2. Introduction and Objectives
This report goes into depth about the brand Topshop. Topshop started up in 1964 in a basement of a department store, it has gone a long way
since then becoming one of the most popular and well respected brands on the high street. It is now a multinational retailer which
focuses in clothing, accessories, novelties, cosmetics and shoes. Topshop is part of the Arcadia group owned by Phillip Green, other
retail outlets in this group include; Dorothy Perkins, Miss Selfridge, BHS, Wallis, Evans and Burtons. Topshop is always on trend and has
released a Collection named Unique, which has been featured on the catwalk at the London Fashion Week. Topshop is well known for
its cool girl, street style and unique looks. “one eye on the catwalk and the other on the cool street style” (Topshop.com). It's
also known for it's collaborations with Kate Moss and Christian Kane.
Topshop aim their product at 15-30 year old women and men, but internally they target at everyone who loves fashion. It
appeals to individuals who aspire to be fashionable or create their own unique style. It offers customers an enjoyable
shopping experience by the layout of the store and the multichannel services it provides.
Topshop's marketing and promotion strategies rarely use the common TV ads and print techniques, which you would usually
see from brands such as American Apparel. They take a more dynamic approach to promote their brand, through the
shop windows and displays, creating a visually satisfying piece of art which includes the clothing. They also use social
networking to promote any offers or new collaborations/designers who are joining the brand. This way they can get
direct feedback from customers about their wants and needs which Topshop can then use to improve their brand. It
also creates a relationship between the brand and the customers making them feel wanted.
This report aims to research into the current market, brand handwriting and brand heritage of Topshop and identifying the key
strengths and weaknesses of the brand in comparison to other competitors, using primary and secondary research to
identify the customer and support the final proposal. Analysing the Macro market to identify a clear overview of the
brand which will help determine a strategic opportunity for the repositioning or change of Topshop or a new branded
development.
2
3. Executive summary
• Page 1 Front cover
• Page 2 - Introduction and Objectives
• Page 3 – Executive summary
• Page 4 – Topshop Heritage (where Topshop originated and where It
is today)
• Page 5 –Topshop Time Line (What Topshop has done over the
years)
• Page 6 – Market sector (Locations and Arcadia financials)
• Page 7,8 – Topshop Channels (Where Topshop sells)
• Page 9 – Operational Model ( vertical and horizontal)
• Page 10 ,11 – Product perceptual maps (what products Topshop
and it’s two competitors sell)
• Page 12,13 – Market positioning map ( Where is Topshop
compared to Arcadia Brand and other brands)
• Page 14 – 3D perceptual map
• Page 15 – ANSOFF (Market penetration and development, product
development and diversification)
• Page 16 – competitors ANSOFF
• Page 17 - Boston matrix (question marks, cash cows, dogs and
stars)
• Page 18 – Boston matrix for competitors
• Page 19 – 20 Financials for Topshop and it’s two competitors
• Page 21 – 22 – Pen-portraits (typical Topshop customers)
• Page 23 – Customer research (what's key to the customer)
• Page 24- Customer research (size matters)
• Page 25,26 – survey Topshop in Australia
• Page 27 – Conclusion ( Bringing everything together)
• Page 28 – Brand handwriting (brand, consumers and company)
• Page 29 – Brand equity pyramid (looking at quality, performance,
imagery and judgments towards the brand)
• Page 30,31,32 – Trend pyramid for Topshop, Zara and River Island
(what’s there cheap items and what's their risk taking items)
• Page 33- Price architecture (Good, best, best)
• Page 34 – Strategic Advantage model (where is Topshop compared
to other retailers)
• Page 35 – Price Model (Topshop’s price strategies)
• Page 36 – Price Model for Topshop’s competitors
• Page 37 – Price strategy used for a Topshop prodcut
• Page 38 - Above the line and below the line
• Page 39 – vehicles of communication
• Page 40 – how Topshop uses the store
• Page 41 – Perceived strengths and velocity (concluding all the
key findings)
• Page 42 – 45 PEST ( political, social, economical and
technology)
• Page 46 – Demographic trends lifestyle and trends
• Page 47,48 SWOT (Strengths, Weaknesses, Opportunity's
and Threats)
• Page 49 – SWOT of competitors
• Page 50 – Conclusion (The final outcome)
• Page 51,52 – References
• Page 53,54 – Bibliography
• Page 55 – Appendices Survey
3
4. Topshop Heritage
In 1964 Topshop was first launched. It has become one of the major fashion brands in history. Capturing every
seasons trends and putting together high fashion collections which are sold on the High Street at affordable
prices. You could say Topshop introduced fashion to High street shoppers.
Topshop has come a long way since 1964, it has now opened up 300 stores in the UK and over 100 stores
growing internationally. This is a huge success considering Topshop began in a basement store in the North of
England. A few years later Topshop became its own retailer. Then in 1994 Topshop took over the huge store in
Oxford street bringing in over 200,00 shoppers each week.
Topshop is part of Arcadia groups. The brand is known for its individual and urban style and has attracted a lot of
respect and attention. It supports the Young British design talent and has sponsored the new generation scheme
since 2002, which has helped boost the careers of well known designers like Mather Williamson, Sophie
kokosalaki, Alexander McQueen, Christopher Kane, Marios Schwab and Jonathon Saunders.
Topshop has also collaborated with major fashion icons, such as Celia Birtwell and Kate Moss producing inspiring
collections. Along side this it’s most expensive collection Unique hit the runway at London Fashion Week in 2005,
which soon forged exclusive partnerships with international boutiques like; Tokyo and LA.
Topshop’s multichannel operation, ensures customers the freedom too buy their products online including the
exclusive ranges. The exciting stores have been rewarded a Time Out award for best high street store and in style
magazine’s shopping award for best high street shop.
4
5. Started in 1964
In a basement
Of a department store
in Sheffield
1965 – Topshop
established itself in
the basement of
Peter Robinson
1974 – Topshop
became a stand
alone retailer
1978 – Topman
enters the High
street
1994 –
Topshop/Topman
open a store in
Oxford street as one
of the largest fashion
stores in the world.
2006 – Kate Moss's
range is launched
2009 – First Topshop
flagship store opening
outside of the UK to be
a massive success
2010 – Partnership
between Kate Moss
and Topshop is
coming to an end.
1998 - Launch of
Designers for Topshop
with Clements Ribeiro
and Hussein Chalayan
2001 - Unique collection
launches Unique
2002 - Sir Philip Green
acquires Arcadia Group
2002 - Topshop
commences sponsorship
of the New Gen Scheme
2008 - Christopher
Kane, Marios Schwab,
Jonathan Saunders,
Richard Nicoll, Todd
Lynn and Louise
Goldin all produce
collections for Topshop
during London Fashion
Week
1998 - Launch of Designers for
Topshop with Clements Ribeiro
and Hussein Chalayan
TOPSHOP TIMELINE
5
6. Market sector
Topshop is part of the Arcadia group owned by Sir Phillip Green. The financial
results for all the Arcadia brands from 2010-2011, found on the Arcadia group
website show:
• Robust headline cash generated of £297.4m (£383.1m last year).
• Total Group operating profit before goodwill of £190.4m.
• Total Group pre tax profit of £133.1m.
• The margin was down -1.8% points v last year (equal to £52.4m).
• Total sales of £2,682.5m. Total UK VAT inclusive like for like (LFL) sales
were -1.8% on last year. E-Commerce sales grew by +27% while the
underlying retail LFL was -4.3%.
• Continued capital investment in the business with expenditure of £112.8m.
• Year End Bank debt of £444.5m (1.5 times headline cash generated). The
Group employs some 44,030 people across our different brands and we now
operate 2,507 owned stores.
• “Given the very challenging conditions both in the UK and around the world, I
am pleased to report cash generation of £297m” Said Sir Phillip Green
(http://www.arcadiagroup.co.uk/press-relations/press-releases-1/arcadia-results-
2011)
The results show that although we’re in a recession, the retail industry, especially
Arcadia brands are still able to make a profit. This could be due to many
factors like; Loyalty, social acceptance etc… I will be looking at these factors
closer throughout this report.
= where Topshop is
placed
The map below shows there is a huge amount of Topshop stores based in
Europe and South of Asia, which suggest a market gap in South America,
north America, Africa, Australia and North Asia. Which Topshop could look to
expand into, this would also increase employment for those countries and
hopefully more sales for Topshop, to increase their profit margin.
“Although Arcadia has announced closures amongst some of its 2,507 stores
the UK, the group continues to expand abroad, with Topshop leading the way.
US Topshop has opened its second flagship store in Chicago, with a third due
to open in Las Vegas. Sir Philip also saw the possibility of the Topshop brand
doubling in the next four years, with the potential of opening in China next
year.” (BY SOPHIE WARBURTON | 24 NOVEMBER 2011, Telegraph)
6
7. Topshop Channels
Apps Stores Topshop Concession stores Pop up shopsOnline
(Mason,N., 2011. Multi- channel Retailing. UK, Mintel)
7
8. Topshop Channels analysis
Topshop is a Multichannel retailer, selling its products online, in store, Apps etc… In the Fashion Online - UK - March 2011
report on Mintel, the findings are as followed:
“The online fashion market is estimated to see sales increase 12% to £4.8 billion in 2011. The sector continues to grow,
although the rate of growth has been impacted by a stabilization of the rise in internet penetration. … The sector received a
boost as several high street fashion retailers developed their online channels at the end of 2010, with women’s fashion
retailers Gap, Zara and H&M all launching websites.”
These findings suggests there is a huge market for online and although Topshop has and online website, it isn’t as high
tech and easy as other online websites like Zara, Asos and Marks and Spencers. This could be something they could
develop to increase customer spending.
“Four in ten 16-24s believe that that shopping online doesn’t really feel like spending money, so they tend to spend a lot
more than they would in an actual shop. This is almost double the average.” this finding also suggests a lot more money is
spent online than in store.
Figure 2, from Clothing Retailing Executive Summary – UK – October 2012 by John Mercer.. Shows M&S has the highest
share of consumer spending of 10.1 % in 2011, then its NEXT with 8.9 % in 2011 and finally ARCADIA has the third highest
share of consumer spending of 5.2% but a lost of .2% in the last year. Which suggests consumer spending has decreased
in the last year in fashion retail.
The bar chart (figure 1) shows the amount of people following the retail brands on facebook in 2011 and Topshop comes in
first with 1,500 people on facebook following. Which suggests the brand is popular with the youth society and has a strong
relationship with its customers, where it can exchange information.
8
9. OPERATION MODEL
Topshop Order Factory Topshop
warehouse
Stores
Stores
Stores
Zara makes &
Designs
Stores
Stores Stores
Topshop is a horizontal model (figure 1), it pays other factories to make
their products, which are then sent back to Topshop
warehouses which are finally shipped off to the stores. Topshop are hoping
to turn into a vertical model, like Zara (figure 2). Zara owns their own
factories which means they are able to control how their products are
made, know exactly when they are finished in the factory and when they
are sent off to the stores. Topshop will benefit more from being a vertical
model, they will save a lot more money if they own their own factory, as it
costs a lot more to send the designs to the factory, factory costs and costs
for shipping. It's also a much longer process.
Arcadia mulls group sourcing strategy
8 September 2012 | By Catherine Neilan
As part of the shake-up, the business has hired Tesco’s former buying
director for clothing Jon Bennett as group sourcing director.
Bennett has been working alongside Dave Shepherd, who was promoted
from managing director of Topman to the new chief operating officer role
back in April, to communicate the plans.
Drapers understands the changes are likely to be implemented within a
relatively short space of time, and will see orders made across Arcadia’s
complementary fascias – such as Topshop and Miss Selfridge.
An Arcadia spokeswoman declined to comment on the changes, although
confirmed Bennett’s appointment.
She added: “Jon is working closely with Dave Shepherd and the brand
teams on our sourcing activities.” (8 September 2012 | By Catherine
Neilan).
(Figure 1)
(Figure 2)
9
10. Product perceptual maps for Topshop products
FASHION
BASIC
LOW PRICES
Topshop sells products which are affordable to everyone, and products which are
bought occasionally because the price Is high but the clothing is more on trend. The
Unique collection in Topshop is expensive but the most fashionable collection as it has
been featured on catwalks. The basic collection is very simple but cheap. They're is
also fashionable and on trend products but at very cheap prices, for example; the
skater dress. Topshop also sells basic clothing but with added detail at high prices like
(Topshop., 2012.[digital image] [13 November 2012]. Available from: www.topshop.com)
10
HIGH PRICES
11. Product perceptual maps for Topshop competitors
FASHION
BASIC
HIGH PRICES
FASHION
BASIC
LOW PRICES
HIGHPRICES
Zara
Zara's products are all very
similar in prices, however it does
have basic clothing at cheap
prices called the TRF collection.
It also has expensive clothing at
high prices.
River Island
River Island is similar to
Zara as the pricing of River
Island products are in
similar price ranges, but it
does sell cheap basic
products like, leggings and
tank tops. As well as
expensive clothing which is
mostly made with
expensive materials.
(Topshop., 2012.[digital image] [13 November 2012]. Available from: www.topshop.com)
11
LOW PRICES
12. Market position map
Competitors
Good styling
High priceLow price
Poor styling
All Saints
America A
Zara
Warehouse
River Island
Topshop
Urban Outfitters
Topshop basics
H&M
New Look
Primark
The Graph to the right shows
All of Topshop's competitors
which aren't part of the Arcadia
group. The cheaper brands like
New Look, Primark and H&M
are down in the low price range
with H&M, just above with better
styling. Which suggests they're
not close competitors of
Topshop. River Island,
Warehouse and American
Apparel are in the High price
range but still just below.
Topshop is positioned in the
Good styling section, but
Topshop still has an edge on it's
competitors. However it's in the
same position as All Saints,
Urban Outfitters and Zara,
which are very close
competitors on this diagram.
Which implies they are aimed at
the same target audience and
sell similar products in the same
price range. The brands may all
be known by their target
customers as having good
quality products compared to
cheaper Brands. These findings
show Topshop could develop it's
company to make it more
individual to customers. 12
13. Market positioning map
Good styling
High priceLow price
Poor styling
Arcadia groups
Topshop (fashion forward)
Wallis (Mum/Worker)
Miss Selfridge (Young fashion
forward)
Dorothy Perkins (Work/Younger)
BHS (Mum)
Evans (Larger, older
women)
Arcadia groups owns many retail
brands and has managed to fill every
gap in the market. Topshop is
positioned high as a high price and
good styling brand. Wallis is just
underneath but aimed at the
mum/worker target audience. Miss
Selfridge is similar to Topshop but
aimed at the younger fashion
forward individuals. Evans is low in
price and just verging on the good
styling category, the clothing is
aimed at larger, older women. BHS
is the least successful brand in the
arcadia group with poor styling but at
very low prices, which fills the gap
for the budget shopping mums.
Dorothy Perkins is high in prices but
the styling isn't that great, the
clothing is mostly aimed at young
working women. Arcadia has done
well to fill every market gap, aiming a
brand at every age and size.
13
14. Customer proposition/Market position
Special occasion/
Party
Formal
Smart casual
Casual
Basics
Sport
Traditional
Updated
Classics
Contemporary
H&M
Topshop
New Look
Evans
Zara
Topshop's competitors all cover different
types of clothing. The graph to the right
shows what each brand covers and their
personal style. H&M covers everything
from sport to special occasion and has a
very contemporary style. Compared to
Evans which has a very traditional style
and only covers special occasion/party to
causal wear. New Look, similar to H&M it's
style is very traditional and sells mostly
everything but sports wear. Topshop and
Zara are very close competitors, however
Zara conveys a bit of every style from
Traditional to Updated classics but only
sells from party/special occasion to casual
clothing, where as Topshop has an
Updated classic style and a contemporary
style and sells everything but sport
clothing. Which makes H&M the only
brand to sell sport garments, a market
Topshop is missing.
14
15. Ansoff Matrix
Current products New products
Current
markets
New
markets
Market
penetration
Market development
Product
development
Diversification
Selfridges concession
Click & collect
Student discount
Sales, mid-season sale
Offers/deals (2 for 3)
Basics, many colour
options
Last chance to buy
Unique collection
Topman
Kate Moss collection
Mini
Designers collections
(boutique)
Maternity
Taking it abroad
South Africa
More stores in USA
Nordstrom deal
142 stores worldwide
Cosmetics
Gifts & Novelties
Topshop has developed a lot over the years as a company, it is now in concessions, has special offers for its customers, collaborations
with designers and celebrities and it's own collection which has featured in London fashion week. Its recently worked on expanding it's
products overseas, by recently signing a deal with Nordstrom. However there is still room for expansion. It also needs to develop it's new
products into the new markets, to gain market share and help the products become successful.
15
16. Ansoff Matrix for Topshop competitors
Current products New products
CurrentmarketsNewmarkets
Newmarkets
Currentmarkets
Current products New products
Market Penetration Product Development
DiversificationMarket Development
Market Penetration Product Development
DiversificationMarket Development
• Zara owns its own factories which
means, it can introduce new
products every week.
• Zara’s expansion strategy has
worked successfully for Zara
• Zara’s online services so that
customers can buy the same
products but online as well as offline.
• ZARA produces more styles, roughly
12,000 a year.
• Owning it’s own factories, so
development and shipping is quicker.
• ZARA’s opening a store in New York,
This three-floor, 32,000 sq ft store is on
the site of the former NBA store in
Manhattan and it would be hard to find
a more central location on the island.
(31 March 2012/By John Ryan)
• More than 1,600 stores across the
globe
• Kids clothing
• The young fashion chain will launch
brands including Forever Unique and
Little Mistress into its Liverpool One
store and online later this month, with a
view to a wider roll-out. (5 May 2012 |
By Victoria Gallagher, Ruth Faulkner)
• Rihanna signed to produce a capsule
collection for River Island.
• River Island has unveiled a new line of
men’s accessories designed by fashion
and lifestyle bloggers.
• It is also understood that River Island is
in talks with concessions operator
Hallett Retail, which works with
Debenhams and New Look, to
introduce more womenswear brands
via a concessions model. (5 May 2012 |
By Victoria Gallagher, Ruth Faulkner)
• Girls clothing
• Boys clothing
• River Island, which has 300 stores
In the UK and abroad in countries
Including Singapore, has conducted
Due diligence on possible sites in
Manhattan, according to the
Independent. (6 August 2012 | By
Nicola Harrison)
Zara's market development is very impressive with
more that 1,600 stores across the globe. However it
lacks in diversification and product development as it
mostly sells clothing, shoes and handbags. Where as
Topshop has expanded into cosmetics and novelties.
River Island, lacks in Market Development as it hasn't
looked into many new markets to sell its products. It
also doesn't have a lot of diversification, like Zara it
only sells clothing, shoes and handbags.
16
17. Boston matrix
High
Low
Low High
Question Marks
Dogs
Stars
Cosmetics
Bags
Hats
Fashion denim
Shoes
Fashion jersey
Unique collection
Brands (Kate/Motel)
Novelties
Maternity
Petite
Tall
Underwear
Basics
Tank top
Kate Moss tee
Basic denim
Leather jackets
Fashion
dresses
Basic jersey
Leggings
accessories
Cash cows
Topshops question marks are handbags, hats and cosmetics. Cosmetics has only recently been introduced into
Topshop, therefore customers are still testing the product. The stars in Topshop are the fashion items, Unique
collection and brands, customers want to keep up with the latest trends and this is the best place to get a unique item
which looks fashionable. The cash cows are mostly the basics which most of the public have one of, the products are
always very popular and Topshop can always rely on them to make sells. The Dogs are Novelties, Maternity, Petite
and tall, this could be due to lack of awareness of the collections and the amount being produced for each collection.
(Topshop., 2012.[digital image] [13 November 2012]. Available from: www.topshop.com)
17
18. Boston matrix for Topshop competitors
Question Marks Stars- strong
Cash cowsDogs
Dogs Cash cows
Question Marks Stars- strong
ZARA
• Handbags
• Jackets/coats
• Shirt
• Evening dresses
• Scarfs
• Trafaluc clothes range
• Jeans
• Shoes
• Skirts
• Basic tees
• Accessories
• Zara Kids
• Man
RIVER ISLAND
• Onesie
• Jackets and coats
• Evening dresses
• Handbags
• Fashion leggings
• Brands
(lashes of London)
• Male suits
• Male clothing
• Jeans
• Leggings
• Beachwear/Swimwear
• Fashion Dresses
• Basic tees
• Knitwear
• Boys
• Girls
HIGH
LOW
LOW
LOW
LOW HIGH
HIGH
(Zara., 2012. [digital image] [19 November 2012]. Available from:
www.zara.co.uk)
(River Island., 2012. [digital image] [19 November 2012]. Available
from: www.riverisland.com)
18
19. Financial chart for Topshop and it's two competitors
Topshop
River Island
(Top Shop/Top Man., 2002-2011. Top Shop/Top Man Limited. Key financials and employees. Fame report [online].)
(River Island., 2002-2011. River Island Limited. Key financials and employees. Fame report [online].)
Huge difference in turnover
19
20. Financial chart for Topshop and it's two competitors
Zara
These are the key financials results from 2002- 2011 for Topshop and it’s two competitors, Zara and River Island In 2002 Topshop turned
over 528,000, where as River Island turned over 377,641 and in 2003 Zara only turned over 67,789. Topshop bought in the most money out
of both it’s competitors in this year. Then in 2006 Topshop turned over 629,000, River Island Turned over 670,538 and Zara only turned over
155,325 which means River Island turned over the most amount of money in 2006 making it a close competitor with Topshop. In 2011
Topshop took the largest amount of money, with a turnover of 763,00 compared to Zara with 332,487 and River Island with 720,700. River
Island and Topshop are both in the 7 million mark but Topshop just took the lead by 42300. Topshop had a 100% profit margin from 2002-
2011 apart from in 2006 when it made a 69.95% profit margin . Compared to it’s two competitors this is extremely impressive. The highest
percentage Zara made was 5% in 2011 and River Islands highest percentage was 23.35 % in 2006. These findings show Topshop stands
strong compared to it’s competitors, although it had a slight down fall in 2006 where River Island came out on top, it’s managed to pick up
and come out with amazing figures.
(Zara., 2002-2011. Zara Limited. Key financials and employees. Fame report [online].)
20
21. Pen portrait
Sage
• Age – 22
• Single
• Interning
Sage is 22 and is currently interning at Glamour magazine in London. She want’s to
become a creative director of a high end fashion magazine in the near future. She
studied fashion at central Saint martins in London and came out with an impressive 2:1.
She supports herself financially as a part time waitress in an Italian restaurant near by,
she works there most nights and on the weekends. On her nights off she likes to
socialize with her friends in the local pubs and bars nearby with the occasional big night
out. She is currently sharing a flat with two of her close mates in Brick Lane.
Her main passion is fashion and music, she always makes time to go see gigs and
festivals. She spends a lot of her money on clothing, exhibitions, festivals, cd’s and
records. Her favourite brands are Guns and Roses and The White Stripes. Her fashion
style is very vintage and unique, she enjoys rummaging around for bargains in Vintage
fairs and shops but also shops a lot in High street stores like; Topshop, Urban outfitters
and Zara.
She watches what she eats but isn’t afraid to have the occasional binge here and there.
She’s career minded but wants to live a fun packed life whilst she’s young and single.
Maisie 28, Is currently in a stable job for HPR Lonon. After studying Public Relations
and communication at Southampton Solent University. She is very passionate about her
job and hopes to work her way up to the top in the company.
She lives with her boyfriend, who works in the film industry. They've been living with
each other for three years now but are not thinking about marriage and children just yet,
they are both very career minded.
Her job means she works with many celebrities which inquires her to keep up with the
latest fashion trends, to make a good impression. She happens to enjoy shopping and
loves the Unique collection in Topshop, her other favourite high street fashion retailers
are Zara and All Saints. Her style is very sophisticated and elegant with elements of
sparkle and glamour.
In her spare time she enjoys going for coffee with her friends and going to the cinema to
watch the latest films, she has done the partying life and now prefers a quiet night in
with her boyfriend.
She's very content and happy with her life and is excited for what the future may hold for
her.
Maisie
Age – 28
In a
relationship
Job in PR
(LookBook., 2012. [digital image] [19 November 2012]. Available from: www.lookbook.nu) 21
22. Pen portrait
Drew
•Age – 25
•Single
•Guitarist in a band
Drew 25, is a fun loving guy who is always up for a party. He has recently graduated from ACM in Guildford
studying music performance. He is currently working as a bar man supporting himself financially, whilst he
works on his band in his spare time. He aspires to be like the band Mumford and Sons.
He rents out a small house with his ex- university friends who also enjoy the same things as he does. He is
currently single but is in no hurry to settle down, enjoying the single life whilst he is young. He enjoys
traveling and has travelled most of the world already, his spontaneous attitude towards life takes him around
the world, trying out dangerous and exciting activities. He doesn’t believe he will ever get to old to bungee
jump. His other hobbies include socializing, jamming to music and skateboarding.
Image and brand conscious, Drew shops for branded clothes but also is appealed to the basic tees and
jeans at Topshop and Urban Outfitters. His style is very basic but still fashionable.
Abdou
Age – 22
Single
Works for an Architecture company
Abdou 22, is a very ambitious and career minded guy. After gradating at UWE bristol studying Architecture
he was offered a job from Broadway Malyan (an architecture company based in London), after
interning with them in the previous year. His job entitles him to explore different buildings as well as
designing them, so he takes many weekends away exploring city landmarks.
He currently still lives at home with his parents just outside of London, as he travels around a lot with his job,
he doesn't feel the need to move into his own place yet.
He takes care of himself and is very vein about what he looks like. He has two different styles for night and
day. In the day his style is very rustic and vintage, he looks around Topshop and Urban Outfitters for
his outfits. Yet in the night he likes to look smart, wearing chinos and a nice shirt, he shops around
the more expensive brands for his clubbing clothes.
In his spare time, he enjoys going clubbing and going to many music gigs. His career is his main priority in
his life right now and he wants to excel in his career before he settles down with a girlfriend and and
(LookBook., 2012. [digital image] [19 November 2012]. Available from: www.lookbook.nu)
22
23. Consumer research – Whats key to the customer
Consumer research for Mintel found that...
“Women are less concerned about quality than style in
their clothing than they were in 2003”
“In most product areas, the proportion of women
spending over £100 a year or more is rising, meaning
more room for premium collections.”
“They are less likely to wear designer clothes than in
the past and are less inclined to think that wearing
them improves someone’s image.”
“More than half of women (56%) has bought a pair of
jeans in the past year and other casual items like
trousers, tops and T-shirts lead the list of purchases.”
“Half of women spend under £25 a month, emphasising
the large number of budget fashion customers.”
“When asked what they were most likely to want to
spend their money on, 58% of women say
clothing/shoes”
“Mintel's consumer research found that less than half of
all women are confident shoppers and know what suits
them. They may feel overwhelmed with so much choice
and certainly it indicates that retailers need to do more
with their visual merchandising – more mannequins to
show how to wear the looks, plus better-co-ordinated
displays and mood themes.”
“Less than a third of women really enjoy shopping for
clothes”
(Quotes from Mintel, customer research)
From these findings on Mintel it is suggested that there are many
ways in which consumer shopping can be improved.
The findings show people are more likely to spend their
money on cheaper options of clothing rather than
higher quality, they're is also a higher proportion of
individuals who would rather spend their money on
basic items and daring items. Which suggests retailers
should be focusing more on the basic ranges than the
expensive, unique collections. The findings also suggest
that the shopping experience could be improved to
increase consumer confidence and purchases. By
Objectives
My objective is to find out whether people in Australia are interested
in Topshop and whether they would like to see more openings of
Topshop stored in different parts of the country. There is already
two Topshop’s based in Australia one in Sydney and the other in
Melbourne of which were a hit with the Australian youth population.
The Australian Topshop twitter page already has 8,721 followers.
Methodology
I will achieve my objective by surveying individuals in Australia aged
10 to 40+ about the retail company Topshop. I will ask them general
questions like; occupations, gender, age etc… Then about what style
they go for and whether they shop at Topshop and use the online
store. Lastly I will ask them how far away the closest Topshop is to
them and where else in Australia they would like to see another store.
Hopefully this will give me an insight into whether Topshop is popular
in Australia and where about in Australia would be a good place to
expand.
Australian
Topshop
Twitter
page
23
24. Customer Research- Size Matters
“Mintel estimates that the plus-size womenswear market increased in value by 47% over the last five years and is valued at £4 billion
in 2011. This exceeds the performance of the women’s clothing market as a whole, which experienced growth of 15% since
2006.”(Fashion – Size Matters Executive Summary – UK – July 2011).
The chart above shows, that in 2006 and 2008 a larger
portion of the sample are buying plus size clothing compared
to those in 2011 who are buying smaller sizes. Size 12 seems
to be the most popular size in all years, reaching a total of 24
% of females aged 16+ in 2011. Another interesting finding is
there is a larger percentage of 20+ clothing bought with all the
years added together, which comes to 30%, in comparison to
the smallest sizes which comes to 27% in total. These findings
suggest that size 12 is the average size for females and that
there is slightly more larger women than there is small. It also
suggests weight has decreased in the last four years.
The chart above shows the attitudes towards shopping for clothes, by
gender and size. The results show a high percentage of plus sized
women find it hard to shop. Nearly 80% say there isn't enough choice,
around 75% say the clothing sizes lack consistency and 12% say its
easy to find clothes that fit. Only 30% of plus sized men say there is not
enough choice and 48% say the clothing lack consistency, which is a
huge difference to the plus sized women results. This suggests there is
a huge market gap for over sized women clothing.
24
25. Survey for Topshop in Australia
I surveyed nine females and five males who live in Australia
And asked them various questions like; occupation, gender,
Personal style, whether they shop at Topshop etc… I then
Asked how far the nearest Topshop is from them and where
In Australia they would like another Topshop. The results
Show 30% want to see another Topshop in Sydney and nearly
60% want to see a Topshop store in Perth and Melbourne. I also asked
whether
They shop online at Topshop? And 91.7% said yes and 16.7%
said no, which is similar to the results of who shops at Topshop. The
findings show there is room for expansion in Australia.
25
27. Conclusion
In conclusion to my customer research on Mintel and my personal survey I found some interesting findings on customer
spending and what customers expect in a retailer. Customers are spending more time online shopping then
shopping in store, this Mintel quote backs this statement up “Consumers are relying on the internet more and
more; over a fifth (22%) of consumers now buy more clothes online than they do in-store, compared to just over
one in ten (12%) in 2010.” It has also been proven that customers spend more money online than they do in
store, suggesting the online market is growing and to increase spending in stores, the experience should be
changed to make it more enjoyable.
The statistics on women sizes show, women don’t feel confident in shopping as there is not always clothing of their size
and shape, this is a market Topshop is missing and could expand on to open a new market for the larger
women, it will also increase consumer confidence and spending.
Due to the recession and other factors like, family, consumer spending has decreased and a larger number of customers
are budget fashion shoppers. This becomes a problem for Topshop’s more expensive collections like Unique, it
also could suggest Topshop’s basic range will do well in this current climate. “They are less likely to wear
designer clothes than in the past and are less inclined to think that wearing them improves
someone’s image.” this Mintel quote backs up that statement.
From these findings, Topshop could improve their retailer experience for its old customers and new
customers, by;
• Producing more sizes for larger women
• Increase consumer confidence
• Improve the store experience
• Improve their online services 27
28. Brand Handwriting
BRAND
Topshop as a brand, black
and white dots
Unique collection
Celebrities clothing lines e.g.
Kate Moss
Boutique brands
Designer collaborations
21st century phenomenon
Good quality and affordable
High-street
Up to a minuet
Pink dot for sale
The staff at Topshop
dress in all Topshop
and always look
Trendy.
CONSUMERS
Consumer Pen Portrait,
fashionable, unique, student etc...
Key consumer, affordable, brand
exploring and experiences,
key silhouettes, parka, chelsea
shoes, skater dress/skirt, skinny
jeans and leggings
trend/high-street.
Store accessibility
Topshop is like an old friend to
consumers
Fill up their wardrobes
COMPANY
Innovation &
execution
Value
&
relationship
Information & input
Online world; email,
social networking,
online shop, pop up
shops, television and
print.
Fashion company
Celeb
collaborations
Topshop nail and
hair bar
Concession with
Selfridges
Shopping
experiences
online and offline.
Affordable
Loyalty
Topshop has a unique and
recognizable logo for it’s
brand, the black and white
polka dots. It’s well known for
it’s collaborations with
celebrities and designers
especially Kate Moss. The
brand lives up to its mission
statements “a 21st fashion
phenomenon” for women,
which many women believe
when they shop at Topshop
and its male mission
statement “delivering fashion
with authority” which males
would describe Topshop as.
Customers shop at Topshop
for the latest trend, affordable
prices, basic clothing which is
good quality and for loyalty
schemes.
28
29. Brand equity pyramid by Kevin Lane Keller
Resonance
Judgements Feelings
Performance Imagery
Salience
Loyalty,
attachment,
community
Warmth, fun, security
Personality and
values, history and
heritage user
profiles
Category
identification,
needs
satisfied
Quality,
credibility,
consideration
Durability,
reliability,
price
Judgements
Quality
Washing temperature
High fashion
Material
Dyes, colour
Resonance
Online world
One to one
Social networks
Emails
Performance
Affordable
Price skimming
Penetration
Premium
Feelings
Fun
Fashionable
Reliable, like an old friend
Exciting
Warmth
Imagery
Kate Moss
Black and white dots
Simple
Basement
Skater dresses
Salience
High street
High Trend
Fashion
Affordable
Popular
The brand equity pyramid represents the value of
the brand in the marketplace. Topshops key
value points are;
• High fashion
• Good pricing strategies
• Multichannel retailer
• Kate Moss collection
• The feeling customers get when shopping at
Topshop
Over all the equity pyramid represents Topshop as
a High fashion forward brand, which has
develops it’s company to keep up with the
demands of the 21st century.
29
30. Trend pyramid for topshop
Trend
Mainstream
Basic/core
Celeb collaborations
Made in Britain
Boutique
Unique
Underwear Make up
Wholesale Motel/Rare
Jewelry
Fashion/pattern Moto denim
Coats
Shoes
Hard/Novelties/gifts
Maternity
Pattern leggings
Mini - Kids
Basic leggingsFashion dresses
Skater dresses
Moto basic denim
Basic tees
Price
Risk
Topshop’s trend collections have a higher risk factor and are more expensive, there is very little of these
Collections in store and online. The mainstream collections are in the middle, affordable prices and enough
items which will sell, these item are aimed at fashion forward customers at affordable prices. The basic/core
collections have the biggest market share with very low prices and are guaranteed to sell.
(Topshop., 2012.[digital image] [13 November 2012]. Available from: www.topshop.com)
30
31. Trend pyramid for river island
Trend
Mainstream
Basic/core
Boutique
Exclusive ranges
Brand focus
Coats
Underwear
Jewelry
Pattern jeans
Brands
Shoes
Pattern leggings
Graphic Tops
Multi buy offers
Novelties
Basic tops
Basic Leggings
River Island have less collections in the Trend section compared to Topshop, which could
suggest these collections don’t do as well. River Islands mainstream collections are it’s main
focus with affordable pricing and high fashion items. It also does basic/core clothing which has
very low pricing and sells well.
31
32. Trend pyramid of Zara
Mainstream
Basic/Core
Trend
Expensive/ limited edition products
Medium price products
TRF
Zara’s trend pyramid is upside down as most of Zara’s clothing is in the trend section with very
high pricing and less of a risk than the Basic/Core collection TRF, which has very low pricing.
This is due to the customers beliefs of Zara, they shop at Zara for the expensive but more
fashionable items which could be a problem for Topshops Unique and boutique collections.
32
33. Price architecture
Good- Entry
prices & offers
Best – Exit
price
Better –
Average prices
£1-18
£18-60
£60 -
200
• £15 – leggings
• £8 – T-shirt
• £3 – underwear
• £15 – skater dresses
• £20 – Dolly shoes
• Unique
• Celeb collaborations
• Made in Britain
• Designer shoes
• Leather jackets
• Boutique
• £30,45 -fashion jeans
• £25+ fashion shirt
• £18,25 – fashion leggings
• £25,30 - skirts
Topshops best collection is the Unique, designer brands and celebrity collaborations the prices are a little steep but quality and high fashion is
guaranteed. This is compared to the basic items like leggings which a priced cheaply but are low in fashion. The clothing which offers affordable pricing
and fashionable clothing is the ‘Better’ items, like the fashion leggings and shirts.
(Topshop.,2012.[digitalimage][13November2012].Availablefrom:www.topshop.com)
33
34. Differentiation
Topshop
Zara
River Island
Urban Outfitters
All Saints
Overall cost leadership
H & M
Primark
New Look
Bhs
Peacock
Strategic Advantage Model
Uniqueness
perceived
by the customer
Low cost position
Target
Industrywide
multi-regiment
Strategic
Particular
segment
Focus
Channel
Burberry
Ralph Lauren
Christian Dior
Yves Saint Laurent
Giorgio Armani
Prada
Louis Vuitton 34
35. Price Model
Premium Pricing
Penetration PricingEconomy Pricing
Skimming Pricing
Topshop uses premium pricing
for its more expensive lines like;
Unique and Boutique. Unique
uses more expensive materials
and is also shown on the
catwalks which makes it a more
valuable and unique item.
Topshop also uses
penetration pricing for the
basic ranges in Topshop,
Artificially low prices to
gain market share, opens
up a new market for
Topshop.
Topshop doesn’t use economy pricing as it’s
manufacturing and marketing prices are too
high to use this type of pricing.
As Topshop has a wide range of customers
who are loyal to the retail company, it is
financially able to increase it’s prices for its
products, however competitors like River
Island and Zara will soon pick up on this and
create similar products for cheaper prices, this
forces Topshop to lower its prices.
Low High
LowHigh
Quality
Quality
(Topshop., 2012.[digital image] [13 November 2012]. Available from: www.topshop.com)
35
36. Price model for Topshop’s competitors
Economy Pricing
As Zara owns their own factories,
manufacturing is cheaper, therefore
economy pricing is used.
Penetration Pricing
Zara uses penetration pricing for it's
TRF collection, to gain market share
and open up a new market.
Skimming Pricing
Zara uses skimming pricing when it
sees it's competitors rise the prices
of a product so it creates a similar
product but sells at a lower price.
Zara also rises its pricing on
products before competitors lower
theirs.
Premium Pricing
Zara mostly uses premium
For it's products as they are made
from expensive materials and are on
trend.
Economy Pricing
River Island rarely use economy
pricing as it's marketing and
manufacturing prices are quite high.
Penetration Pricing
River Island uses penetration
pricing on it's basic range, e.g.
black leggings. Selling at artificially
low prices to gain market share.
Skimming Pricing Premium Pricing
River Island has recently started to
use premium pricing on its new
collections, Boutique and celebrity
collaborations, as they are sold at
high prices.
River Island uses skimming pricing
when it sees it's competitors rise the
prices of a product so it creates a
similar product but sells at a lower
price
ZARA
River Island
In conclusion, Zara mostly uses
premium pricing but also efficiently uses
economy pricing which means it spends
a lot less than Topshop and River Island
on manufacturing. Topshop and River
Island both equally use penetration,
skimming and premium pricing but
rarely economy pricing, which suggests
they are missing an efficient strategy to
saving money.
36
37. Price Strategy used for a Topshop product
Low Price
High price
HighFashion
Lowfashion
£160
£65
£36
£29
£50
£20 Penetration pricing
Premium pricing
Skimming pricing
Topshop have created a variation of different styles of skater dresses, ranging from as low as £20 and as high as £160.Topshop uses
Penetration pricing on the basic styles of skater dresses selling them at cheap pricing to gain market share and open up a new market.
Skimming pricing is used for the skater dresses which are still quite simple but with added detail, so Topshop can put them at higher
prices as they know loyal customers of Topshop will buy them. Finally Premium pricing is used on the Unique and Boutique collections
as they are more expensive to make and they are designed by top designers.
(Topshop., 2012.[digital image] [13 November 2012]. Available from: www.topshop.com)
37
38. Above the Line and Below the line
ABOVE THE LINE
BELOW THE LINE
Billboards
Pop up shops
Webpage
Editorial
Buses
Print
Twitter Facebook
Tumblr
Apps
Blog
Youtube
38
39. Vehicles of communication
Magazine ads
TV ads
Celebrities wearing
Topshop clothing in
public Promotions on
Topshop’s
Facebook
page
Topshop’s Twitter page
Topshop aren’t the biggest promoters of their brand in the retail industry, this could be due to already making a good name for
themselves. However they still promote in;
• Fashion and gossip magazines, representing the clothing in a fashion story
• TV ads, which usually promote a new designer or celebrity which is collaborating with the brand, for example the screen shot of
the TV ad above is promoting Christian Kane's collection in Topshop.
• Celebrities wearing Topshop clothing in public, the photo above is of Kate Moss wearing one of her big fur coats in public. This
strategy works well as the public aspire to look like celebrities, so if they see their idol wearing an item of clothing which is
affordable, they will most likely buy it, to look more like the celebrity.
• Promotions on social networks, the photo above is from Topshop's Facebook promoting an offer “free shipping on all orders”.
Social network is very popular and an easy way to promote a brand to customers. It is also used to show awareness and for
customers to interact with the brand.
39
40. How Topshop use the store
Store ambient factor
Store Design
Store social factor
Music and lights, in
store
Colour
30 seconds to convince
customers to come into the
store
Store layout
P.O.S
Speed
bump
Poor returns policy
Sale assistants
Customer
focus
How they group things together suggests how cheap/expensive the
product is. Topshop lays out their products around one item of clothing
then other items of clothing and accessories around that item which will
go well, this is very clever as customers will then buy a whole outfit
instead of just one item.
40
41. Perceived strengths and velocity
In conclusion, what factors make Topshop a successful retailer?
It's recognisable logo and mission statements
It's strong relationship with it's customers
Having different collections for different types of customers, from the budget shopper to the
high fashion shopper
It's successful pricing strategies
Although Topshop does little promotion of its brand, it does enough to attract attention for its
brand.
It's creative and dynamic store layout to increase consumer confidence and making the
shopping experience more enjoyable and easy
Topshop has taken into account many factors to make it a tough competitor in the market. In
comparison with Zara and River Island, Topshop takes a strong lead, by show casing many
different collections for all types of customers which increases it's market share, where as Zara
focuses mainly on it's expensive items and River Island still need to expand their boutique and
basic range. Topshop also uses the pricing model to its advantage by creating one style of
product and ranging the prices of it by tweaking it at each price level, a good example of this is
the skater dress or the chelsea boots. The disadvantage Topshop has on Zara is the expensive
collections, Zara is known for it's high fashion and expensive clothing which is in competition with
Topshops unique and boutique collections. Topshop could overcome this by promoting
awareness of these collections, producing more pieces for these collections in more sizes and
present them in every Topshop store.
41
42. Political
CODE OF CONDUCT
Forced labour
Child labour
Non-discrimination when hiring
Wages right to a living wage, comply with the laws
Working hours should be defined by law and not exceed 48 hours
Health & safety
Every worker should be treated with dignity &respect
Fair trade ranges
Topshop organic cotton jean collection moto
Washing at lower temperatures
Despite growth, this remains as yet an undeveloped market, if one with plenty of potential. Mintel estimates that total sales of
ethical clothing are currently worth around £175 million (or about 0.4% of total market), which is a little larger than the
bridalwear sector and equivalent to almost half of the value sales of hosiery. (Ethical Clothing - UK - February 2009, Mintel)
“The portrayal of Middle Eastern women in the film Sex and the City 2 and Vogue sheds light on a peculiar but nonetheless
irritating perception of Muslim women that persists in the West.” (Rena Niamh Smith (International Socialist Group, 2012)
42
44. Social
• Codi Young and Australian model, size 0, was removed from a campaign
• 51.4% of consumers buy online because they say its more convenient (DRAPERS - article - highlights of consumer online habits)
• 55% said a loyalty scheme or money-off vouchers would motivate them to shop at a particular retailer (30 June 2012 By Ruth Faulkner, Victoria
Gallagher, Drapers article)
• 29% of customers polled said price was their primary reason for choosing to shop with a retailer. (30 June 2012 | By Ruth Faulkner, Victoria Gallagher,
Drapers article)
• Topshop will debut an eco capsule collection in collaboration with sustainable fashion label From Somewhere on June 8.(DRAPERS- article
information 19 May 2012)
• Polling more than 2,000 people, Drapers’ Multichannel Report survey found that the majority of consumers (69%) use bricks-and-mortar stores to shop
and research for fashion purchases, while 61% use websites for both. The study also found that only 7% of consumers prefer to use mobile sites and
apps.(29 September 2012 | By James Knowles, Drapers article)
• The research shows 47% of those who buy fashion online go straight to their favourite retailers’ websites with a slight bias towards women. The sale is
there for the taking, and retailers should be closely examining what this group of customers does once they arrive on the site if they want to improve
their conversion rates.(29 September 2012 | By James Knowles, Drapers article)
• The survey found that the inability for consumers to touch and feel product is a major barrier to purchasing online. Female shoppers are most
concerned about not being able to try clothes on, at 48%, and don’t know which size will give them the desired fit, at 45%, while the inability to try
clothes on was a problem for 40% of male shoppers, who also cited not being able to gauge the quality as an issue, at 34%. The survey asked
consumers which functionality could help retailers address these concerns, and found that 44% want the ability to zoom in on product, while 36% said
clear size measurements would help them close the deal, and 33% want to be able to read reviews to help them decide. (29 September 2012 | By
James Knowles, Drapers article)
• Overall, 26% of respondents said retailers having more stock in their size in store would encourage them to shop more with particular retailers or
brands. However, 31% of women agreed with this point.(30 June 2012 | By Joanna Perry, Drapers article)
• Personal information and how it can usefully be used was also highlighted by the number of consumers who were keen for more fashion retailers to
operate loyalty schemes. A loyalty scheme was the second most mentioned answer when we asked consumers what would make them shop more
with a retailer or brand – 37% said so, compared with the 55% who mentioned the top answer, money-off vouchers. (30 June 2012 | By Joanna Perry,
Drapers article)
• Personal information and how it can usefully be used was also highlighted by the number of consumers who were keen for more fashion retailers to
operate loyalty schemes. A loyalty scheme was the second most mentioned answer when we asked consumers what would make them shop more
with a retailer or brand – 37% said so, compared with the 55% who mentioned the top answer, money-off vouchers. (30 June 2012 | By Joanna Perry,
Drapers article)
44
45. Technology
• 80% of people shop online now
• Department stores have the broadest range of shoppers – nearly 74% of those polled buy clothing from their shops. However, only 44% buy clothing
from department stores’ websites, showing that these retailers have an opportunity to increase online sales by engaging customers who already have a
relationship with them.(30 June 2012 | By Joanna Perry, Draper article)
• All Saints’ campaign is called ‘We Are All Saints’ and is an interactive video that allows users to drag their mouse over the video, moving it around to
view the full arrangement. The video features a group of young creatives (musicians, dancers and models) wearing autumn 12 product. As users move
the video around each individual has a marker point on them, which are clicked on to see more details.(13 October 2012 | By Keely Stocker, Drapers
article)
• Topshop is to launch a click-and-collect service by June, according to Topman managing director Dave Shepherd ( 22 March 2012 | By Ruth Faulkner,
Drapers article)
• The Facebook feature is called “Collections” and enables users on Facebook to engage with items by “liking”, “collecting” or “wanting” them. Products
within Collections will also have a buy link which will direct users to the retailers’ transactional site.(11 October 2012 | By Keely Stocker, Retail Week)
• Retail search volumes increased 11% in the first quarter of 2012, while overseas retail searches jumped 57% due to the increasing popularity of
shoppers using mobile devices said the British Retail Consortium (BRC)- Google Online Retail Monitor.(16 April 2012 | By Tiffany Holland, Retail
Week)
• According to the BRC, the advance was driven by a soaring 132% increase in mobile and tablet search volumes. Retailers that enable customers to
compare prices in store is also pushing up retail searches on these devices.(16 April 2012 | By Tiffany Holland, Retail week)
• Topshop attracted more than 2 million online viewers for its live streamed show at London Fashion Week. The womenswear retailer said it reached its
largest ever online audience, as by 4.45pm on Sunday more than 2 million people in 100 countries had tuned in. (17 September 2012 | By Victoria
Gallagher, Drapers article)
• In fact, 265 branches of fashion multiples closed in the first six months of this year according to the report from research firm Local Data Company,
which, taking into account any openings over the same period, equates to a net 3.6% decline in the number of sites on the UK’s high streets. This is a
sign of the times for sure, but most interestingly if we compare these figures to those within the indie market, we can see that in fact indies seem to
have fared better over the same period as a result of a much larger number of openings, with net closures totalling 35, equating to a drop of 0.43%.
Either way, the report suggests that the climate is favourable for a move to a more varied high street mix, something consumer groups and industry
watchers have suggested is key to rejuvenating some of the ailing regional retail centres. (20 October 2012 | By Caroline Nodder, Drapers article)
• Only 47% of consumers around the world say they trust paid media (television, magazine and newspaper ads), a decline of over 20% since 2009.
(Source: Nielsen, April 2012)
• 92% of global consumers say they trust earned media (word-of-mouth and recommendations from friends and family) above all other forms of
advertising, an increase of 18% since 2007. (Source: Nielsen, April 2012)
• Online consumer reviews are the second most trusted form of advertising with 70% of global consumers trusting them, an increase of 15% in four
years. (Source: Nielsen, April 2012)
45
47. Strengths
• Topshop is opening in Selfrdges (20 October 2012 | By John Ryan, draper article)
• It is Saturday afternoon and Topshop in SoHo, New York, is heaving as women look to get their hands on the British retailer’s stylish clothes. “What
do you like about Topshop?” I ask one fashionable twenty something. “It’s just so cool,” she responds, before picking up a pair of studded boots. (6
October 2012 | By Suzanne Bearne, drapers article)
• Both Topshop and Topman, owned by Arcadia tycoon Sir Philip Green, have partnered with franchisee House of Busby to launch stores in the
region, the first of which will open in Johannesburg in November. It will also launch concessions within South African department store Edgars,
owned by the country’s largest non-food retailer Edcon. The move to South Africa, the 37th country in which the brands will operate, follows its high
profile tie-up with legendary US department store Nordstrom to open Topshop and Topman concessions in a selection of its stores from September.
Topshop already has three US stores trading in the US. (2 August 2012 | By Gemma Goldfingle, Drapers article)
• Arcadia boss Sir Philip Green has hired former Burberry vice-president of public relations Justin Cooke to push forward global expansion plans for
Topshop. According to the Sunday Times, Green has hired Cooke, who has worked at Burberry as vice-president of public relations for the last five
years and seven months, as chief marketing officer. Cooke, who is credited with helping Burberry alter its image, will start work with Topshop in
September and is expected to work closely with Green and Topshop managing director Mary Homer to look at oversees opportunities for the
business. (11 June 2012 | By Ruth Faulkner, Drapers article)
• In the final instalment of our seasonal Hit or Miss survey, it was double trouble for the rest of the high street’s footwear retailers as Liverpool’s
Topshop and Topman came out on … top. A plethora of on-trend product, an impressive storefit and a raft of eye-catching visual merchandising
ideas mean these two are stepping ahead of the competition this season. (DRAPERS - TOPSHOP HIT OR MISS, 21 April 2012)
Weaknesses
• Zara, with more than 1,600 stores across the globe, Topshop has a lot less stores across the globe than Zara.
• During the first six months of the year the group opened 166 stores, meaning Inditex now operates 5,693 stores in 85 markets. (19 September 2012 | By
Victoria Gallagher, Drapers article).
• Experience of Topshop store - Taking up one side of a large plot shared with Topshop, Topman comes across as the poor relation. A markdown section
is large, and unmissable on entry, possibly cannabalising full-price sales. Smaller sizes are plentiful but outside a 34 waist/large top, depth is limited.
Pillars near the entrance block the view down the tightly packed store while staff were far from helpful with size queries. Fittings and finish on the floor
and in the changing rooms look tired. 6/10 (14 April 2012 | By Ian Wright, Drapers article, Hit or Miss)
SWOT analysis f Topshop
47
49. SWOT for Topshop competitors
Zara
Strength
In the period from February 1 to July 31 net profit grew 32% to €944m (£758m) as sales rose 17% to €7.2bn (£5.8bn). During the first six months of the year
the group opened 166 stores, meaning Inditex now operates 5,693 stores in 85 markets. (19 September 2012 | By Victoria Gallagher Drapers)
Spanish fast-fashion retailer Zara’s UK pre-tax profits jumped 22% to £19.3m in its year to January 31 as Zara prepares to open its UK flagship store. (9
October 2012 | By Gemma Goldfingle, Drapers)
Weakness
Lasting impressions I normally love Zara but this particular day at this particular shop was just too chaotic. I didn't have the patience to look through piles of
clothes to find my size and I was disappointed when a top I liked had makeup stains on it. (Huma Qureshi,guardian.co.uk, Friday 6 July 2012 08.45 BST)
Zara, which is allegedly struggling in the U.S., has been blamed for selling sizes too small for its American customers. By OLIVIA FLEMING PUBLISHED:
20:31, 15 August 2012 | UPDATED: 21:04, 15 August 2012, Daily Mail)
Opportunity
According to reports, the Spanish clothing giant took advantage of a rare opportunity to own one of London’s best retail locations and bought the 75,347 sq ft
property located between Oxford Street and New Bond Street from German fund manager, Deka.(19 June 2012 | By Ruth Faulkner, Drapers)
The Spanish high street fashion retailer launched an etail offer across Europe last year and has scheduled its online debut in the US for September 7. ( 4
August, 2011 | By Jennifer Creevy, Drapers)
Threat
Menswear labels Agi & Sam, Astrid Andersen and Shaun Samson are set to show at London Collections: Men in June as part of MAN, the Topman and
Fashion East menswear show. 23 May 2012 | By Victoria Gallagher, Drapers)
Fashion chain Zara has forced the closure of one of its supplier’s factories after a BBC programme found evidence that its staff were being ill-treated. 24 (24
June, 2008 | By Lisa Berwin, Retail Week)River Island
Strengths
River Island eyes New York store. Young fashion retailer River Island is considering opening a store in New York’s Manhattan as it ponders expansion in the
US. (6 August 2012 | By Nicola Harrison, Drapers).
Fashion retailer River Island produced an industry-beating performance last year, driving profits up by more than£40 million to over£120 million. (29 March,
2006, Retail Week)
Weaknesses
Untidy stores-River Island loses points for the random placement of odd shoes beneath hanging rails of clothes, which looks untidy and accidental rather
than deliberate. The level of quality and fewer points of difference let it down a little. (20 October 2012 | By Graeme Moran, Drapers)
River Island pre-tax profits tumbled 25% to £86.9m last year as the fashion retailer absorbed higher costs, rather than pass them on to consumers, and
invested in the business. (20 September, 2012 | By George MacDonald, Retail Week)
Opportunities
Rihanna is collaborating with river Island. Last week the news broke that one of the world’s biggest popstars is to design a line for a UK high street chain, as
Rihanna signed to produce a capsule collection for River Island. (28 July 2012 | By Ian Wright, Drapers)
Chelsea Girl, the iconic 1970’s fast fashion retailer that later became River Island, is to be revived as a branded capsule collection within River Island
stores…The 40-piece range will go on sale in selected River Island stores on March 19 to mark 40 years since the first Chelsea Girl opened. It will also
launch in a Chelsea Girl pop-up shop in Selfridges. (14 March, 2011 | By Katherine Rushton, Retail Week)
Threats
River Island profits plunge as it absorbs cost hikes. River Island saw its pre-tax profits plunge by 25% to £86.9m last year, as it took the hit on the rising
costs of material rather than pass them on to consumers. (20 September 2012 | By George MacDonald, Retail Week)
The chief executive of young fashion giant River Island stepped down this week after 20 years with the company. (April 16, 2010 | By Tim Danaher, Retail
Week) 49