This blog is written to present and show how industry Analysis is done for Ted Baker who belongs to Fashion industry by our Finance assignment help experts. Lets understand the same using examples:
Ted Baker is a global lifestyle brand headquartered in London. It offers a range of products likes Menswear, Womenswear, Fragrance, and Skinwear, Footwear, Watches, Sleepwear and lingerie, Neckwear. It operates through three channels of distribution – retail, wholesale and licensing across Europe, North America, Middle-East, Asia and Australasia. Ted Baker is famous for quirky and commercial fashion offering, high-quality design detailing and distinctive colour and pattern. As of Jan 2019, 560 retail and concessional stores comprised of 201 stores in the UK, 122 in the UK, 130 in North America, 98 in the Middle East, Africa and Asia and 9 in Australasia. Ted Baker has total brand sales of £ 617.4M.
The primary customers for Ted Baker are aged between 25 to 45 years consumers interested in high –end British clothing. The primary competitors for Ted Baker are Oliver Spencer, Pau Smith, Top Men, Dorothy Perkins, etc. With a global strategy of expansion across both established and newer markets, it has led to competition from some of the major global fashion brands such as H&M, Zara, etc.
Industry landscape of fashion industry
The fashion industry provides opportunity in the form of newer markets, latest technologies and shifting consumer needs which also serve as a risk (Succeeding in tomorrow’s Global Fashion Market 2014). Fashion is inherently dependent on policies and politics surrounding the market. With the shift in axes of global trade because of the surge in commerce in global emerging markets, the fashion industry needs to realign their strategy to their interest. Mckinsey Global Fashion Index has a forecast of 3.5 to 4.5 percent growth rate below 2018 forecasts indicating a tough year ahead .
Few are the drivers leading the change in fashion industry (The Changing Landscape of the Fashion Industry 2014) as per our Finance experts.
- Consumer demand becoming more sophisticated – As consumer is becoming more knowledgeable and expectations of consumer are rising, company has to be more innovative and relevant in the industry.
This pushes company to gain more knowledge of every single customer, their shopping behaviour, profiling and preferences.
- Faster fashion cycles – The rate of ideation, adoption, peak in popularity and fall out of fashion is becoming increasingly rapid. Fashion cycle in one particular season is becoming more and more.
Fashion Industry has been a volatile one and this trend pushes company to sync their supply and demand. They need tools to monitor the demand and accordingly their product preferences.
- Consumer-centric supply chain – Fashion need to effectively sync their supply-chain, agility and predictive analysis across their value chain to provide the consumer with their preferences real-time.
- Personalization and Analytics – Understanding the behaviour pattern of how current customers and potential customers can help company unearth valuable inputs. Capturing the digital footprints and managing those data can help the company to develop newer tactics will drive companies to new growth strategies.
- Cloud agility – To achieve higher level of productivity in today’s world, companies must adapt and capitalize on shifts in market. Leveraging the power and agility of database and analytics can help companies quickly reconfigure business processes across globe.
The lack of clarity on Brexit has led to the fashion industry in the state of chaos with industry needing more clarity on import and export laws, employment laws and how to cope with any backlogs. The competitive discount across retail segments, consumer uncertainty, and unseasonable weather added further problems to the fashion industry.