Superdry Plc. is a U.K.-based clothing and fashion company. It designs, makes and sells clothes and other fashion accessories in more than 670 outlets ( Superdry, 2020). The company fuses vintage Americana style with Japanese aspects to produce a unique fashion. It makes clothing items such as T-shirts, footwear, bags, dresses, hoods, and shirts, among many others. Superdry Plc. was opened in 1985 by its founders Lan Hibbs and Julian Dunkerton. The company’s headquarters are in Cheltenham, Gloucestershire, United Kingdom ( Superdry, 2020) . Superdry sells its products in more than one hundred countries across the globe. Besides, it now operates sports clothes outlets in more than forty countries across the world. Apart from selling its products in physical outlets, the firm also sells through its online platform. The company is guided by values such as passion, innovativeness, and quality. The purpose of Superdry is to make clothes that enable clients to develop their individual stories. Its main target market is the young people/youths. Superdry’s consumers are segmented into three profiles including the trendsetters, fashion followers, and the mainstream. It conducts its activities in three different segments including wholesale and retail as well as central cost ( Superdry, 2020) . The main competitors of Superdry include Zara, Calvin Klein, Nike, Tommy Hilfiger, and Dune London.
Critical Success Factor (CSFs) and Target Segment
Critical success factors (CSFs) are those areas in a business that are crucial for success to be achieved ( Afuah, 2009, p.118 ). They are also referred to as key result areas. Superdry should focus on critical success factors to ensure that it remains focused on the business’ aims and objectives as well as achieve more success. By doing so, the company avoids wastage of resources and energy on projects or areas that are less crucial for success and competitiveness. The critical success factors of Superdry are:
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CSF1: Innovation
Superdry Plc. must focus on continued innovation in order to improve its product depth. According to Chavan (2018, p.1), innovation helps organizations to achieve and maintain a competitive advantage in the market. The most essential aspect of innovation is a solid relationship between a business’ performance in the market and new products. When new products are introduced in the market, the acquired market shares are maintained and profits increase ( Govindarajan & Ramamurti, 2016, p. 143 ). In the current era of innovation and increased competition in the fashion and clothing industry, it is critical for Superdry to invest its resources in innovation. In the fashion industry, competition results to survival for the fittest. Increased competition in the fashion industry has caused a slow growth in demand at various rates especially in developed nations ( Mohapatra & Patra, 2017, p. 12 ). However, increase in income in these countries have provided a new situation that has rearranged the demand and supply ends of the fashion market ( Chavan, 2018, p.1 ). Since innovation is considered a critical factor for an organization’s performance, the only way for Superdry to continue being successful is by developing sustainable innovation for tomorrow. Therefore, if Superdry will continue surviving in the industry, it must focus on innovation. Superdry Plc. has been performing well financially and therefore, it has the needed financial resources to conduct innovation activities. Besides, the company has skilled workers and some of the best talents are found in the firm.
CSF2: International growth
International growth is a critical success factor for Superdry. Focusing on emerging markets such as those in the Asian market such as China and India, the company will achieve more success. In an emerging market, the economy of a developing country becomes more engaged with the international markets as it continues growing (Thind, 2017, p. 22). Individuals move from low income to a modern economy characterized by an increased standard of living (Taplin, 2014, p. 252). Increasing middle class individuals are a great opportunity for a firm such a Superdry to establish itself as a dominant brand in emerging markets. Such markets experience more rapid growth than the developed markets especially in Europe. By focusing on emerging markets, where competition in the fashion industry is yet to become saturated, Superdry can continue generating more profits from these markets. Increased income and a shift to modernity means that individuals are most likely to purchase contemporary clothes. The main advantage of investing in an emerging market is ability for high growth. They are a good opportunity diversifying investment portfolio. An economic decline in one region can be managed by a growth experienced in another. Superdry has the needed resources as well as the expertise needed to expand internationally since it has been successful in expanding to most European markets.
The 7Ps of Superdry Plc.
Product
Superdry has a wide portfolio of products. It offers different products including casual wear, different accessories such a handbags, and footwear. Recently, the company added sportswear to its product range (Superdry, 2020). The products create a broad appeal because it captures aspects of urban or street designs and vintage Americana, Japanese, and British styles (Superdry, 2020).
Price
The company offers its products at a price lower than most competitors while at the same time ensuring that it makes a reasonable profit. The retail price of most of its products is between 10 and 15% less in price than companies such as Jack Wills and Zara (Kingston, 2016, p.1).
Promotion
Superdry Plc. runs few promotional activities on an occasional basis. These promotions are conducted on all selling platforms in a way that ensures that the brand is protected.
Place
Superdry has hundreds of physical distribution outlets in different parts of the world where it conducts its business activities. For example in the UK, there are seventy-one retail stores throughout the country ( Kingston, 2016, p.1 ). It also has 130 franchised and licensed outlets internationally ( Kingston, 2016, p.1 ). Also, the company has an increasing virtual presence with two websites that support online transactions.
People
Superdry boasts in its skilled staff who have made a significant contribution towards its success. The company has a special focus on its human resources and provides career development opportunities for its staff. Practices such as a competitive compensation package and an allowance on products purchased by employees are meant to ensure that workers are satisfied and motivated.
Processes
The company relies on outsourcing some arrangements or processes and in case there is shortage in raw materials in the outsourced firms, the company is likely to experience inconveniences or disruption of business.
Physical evidence
Apart from its infrastructure, the company’s packaging is a physical evidence of its existence.
Impact of CSFs on Superdry 7Ps
Product
The company would be required to incorporate aspects of the local people’s styles in its designs if it expands to emerging markets. For example, instead of using Indian embroidery styles, it can use Chinese styles in an innovative way if it expands to India.
Price
Superdry can adjust its prices according to regions if it expands to emerging economies for maximum brand penetration in the long term.
Promotion
New products and entrance in new markets would require Superdry to increase its promotional activities in order to gain a significant market share.
Place
Superdry would be required to open more stores in new markets where clients can access products as well as create new online platforms specific for the new markets.
People
Although Superdry can bring skilled staff from the UK to provide direction for the new business operations in the new markets, it would be required to hire local talent and skills.
Processes
Local outsourcing would be required in the countries the company would expand to in order to reduce costs associated with using firms from the UK.
Physical evidence
Much of the company’s packaging would not change. However, few details to recognize that the product is made in the target countries would be essential.
References
Afuah, A., & Associate Professor of Corporate Strategy and International Business Allan Afuah. (2009). Strategic innovation: New game strategies for competitive advantage . Routledge.
Char, S. V. (2010). Emerging markets - Need for a taxonomy. Journal of Emerging Knowledge on Emerging Markets , 1 (1). https://doi.org/10.7885/1946-651x.1010
Chavan, R. (2018). Analysis of fashion industry business environment. Latest Trends in Textile and Fashion Designing , 2 (4). https://doi.org/10.32474/lttfd.2018.02.000144
Govindarajan, V., & Ramamurti, R. (2016). Reverse innovation in emerging markets. Innovation in Emerging Markets , 140-157. https://doi.org/10.1057/9781137480293_8
Haar, J., & Ernst, R. (2016). Innovation in emerging markets . Springer.
Kingston, A. (2016). 5. Marketing - SuperGroup case study A2 business studies . Google Sites. https://sites.google.com/site/kingstona2business/home/marketing
Mohapatra, S., & Patra, D. (2017). Retaining competitive advantage in commodities. Emerald Emerging Markets Case Studies , 7 (4), 1-25. https://doi.org/10.1108/eemcs-06-2016-0111
Superdry. (2020). Home. https://corporate.superdry.com/
Taplin, I. M. (2014). Global commodity chains and fast fashion: How the apparel industry continues to re-invent itself. Competition & Change , 18 (3), 246-264. https://doi.org/10.1179/1024529414z.00000000059
Thind, R. (2017). Emerging markets. Strategic Fashion Management , 19-27. https://doi.org/10.4324/9781315160344-3
