By: Linda Li

HISTORY/BACKGROUND

TOPSHOP has developed from its humble basement of department store to an icon of British style. It is a brand that is beloved by students and celebrities alike. Nowadays, Topshop’s fashion chain has 440 stores across the world, with 300 in the UK alone, and ships to over 100 different countries. Topshop offers student discounts, gift cards and sprees, Topshop cards, personal shopping, mobile app and site, and connects with is customers through various social media platforms.

RETAIL CHANNEL & STORE TYPE

Topshop is a multi-channel retailer that embraces retail, e-commerce, m-commerce, and s-commerce all together.

Topshop is also the best Omni-channel fashion retailer as well. Besides Harvey Nichols, Topshop is not only the best “in store” operator, but also has the top mobile offer.

Communicates and interacts with its target market through bricks-n-mortar stores, website (www.topshop.com), various social medias, and its exclusive mobile app.

TARGET MARKET Topshop’s typical target customers are primarily young, trendy, cool males

and females in their 20’s and early 30’s that are always looking for the hottest trends and fashionable forward products at reasonable prices. They are young individuals (females and males) who are cool and live enthusiastic lives. Within the targeted female customers, Topshop offers clothing sizes both for women who are over 5 feet 7 inches or under 5 feet 3 inches, and maternity but still wants to be stylish.

MERCHANDISE/PRICING

The major category of merchandises Topshop carry is clothing, and it is a private label brand. All clothes are produced for Topshop exclusively; with its main distribution center is in London, England.

Topshop has broad range of merchandises with the deepest assortment in its major category—clothing.

The brand offers Tall and Petite sizes that are cut specifically for girls who are 5’7” and over or 5’3” and under. Besides clothing for both sexes, Topshop also carries shoes, bags and accessories, and beauty products.

FLAGSHIP STORE- The store on Oxford Street, London England was Topshop’s first

store and its first flagship store. - Oxford Street consists of around 300 retail stores so there is a

high density of their competitors. - This street is a major road in the city of Westminster, and it is

Europe’s busiest shopping street with around half a million visitors daily.

FINANCIAL INFORMATION

NEW IDEAS & SWOT ANALYSIS

In terms of new ideas and possible innovations in the future for Topshop, they could start a new clothing collection for baby; and can include stylish matching outfits for baby boys and girls with their moms and dads. Essentially, Topshop could try and expand their target market and their clothing lines. These innovative changes will attract new customers but also keep the continuous feeling of freshness in their regular customers with the merchandises

STRENGTH1. Majority of Topshop’s merchandises hit the

trendiest styles at affordable prices.2. Great accessibility (stores all over the

country) and availability (stock). 3. Broad variety and deep assortment of

merchandises offered4. Good store atmosphere, space, design, and

additional customer services.5. Topshop is an established brand image and

has its market position.6. Competitive advantage of having over 300

stores in UK and 100 overseas.7. Work with charity such as PETA, Breast

Cancer, TRAID & Starlight; which shows a strong brand image and establishes a trustful relationship with its stakeholders.

8. Topshop has won numerous awards and earned the recognition as a High Street Retailer in the world.

9. It is a multichannel retail store, which has good communications with customers.

10.Offer student discounts.11.Topshop explores the brand by combining

media culture and celebrities to produce products.

WEAKNESSES1. High cost in management due to the difficulty

from managing numerous lines of products, big store space, and big number of employees

2. Great customer services might become difficult to maintain due to numerous merchandises and shifting more focus on quantity and not quality.

3. Store presentation (tidiness and organization of the store) becomes hard to maintain from reason above.

4. The accessibility may take away the uniqueness and exclusivity in styles.

5. Average quality in merchandises.6. Some ideas/ details of fashion trends come

from luxury brands.7. Not enough detail and sizes for accessories on

web for online shoppers.8. Cannot offer personal cares in such big stores

so it becomes completely self-service.9. Stores can become overwhelming when

numerous people ask an employee on finding a size they need.

 

OPPORTUNITIES1. Start to target younger consumers

(the very fashion-cautious group), will spend on fashion more regularly.

2. Establish an association with celebrities to the brand

3. Increase its current international expansion to generate more profit (especially China, countries in Asia).

4. Charity work could provide opportunities to target a greater range of potential customers.

5. Use world renowned models to increase the brand’s popularity and strength, and expand its recognition across the globe.

6. Increase the number of countries Topshop currently ships to so more customers can shop by Internet without visiting a store.

7. Topshop is at a good stage for some new fashion designers to contribute their designs.

8. Could have more “exclusive products” to attract more attention from the market.15

THREATS1. Be careful of the strong competitors:

H&M, the Inditex group, and the GAP. 2. Competitions are coming from new

entered foreign brands, which offer fast fashion styles at even more affordable prices.

3. Overseas location decisions, legal policies and government; must find good shop locations to expand brand image.

4. Many other high street retailers have Warehouses such as ZARA, OASIS.

5. Should focus more on oversea markets

6. Celebrities might have negative impacts on the brand image (Kate Moss addictions).

7. Topshop should find ways to distinguish itself apart from all other retailers at similar levels.

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Topshop. (n.d.). Retrieved Jan. 23, 2016 http://www.topshop.com/en/tsuk/category/about-us-80/home?geoip=noredirect Aikat, Debashis "Deb" "TRADITIONAL AND MODERN MEDIA." Encyclopedia of Life Support Systems (EOLSS) 1: 1-4. Web. 3 Feb. 2016. "Our Services." TOPSHOP. Web. 4 Feb. 2016. <http://us.topshop.com/en/tsus/category/about-us-70257/home?

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