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Topshop IS REALLY A Trend Setting Merchant Marketing Essay

Topshop is a style setting UK-based international shop fashion brand. It is a much-loved brand amongst the feminine customers catering to womens apparels and products. The brand is known for its leading edge fashion at affordable price. Topshop products ranges from Collection category providing basic selection of product to Unique style providing custom made wear which is publicized at Lakme Fashion Week. Personal Shopping service provided at its flagship store in London is employed by famous movie star like Kate Moss, Katy Perry, Rihanna and Beyonce.

It is key brand of the Arcadia Group which also possesses other retail brands which include Burton, Wallis, BHS, Pass up Selfridge and Topman. Since its establishment in the past in 1964, Topshop has more than 300 stores over the UK and has international occurrence with 140 franchised stores across 37 countries which include Russia, Spain, Singapore, Sweden, Malaysia, Turkey, the UAE and the united states. Topshop Oxford Circus, a flagship Topshop store is the globe largest fashion store. The brand has its second greatest and first flagship store outside UK at Broadway, NY. Along using its in-store retail, it also functions online retail business through Topshop. com shipping to more than 100 countries all around the globe.

Sir Philip Greens, the billionaire owner of Britains Arcadia fashion empire aims to become global empire in three years. The recent strategic partnership with Leonard Green & Partners (LGP) because of its expansion in america and further collaboration to enter the unexplored Asian market with Laboratory Principle, taking Topshop to Hong Kong and supplying it an chance to enter into the worlds most populated country China is another milestone for the expansion of Topshop as a global brand.

Its ambitious international enlargement programme to include worlds biggest marketplaces is improbable without focusing on the growing Indian market in Asia. It'll be befitting Topshop to enter the Indian market. India, one of the youngest nations and a energetic retail market creates a distinctive environment for Topshops young and affordable fashion.

This research provides an perception of the strategy that may be opted by Topshop to enter the Indian market along with identifying the target group and ideal location for its store. Further, the Marketing Combine because of its success in the Indian market considering its competitors is determined and suggested.

International market selection India

Country selection is an essential facet of internationalisation because of its incompetency to enter into 192 nations anticipated to limited source of information constraints. It is essential to evaluate and prioritize the markets as not all market segments have the same market probable. (Alon, 2004). As Topshop has recently its presence in major developed countries, it'll be primarily beneficial to look into the growing Asian market in especially India.

A. T. Kearny in its 2012 Global Retail Development Index (GRDI) areas that the BRIC countries of Brazil, Russia, India, and China continue being the worlds major developing markets, appealing to global merchants and endowing them with new growth prospectus. As Topshop already has its presence in Brazil and Russia and has plans to open string of stores in China, it will be advantageous for the brand to further expand and enter in India.

India has a great potential market owing to its developing economy and favourable retail environment. Which has a 5th area in the GRDI, it has a market elegance of 31%, country threat of 66. 7% and overall GRDI rating of 60. 8 (see stand). This helps it be attractive to new entrants providing them with extension opportunity and promising returns.

India market is flourishing with a GDP growth rate of 6. 8% (World, Bank or investment company 2011) and is also the 4th most significant economy on earth in terms of purchasing electric power parity. The Indian clothing retail industry is valued at $9, 133. 5 million which grew by 10. 4% in 2011 and has a compound annual growth rate (CAG) of 9. 6% from 2007-11. The CAG for the period 2011-16 is expected to be around 6. 7%. With reference to the womens wear fragment, it makes up about about 39. 4% of the total garments retail industry in India which is a pre-requisite for Topshop. Apparel Retail in India.

Also, looking through the demographic point of view, India is the worlds second major populated country with an increase of than 1. 2 billion people and is one of the youngest countries on the globe with the median era of 26 years (CIA). Such market will be suitable for Topshop as it accords with its target segment comprising of young female fashion consumer.

Development continues to nurture India and widening urbanisation at an expected rate of 2. 4% is resulting in rapid transformation of the Indian consumer along with the demand for brands increasing greatly. Such energetic opportunity and fast growing market has drawn lots of global retail fashion brands to type in India such as M & S, wrangler, forever 21, Guess, Zara and recently opened Superdry

Looking at the above mentioned strong fundaments, Topshop should target and access the growing Indian retail market.

Entry Mode

International brands should consider lots of factors before selecting its access mode which include the market competition, prevailing business practises, and cultural challenges of the united states combined with the political, economical conditions and the government restrictions and plans (Yao Lu). The accessibility mode depends after the brands requisite of having a low control (exports) or high control (Wholly owned subsidiary) which will affect the degree of investment, control, dangers, resources and earnings included (Hill et al. , 1990).

Until January 2012, FDI rules in India for sole brand retail trading permitted foreign investors to truly have a maximum 51% stake in jv (JV) with a local partner. But regulation has now been relaxed to allow foreign investor to possess up to 100% stake.

Such amendment is no game changer for the foreign brand as JV and franchisee function still continues to be a favourable options. Christian Von Daniels, CEO, Vehicle Laack state governments that the industry still has some bottlenecks which is essential to provide an lndian partner credited to insufficient knowledge and skills of the marketplace. International brand Van Laack took three years to type in India as store location was a hindrance and lastly it joined through franchisee mode. (Times of India)

International fashion brands launched in India in 2010

Table 1. shows that major international brands are getting into the Indian market through partnership either in the form of JV or Franchise. The newest relationship was a franchise contract between SuperGroup and Reliance Brands releasing British fashion Superdry in India.

From the above rationale it'll be sensible for Topshop to enter in the Indian market in a relationship form. Topshop should enter in the India market in a jv collaboration (JV) with Trent Limited (Trent) insurance agencies a 51% stake in the collaboration shareholdings. Trent is a retail arm of the Tata Group, one of the very most respected business houses in India. It is engaged in working multi format shops and also has a jv with the Inditex group, thus functioning the Zara chain in India

Through this strategic Topshop - Trent JV, the processing facilities and connection with Trent in the Indian market can be combined with knowledge of the brand. This will likely also permit Topshop to conquer the government dependence on having essential sourcing of at least 30% of the value of product through small sectors. Therefore, with this relationship Topshop can reduce its risk of stepping into the Indian market, entail itself in the businesses and can develop and expand quickly in the flourishing Indian retail market.

Product Decision Topshop

Product is an important attribute of the marketing blend as without the merchandise nothing can be strategically put, priced or promoted. The crucial product strategies whether to standardise the product or go for product adaptation will determine the success of the company (booklet). Sherlock, J, & Reuvid, J (2005) declares that modification of the merchandise is important as the utmost successful products are customized to suit the mark market personal preferences and anticipations which varies in terms of likes, style, preferences, climatic conditions and other aesthetic features (publication)

Topshops products has a variety from Mainline, every day classic to the initial and artist wear fashion collection. Such range of products is well suited for the diversified Indian market which is inspired by the western fashion. Indian consumers prefer brands for the top quality fashion products, comfort fixtures and affordability. Along using its standard central products like tops, trousers, dresses, jackets and nightwear, they should also include different selection of accessories like belts, scarfs, totes and shoes which is also in development. Additionally it also needs to provide formal wear as the amount of Indian working woman has seen a significant growth because the nineties.

The product attributes like the Indian size specification and climatic conditions are different from the european countries. Like during summers, they ought to generate cotton or linen materials clothes and in winters clothes like sweatshirts, leather jackets or jackets have to be shelved.

The regional climatic condition is also important such as the northern region the demand for woollen wear is higher than the southern part where winters are light.

Consider the strong competition in the market; Topshop should constantly bring advancement in the merchandise line. In the fashion industry, the merchandise have shorter life routine due fast change in the fashion fads.





Extension Strategy





The industry has two cycles which is the spring - summer and the fall fall winter weather. As a fresh product is launched there may be high demand to try the latest fashion. Sufficient quantity of the merchandise should be available during peak season. But, the product matures quickly scheduled to move of preferences. On the saturation level it can sell its out-of-date stock at low priced prices usually by the end of season. It really is strategically very important to Topshop to present services frequently to avoid drop in its sales and stretch its life routine. As we can easily see that its competition Zara adapts quickly to the future fashion developments and launches around 11, 000 new items with stock changing of 2-3 times weekly when compared with other brands which is around 2000 to 4000 items. Thus, constant innovation in the product line up, offers us a healthier the life cycle. As Topshop manages internationally, it has extended product lifecycle i. e. conditions are other way around in various hemisphere.


Kotler says that among the list of 4 marketing mix; product, advertising and place implant the seed products of success; but price is the aspect which eventually reaps success (Kotler). Price is a competitive tool by which an organization positions itself on the market and differentiates its product from the competitors (Michael R. Czinkota).

Topshop pricing decision will determine its positioning in the Indian market. An enterprise has different charges strategies to be regarded as such as cost-based pricing approach or market-based pricing approach. Topshop should consider the rival factor as a major determinant for selecting its prices strategy as any changes in the prices of the rivals largely affects the marketplace show of the brand. Thus, Topshop should choose a market structured approach (justin paul e book).

Indian individuals are price traditional and have confidence in affordability. Price should indicate its recognized value. Some consumers understand value when the price is low while some may turn it away great deal of thought insufficient value. A balance between price and quality will be crucial (PDF). Topshop core strategy is to provide high fashion products at affordable prices.

The main competition of Topshop in the Indian market are Zara, Mango, M&S, Benetton and Gap. With similar concentrate on consumer, product and pricing strategies and placement of the brands, they make the attire market more extreme. If consumer needs are not attained especially for price, brand turning is relatively high. There are some factors which still make Topshop valuable to get customers assurance. They usually deliver medium cost range products as observed in diagram 2. The brand has differentiated itself as a fashion-led trendsetter using its popular lines like mainline, premium, and unique. With being really the only high street brand showing its product at London Fashion Week and dealing with Kate Moss and other designers, they have situated itself as a gap filler brand in between the traditional vendors and fashion brands (Delight London). Their target positions on the market are the customers who are prepared to spend reduced price for the latest fashion style including creator wear. Thus, its price displays the product quality and high fashion products it includes.


Distribution channel is the mean through which the products or services are made available to the finish users. Businesses can have immediate marketing route or indirect marketing channels comprising intermediaries like suppliers, wholesalers or distributers. (Philip kotler) Companies can gain competitive border based on the design of channel circulation they follow. Topshop must have a direct marketing route, wherein the brand will directly sell its products to the ultimate consumers with no any intermediary levels.

Topshop should initially focus on the two major metro towns of India i. e. Delhi and Mumbai. Delhi being the administrative centre and Mumbai being the financial capital of the country has certain advantage. Both the locations have large potential fashion-oriented purchasers. The population dress more contemporarily than customarily because they are subjected to the latest collection and know about the new fashion development. Furthermore, as the places tend to be more touristic established with frequent foreign vacationers from different countries, this is a value added profit for the brand.

The Indian retail situation is changing from the sole shops model to a more modernised retail composition with the introduction of the retail center concept. Shopping malls provides a new experience to the consumer offering shopping, entertainment and food under one roof. Indian malls consist of more high value and brand outlet stores (changingretailscenepdf). Ernst and young also expresses that shopping mall signifies a perfect format for international brands. Topshop should start its store at Palladium Shopping mall in Mumbai which really is a premier luxury destination for purchasers which contain major international brands like Gucci, Diesel, also its competition Zara and lately opened Superdry. It should consider the DLF Emporio shopping mall in Delhi which is another high end luxury mall.

Online shopping is another unique syndication channel for the business. Through this mean customer can compare the product and prices with its competitors and also provide a straightforward, private and convenient shopping experience. (fulltext pg18) Topshop can sell its product through internet retailing via its online website www. topshop. com. Through this mode it can also reach purchasers where its electric outlet store does not exist and also provide updates from it new products and sale offers online.

Promotion Fashion Marketing Communication

Promotion also called marketing communication, the 4th P of marketing blend is an integral element for attaining market for the brand. It is a tool by which company educates consumers about its products and creates its brand personal information. (Easey) John Fralin classifies promotional activities into above-the-line advertisement and below-the-line activities. Above the lines promotion utilizes media advertising to target large audience which includes television, radio, print, press or online press. Below the line uses media which it offers control which includes personal mailing or sales promotion. Topshop should use both these approaches to create a desire to have its product.

Topshop should have an official introduction party for its new store. A fashion ramp with some Bollywood celebrities on the runaway will add glamour to the show and also build a advertising fizz. By this, Topshop will have a grand release in India. Within the opening period, it should use extensive promotional strategy to lure its customers into its new store which might include free gifts and discount rates.

Visual merchandising can be an essential requirement of fashion campaign, wherein Topshop should consistently change its windowpane display. It's the attractive and glamorous shop home window that catches the eye of the onlooker and can attract them towards brand. It should advertise in magazines like Elle, Vogue or Femina to market their goods as its visitors are the concentrate on consumers of Topshop. On top of that, linking to Social websites like facebook is the simplest way for the brand to constantly engage with its customers. It should also use Direct Mail service by which it can post catalogue, notifications to its subscribed users and keep them modified about any new collection or sales advertising.

Furthermore, it will have seasonal advertising like summer sales or New Years sales. Also having discount rates during important celebrations like Diwali or Xmas can entice many shoppers as they are aspiring to make new purchases. An offseason stock clearance deal can compel shoppers to buy more.

Such promotional activities will help Topshop to build understanding and a desire to buy its products. Products which connect feelings and feelings gel well with the Indian consumers and develop brand loyalty. This will permit Topshop to develop a solid brand identification.


A comprehensive market examination was performed to get an information of the retail section in India which included secondary data options like publications, articles, records and literature. Through this research we tried to analyse the viability of Topshop to enter into the Indian fashion market, its appropriate method of its entry and the marketing combination it can adopt to successfully kick off in the united states.

The research confirmed that the Indian fashion market is growing at a phenomenon rate and that the income level and standard of residing in the country are rising. Also, people are venturing abroad and have become subjected to the latest fashion. That is developing a change in the flavour of the Indian consumers who are are more westernised and are actually preferring the new fashion and adopting the latest developments.

The Indian retail market circumstance is changing. While using latest shopping mall concept overtaking, we can easily see a transformation in the retail sector. The demand for fast fashion brands are rising, anticipated to which international brands are receiving attracted and coming into India to exploit such opportunities. Zara, Vero Moda, Jacks and Jones and Superdry are some of the style brands that contain recently joined the Indian market.

Due to lack of understanding of the Indian market, it is beneficial for Topshop to enter a joint venture contract to successfully establish itself. Along with the strong competition in the style industry, it should have planned store location with exceptional costs and promotional strategies to gain the customers confidence, thus improving brand devotion and gaining competitive advantages over its rivals.

The above research provides favourable chance for Topshop in the Indian fashion market. Hence, it will be recommendable for Topshop to get into the Indian market and exploit the prevailing opportunities.

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