MARKETING Rabna

MARKET ANALYSIS OF
UK’S APPAREL SECTOR
Rabna Shihath - 32034074

The UK clothing retail industry, which had
previously had modest development, was
severely affected by the COVID-19 pandemic
in 2020. The industry recovered and saw
extremely good growth of 12.4% in 2021 as
the COVID-19 pandemic's impacts subsided
(Shibboleth Authentication Request,n.d.)
The unemployment rate dropped as the

pandemic died down. Research
conducted in-house indicates that the
UK's unemployment rate droped to
4.5% in 2021. As a result, customers'
purchasing power increased and start
exploiting in new trends of fashion
In 2021, the UK clothes retail sector

generated $49.2 billion in total revenue.
2
Three major Macro Factors
Economic factor Social Factors Technology
 The UK has a mixed

 increased net migration (Net  Mobile banking
economy, The main economic
Migration to the UK, 2022)  Social Networks
factor affecting the UK is
uncertainty around Brexit,  Population Growth
 The European Free Trade  Minimum Wage

Association (EFTA), is
being abandoned
3
Micro Analysis
Suppliers Competitors Customers
 manufacturers  low prices

 choice within
 wholesalers  discounts
industry
 off price
 Brand loyalty
 demand for branded
price sensitivity –
products at cheaper price
lower income
4
Impact of macro environment
Consumers are receiving faster information from an increasing

number of sources, yet businesses are unable to change their product
lines rapidly enough to keep up (UK retailers struggle," 2015).
A significant portion of consumers in the UK frequently use social

media. Consumers' attitudes of fashion have changed, and they are
now more aware of trends because to rapid advancement and broad
visibility to fashion media on networks like Instagram. This has
strengthened their buying power.
Consumers expect shops to deliver more, but without spending more

("UK Retail," 2016). Retailers can distinguish their delivery options
to obtain a competitive advantage by utilising innovative delivery
solutions like next-day delivery, same-day delivery, and in-store
5
pickup.
outcome
 better quality
 new UK Global Tariff regime from
January 1, 2021 textile tariff lines
will drop to zero
 multi channel approach – both online
and shop sales
 rapid product innovation
 discounted offers
 customer feedback
 easy return
 CSR IN SUPPLIERS
6/22/20XX
John Lewis Product categories
2 business segments home garden

Waitrose and John
Lewis. electricals
furniture and lights

In FY2021, Waitrose
segment accounted for
apparels, shoes and
accessories
65.4% of the Total
revenue
beauty
John Lewis with
34.6%. gifts
sports and leisure.

6/22/20XX 7
Marketing mix of John Lewis to deliver
customer value
Product Pricing
John Lewis provides an unrivalled Since the beginning, their
array of services, from guidance on company has placed a premium
nursery design and personal styling on fair pricing.
to product assembly and competitive pricing strategy -
engineering support. The retail quality and value.
outlets provide a range of services regularly benchmarks products
as part of their marketing mix. pricing- monitor team to monitor
competitor price every day.
benefit to customers by getting
products at low price with good
quality.
Place and distribution Promotion & Advertising
 multi channel and different  innovative promotional strategies
distribution channels for especially on festivals and year end
customers seasons
 use of E-commerce which  advertisement campaign
include YouTube, Facebook and  implementing promotional tools
Twitter. like “joint promotion with other
 Smart phone application product/services”.
 50 stores across England
Market Sementation
10
John Lewis doesn't have a single
target market because they provide a
range of products to satisfy the needs
and preferences of their customers
(John Lewis, 2017). Because
"consumers differ greatly in their
unique brand selections," this is the
case (Hammond, Ehrenburg and
Goodhardt,1996, p.39).
built in customer feedback
expensive marketing campaign
retain loyal customers by branding,

hight quality and value perception
Pitch deck 11
Conclusion
Through a time of economic uncertainty and upheaval,
John Lewis has been able to expand successfully. Over an
extended period of time, it has been successful in
managing a sizable consumer base.
In addition to undertaking internal analysis, businesses

must also study their external business environment.
Companies' internal strengths and weaknesses as well as
their external business environment are both outlined in
their domestic and internal analyses.
References
1.National Minimum Wage and National Living Wage rates. (2015, August 27). GOV.UK. https://www.gov.uk/national-minimum-wage-rates
2. Net migration to the UK. (2022, December 20). Migration Observatory.
https://migrationobservatory.ox.ac.uk/resources/briefings/long-term-international-migration-flows-to-and-from-the-uk/
Shibboleth Authentication Request. (n.d.).
3. John Lewis. (2015) Product and Service. [Online] Available from: http://www.johnlewispartnership.co.uk/about/john-lewis.html
4..https://login.hallam.idm.oclc.org/login?qurl=https://advantage.marketline.com%2fAnalysis%2fViewasPDF%2funited-kingdom-apparel-retail-165946
5.Hammond., A.S.C. Ehrenberg, G.J. Goodhardt., (1996) ‘Market segmentation for competitive brands’, European Journal of Marketing, Vol. 30 Issue: 12, pp.39-49
6. UK Retail 2016 Disruption, uncertainty and strategic change. EY.com. Retrieved from UK Value Clothing Market 2016-2021 - sbwire.com. (n.d.)
6/22/20XX Pitch deck 13

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MARKETING Rabna

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MARKET ANALYSIS OF

UK’S APPAREL SECTOR

Rabna Shihath - 32034074

The unemployment rate dropped as the

In 2021, the UK clothes retail sector

Economic factor Social Factors Technology

 The UK has a mixed

 The European Free Trade  Minimum Wage

Suppliers Competitors Customers

 manufacturers  low prices

Consumers are receiving faster information from an increasing

A significant portion of consumers in the UK frequently use social

Consumers expect shops to deliver more, but without spending more

2 business segments home garden

furniture and lights

sports and leisure.

built in customer feedback

expensive marketing campaign

retain loyal customers by branding,

In addition to undertaking internal analysis, businesses

2. Net migration to the UK. (2022, December 20). Migration Observatory.

Shibboleth Authentication Request. (n.d.).

6/22/20XX Pitch deck 13

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