
Fabric:
A = Acrlyic
C = Cotton
E = Elastane
L1 = Linen
L2=Lyocell
MS = Mulberry Silk
N1 = Nylon
N2 = Nyocell
P = Polyester
SC = Sueded Cotton
SSC = Soft Sueded
Cotton
V = Viscore
W = Wool
100% C 100% C
100% SC
100% SSC
100% C
100% V
100% A
100% P
65% C+ 35% P
55% C+ 45% P
40% C+ 60% P
20% C+ 80% P
55% W+ 45% P
100% C
96% C+ 4% V
95% C+ 55% E
78% C+ 17% P+ 5%
E
77% C+ 20% P+ 3%
E
77% C+ 19% P+ 4%
E
75% C+ 25% P
75% C+ 22% N1+
3% E
65% C+ 31% P+ 4%
E
82% N2+ 18% N1
55% MS+ 45% C
Figure- d Style Analysis
Appendix C
Figure e- 2014/15 Graphic/Fashion Trend
Figure f- 2014/15 Colour Trend
Figure g- New Collection Looks
Figure h- Proxy Ingredient V.S. Price
Figure i- Window Display
Figure j- Allocation of New Collection and the Layout of Store
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