Retail is refers to procedure in which an organisation sells goods and services according to consumers at a marketplace by using multiple and appropriate channels of distributions. Through this they able to earn profit in proper manner and also enlarge their market coverage. In retailing sector demand and needs of consumers get satisfied through effective supply chain (Kyllonen, 2013). For United Kingdom, retail industry plays an important role because by it they generate approx more than £ 39 billion. In UK every one person from 10 people working with retail industry and it is basically dominated by apparel or clothing sector such as H&M, Tesco, ZARA and many others. Now a day retail sector is coming up with innovative and creative strategies through which attract more and more customers. This report is based on analysis and evaluation of apparel retail sector, in respect of profession that I desire to performed is Marketing manger. While working on this profile I have to do various works such as product design, market analysis, customers retention, attracting customers, relationship development, developing marketing strategies and many more. Topics which are include in this report are existing issues and challenges which is face by retail sector. Along with this it into reflection of psychometric test which I conduct to know
Issues and challenges
Apparel or clothing industry is important for United Kingdom economic because by it they able to rise economy by approx £ 32 billion. In respective country peoples are more decline towards clothing or fashion industry due to which apparel retail industry able to generate high profit. But while conducting business in United Kingdom market, apparel retail industry go through various challenges and issues that will directly affecting to its profitability as well as sales (Carvalho and Rabechini, 2015). For solving or overcoming issues respective industry retailers has to develop appropriate strategies and plans. Some major issues which affect clothing retail industry are explain below:-
Challenge 1: Dynamic change in preference of customers in faction industry
According to the article given by Nicolas, it has been analysis that due to change in trends in fashion industry retail sectors, face various issues and challenges in meeting of demand of customers. It includes majorly six trends that retailers have to concern for offering a seamless shopping experience across all channels. Such as retail stores in UK get affected by online shopping sites which leads to closing of clothing retail stores. Like due to Zalando business of Amazon get affected. This is so because now customers are comparing online sites price and quality of products with stores. Along with this online clothing sites provide almost new and latest designs in every two three days, which attract more and more customers. Due to this clothing retail store in United Kingdom get affected or facing challenges. Along with this some other trends which is affect clothing retail industry are cross channel trade- according to this customers are more attracted towards online shopping due to which business of retail stores get affected. Secondly customers visit to retail stores what to get same experienced which they get through online site such as quality products, huge variety at low price. Moreover appealer company are more investing their budget in online sites due to which collection and ambiance of store get influenced badly (6 Trends That Are Changing Retail, 2019).
Challenge 2: Changing strategies according to change in customer experience and preference
According to Kanya, clothings or apparels retail industry of United Kingdom get affected due to change in preferences of customers. Now a days trends are changing and accordingly demand and preferences are changing due to which clothing retailers has to develop strategies as well as products accordingly. This will help in attracting customers on large ratio that leads to enhancement in profitability ratio. Along with this many big clothing retailers update its collection according to change in trends and season which create challenge to other retailer to update their collections accordingly. If they will not able to do so they can face reduction in profit as well as sales. So to overcome it clothing retail industry develop strategies accordingly as well as develop products with latest designs and trends which help them in attracting customers in effective manner (Sisson and Adams, 2013). It is necessary for clothing retail industry to change its collection according to change in trends and seasons. If they not do so they may face various issues like decrease in customers loyalty, profitability and market share. It is also major challenge for company to develop strategies and designs on regular basis because it is very difficult for manager to conduct changes in short time duration.
Challenge 3: Fluctuate in customers loyalty
Experience of a customers is a key factor which develop issues for clothing retail sector. This challenge may occur because clothing retailers are more focused in attracting more and more customers instead of retaining old one due to which they face reducing in sales and customers base. In United Kingdom there are variety of clothing retail stores who offer same range of products in almost similar price such as ZARA, H & M, Tesco, AND, ASDA and many more. So it become responsibilities of retailers to develop strategies and plans accordingly which directly leads to enhance in customers base and profitability ratio with increased market shares. Along with this for developing as well as maintaining customers loyalty and overcome respective issues, apparels retail company also need to maintain effective person relationship through various methods. Such as sending mail according to customers preference as well as need so that they get attracted towards retail company. Along with this they can also provide all detail regarding discounts, offer and new collection through messages or e- mail, this will help in encouraging customers to visit stores (6 Major Challenges in Retail Industry & How to Overcome Them, 2019).
Challenge 4: Retaining and engaging employees for a long time duration
According to Kanya, clothing retail industry is one of the sector where there is highest turnover ratio. For this industry, retaining as well as engaging staffs for long time duration is very difficult and challenging task because due to emergence of e commerce activities retailers face high labour turnover also because it impacts directly on their profitability ratio. This would them unable to get high return on investment due to which they fail to pay high incentives to workers. it leads to demotivate employees by not getting appropriate pay scale and that's why they move on to those companies that complete their desire. Here another such example can also be illustrated by presence by intense completions, in which competitive companies ready to provide high pay to high skilled and knowledgable employees. That leads to increase in employees turnover ratio because staff get more attracted towards those companies which provide high salary (Lippman and et.al., 2015). So to overcome this situation companies of clothing retail industry must engage employees in effective manner by providing training to them so that they feel connected towards the company. Along with this, company must also appraise and motivate them for conducting work. This is so if employees turnover ratio is high clothing retail industry not able to attain their goal as well as target in proper and effective manner.
Challenge 5: Finding appropriate technology for clothing retail industry
Appropriate technology help an organization in attaining their goal and target which leads to enhancement in profitability ratio and customers base. For this there are various technology developed at a marketplace according to business and industry that are offer at different price as well as benefits. So it is major challenge to adopt appropriate software which help clothing retail industry in developing and growing business in effective and appropriate manner. This is so because if they not adopt proper technology they may face issues like mismanagement of necessary data and information which affect decision making process of a retail company (Rao, 2014). Along with this they also not able to develop designs of products in effective and efficient manner. So it is responsibilities of marketing manager to conduct market analysis and identify proper software for them. That will be according to their requirement as well as their budget which leads to enhancement in profitability and customers base.
Evaluation and assessment of psychometric is consider as essential tool which help in identify strength and weakness of an individual that is significant for a business functions. So that I conduct some psychological test so that I can identify my strength as well as weakness that will influence my career in future as working as Marketing Manager post at a United Kingdom clothing retail industry. On the basis of outcome of Verbal Reasoning test my total score is 11 % which is consider as bad performance or score. So for becoming an effective Marketing manager I have to strongly focus on my second language which is English. This is so because when I will work on Marketing Manager position I have to contact with different peoples of diverse country or location. Hence it is necessary for me to develop my language in effective and efficient manner. Along with is according to my desire position strong English is necessary for conduct day to day activities in effective and appropriate manner because I also have to contact with my senior authority and other location colleagues regarding office work.
I also conduct my numerical reasoning test whose score is 6 % which is very bad and I need to work on it very strongly. This will also shows that I am also not good in non verbal communication. This means I have to improve my both verbal and non- verbal communication skills, if I want to develop my future or career as a Marketing manager at the United Kingdom clothing retail market. For this I can join some class or coaching related to improving my English as a second language and reasoning skills. Along with this I also conduct logical reasoning test which overall result is 18 % which is also not good, so that I also have to hardly work on it. This is so because strong logical reasoning is essential according to my desire profile, thus by it I am able to take appropriate decisions in all situation as well as condition.
I have also done work personality test to know my nature, strength and weaknesses. According to which I am not too emotional nor too practical I is between both of them that means on the basis of emotional nature mine is balanced. In respect of easy going or conscientious my nature lies between both of them but more decline towards easy going which means I am flexible and ready to adopt things in appropriate and effective manner. Moreover on the basis of conventional or openness nature my attitude is between both of them that refers to I have a balance between both nature, I can conduct work according to situation. In respect of self focused or peoples focused and overly or overly favourable my nature is between both of them which means I am flexible and I adopt any thing from both of them according to situation and conduction. At last when it come to introversion and extraversion, I am introvert which means I am more like to spend time alone.
By conducting all psychological test I able to know my strength and weakness on which I have to work so that I am able to become a appropriate Marketing Manager at clothing retail industry of United Kingdom.
From the above discussed point of it can be conclude as well as evaluate that retail industry face various issues and challenges which affect their business operations as well as functions. Such as change in customers loyalty, issues in retaining and engaging employees for long run, change strategies according to change in customers demand and need and many more. Through which clothing retail industry may face various issues such as decrease in profitability ratio, market shares and customers base. So it is consider as role of marketing manger to conduct market analysis on regular basis so that they get aware of need and demand of customers. That will help in developing products and services in effective as well as appropriate manner. For this clothing retail industry company adopt appropriate software according to their requirement and need along with its budget.
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