The market research conducted on Marks & Spencer (M&S) was specifically targeted at their clothing department which has in recent years been struggling despite new brands and a re-branding being developed. The key problems that need to be addressed are the corporate image, which whilst being in high regard with the population, is actually considered unfashionable. This means M&S are failing to attract the younger crowds. To attract the youth market it is important to not only make the image of the company more fashionable but also their products within the clothing range.
Marks & Spencer’s is one of the UK’s leading retailers, with 15 million people visiting each week. Findings from this report suggest they alone account for almost 15% of the clothing sales in the U.K. Their clothing sector represents 49.5% of their UK retail turnover; therefore poor performance in this area will have a negative effect on their profit as a whole.
It is notable that the U.K clothing retail market is highly youth orientated and a decline in this sector can have a major affect on all clothing retailers. Marks and Spencer’s fell victim to consumer trends during the late 1990′s, when Britain’s increasingly affluent shoppers began to demand more in terms of fashion, while value orientated shoppers turned to low price retailers such as Matalan. Foreign entrants such as H&M and Zara have also heated up the competition. The problems started in 1998 with a 23% drop in profits and by 2001 Marks and Spencer was no longer even in the Financial Times list of the top 500 global companies
It is apparent that the M&S brand particularly the clothing sector must be made more fashionable to attract the younger market and in turn the largest sector of the UK clothing retail market. M&S have already implemented a lot of changes to stem the poor performance in the last 5 years, it is important they now build on this to ensure they reach the level of success they were at 10 years ago. People would shop at M&S more if they had a reason to be drawn in to the store; this is something that should be addressed; whether it be a new national marketing campaign or simple point of sale window displays.
Marks and Spencer traditionally started off as a clothing retailer on a policy of only selling British-made goods and sold the goods under the “St Michael” brand. They are the largest clothing retailer in the U.K by turnover and by 1997 became the first U.K retailer to make a profit before tax of over 1 billion. To continue these achievements maybe this should change to accommodate the modern market. Marks and Spencer has now branched out to other areas including home furnishings and quite notably food. The home furnishings and food sector have not been as successful as the clothing line which represents 49.5% of the turnover.
It is apparent the younger market does not shop at Marks & Spencer generally and with the youth market being the biggest sector of the population who spend on clothing in the UK and that 49.5% of Marks and Spencer’s turnover is from their clothing sector it is clear their clothing sector must be addressed.
Below bullet pointed are my recommendations:
o Market the Marks and Spencer brand to be fashionable; do not completely re-brand as M&S are still well respected. With a more fashionable corporate image, it should draw a new cliental in the youth market.
o Develop new more fashionable clothing ranges, specifically targeted at the youth market; sell these alongside the other popular ranges that sell with the mature market.
o Continue the use of celebrities and new brands of clothing to ensure they are constantly marketing in the right way. The hope is that deals like this would encourage a younger market to at least browse in the store.
o The female market seem more comfortable shopping with M&S for their underwear and therefore it is important to not lose this market and make sure the underwear range is diverse with “sexy” underwear, fashionable underwear and comfortable underwear.
o A brand new national campaign is needed urgently to put M&S back in the publics mind, along with experts brought in to help with their window displays and point of sale display to try and draw people off the high street and shop with M&S.
Fashion Clothing Collectables
corporate image, global companies, market research, retail turnover