Retail Management
Retail Management
UNIVERSITY OF WESTMINSTER
Retail Management
[4MBS 662]
04 April
TAHIR ABU 11741828
MARIETA DEMINGER 11995986
WEN YI HUNG 11318961
POLLYNE MORESCHI 12099203
MARKER: Zena Lutrin
Word Count:
Target market
As far as specialist shoe retailers are concerned, here is a market being attacked on all fronts. Low barriers to entry have seen a rapid rise in competitors that outshine in terms of both price and styling. Consumers now expect to buy footwear thats readily available at low prices and being fashionable. According to Mintel it has found that low priced shoes have now started to compromise the comfort of the shoe, and there has inevitably been a negative reaction by consumers, which of course means that they prefer quality over quantity. This may lead to a route back into the market for new businesses.
The market leader in the footwear industry is Clarks along with shoe zone and Dune, there are non-specialists such as M&S and department stores who also sell footwear, but in recent years they have been losing customers due to stiff competition from companies such as JD sports, Sports direct, new look, Primark and internet specialists, the main aspect of these companies is that they are able to strengthen their hold on the ‘young market. Competition in the industry is strong; there are a number of established players in the shoe industry with established market positions, brands and reputations.
For about two thirds of the UK the most important thing they look for in any shoe would be the comfort feature. There is bias towards the elderly consumers in this group as they are usually the group that seek the comfort aspect. Around a third of the people find the most important aspect is the style of the shoe. Shoe lovers are a smaller proportion which makes up around 20%, but they are the most frequent buyers of shoes therefore retailers consider them the most important. Over a quarter of all consumers only buy shoes to replace ones that are worn out. Those who are purely price led represent a much smaller proportion, around 11%. Of more interest to shoe retailers are the 23% who shop around for the right style and fit.
The focus for our store will be to aim at capturing the younger market, consumers who fall in the age category of 18 to 35. Our primary target is female consumers as they are the highest spenders in the UK retail outlets when buying footwear.
Retail Sales of Footwear by Gender
Female (£ Millions)
2,700
3,000
3,300
3,525
Male (£ Millions)
1,625
1,825
2,000
2,175
Children (£ Millions)
1,050
1,138
1,220
1,321
Total (£ Millions)
5,375
5,963
6,520
7,021
The reason we have selected woman aged between 18 and 35 as the target market is based on the fact that our audience will be young professionals with disposable income, also students who are fashion conscious who like seeking trendy styles and have student loans or part time jobs to be able to afford our range of footwear. We will also be targeting married woman in professional careers. Our shoes will range from anything between £60 and £100. Although compared to a lot of the competitors this may seem more expensive, it is however the quality aspects of the shoe that we want consumers to enjoy.
It can clearly be seen that woman spend a lot more on shoes compared to men, for most women price is of little concern women are astute in the separation they make between every day, occasional and special moment wear.
Everyday
The cost of an average pair of womens shoe in the UK in 2010 was £66, this type of shoe are the mainstay in the womens footwear sector. They offer a humble design and comfort is the main feature. These types of shoes can last anything up to 18 months
Occasional
The occasional shoe can cost anything up to £150. This type of shoe is usually a top brand/designer; distinctions can be made from everyday shoes.
Special moment
These are not the simple shoes. They are devastatingly powerful fashion statements that make the wearer immediately