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The increase in online shopping has made the industry face a number of challenges. Competitionfrom online retailers and discount stores have forced retailers to reduce their prices in order to10
eliminate excess stock. Therefore, the industry has seen a decline in profit margins over the past few years. Competitionfrom internet based retailers is expected to increase further in the future [IBI16]. Boutique-basedretailers are fighting this threat by increasing their online presence by offering products andservices online. A constant growth in demographics of children aged under 15 is expected over the next fewyears as forecasted in the figure below. The number of families in Victoria is expected to increaseby 24% to 30% by 2026 [Tre04]. Therefore, this industry can expect further positive changes inthe next three to five years.[IBI16]5.0 Consumer trends and its effects on the business11
-Online shoppingWith technology developing, customers are moving towards online shopping, wherecustomers are able to compare prices and products online to find the right product at thebest value with free delivery to their home as well [IBI16]. Therefore, this has putsignificant pressure on retailers in the fashion industry. As online stores have low coststhan retail stores, they would struggle to compete in this market if they do not adoptaccordingly. -Consumer spendingConsumer spending has risen throughout the years. The amount spent by an individual isexpected to grow overtime as shown below [Tra171]. (Trading Economics, 2017)Expectations of price reductionConsumers are getting used to purchasing products at saleprices[IBI16]. Therefore, it is necessary to understandthischange in consumer behaviour andadapt accordingly to suittheirpreferences and to grow their market share.It is important for Mini US to consider these trends when entering the market to ensure asuccessful journey. Since consumers are focused on online purchasing, it is vital to create anonline site to offer products online from the start itself. Online presence is required on platformssuch as social media sites and online shopping sites to build brand awareness and get theproducts to the end consumer. As there is a constant rise in consumer spending over the years, the retailer has the possibility ofoffering the product towards a high-end consumer category. Also it is necessary to be aware that12
consumers also expect lower prices from time to time. Therefore, Mini US should be careful tonot overly price their products but also ensure that it competes in the high-end market. 6.0 Beyond the briefMini US’s marketing strategy should target the end consumer (children who wear the products)while its pricing strategy should consider the parents who purchase the products. They couldbuild their brand and improve the brand presence in the market by organising events such asfashion shows for kids where they could use the proceedings for social causes.