SUPERDRY LADIES' DRESSES SWOT Analysis and Recommendations as to What the Range Should Be in One Year’s Time
Superdry Ladies' Dresses SWOT
Superdry offers a range of women dresses which include skater cuts, bodycon and bandeau style dresses. The ranges of clothes offered under this category from jesery and ribbed material to luxe hand decorated sequinned dresses (Superdry, 2014). The strength of Superdry ladys dresses is that the brand image is strong. The second strength is that the range of dresses is not so trend focused hence it minimizes the risk of going out of fashion. The company also offers creative designs and diversification with products such as reverse loop zip dresses, Hepburn Havana dresses, swing out stripe dress and super sparkle mini dresses (Superdry, 2014).
The threats facing Superdry ladys dresses include steep competition from major stores such as Topshop, Abercrombie & Fitch, Hollister, and ASOS. The second threat includes the emergence of counterfeit dresses sold from copycats website especially from China. The opportunities in Superdry ladies dresses are that their loyal customers are likely to buy new products. In addition, some fashions such as Hepburn Havana dresses, swing out stripe dress and super sparkle mini dresses can fill gaps in the market because they may be customized to meet the need of the customers (Sandlin, 2013). The major weakness of Superdry ladies dresses is that a limited number of buyers around the country are aware of the dresses brands.
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SuperGroup PLC recorded an increase in the underlying operating profit of ?51.9m compared to 2012 which was ?42.7m. This shows that the company recorded an increase of 21.5% which compares to the overall growth of the company in revenue of 14.9%. The groups gross profit was ?210.0m compared to 2012 which was ?178.9m representing 17.4% growth. It is important to note that the group continues to increase its supplier base in order to capture the emerging market. During 2013 the number of suppliers grew to 79 compared to the previous year which stood at 72. SuperGroup is planning to add around 80,000 to 100,000 square feet during the 2014 fiscal year and the management has taken the initiative of identifying the location of the stores. The Superdry products success in the Group 20cult store was a result of rebranding such stores as Superdry. Increased online sales were key to the growth of company. The Competition and On-line Offers
Superdry faces major competition from key online players in the market such as Topshop, ASOS and Hollister. The fashion store is experiencing increased competition with its main competitors using Internet to support the existing business and at the same time generate additional sales. Topshop offers dresses which are relatively cheap compared to Superdry. All the four competitors operate online through catalogue and online sales. Superdry has positioned itself as a youth fashion brand with online offers focused on young buyers. ASOS is currently offering 25% off dresses and at the same time 25% off smart wear for men. The fashion store is also offering clearance sales of up to 75% off the normal price. ASOS is targeting youth in their twenty-something. Topshop is a major competitor having declared for youth fashion apparels. Superdry is facing an ?intense competition from Abercrombie & Fitch an American fashion company which is offering online exclusives for the youth from as low as $28 for Harper Cropped Tee dresses, Carissa Shine Top at $58 and Blake Maxi Dress priced at $68 which appeals to the youth. With a price range of between $18 and $100 Abercrombie & Fitch is offering the youth a value for their money. In addition Abercrombie & Fitch is offering free shipping on all orders over $100 up on purchase of their products.
Hollister is offering up to $75 for purchases of shop dude T-shirts and Shop Bettys dresses. Focused mainly on youth fashion outfits Hollister is a major online competitor of Superdry. With Betty fashions priced as low as $49.95 for La Piedra dresses and $39.95 for Mission Beach Bodycon Hollister appeals to many young people. Hollister is offering online exclusives for as low as $19.95 for Throwback Graphic T-shirt and $29.95 for Hollister Sport Tank the company will continue to appeal to youth therefore presenting a major competition against Superdry. Topshop has online offers for youth fashions with dresses ranging from as low as ?30 for Petite Crepe Tea Shift dresses, Colour Block Tunic dresses and chiffon High Neck Shift dresses among other dresses. On the other Superdry is offering elegant youth fashion dresses priced from as low as $60 to $320. For example Superdry is offering Lace Skater dress at $90 while Swingout Stripe dress is being sold at $80. With its New Shirimpton Top from Superdry priced at $69.99 the fashion designer expects a steep online competition from retailers such as Topshop who have appealing offers to the youth.
According to the research conducted by Mintel (2013), Primark is the most preferred clothing retailer in the youth fashion compared to other online retailers. It was noted that three fifths of under the age of 25 bought their clothes from Primark. Topshop was rated the second most preferred online retailer by buyers with ages ranging between 18 and 25 years old. Mintel (2013) asserts that Primark shoppers demonstrated high level of customer loyalty and buyers were more inclined to buy from the retailer. Topshop has also become popular for youth fashion among 15 to 17s with over two fifths buying their outfits from this online retailer. ASOS is a key competitor in the online shopping for youth fashion because 13% of their total online sales has been generated by the young people between 15 and 17 years old while 17% of their online sales generated from youth aged between 18 to 24 years old. According to Mintel (2013) online retail stores such as Hollister, Abercrombie & Fitch and Superdry are regarded as high priced retailers. They are therefore favoured by one fifth of the buyers between 15 and 17 years old. Range depth and width, price architecture, colours and sizes offered
Range depth of Superdry refers to the number of dresses in the dress product line while range width refers to the number of dress product lines Superdry offers such as Skater cuts, Bandeau and Bodycon Style dresses (Lamb & Joe Hair & McDaniel, 2011). Superdry offers dresses in a range of colours and sizes. The sizes include: extra extra small, extra small, small, medium, large and extra large. These sizes ensure that the companys target market segments are well taken care of for small children, youth and adults. Superdry offers dresses with a wide selection of colours which include beige, black, blue, brown, dark grey, green, grey, light grey, multi, navy, orange, pink, purple, red, white and yellow.
Recommendations of Product Range
Superdry should increase its product range of dresses with cheaper prices so as to compete more broadly in the industry. The product lines for Superdry should be expanded to include official dresses, causal dresses and dresses for junior misses. This implies that Superdry will have an extended product line to capture a wider market segment.
With an increased product line, Superdry will be able to compete effectively in the market. With an expanded ladies dresses product line to include official, causal dresses and dresses for junior misses, the company will position itself at a much stronger position because a shopper who purchases a certain item will probably purchase other items such as casual wears and shoes at better prices (Boone & Kurtz, 2011). An expanded product line will present more opportunities for the online fashion store and at the same time enhance its position in the market. Another way to add to the mix is to purchase product lines from other companies. Because the UK economy is likely to grow in one years time, a line extension will add individual offering that will appeal to various segments of market while being related to the existing product. The move will enable Superdry to enter the UKs growing fashion market.
The Support Needed to Make the Range a Success
No product line can be simply left alone to remain fixed in time certainly not if it is to remain a viable and profitable. Success means that the product is widely accepted by the target market as well as there is a possibility of a dramatic increase in the number of customers who purchase the new range of products (Rosenbloom, 2011). The success will be dependant upon the effectiveness of the channel members in carrying out Superdrys product strategies. Support means that Superdry will attempt to have consumers perceive products in a particular way relative to competitive ones. Support according to Rosenbloom (2011) will ensure that the product is positioned in consumers minds as an alternative to other products that they currently purchase from the online store. How the Range Sits
The new range of dresses which includes official dresses, causal dresses and dresses for junior misses sits well within the other elements of Superdrys positioning. This is because the new range of dresses will be positioned as an alternative to the existing product sold by the online retailer. It is important to note that the positioning will be tied to the Superdrys brand and therefore will offer as much satisfaction as the function of the other brand names offered by the retailer with more advanced physical outfit attributes (Rosenbloom, 2011). Fall-Back Positions
The company should set aside any consideration of the fairness of the fallback position and articulate the possible need for a fair bargain to compensate for unfair next best alternatives (Bowles, 2009). Pre-testing consumer acceptance becomes even more critical with a brand extension because several reputations are at stake. The Five Ss of Retail Operation
The five Ss retail operation details that shoppers attraction, retention and satisfaction are imperative to the survival of Superdry. With regard to stock it is important to note that having the right quantity and quality of the new product lines stock will ensure customer satisfaction. The new product line of dresses will be placed in the right spaces to entice customers. Superdry must display the new product ranges strategically. The third factor is the presence of support staff who will ensure that there is continued support for customers, suggest the right styles and clothes and engage customers in various fittings of the new product rangers. Systems will ensure to promote efficiency of the company in ordering and delivering the right products to the right customers without delays. Standards ensure that the new product ranges of dresses are within the right market positions and ensure that customers articulate the type of service they expect from Superdry.