4.1
E X T E R N A L A N A LYS I S
4.2
INTERNAL ANALYSIS
A PEST analysis was conducted to examine the market environment to ensure the proposed rationale to expand Missguided was appropriate and attainable. A full outline can be found in appendix C.
A SWOT analysis has been produced to evaluate Missguided and the weaknesses and threats the company will need to manage for the purpose of the project, please refer to appendix D for further information.
Manchester generated an estimated £920 million in retail sales throughout 2013, the second highest revenue to London’s premier shopping district Oxford Street (Retail Vision, 2013). Tourism figures for the city reached more than 10.3 million for 2012, seeing the sector grow in value by £325 million throughout the same year (Knight Knox, 2013). Manchester has also amassed a student residence of over 85,000 and this demographic have contributed £20 billion to the UK economy every year (NUS, 2013) . These key points provide a strong justification for the launch of a flagship store in Manchester
The key strengths the brand have achieved have been the growth and success of the company over the past five years, receiving positive press, awards and interest from the media and it’s most influential celebrities such as Nicole Scherzinger.
A recent Mintel report (2013) highlighted that the women’s fashion market grew by 4% in 2012 to reach £20.7 billion as clothes remain high up on women’s spending priorities, lending the sector a degree of resilience in an overall tough economic climate. The economic downturn has encouraged many young adults to invest in fast fashion as it allows them to adopt the latest trends at a more affordable price than luxury or designer fashion retailers. Stores such as Missguided can capitalise on the growing trend for affordable throwaway fashion by reacting quickly to the changing market. Such news gives confidence in the store launch proposal and is positive news for Missguided.
The brand has a clear understanding of their target market which has enabled Missguided to gradually develop a strong and eye-catching brand identity. Their immersive use of social media and modern marketing communications are fundamental to the rapid growth of the fashion retailer worldwide, and have enabled Missguided to become a recognised label with a reputation for fashion forward, celebrity inspired clothing. Missguided embrace characteristics of creativity with its innovative website design embedded with bright colours, moving graphics and social content, which is an echo of the brand’s on-trend product selection. Unlike other competitors who have not fully engaged with this medium, the website is updated daily to communicate with consumers. Missguided must guarantee it translates a sense of community by promoting the brand identity and values clearly to establish interest with new consumers, and encourage previous customers to visit the flagship store. A retail setting will also provide consumers the opportunity to try on and feel the quality of a product before they purchase which has discouraged many traditional shoppers from purchasing online before. It also eliminates waiting time for delivery, and will allow consumers to purchase a garment they see online, and wear it the same day. The opening of a physical outlet gives Missguided the opportunity to connect with consumers on a personal level to build loyalty and trust. It also allows the brand to develop a multichannel environment through its online platform, furthermore enabling Missguided to build a strong brand presence with clear messages and values. Additionally, the flagship store will provide Missguided with a convenient setting to maintain and establish a creative, fun and fashionable experience that is the ethos of the brand. The store space will generate publicity and interest, as it will not only provide a location for press events but showcase a physical component of the brand through in-store visuals and window displays (Shopworks, 2012).
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