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Ted Baker Essay

1680 words - 7 pages

Designer fashion chain Ted Baker has weathered the tough economy to deliver robust rises in sales and profits.

The company has reaped the benefits of a global expansion programme, as fellow retailers in the UK feel the pressure from the ongoing squeeze on consumer spending during a double-dip recession.

Ted Baker - which started as a shirt store in Glasgow in 1988 - has recently opened new stores in Tokyo and on Fifth Avenue, New York.

The chain, which has now 179 stores in the UK including concessions, said retail sales were up 15.4 per cent in the 28 weeks to August 11. The upbeat performance implies like-for-like sales growth of around 3 per cent.

The group also revealed a ...view middle of the document...

9 indicates good value for money is on offer. Furthermore, with the company having posted double-digit earnings growth in each of the last five years, it appears to be a resilient growth play, too.

SWOT
Five force
PESTLE
SBU:

Ted Baker is aiming to take a slice of the younger market with a new directional, lower-priced casualwear sub-brand called Born by Ted Baker.
The menswear range is priced 20% below the mainline and includes shirts, polo shirts, T-shirts, hoodies and outerwear. It is aimed at 18 to 25-year-olds.
Key pieces include flannel shirts with double-collar details, quilted jackets and gilets in technical fabrics.

Born by Ted Baker will launch in 45 locations on August 17 including in selected Ted Baker stores, concessions in Selfridges and House of Fraser, as well as with key independent wholesale accounts.

Ted Baker brand communication director Craig Smith said the range would help the business tap into a new market.

It’s fair to say that smartphone apps have completely underwhelmed the retail sector, unless you're Ted Baker. But that is going to change significantly in the next few years, with the introduction of a simple technology that changes the game: Beacons, sometimes known as iBeacons that enable ultra-precise proximity marketing.

Fashion brand Ted Baker is just one company that understands proximity is no mere trend but here to stay. Using beacons in its Westfield London store, its app can now be ‘woken up’ when you are near or in-store.

On the simplest level, this engagement can be a voucher or other discount incentive to spend right away. But knowing exactly where a shopper is in-store opens up a wealth of other functions that will mean their favourite device, the smartphone, will almost certainly be the retail brand’s main communications channel going forward.
1. They want to pay, not queue

Very soon, the retail customer is going to expect to be able to pay for any item anywhere in-store. Mobile payments systems are not limited to just PayPal or WorldPay, and retailers can now deploy their own solution and link it to stock inventory control.

They could even use beacons as security devices – beacon ‘stickers’ are now small enough to be embedded in packaging – sending an alert when an item leaves the store that hasn’t been paid for. Unlike RFID tags, beacons can also be followed and tracked out of store, although there are complications.

Read more on how mobile is changing business:

Annual spending via mobiles to hit £53.6bn in UK by 2024
Record £7.2bn UK digital ad spend as average British home has 7.4 internet devices
Mobile wallets: The business opportunities are only just beginning
2. They want to be inspired

A survey by leading ad agency McCann revealed that 66 per cent of consumers want to be inspired, whilst they are shopping. For a fashion brand like Ted Baker, the possibilities are almost endless: What’s trending in-store today, virtual catwalks, invitations to special...

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