MarketLine Blog

Posts tagged to Online Retail

boohoo.com plc: Profits soar following successful social media strategy

MarketLine

In the 12 months to February 2017, boohoo.com has been highly successful, with sales soaring and pre-tax profits almost doubling. However, boohoo’s recent financial performance comes in stark contrast to the situation it faced following its IPO in 2014. In the 2014-15 financial year, the company was feeling the effects of unseasonably mild autumn weather and trading disruptions caused by Black Friday, leading to a profit warning being issued in January 2015. While revenue and profit were up for this financial year, these figures were lower than initial expectations. As… Read more

East meets West. The battle for supremacy in India’s e-commerce market

MarketLine

While China and the US currently dominate in terms of e-commerce spending, India is one of the world’s fastest growing internet markets. It is also the fastest growing country in the Asia Pacific region in the retail e-commerce space. The rapid pace of growth of e-commerce in India creates a huge potential opportunity and attracts not only local players but foreign e-commerce giants, like Amazon and Alibaba. The largest local players, Flipcart and Snapdeal, initially seen as the dark horses in this race and attracting serious investment, are now losing… Read more

Clothing retailer Gap’s expansion in India

MarketLine

Gap was founded in 1969 in San Francisco. The company’s products are sold under the Gap, Banana Republic, Old Navy, Piperlime, Athlete and Intermix brands. Gap has long been seen as the go- to- for young adults seeking affordable fashion. As explored in the MarketLine Case Study ‘The Gap, Inc. Strategies for a turnaround’ (Advantage subscribers click here to view the report or here for non-subscribers) the company has outlined a number of turnaround strategies including expansion in Asia, following volatile market growth in its domestic market for most of the… Read more

Did Phones 4U fail to pick up the signals?

MarketLine

On 15 September 2014, Phones 4u went into administration. The United Kingdom-based mobile phone retailer had more than 700 high street outlets and a workforce of nearly 5,600. However, when network operator EE announced that it was not going to extend a supply contract with the company, its business model became unworkable. Phones 4u started life as a wholesaler of cellphone handsets called Midland Mobile Phones, founded by entrpreneur John Caudwell in 1987. The Caudwell Group entered the cellphone retail market in 1996 under the Phones 4u banner. Phones 4u… Read more

Russian e-commerce market presents significant business opportunities for those able to overcome its challenges

MarketLine

With 84.4 million internet users and 27 million online shoppers Russia is already the largest online community in Europe and growing rapidly. With a skyrocketing number of Internet users, but a still underdeveloped commercial environment, the opportunity to build a successful online selling business in Russia is huge. The biggest growth areas are mostly in the remote regions, where growth is 50% higher than in central cities. Even amid a slowing economy, the country’s online shopping kept increasing at a double digit rate in 2013, making it the fastest expanding… Read more

Targeted products and male grooming to drive Avon’s revenues

MarketLine

Avon can use the increasing demand for targeted products (products specifically formulated and aimed at certain demographics) in the beauty industry to its advantage and to help drive the company’s revenues. The surge in consumer interest in natural personal care products around the globe has driven outstanding growth in this segment. According to MarketLine data, the global market for natural and organic beauty products was nearly $8bn in 2012, and is predicted to grow at a CAGR of 10% during 2012–17. The prime reason for the surge in the popularity… Read more

Avon’s expansion in emerging markets

MarketLine

Avon’s door to door sales strategy is key to its success and one which sets it apart from its rivals such as L’Oreal, Estee Lauder and Elizabeth Arden which sell products through department stores and specialty shops.  Door to door sales are particularly popular in Brazil, In fact leading Brazilian manufacturer of beauty and personal care products Natura decided to follow the success of Avon’s Brazilian operations and employed a door to door sales model. Research findings from MarketLine in 2012 found that Avon holds a larger market share than… Read more

Fashion in supermarkets not supermarket fashion

MarketLine

The UK apparel retail industry has experienced fluctuating levels of low growth in recent years which may potentially make it less attractive to new entrants. During a time of financial crisis and low disposable income, consumers are less likely to buy expensive designer wear. According to British national newspaper, the Telegraph, two-thirds of people reported living on less disposable income than last year (2012), and are trying to stretch out a low monthly expenditure budget of £192 ($304). Supermarkets have been able to establish themselves during the economic downturn by… Read more

The UK high street and the need for change

MarketLine

In recent years, the UK high street has become synonymous with decay as once thriving town and city centers struggle to attract shoppers. The rise of e-commerce, ‘showrooming’, and reduced consumer spending and confidence are significant factors in the decline. If they are to enjoy a fruitful future, many retailers must embrace change and adapt the way they operate to suit 21st Century consumer needs. In recent years, the UK high street has become synonymous with decay. According to a report from UK TV station Channel 4, 25,000 town center… Read more

Frito-Lay SunChips: When Sustainable Packaging Conflicts With Consumers’ Sensory Needs

MarketLine

Savory snack giant Frito-Lay re-launched its popular SunChips healthier snacking range in the US and Canada in plant-based, 100%-compostable packaging, but the noise created when the product was used led to a significant consumer backlash. As a result, the company has reverted to conventional packaging for most of its SunChips lines in the US, although it has retained the compostable packaging in Canada. This article examines how a lack of attention paid to the packaging’s sensory qualities, to consumers’ key needs from snack packaging, and to managing potential problems in… Read more

E3 2013: Sony gains upper hand over Microsoft

MarketLine

Microsoft Corporation (Microsoft) and Sony Corporation (Sony) took to the stage yesterday for their E3 2013 press conferences, with Microsoft focusing on exclusive games, and Sony focusing on the PlayStation 4 itself. In terms of strategy, Sony has opted for a value, gamer focused proposition, which gives it an advantage, while Microsoft’s console will retail at a higher price point, but will include a Kinect sensor. Online services will continue to see a greater focus in the next generation, but digital rights management (DRM) strategy may become the main differentiator… Read more

Craft Beers in the US & UK: How Mainstream Brewers can Benefit From the Trend Towards Craft Beers

MarketLine

Amid data showing that the craft beer sub-sector has posted strong growth in an otherwise dismal US beer category, brewer MillerCoors has pooled all its craft-style domestic and international brands into a new craft-focused division called Tenth and Blake. The UK real ale sub-sector is also showing positive growth in a poor overall environment. The success of craft beer has arisen as it dovetails with various important consumer trends: it fits with the general trend towards trading up; it capitalizes on desires to purchase authentic products; it goes with the… Read more

Gillette Fusion ProGlide Using Consumer-Focused Marketing to Instill Brand Confidence

MarketLine

In June 2010, Gillette launched its new Fusion ProGlide razor. Boasting seven new technological advances, the Fusion ProGlide claims to provide males with enhanced shaving performance and optimal comfort. Within 10 weeks of being launched, Gillette had sold 2.5 million Fusion ProGlide razors; exceeding sales achieved by Gillette Fusion in 2006 and becoming the world’s best selling razor. This article will examine how Gillette has evolved its marketing strategy to establish a more consumer-focused approach and how, in doing so, it has successfully instilled brand confidence among an increasingly skeptical… Read more

Inditex’s expansion in emerging markets

MarketLine

Industria de Diseno Textil SA (Inditex), founded in 1963 by Amancio Ortega Gaona, opened its first Zara shop in 1975 in A Coruna, Spain. The company is continuing to grow and has now become a leading player in international/ emerging markets. In 2012 new stores were opened in 64 markets, including the initial launches in five countries: Armenia, Bosnia-Herzegovina, Ecuador, Georgia and the Former Yugoslav Republic of Macedonia. Sales rose 16%, with Asia’s share of Inditex’s total revenues growing to 20% from 18%. Inditex’s international success has been driven by… Read more

How much are Superman’s glasses?

MarketLine

If bought online, they can come as cheap as $95 with a portion of the proceeds going to charity. Warby Parker, the eyewear company that sells prescription glasses and sunglasses almost exclusively online and at a relatively low cost, has created a new collection of plastic frames inspired by the upcoming superhero movie – Superman Man of Steel. The company, founded in 2010, has seen some impressive growth in the last couple of years. It has increased its headcount from four to 113 employees, beat its own yearly sales projections… Read more

Rustlers Hot Subs: The Successful Transfer of a Foodservice Concept to Retail

MarketLine

In September 2009, UK-based company Kepak Convenience Foods extended its Rustlers line of hot snacks to include a range of Rustlers Hot Subs microwaveable sandwiches. Sales over the first 12 months of the line’s launch exceeded £10m, accounting for around 10% of the UK’s retail hot snacks market. Thanks in no small part to the expansion of the Subway chain from 300 outlets in 2005 to 1,400 outlets by 2011, the UK fast food market has been reshaped: sandwiches are no longer seen solely as a lunchtime item for office… Read more

Fairy Liquid Using Evocative Marketing Techniques to Boost Product Sales

MarketLine

In 2010, Procter & Gamble’s (P&G’s) Fairy Liquid brand recorded particularly impressive growth rates in both the auto and hand dishwash product categories in the UK. The growth in sales has been attributed to a heritage marketing campaign designed to celebrate the 50th anniversary of the brand. This article analyzes how Fairy Liquid has successfully managed to introduce a nostalgia-based marketing campaign while also leveraging superior efficacy benefits compared to competitors to enhance value perceptions of the brand. The article also looks at how P&G plans to launch another evocative… Read more

Mentos -Turning Unexpected Online Attention to Your Advantage

MarketLine

In 2006, an online filmmaking duo called EepyBird posted a video featuring an explosive mixture of Diet Coke and Mentos candy. The video rapidly became immensely popular. Mentos’ manufacturer, Perfetti Van Melle, rapidly capitalized on this sudden fame to promote the candy brand, while Coca-Cola lagged behind in its online marketing efforts. Even at the time of the initial Mentos and Diet Coke video in 2006, it was clear that online viral marketing was a vital part of the marketer’s toolbox, and the basic rules have not changed since. If… Read more

Cadbury Maintaining Sustainability and Traditions in UK Chocolate Market

MarketLine

In 2009 Cadbury trialed a new packaging format for its Roses chocolates brand, replacing the standard 975g metal tin with a carton box pack. However, a poor sales performance resulted in the company reverting to the tin format for the 2010 Christmas season. This article analyzes the reasons behind Cadbury’s decision, and explores the hypothesis that consumers’ actions relating to sustainability may be at odds with their intentions when brands evoke strong emotions of tradition and nostalgia. This article examines the reasons behind Cadbury’s original packaging switch and subsequent reversal,… Read more

Inditex: A Trendsetter

MarketLine

Industria de Diseno Textil SA (Inditex) was founded in 1963 by Amancio Ortega Gaona. The group opened its first Zara shop in 1975 in A Coruna, Spain and has now become a renowned apparel retailer around the world. The company has successfully evolved its fashion lines and markets its range of products through eight sales formats: Zara, Bershka, Pull and Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque. According to MarketLine the global apparel retail industry is forecast to grow at a moderate rate representing a compound annual growth… Read more

Play.com to leave the UK market

MarketLine

Play.com, the online retailer owned by Rakuten, is closing its UK direct retail store business and became an online marketplace. From March 2013, the company will no longer sell directly to customers and will instead, employ a business model similar to Amazon and eBay, allowing its users to list their own items (e.g. DVDs, video games, and electronics), on its website for sale. The closure is a result of the closing of a tax loophole, which exempted items under £15 (around $24) in value being imported to the UK from… Read more