French Connection
1. Introduction
Fashion retail market has few barriers to entry and has minor or no opportunity to protect unique propositions. Participants in the industry usually quickly imitate trends and styles within the market. In addition, price competition in the market is drastic. This paper took French Connection as an example to evaluate its situation in the competition and give out suggestions.
French Connection is an UK-based fashion retailer found by Stephen Marks in 1972. Positioning in the upper end of the mass markets, French Connection targets customers typically aged at 18-35. At present, it designs, produces and distributes branded fashion products covering apparel, beauty, accessories and footwear to more than 50 countries. However, French Connection has been reported losses for over a five-year period. The 2011 annual report of the company pointed out that “Currently within the fashion high street retail market, French connection own on overall market share of 0.2% being dominated by the likes retailers Zara, Topshop and Next.”
To assess the company, this paper analyzed external and internal factors by utilizing PESTEL and VRIO framework and applied the result to SWOT analysis. Moreover, short-term and long-term strategies as well as an action plan were provided based on the assessment.
2. External and internal analysis
2.1 PESTLE analysis
Figure 1 PESTLE analysis of French Connection
PESTEL analysis is used to evaluate external environment that French Connection is facing with, and to demonstrate what opportunities and threats are there.
In politics, in October 2012, Department for Business and Innovation& Skills published BIS Retail Strategy, saying that government will work to liberalize overseas retail markets to open opportunities for UK companies; In March 2012, Department for Communities and Local Government published a document to highlight the important of high street and decided to invest more on high street.
Fashion retail market has few barriers to entry and has minor or no opportunity to protect unique propositions. Participants in the industry usually quickly imitate trends and styles within the market. In addition, price competition in the market is drastic. This paper took French Connection as an example to evaluate its situation in the competition and give out suggestions.
French Connection is an UK-based fashion retailer found by Stephen Marks in 1972. Positioning in the upper end of the mass markets, French Connection targets customers typically aged at 18-35. At present, it designs, produces and distributes branded fashion products covering apparel, beauty, accessories and footwear to more than 50 countries. However, French Connection has been reported losses for over a five-year period. The 2011 annual report of the company pointed out that “Currently within the fashion high street retail market, French connection own on overall market share of 0.2% being dominated by the likes retailers Zara, Topshop and Next.”
To assess the company, this paper analyzed external and internal factors by utilizing PESTEL and VRIO framework and applied the result to SWOT analysis. Moreover, short-term and long-term strategies as well as an action plan were provided based on the assessment.
2. External and internal analysis
2.1 PESTLE analysis
Figure 1 PESTLE analysis of French Connection
PESTEL analysis is used to evaluate external environment that French Connection is facing with, and to demonstrate what opportunities and threats are there.
In politics, in October 2012, Department for Business and Innovation& Skills published BIS Retail Strategy, saying that government will work to liberalize overseas retail markets to open opportunities for UK companies; In March 2012, Department for Communities and Local Government published a document to highlight the important of high street and decided to invest more on high street.