INTRODUCTION <\/p>\n
Afternoon all, the following presentation will conduct itself in completing the business environment canvas (BEC) template for the real-world case organisation of Cotton On retail group. Cotton On Group is known as Australia’s largest global retailer as of 2020, the company was founded in 1991 by Nigel Austin and has witnessed a large amount of success within a short period of time. The presentation will cover identifying and the explanation of\u00a0key trends, key macro-economic and policy drivers, main industry forces, main marker forces and how they all have a major impact on the case organisation. It is crucial that these key indicators are explained in order to grasp a deeper understanding of the company’s success.\u00a0\u00a0<\/p>\n
KEY TRENDS<\/p>\n
A trend is a general direction into which something is changing, developing, or veering toward. As a business organisation, it is extremely important to identify and keep up with trends to ensure the company can stay relevant and satisfy its customers wants and needs. <\/p>\n
Over the years, technology has really impacted the retail industry as online shopping became more popular and convenient especially during the pandemic and lockdowns. Consumers have become reliant on online shopping as it is an easier and more accessible without having to leave their homes. However, as there is a lot of competition surrounding retail companies. Moreover, artificial intelligence has been implemented in stores for tasks such as inventory management and consumer behaviour analysis. Thus, businesses must adopt more ways to appeal to customers to differentiate themselves from competitors.<\/p>\n
As of 2022, consumer behaviour has changed and is leaning towards more sustainably sourced products, due to the fact of rising concerns of climate change. A research conducted by Vogue showed an increase from 65% in October 2020 to 69% in May 2021 stating that sustainability is an important factor for consumers when making a fashion purchase. In order to keep up with the current socio-cultural trends.<\/p>\n
MARKET FORCES <\/p>\n
Market forces impact the company\u2019s way of operation in the market, influencing the price and availability of goods. It also boosts and declines prices with supply and demand, affecting the overall revenue of Cotton On. Cotton On has a comparative advantage to other similar brands out there. By having other divisions such as Typo and Cotton on Body, it expands their brands influence on the market by exposing a wide variety of products for all customers from kids to adults. Furthermore, when compared to its substitutes, Cotton On boasts a lower median price point amongst other competitors. The importance of sustainability in clothing is rising and changing purchase influences since the start of the pandemic. Cotton On is doing its part in keeping up with this trend by implementing a plan that transforms its brand by 2030 to be using 100% sustainable materials, renewable energy and many other responsible trades within its operation. This will set a path for Cotton On to remain within key trends in the market and carving a better image of the company to appeal to future generations. <\/p>\n
INDUSTRY FORCES<\/p>\n
Cotton On Group’s market structure is important to understand the firm’s behaviour. Cotton On group is part of the Retail Industry, The market structure is an imperfect competition. Consequently, its business attitudes is highly influenced by both the customer’s demand and the market competition. <\/p>\n
Customers are key external stakeholders. Indeed, this market structure is strongly based on the demand. Cotton On being a fast-fashion brand whose goal is to provide its customers with inexpensive clothing to match other competing brands that can be found on the public square, clothes of average quality because their life span will fade with the next collections. The goal is to offer a wide choice of products with the latest fashion at low prices. It is therefore the customer who rules the market according to, firstly, the demand in terms of fashion but also on the cheapness of the products.<\/p>\n
The large number of competitors with an equivalent product offer allows the customer to have other options where to find an equivalent product at a lower cost, that’s where the challenge of this industry lies, to be the most attractive. The main purpose is to be responsive to the custormer’s demand.<\/p>\n
As pricing is dictated by the “competition war” in the retail industry, the firm is implementing a real pricing strategy and product strategy that aims to produce at low cost (cheap raw materials in countries where the workforce is unskilled and therefore cheaper).<\/p>\n
MACROECONOMIC FORCES<\/p>\n
Regarding the macroeconomic forces, the COVID-19 is the most important issue.\u00a0The global market conditions is definitely not as good as before due to the impact of the COVID-19. From the data point of view, first of all, the global GDP has been affected by the epidemic and declined in 2020.\u00a0Secondly, it has forced numerous employees into temporary unemployment. Higher unemployment means consumer spending will also be affected. Due to the severe impact of COVID-19, the government has introduced various restrictions, which have made offline physical stores unable to operate normally, resulting in low logistics efficiency, supply chain disruption and shortage of raw materials.\u00a0Many of these retailers have been implicated, with stores in most regions closing at various times, Cotton On Group is also among them.\u00a0Although the government has launched many policies after the Covid-19, such as JOBKEEPER and other policies to assist retailers’ operations, and there are a number of data and forecasts show that the global GDP will slowly recover.\u00a0But the long-term impact of COVID-19 and when will\u00a0it\u00a0be over will undoubtedly be a test for major retailers.<\/p>\n
CONCLUSION<\/p>\n
Overall, through thorough analysis using the business environment canvas (BEC) template, it is identified that the key indicators explained within the presentation have had an impact on the company’s performance. As a result of this, recommendations for the company should be implemented to ensure more growth within the business. It is recommended that the business focuses on implementing more sustainably sourced products as that is what consumer behaviour has shifted to in recent years. This adaptation is crucial in order to please customers as well as targeting consumer behaviour. It is also recommended that the business focuses on its large market share and what they can do to increase this share by reacting to changes in the market share quickly and effectively.<\/p>\n","protected":false},"excerpt":{"rendered":"
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