Arcadia Group and Indian apparel Industry and market
Dr. Lukman Aroean
Dr. Ke Rong
Unit: Managing Relationships and Networks
Msc International Business Management February 2012
The Business School, Bournemouth University
Arcadia Group Limited is a British company that owns nine of high street’s clothing brands. With over a century experience in the business, the group has over 2,500 stores in the UK, concessions in many UK department stores, and a number of territories in other countries (Arcadia Group 2012). India is one of interesting countries to invest for the last two decades because of a strong domestic demand and a growing middle class, a young population and a high return on investment (InvestIndia 2012). This report is divided into three parts. The first part is analysis and evaluation Arcadia’s resource base, networks and relationships. Second, the report will be clarified about Indian apparel market and industry. The last part is conclusion based on analysis and evaluation.
Arcadia’s resource base networks and relationships
1. Arcadia’s resource base, including both tangible and intangible resources Arcadia group employs and develops their resources through their activities and processes, which are either tangible or intangible and obtained externally from suppliers or internally generated (Stonehouse 2004). Tangible resources
● Physical resources
Arcadia group have owned clothing retailers over 2,500 stores in the UK. They also have over 500 territories in over 30 countries through franchise operations (Arcadia Group 2011). Manufacturing base is located in East Asia. However, the company aims to establish production plant in the UK in the future (Euromonitor 2011). ● Technological resources
All of Arcadia group’s stores provide online shopping and some stores gain higher sale revenue via online commercial than others. In addition, manufacturing and design school is established to play a role as a source of technological knowledge to develop a skills base and train young British talent (Euromonitor 2011). ● Human resources
Arcadia Group employs over 41,500 people with over 900 employees working in central services. Employees are trained, developed and assessed on core competencies. Due to diversity in the workplace, the employees are recognized to eliminate unlawful and unfair discrimination in recruitment and employment (Arcadia Group 2011). Intangible resources
● Informational resources
Arcadia group communicates to a wide range of national and regional newspapers, magazines, websites and TV stations. They promote new launches, collaborations and key messages via those media to gain positive exposure in the press (Arcadia Group 2011). ● Corporate images
Some of Arcadia’s brands are corporate with fashion icon to boost both images and sales. For example, Topshop’s collaboration with British fashion icon, Kate Moss, has significantly helped to boost sales since 2009 (Euromonitor 2011). Another example is that, in 2009, Evans’s collaboration with Beth Ditto of the indie rock band issued the Beth Ditto at Evans collection (Arcadia Group, 2011).
Arcadia Group established a manufacturing and design school to develop a skill of young British, which would include production managers, garment technologists and sample machinists (Euromonitor 2011). ● Organizational knowledge
Arcadia Group has nine fashion brands. To run smoothly businesses, there are more than 900 employees working in group function. They work across all brands and handle for providing a range of centralized services to the business (Arcadia Group 2011). ● Reputation
Arcadia brand was formed for over a century. They have a great number of stores both the UK and foreign countries and they continue to expand their territories in the near future. Their reputation captivates new graduates to join the companies, as a Times Top 100...