Many UK clothing brands like Hobbs, Marks & Spencer, Jane Norman and Sainsbury’s TU clothing range are repositioning to target different segment of customers in a bid to expand their outreach, providing vastly improved quality and designs to reverse falling sales and give customers stylish designs amidst competition from various fast fashion retailers. To entice a wider customer base, these UK retailers are bringing in new improved fashion ranges for A/W 2013, also focusing on innovative strategies, expansion plans and e-commerce.
Analysing the brands that have taken the bold step to rejuvenate their products so as to appeal to a wider customer base, it is interesting to note that all of them are eyeing global expansion and also upgrading their offerings. In some cases the retailers have altered their brand’s meaning so much that the before and after target audiences are completely different. Among the four major brands that have gone in for a makeover, Hobbs has transformed from classic clothing to young fashion-driven apparel, while M&S goes back to its basic ethos of quality and style and Jane Norman moves up the value ladder. Sainsbury’s is attempting to challenge the fast fashion craze by reintroducing ‘Tu’ as an option.
Hobbs: Refreshing new looks and approach
Hobbs, initiated as a high-end footwear brand, is today a name for trendy clothes, the turning point came when the retailer introduced a new fashion-driven clothing range targeting young customers in 2012, drawing the attention of the Duchess of Cambridge, who began sporting Hobbs clothing in a variety of formal outings. Led by Chairman Iain MacRitchie and Chief Executive Nicky Dulieu, Hobbs has spent around £ 3 million on developing the new product range after which the brand saw an 11 per cent increase in sales accounting to £125.1 million, including a 52 per cent rise in online sales.
To strengthen its product offering, the retailer introduced its ‘House Mark’ footwear collection and refreshed over 90 per cent of its clothing, footwear and accessories ranges with completely new designs. In the UK, Hobbs opened concept stores in Guildford and Bluewater in May 2013 while, international expansion remains on track as the retailer is prioritising expansion in China and also plans to open a store in Hong Kong. Hobbs has in addition, increased its spending on multichannel development since 2011, and increased the number of markets it ships to. The retailer is looking at overseas growth by opening websites in Germany, Australia and the US, which will be launched in A/W 2013.
“Online retailing is a ‘game changer’ for UK retailers looking to expand abroad because it allows them to test product popularity with customers in certain countries before opening stores,” says Iain MacRitchie. Moreover, the retailer is focusing on developing its standalone network and has increasingly been looking at larger stores to accommodate its expanding range.
Marks & Spencer: Spotlight on quality and style
M&S is refocusing its clothing strategy on the values that made the brand famous as it reasserts its leading position on quality and style with the launch of its forthcoming A/W collections, hopeful that these changes would improve the performance of its clothing business, which has suffered several quarters of declining sales. With an initial focus on exceptional quality for the new women’s wear collection, while maintaining prices for its customers, the retailer plans to exceed customer’s expectations in fabric, fit and finish.
To ensure its products are made to last, M&S has introduced a host of innovations such as the M&S cotton T-shirts, which have been upgraded to feature an exclusive STAYNEW™ finish which reduces pilling wash after wash, coats and jackets feature Ascolite® button technology which prevents buttons from falling off; whilst Insolia™ technology has been extended across footwear ranges to reduce pressure on the foot and improve comfort and stability. “We have recognized that the clothing business has problems, so appointed a new team to lead the division, and recently unveiled an autumn-winter range that won strong reviews because of its step-up in quality and style,” informs Marc Bolland, Chief Executive M&S. At the same time, M&S plans to open a new distribution warehouse in the Midlands for online orders and to design a new website that will launch next year.
Jane Norman: ‘Head to toe signature look’
Although the new Jane Norman A/W 2013 collection is under wraps, but the retailer is concentrating more on a ‘head to toe signature look’ instead of the usual ‘glitzy gypsy wedding-style dresses’ focusing on separates and denims. Though the prices of the ‘New Jane’ would largely remain the same but the quality of the products would be vastly improved. Edinburgh Woollen Mill (EWM) which acquired Jane Norman two years ago wants to make the brand more exclusive by reducing the number of stores on the high street, altering how shoppers view the chain and targeting a different clientele. However, experts warn that the retailer now targeting a totally different clientele, risks alienating its current ones, who possibly love the glitzy gypsy wedding-style dresses.
Presently, having around 20 stores in the Middle East, Philip Day, Chief Executive, EWM is also looking to expand Jane Norman internationally, with plans to enter China, Japan, South Korea and India in the next two years. “Jane Norman has the potential to be the next great British brand on the international market. Unlike Peacocks and other mass-market retailers, Jane Norman is a fashion brand and could be rolled out to a huge customer base across the globe,” he declares.
Sainsbury’s Tu: ‘Fashion in supermarkets’
As an area for potential growth, Sainsbury’s plans to re-launch the clothing brand Tu in September, as it tries its hands at fast fashion. The supermarket brand is the seventh biggest seller in clothing across the UK, posting sales of £ 680 million last year with a 15 per cent increase in sales. “It’s about fashion in supermarkets, not about supermarket fashion,” says James Brown, Head of Clothing, Sainsbury’s about re-launching ‘Tu’.
The new look range includes windbreaker in an on-trend rust shade, chic navy waffle-knit jumpers for men, 60s-style cocoon coat, leather riding boots for women, leather handbags and lambswool jumpers. The strong focus on quality and design has been created to inspire customers to “Live Their Style” and will be rolled out to 395 stores nationwide by this autumn.
The new range represents the single biggest investment in the development of Sainsbury’s fast-growing clothing business since the launch of Tu nearly a decade ago. In 2012, figures show that clothing sales in the UK grew by just under 3 per cent but the growth from the supermarket clothing ranges was more than twice, at 6.2 per cent.
Tu is also introducing store-in-store format which is similar to those found on fashion floors of a departmental store, complete with fitting rooms in the 161 stores that will stock the full design ranges. The supermarket chain will implement change of new designs into its store every six weeks, replicating the Zara success model.
