The increase in online shopping has made the industry face a number of

The increase in online shopping has made the industry

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The increase in online shopping has made the industry face a number of challenges. Competition from online retailers and discount stores have forced retailers to reduce their prices in order to 10
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eliminate excess stock. Therefore, the industry has seen a decline in profit margins over the past few years. Competition from internet based retailers is expected to increase further in the future [IBI16]. Boutique-based retailers are fighting this threat by increasing their online presence by offering products and services online. A constant growth in demographics of children aged under 15 is expected over the next few years as forecasted in the figure below. The number of families in Victoria is expected to increase by 24% to 30% by 2026 [Tre04]. Therefore, this industry can expect further positive changes in the next three to five years. [IBI16] 5.0 Consumer trends and its effects on the business 11
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- Online shopping With technology developing, customers are moving towards online shopping, where customers are able to compare prices and products online to find the right product at the best value with free delivery to their home as well [IBI16]. Therefore, this has put significant pressure on retailers in the fashion industry. As online stores have low costs than retail stores, they would struggle to compete in this market if they do not adopt accordingly. - Consumer spending Consumer spending has risen throughout the years. The amount spent by an individual is expected to grow overtime as shown below [Tra171]. (Trading Economics, 2017) Expectations of price reduction Consumers are getting used to purchasing products at sale prices [IBI16]. Therefore, it is necessary to understand this change in consumer behaviour and adapt accordingly to suit their preferences and to grow their market share. It is important for Mini US to consider these trends when entering the market to ensure a successful journey. Since consumers are focused on online purchasing, it is vital to create an online site to offer products online from the start itself. Online presence is required on platforms such as social media sites and online shopping sites to build brand awareness and get the products to the end consumer. As there is a constant rise in consumer spending over the years, the retailer has the possibility of offering the product towards a high-end consumer category. Also it is necessary to be aware that 12
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consumers also expect lower prices from time to time. Therefore, Mini US should be careful to not overly price their products but also ensure that it competes in the high-end market. 6.0 Beyond the brief Mini 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 could build their brand and improve the brand presence in the market by organising events such as fashion shows for kids where they could use the proceedings for social causes.
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