A Study on Zara

Chapter 1: Introduction

1.1 Overview and background of the research

With rise of globalisation, organisations get opportunity to expand their business in international market, more easily. It helps in enhancing customer base and developing high economy to run business successfully (Phau, Teah and Chuah, 2015). In context with companies dealing in fashion industry, expanding business at global level, not only provide benefits but also give various challenges. As when so many companies run their business on same marketplace, then it rises competition among them. In addition to this, getting a range of products on different-different price rates also impact on behaviour of customers. As they demand more from trendy and fashionable clothes that suits their personality from organisations. Therefore, to complete desires of targeted customers and exceed level of satisfaction, create various difficulties for such companies. In context with M&S, it is considered as one of the best fashion retailer industries in UK. It has opened more than 300 stores in 40 overseas locations to enhance its customer base. But with rise of globalisation, it faces various issues related to social attitude in fashion industry.

1.2 Research Aim, objectives and questions

In order to conduct a research in systematic manner, it is essential for researchers to formulate appropriate aims and objectives. This would help in monitoring the entire activities related to survey for obtaining higher outcomes (Kim and Ko, 2012). Therefore, in context with present research, aims and objectives related to concept of reward system are given as below:-

Research Aim: “To determine how international brands impact on social attitude in fashion industry. A study on M&S”

Research Objectives:

• To identify the effect of fashion industries on changing attitude of customers
• To ascertain the challenges faced by M&S due to changing behaviour of consumers in international retail market
• To determine strategies that need to be adopted by M&S to deal with challenges to stay competitive at fashion industry

Research Questions:

• How to identify the effect of fashion industries on changing attitude of customers?
• What are the challenges faced by M&S due to changing behaviour of consumers in international retail market ?
• Which strategies are needed to be adopted by M&S to deal with challenges to stay competitive at fashion industry?

1.3 Rationale of the research

The recent entry of various fashion brands in international marketplace, decreases sales of existing organisation and create numerous challenges as well. It includes changing demand of customers, bargaining power of both suppliers and consumers, threats of entry of new competitor and more. All these challenges impact on profitability and sales performance of organisations dealing in fashion industry (Kamal, Chu and Pedram, 2013). The main purpose of conducting this research is to identify how international brands influences social attitudes in fashion industry. It entails changing behaviour of customers due to emergence of international organisation. In addition to this, it also describes strategies that M&S can use to deal with such challenges.

Chapter 2: Literature Review

2.1 Effect of fashion industries on changing attitude of customers

As per article given by Kaisa Vehmas and et. al. (2019), it has identified that in fashion-industries, competition has become more intense. It is mainly increase due to fast-developing and affordable fashion which leads to change behaviour of customers also. People seek to get more trendy clothes and garments on reasonable rates to satisfy their needs. In addition to this, fast-fashion has become more popular as well as socially conscious movement, which shifts mindset of people from quantity to quality (Consumer attitude and communication in circular fashion, 2019). With emergence of organisations dealing in fashion industry, people concerns more on high-quality and fashionable trends of marketplace. In addition to this, as a result of fast fashion trend, customers are also discarding to higher volumes of textile waste. This would lead to reduce use of water, chemicals and energy in production of high quality of garments. Therefore, usage of wear and tear, non-removable stains turn textiles non-reusable. This type of products can be recycled or used as raw material.

2.2 Challenges faced by M&S due to changing behaviour of consumers

According to views and perception of Bertoli (2013), it has evaluated that changing behaviour of customers impact sustainability of organisations, in international market. As emergence of fashion industries at same marketplace impact hugely on perception and preference of customers. Therefore, it create various challenges for companies dealing in fashion industries. In context with M&S, getting a range of fashionable clothes on desired rates, move its targeted customers towards other organisations(Grayson and Hodges, 2017). So, this would lead to reduce customer base, decrease sales performance and more, which directly impacts on profitability and sustainability on business. It also arise issues related to attract new customers towards business as they want more trendy and fashionable clothes.

2.3 Strategies to deal with challenges to stay competitive at fashion industry

As per different perception and view points of Kim and et. al. (2012), it has analysed that to deal with challenges and changing behaviour of customers, M&S need to adopt effective strategies. It includes developing price strategies i.e. offer products on competitive price rates, promoting business through effective communication technologies etc. Therefore, to enhance sales performance, M&S should concern on adding more values in existing products. In addition to this, by using social media technology, it can develop effective relationship with national and international customers. This would help in getting their retention for longer period of time as well.