Aquascutum Retailing Report

Paper Type:  Report
Pages:  6
Wordcount:  1650 Words
Date:  2022-12-17

Black et al. (2014) define retailing as the process of selling consumer goods and services through various channels to make a profit. Retailers ensure the products and services reaches the smallest level of consumers. One of the popular types of retail in the United Kingdom is fashion retail. Fashion retailers; like Aquascutum, ensure that already manufactured and designed attires reach the farthest consumer in the supply chain. This work reports on the factors affecting the UK's fashion industry regarding Aquascutum Retailers.

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Introduction to the Company

One of the United Kingdom' s largest fashion vendor is Aquascutum Retailer. The physical stores of the retailer are at 24 Great Marlborough Street, Soho, London W1F 7HU, UK. In addition to three UK stores and sixteen concessions, Aquascutum posses seven outlet stores and eleven international concessions. The retailer traces its birth to the Saudi Arabia fashion retailers YGM Trading. Aquascutum deals in a vast range of clothing attire in the apparel and Accessories both for Men and Women.

It is employing its tagline, the 'Understated British Elegance,' Aquascutum purposes of offering the best to its clients. The slogan gives it the necessary push to achieve the best for its customers. The retailer serves a rich British heritage and elegance. Consequently, its segment includes that population which intends to associate with the British elegance fashion culture. Aquascutum targets the urban population who can afford their pricing, narrowing down to the adults from the upper class. The retailer's position is men and women who only wear expensive clothes with the British touch.

The Macro Changes in The Industry

Like any other industry, the UK fashion industry bears the effects of changing the macro environment (Black et al., 2014). As in the discussion below, this section performs partial PESTEL analysis of the industry to understand the changes.

Political Changes

Brexit deadlock is a major political factor. UK's withdrawal from the European Union leaves a considerable number of retailers without a clue of how to cushion themselves (Cuadros, 2018). For effective operation of their business, retailers need clarity on the tariffs likely to be introduced to their imports and exports. The retailers thus are prioritizing to make new trade deals. With a consistent push from the industry, the Fashion and Textile teams met with the minister for international trade in December to discuss the Brexit issues.

Economic Changes

The industry has previously witnessed instability in the sterling pound. The adverse case saw retailers' eating away from the retailer's profits margins. Consequently, prices of the commodities are likely to increase and dip the consumer confidence further. With the squeezed shoppers paying more for their basic needs, there is little left to spend on clothing and footwear. The scenario creates a push for the retailers to convince the consumers with valid reasons for shopping (Black et al., 2014). Such script forces retailers to improve on the customer journey. The effect is only achievable by retailers offering unique products that represent substantial value for money.

Twenty-eighteen witness a buzzword as the multichannel retailers sought to find a solution to the problem of increasing costs of the physical bricks-and motor stores (Chan, Ngai, & Moon, 2017). Fashion retailers are obliged to introduce remarkable changes in their stores that favors profit generation. With this change, interiors of the stores should enhance the required customer journey instead of distracting appearances.

Legal Changes

Brexit will occur with many policy changes that affect the retail industry. The exit is also likely to trigger the rise of the UK's national living wage to PS7.83 per hour. Rules that handle gender pay gap now require British companies to publish figures breaking down their employee's pay (Cuadros, 2018). General Data Protection Regulation (GDPR) demands transparency from retailers. The law expects retailers to explain how they use customers' data. Non-complaint retailers will pay a fine of 4% of the business annual global turnover.

Relevant Changes Within the Micro Environment

Changes in the micro-environment give direct effect on the performance of any business (Cuadros, 2018). Aquascutum faces threats from competitors, have issues with to do with distribution channels, customers, suppliers, and the general public. The partial SWOT analysis provides insights on the role of specific factors.

Change in Customers' Needs

The retail market is experiencing a change in the demands of their customers. With the increasing competition among fashion retailers, it is requisite for specific businesses to hone in on the customers and improve the multichannel journey. The move will help to hide a competitor's elegance from customers who divert to highly fashioned retailers. Retailers must, therefore, ensure customer's experience joins up and is seamless by linking their systems and teams to capture all necessary expenditure (Chan, Ngai & Moon, 2017).

Competitors Tactics

Aquascutum receives a good share of competition, especially from the Burberry and Canali stores. Burberry sells its products even to the youth, outdoing Aquascutum overall profits. While Burberry thrives by attracting a younger population, Canali thrives by promoting its association with the community, fostering its relationship with customers using the traditional Italian values and innovations. Burberry also draws favorable public relation with celebrities. The sale of the brand to Asia's YGM shifted its demands to Asia leaving the local market vulnerable to foreign retailers (Oxborrow, 2015).

Strategies and Tactics of Dealing with Changes in Macro and Micro Environment

For the success of Aquascutum, the retail needs to employ the most appropriate approach to offset the issues with the factors. Below is a possible remedy for the specific macro and microenvironment.

Political Strategies

To counter the effects of Britain exiting the European Union, Aquascutum should develop strategies that will cushion its operations. Many approaches can be employed. Aquascutum should shift supply chain management back to the UK. The retailer can also participate in currency hedging to protect its saving from the loss that would result from a weaker pound. The no-deal Brexit means that retailers will incur increased costs in terms of border checks, customs declarations. Aquascutum can practice stockpiling to ensure availability of stock even in at the eve of the exit (Cuadros, 2018).

Economic Tactics

To recover the losses that result from low sales, Aquascutum can opt to sell men's suits that only costs below PS500 to capture the buys of the middle-income customers, venture into different groups like a corporate gift and sporting wear, and find the customers instead of waiting in the stores. Due to the high turn-over of the accessories, the retailer can focus on building a credible accessory range. The brand can also refurbish its brand in locally by improving its competent models, and even expand its global exploration to facilitate its global competition (Cuadros, 2018).

Legal Strategies

Retailers need to follow the legal requirements of the soil to survive in the industry. Raising of the national living wage to about PS7.83 per hour forces the retailers to adjust their pay rates to match with the expectations of the law. Fashion retailers with above two-hundred and fifty employees should publish figures breaking down their pay. The retailers should also practice transparency regarding the retailing and the compensation they award to their employees. The retailer should be willing to explain how they use the personal data they take from the customers. Adhering to the regulation will help save retailers from legal fines 4% of the business annual global turnover that might be the only profits the business (Cuadros, 2018).

Customers Approach

Aquascutum needs to change its approach towards the market. The retailer should target the current market which consists mainly of the youths. Also, the retail should not only depend on quality alone but also invest in good public relations with prominent figures like prime ministers or his associate. Engaging with such data serves as one of the most effective ways of marketing its products (Oxborrow, 2015). Customers will choose its product due to the assumption of 'quality' just because the prominent figures use the brand. It should have refocused its collections, offering more 'mix and match,' instead of high-priced coats, and reworked the signature plaid into creative contemporary designs.

Recommendations

Analyzing Aquascutum and UK's fashion retail industry triggers one's opinion to what the retailer can do to improve its performance. The business should start making business deals with foreign private retailers. The agreements should work in its favor like exporting on its behalf in case of severe Brexit effects like higher border tariffs. Due to the weak economic conditions and the tuff legal requirements, the retailer should employ workers temporarily. Temporary hiring saves on the costs of salaries and keeps the business safe from possible legal consequences that are rampant in the case of permanent criteria (Oxborrow, 2015). The brand should purpose an aspirational brand personality and use tactical marketing to promote it, build a range of accessories and even reach the younger population.

Conclusion

Aquascutum is one of the largest fashion retailers in the UK. However, some macro and microenvironment affect the performance of retail. Among the factors, Brexit deadlock and competitors are the major contributors to the performance of the retail. The retailer should thus make deals with foreign retailers for mutual benefit in case of expensive border tariffs. It should also change its approach to the market to increase its sales.

References

Black, S., De la Haye, A., Entwistle, J., Root, R., Rocamora, A., & Thomas, H. (Eds.). (2014). The handbook of fashion studies. A&C Black.

Chan, A. T., Ngai, E. W., & Moon, K. K. (2017). The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research, 259(2), 486-499. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0377221716309122

Cuadros, natalie. (2018). Bremaining in Vogue: The Impact of Brexit on the Fashion Industry. Am. U. Bus. L. Rev., 7, 129. Retrieved from https://heinonline.org/HOL/LandingPage?handle=hein.journals/aubulrw7&div=7&id=&page=

Oxborrow, L. (2015). Future scenarios in UK apparel supply chains: a disaggregative Delphi study (Doctoral dissertation, Nottingham Trent University). Retrieved from http://irep.ntu.ac.uk/id/eprint/27728/

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Aquascutum Retailing Report. (2022, Dec 17). Retrieved from https://proessays.net/essays/aquascutum-retailing-report

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