The Emergence of Retail Industries

Question: Write an essay on the emergence of retail industries. Answer: In this report, the emergence of retail industries in Australia is discussed. The importance and precise analysis of fashion and trend and its benefits have been described. The retail companies have been discussed. The method of operation in Australia is in the research. Cultural background, behavioral tendencies of Australian has been analyzed thoroughly. Problem areas in the industry have taken into account. At the end recommendations have been given. They are needed to be implemented. From the findings, it has been analyzed that Billabong Retail should invest in modern techniques. They should cut down their cost slightly. They need to give priority to the clients first. Another recommendation is to give executives proper training programming and upgrade them every six months. Key finding from the report says Billabong Retail is currently a leading brand. It is ranked fourth in retail industry for last five years. They are planning their international reach by making branch in Ten Oceania States. Company Brief Billabong International is a retail company in Australia. They are operating since 1973. Billabong has its headquarters in Queensland. Neil Fiske is their CEO. They have a workforce of nearly six thousand. Billabong has collected revenue of A$ 1.34 billion as of 2013. Zipper and Element are the two most popular brands of Billabong. They operate in lifestyle section in the Australian market (Neville 2013). In this article, Billabong Retail of Australia will be discussed. Australians love their cloths. They are one of the global leaders in retail industry. Even in garments, they are one of the best states in Australasian zone. They are a powerhouse in supermarket and hypermarket in Oceania. Staying fit is in their gene. Australians have many retail market leaders to look. Olympics and Commonwealth games are the two major world events in which Australia always had the domination. The retail goods mainly fashion garments have always been sponsors of many Australian teams. Billabong is also into sponsorships and promotional activities (Neville 2013). Clear and concise target market Billabong Retail is emphasizing on service, better products, and customer relations. Their 24-hour availability is helping them making a good profit. Customer service requires physical interaction between the client and the service person. Billabong Retail is employing educated professionals who are best in this sector. Mental satisfaction plays a huge role in human psychology. Wellness can be measured by the consumer loyalty. Billabong Retail focuses on the quality of their products. They believe in providing top quality equipment to the clients. The customer is essential to any organization's growth. These retail chains provide the desired service and products so that they can retain their customers. Customers usually evaluate their product by their needs and expectations. It is important to give preference to buyer expectations while dissatisfaction only leads to decline in sales. Monitoring and observing each client need helps to close the gap between them. Nowadays doctors are a lso prescribing daily workout sessions only to popularize this trend. Workout sessions have been emphasized up on, as Billabong Retail wants their customers to wear trendy clothes. To wear these fashionable clothes they need to possess good and slim body. Market Segment If a market is defined, then it can be said that where a group of people or organization has needs for products and services in a product class. They have the authority, willingness and ability to purchase those things. Segmentation is defined as a process of dividing a total market into groups, teams consisting of people and organizations with similar products and services. Market segmentation is divided into four sub-branches psychographic, behavioral, geographic and demographic. Psychographic segments include lifestyle, motive, and personal attitude. In this section, people are defined by two-way parameters. Like there will be people who think before buying a product. Some people believe in things. They stick to their preferred brand. These people are responsible for turning a product into a brand. Billabong Retail is doing all sorts of loyalty programs to become a brand. Then some people make a name, and some people first experience a new product. They are skeptical about being loyal. Another two kinds of people are strivers and achievers. Strivers are the hard working group of individuals, and the achievers are believed to be the one with a lot of money. Geographical segmentation is done by analyzing the size of the city, age group, preference, climate, local assembly, regions they live, etc. People from big cities like Melbourne, Sydney, Canberra, Brisbane, Adelaide, and Perth, are very progressive minded. Their attitude and adaptability are different. In the towns, the income level is also much high. In rural areas and the relatively conservative states like Western Australia and Tasmania, the attitude is different. In these two kinds of areas, Billabong Retail has developed particular fashion plans. Research says in urban zones of Australia age group of above 65 is 23 percent. It will be around 60 percent by 2050. Therefore, their shift of concern is to give the older generation a better and trendier lifestyle. This is where Billabong Retail is playing a vital role. If they manage to understand the need for staying healthy, then they can make an unlimited profit. Company like Billabong Retail has lived the concept. Thus, they are making a profit at a tremendous rate. Since last decade, the profit percentage has become 131 percent (Macdonald 2013). Demographical segmentation builds around family heads, ethnicity, education, income level, religion, social class, etc. Demographically Australia is diverse. Over the years, millions of people from other countries have been coming to Australia. Their occupations are different. Taste, preference, culture are different. There are various communities in particular regions where sizeable people from the subcontinent, China, South Asia, Middle East live. This cross-cultural ethnicity proved crucial in the growth of Australia (Cardinal and Cardinal 2015). Various religions like Christians, Hindus, Muslims, Sikhs, Jewish, Parsee, and Catholic are there in this country. They have embraced the need for fitness. Sports leagues in Australia are helping to attract customers to Billabong Retail. Buying ratio has grown significantly in last few years. Billabong Retail has caught the demography precisely. They have their clients from different demographic backgrounds. Positioning The factors like age structure, ethnicity, cultural background, education, family structure. In Australia, the culture is diverse. Many foreign nationals are living here for their bread and butter, education. People from the Indian subcontinent, China, Hong Kong are sizeable. Therefore, there is a mixed culture in Australia. These people have their tradition, taste and food habits. Their preferences are different. Billabong Retail is considering these parameters (Macdonald 2013). Positioning mapping Macro and Micro Environment Microenvironment has certain factors like Supplier, company, competitors, intermediary and customers. Each of them plays a crucial role. Retail industries have their selected suppliers. Vendors mainly collect the equipment from best manufacturers. Australia is the largest exporters of iron ores. So the gym instruments can be made in cheaper rate. The raw materials are easily available in nature (Halse et al. 2015). Billabong Retail is the leading firms in the fitness industry in Australia. As many as 206 branches have grown in recent times, and they have a client base of 250,000. The number is growing fast. Competitors play a crucial role in shaping up of an industry. Different companies compete to outclass others. This is indeed helpful to get the desired outcome. Billabong Retail is coming with innovative business plans. They are focusing on how to give members better service. 24 * 7 availability, one to one service, adding new dimensions built up their reputation (Kunkel et al. 2014). Intermediaries increase the price as they act as intermediary. If the number of intermediaries is less, then it is beneficial. Billabong Retail has a multi-facility operation. They have their branches in different parts of Australia. Same work culture, same fees, and service helped them to create a positive impression. Billabong Retail not only has retail hubs. They are operating in various businesses. They import best fabrics and clothing materials from China, Japan, and Korea. The company has outsmarted to cutting down the number of intermediaries (Hoye et al. 2015). The customer is the most important factor in the microenvironment. They play the deciders role. Retail companies are trying to come up with better plans and programs to entertain the clients. They are focusing on psychological factors to outgrow the number of customers. Percent of members have grown drastically in recent years. Healthy number of new memberships is completed in Billabong Retail. They are setting prices for attracting target audiences (Jackson 2016). Macro environmental factors are as many as six are. These are demographic, socio-cultural, natural, political-legal, technological and economic. Demographic factors include age structure, ethnicity, cultural background, education, family structure. In Australia, the culture is diverse. Many foreign nationals are living here for their bread and butter, education (Halse et al. 2015). People from the Indian subcontinent, China, Hong Kong are sizeable. Therefore, there is a mixed culture in Australia. These people have their tradition, taste and food habits. Their preferences are different. Billabong Retail is considering these parameters. The rate of educated people is above 90 percent in Australia. Australia has the highest literacy rate in Oceania zone. Therefore, they know how to program their system (Hoye et al. 2015). The understanding of health is also more than other countries. Membership retention is increasing each year in Billabong Retail. They have introduced membership cards for the buyers. By these cards, they are getting relaxation in terms of MRP (Jackson 2016). The technological factor is another key factor. Technologically upgraded materials are coming in the market. This new trends are becoming popular. Buyers are willing to give the extra penny for quality product. The products now carry quality materials. Billabong Retail uses fine fabrics. Therefore, Billabong Retail is developing a lightweight and easy wearing garments and dresses. Economic forces have some parameters like willingness to spend, buying power. Buying power is more for Australian people as the per capita income is much high. Mentalities of the people are also active towards buying trendy cloths. They embrace new things easily. Political and legislative rules are also very reliable in Down-under. There are less political-legal barriers in the society. People are extremely cooperative and humble (Hoye et al. 2015). Governments concern in the health of the nation has also created an active force in fabrics and retail sectors. Natural resources play a vital role, and it is important to consider this point. There is an abundance of natural resources in Australia. They are blessed with heavy metal mines. Coalmines, Iron ore plants are the two biggest strengths of the economy. Industries expedition has created an impact. Society is built on different cultures. Arts bring changes in attitude, preference, belief, norms and lifestyle. Changing trend is directly proportional to socio-cultural change. Healthy eating, children and marriage permanence has an active role to play in this context. If the society is adaptable to change then, only the community can grow. Australia has a flexible socio-cultural structure. So the changing trend in fashion clothing is widely accepted in Australia. Analysis of Consumer Behavior/ Perception The behavior of the customers also comes into the equation. There are some measuring keys to identify the best possible way to chalk out plan. Decision role is one such measuring tool for Billabong Retail. They have their customer ranging mostly in buyers, user and initiators. Decision role has five sub-points. Initiator, influencer, decider, buyer and user are the five points. The initiator is the one who purchases the first unit of the product. Influencers are those who influence others to buy the product. They are kind of partial advertisers doing by mouth promotions. Decider is the one who is skeptical about buying. They first convinced by others or the company person before purchasing. Billabong Retail is giving them trials and free sessions to win their loyalty. The buyers are the one who buy without any experiment or market survey. They are proactive in taking a decision. Users are the one who experiences different products and services. They are the most adaptive to change. H owever, these people are the least brand loyal, as they only want to experience various products. Billabong Retail is identifying the users and arranging concrete plans to make them brand loyal. Promotional activities, advertising campaigns are the tools they are using to display their product and service. Another tool for identification is behavioral variable. Occasions, benefits, user status, user rate, attitude, buyer readiness and loyalty are present in this device. People mainly buy clothes before any big festival, like before Christmas or before the new-year. During this period, the role of industry becomes vital. They try to outsmart each other by new business plans. Billabong Retail is coming up with innovations to live up the expectations of the consumers. Some people look for benefit from the product. They expect the return of their money by service value. Some people seem to get many advantages in moderate amount (Sweaney 2016). Billabong Retail needs to organize detailed plans for these customers. It can be the quality of the service, product life of the item. Different people have different usage rate. Some of them enter the retail store for individual plans if that is fulfilled they opt out. Billabong Retail is giving personalized executives, recruiting best supervisors t o sort out these things. Loyalty is another thing that is not built in a day. It takes many efforts to make people brand loyal. Marketing Mix Marketing mix models are used to analyze data from a wide variety of resources like shipment data, retailer scanning documents, pricing, promotion spending data, media. It is useful for understanding the effects of marketing. It is equally important in this industry so that the companies petting up with each other can know how to grow better than the competitors can. It is a tool to understand the competitive advantage (Holtzhausen et al. 2013). The marketing mix is intended at the positioning of the product or service it is targeted towards to customer. There are five branches in marketing mix model. Product, Price, Place, People and promotion are known as the five Ps of marketing. It can be a very useful in directing to the segmentation. The product is the first and primary parameter. The product should be targeted in a way so that it can attract the four segments. It plays a role in psychological, behavioral, demographic and geographic natures of the human. A product or service should check all these parameters. As service is the primary function of this industry, so they are making their service dependable and reliable. Billabong Retail is making their services more reliable for the customers. Australia is a multilingual country so retail experts should be appointed accordingly. Price plays a crucial role. A person who is getting the service should not feel he is giving extra. They should provide quality service to win the trust. Same pricing strategies are using by Billabong Retail so that there is no scope of partisan favoritism. Billabong Retail is so famous because their clients always feel they are getting the best possible guidance for their money. Less number of intermediaries has also made the price cheaper. Promotional tools are critical in developing a brand. Billabong Retail is making successful sportspersons their brand ambassadors. There is an abundance of global icons in the sports in Australia. People like Brett Lee, Harry Kewell, Tim Cahill, Leyton Hewitt, Nick Kyrgious, Bernard Tomic is making the retail organization even more familiar with the mass. Promotions are directed towards festivals and events. Big Bash, AFL is the two events where the most Australian goes. These sporting events are the target market for Billabong Retail. They are using Banners, Hoardings, electronic billboards, digital ads that are playing an enormous role in their brand identity. The place is the one area where all company targets. Billabong Retail has introduced a Pan-Australian approach. Many branches have been opened in recent times. Every locality, be it urban or rural has, at least, one fitness center. Results are showing that around 206 stores Billabong Retail has opened hubs. Twenty thousand new memberships have been done, and more than 5,000 Australians have renewed their membership in the last couple of years. The newest trends are fast catching the imagination of the audience (Cardinal and Cardinal 2015). People are the last parameter. Different individual has different perspective, taste and behavior. Geographical and demographic backgrounds vary person to person. Billabong Retail has recruited executives who are not only educated but humble and polite too. Firm like Billabong Retail has put a lot of emphasis on customer service and customer-centric approach. People from the Chinese background and Japanese want the trainers who are friendly and co-operative. Billabong Retail is making centers in ten Oceania countries. Recommendation Estimating the market: Proper market research is necessary for evaluation any decision. Billabong Retail can get an idea where they are lacking. The quality of equipment: People first get attracted to instruments. The rising cost of the fitness hubs needs to be responded by maximizing the available materials. Workforce: Skill Management, Behavioral management, time management training should be given to the sales persons and employees. Techniques: Billabong Retail needs to apply the modern techniques to the clients. The product should be targeted in a way so that it can attract the four segments. It plays a role in psychological, behavioral, demographic and geographic natures of the human. A product or service should check all these parameters. As service is the primary function of this industry, so they are making their service dependable and reliable. Billabong Retail is making their services more reliable for the customers. 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