Market Analysis
Industry Description The ecommerce industry is growing faster than ever. TJ Maxx needs to start focusing more on ecommerce not only to keep up with competition, but also to make sure they do well during weak economic periods. ecommerce, overall, tends to do very well during lackluster economic times. TJ Maxx will be able to cut costs more easily the more they expand their ecommerce business. Our business idea will allow them to expand their ecommerce as we will take over their website and delivery. TJX Companies’ three ecommerce sites accounts for only about 1.0% of the company’s total sales. However, the online channel is a key growth driver and TJX is taking initiatives to improve its online business. The ecommerce sales
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As mentioned in our presentation, a small survey we conducted showed us that the main reason why people do not buy clothing online is because they are unsure of the size and quality. This showed us that the probability of someone ordering a good will increase by a significant amount, significant enough to cause a large sales increase. The other problem people face with many other online clothing retailers is the inconvenience caused if they need to return a product. With our service, the customer does not pay the price for the product and has considerable amount of time to come to a decision as to whether or not to buy the product. This removes any remaining doubt in the customer’s mind and increases customer confidence levels.
Target Market Survey: Would You Be More Willing To Buy An Item Of Clothing If You Could Try It On
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While there are services similar to ours – such as try.com – when a customer shops online they are not choosing between services that allow them to try clothes on online. Our service is valued in the context of their total shopping experience, not as the end-all, or in other words the appeal of our product to them is not simply that they can try on clothes when shopping online, but that in trying on clothes when shopping online they can be more sure of as to whether or not the clothes will look or feel right, enhancing their total shopping experience. Therefore, in evaluating our impact on customers, our competitors will be viewed as other ecommerce websites (against us as the totality of TJX’s ecommerce and in particular how we enhance the value of
The growth of online business has grown enormously over the years. Cliptomania is a family operated and owned small e-business that primarily sells clip on earrings (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012, p. 308). Cliptomania early developments were very modest, and as such the company experienced copious strategic dilemmas. An initial strategic dilemma that the company encountered when establishing and building their new e-business undertaking was to create a website for the business operations and essentially to have it fully operable. The owners, Jim and Candy elected to hire a vendor to host the website and additionally utilize the IT systems resources of the vendor to sustain their business. At the very beginning they exploited the offerings of the Yahoo Store. However, continuing down this avenue of using the services of the Yahoo Store inevitably became too costly. By using the services and business offerings of a vendor made it convenient and effortless for Jim and Candy to start their e-business store. Unfortunately the couple did not have much in the way of professional help, and so they had to create and put together the website by themselves. Additionally they also had to deal with establishing their online credibility as many customers preferred to call in their orders just to talk with a real person before being comfortable enough to place their orders via the webpage.
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
With the reputation of an online experience that includes an “erratic nature of delivery time makes us nervous when buying online with a hard deadline,” Kohl 's nearly begs customers to come in and try on the merchandise, then buy somewhere else. Obviously, as in the case with JCPenny and Sears, Kohl 's must follow Target 's lead and immediately overhaul its online shopping experience to lock consumers into both the in-store and online loop of consumption and purchase. While revamping an online platform sounds easy, it is, obviously a difficult task . But one that must happen if Kohl 's is to usurp the JCPenny and sears customers while competing with
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
It is correct that their success years ago was shopping by catalog, times have changed and so has the regular consumer. “An increase in productivity results in economic growth because a larger number of goods and services are produced by a given labor force (Pride/Hughes/Kapoor. 2015)” They will see the benefit of gearing their focus to their online store, there is an open possibility of hiring less staff in their retail location. The amount of productivity in the average level of output per worker per hour. With technology continuing to grow and becoming part of a persons life on how they communicate and shop, JC Penny should invest in their online store. In todays society, online shopping is becoming more relevant. By focusing on their online store, they will the opportunity to expand their targeted consumer. There is currently a gap between the online store and the retail location where the customer journey is not seemingly
Toys R Us ventured into a partnership with Amazon.com to improve the e-commerce division of their business. Internet retailing was cutting into the profits and the market share of Toys R Us. This financial effect was the reason they the needed to improve and establish themselves in the Internet market. This Internet market was clearly the way the trend was going, as indicated by the growth of retailers such as eToys.com and SmarterKids.com. Toys R Us needed to establish itself in this market, since bricks and mortar retai...
Across the nation feelings are bruised, hearts are broken, and reputations are tarnished, as a result of the need to be accepted through the clothing that one wears. Clothing and apparel are designers’ ways of making consumers believe that they need a certain product to reach a level or sophistication, or have a certain sense of pride, or even belong in a certain group of people. Fashion is a growing industry that people use to present their characteristics and emotions through the...
The company can improve its channel strategy to enhance its current performance in one way. The company’s website is too reliant in the physical stores. The website has photos of the physical store ostensibly to help customers to connect with it. This idea seems well founded. However, the target market for any company that operates an online shopping system is not local. It transcends geographical boundaries. The company needs to consider how it can make the online shopping experience authentic and complete for customers who may never visit any of its physical stores. A website makes a company a global player. In this regard, the company needs to expand its channel strategy to take into account an expanded potential market. This shift in strategy will increase the sales the company makes.
Among them some customers are cost-conscious and they are affecting the environment of Zappos. These customers won’t affect Zappo’s business too much because this store has its feedback facility. If those customers have problems regarding price, quality or other issues, they gave positive as well as negative feedback to the website.The feedback shows that 99% of customers are happy with the service given by Zappos.Thus, cost-conscious customers are not affected much by the web store.
In addition, since more shoppers are loading up on online shopping style when they can not spent time to shop because of busy work. Asos, an online market leader in the online shopping industry, announced that its sales of maxi-dresses and festival wear helped its sales has rose by 54% during the first quarter this year (Jessup). From this point, fast fashion could consider the possibility of online business and gain a share of the market.
Aeropostale is a dying brand. It has always been a step below the other “A” brands, Abercrombie and American Eagle, however it was still very successful. But now, it has fallen even further behind in sales as the consumer, the Millennial Generation, wants to move away from “name brands” and into more affordable non-name brand clothing. Therefore, they’ve decided to rebrand and have released #AERONOW as their new sales pitch. Many Millennials have preconceptions about what the brand is like from previous experiences and aren’t sure about anything new from Aeropostale. Mia Cuccaro, a freshman at the University of Findlay and someone apt to wear similar clothing still says that she won’t shop at Aeropostale because “their clothing selection is too narrow. They only sell skinny jeans and the tops are all too similar, plus I don’t want “AERO” plastered across my chest.” Chase Fulton and Savana Floyd also believe that the brand can no longer be successful because the new line is “no different than any other clothing line” and that “it is already too late for them.”
The apparel industry is a really important industry in terms of investment, revenue and trade and employment globally. Within the industry there are short product life cycles, an immense product portfolio, unpredictable customer preferences and opaque supply chain processes. (valueline.com, 2013)
The Internet is rapidly becoming widespread and widely used as a tool for globalization across the world. As the Internet became more easily accessible by most people in the world, the web is bringing significant implications and changes to the way we live, including the way we shop. There is a rapid growth with e-commerce and moving businesses onto the web and retail success is no longer about stores and shopping centers. In developed countries, about two thirds of the population have access to the Internet making the option of online shopping is easily accessible to most people (Valerio). With the ease of shopping in your own home there are many benefits of doing your shopping online. Consumers can easily compare prices online, there is a larger range of products on the web, you can save time by having your shopping delivered right to your doorstep and it also overcomes physical barriers. Over the last decade online shopping has challenged and replaced the traditional means of physically going into shops as the digital world has provided customers with further convenience, flexibility and comfort from shopping from your own home.
Using real-time data can remove this possible risk. Fashion has become an evolutionary extension and amplification of formerly existing fashion.