Sunday, 24 January 2016

RIVER ISLAND SWOT ANALYSIS


 Swot analysis:
 River Island

Strengths:

-        There are over 350 stores across the United Kingdom, Ireland and internationally in Asia, the Middle East and Europe. They also have 6 online sites operating in 4 currencies. This emphasises the how River Island has located itself all around the United Kingdom and are also expanding internationally.

-        They have over 60 years of retail experience and is one of the top best known and adored brands on the high street giving them the advantage of having a loyal customer base spanning over the years.

-        River Island’s motto is ‘Love Fashion. Love River Island’.

-        There stores still feature a retro 1970’s and 1960’s style Chelsea Girl range aimed at the slightly younger end of their customers.

-        River Island has many unique selling points, one of them is that there are always amazing going out looks and occasion wear that makes them stand out from other high street stores.

-        ‘We pride ourselves on being the perfect store to pick up everything you need for a brand new head-to-toe look.’ (River Island website)

-        They have an amazing design team, almost all of their products are designed in house which sets them apart from other high street retailers.

-        River Island has signed the Bangladesh accord. They want to establish a long term plan for improving working conditions in the countries they produce their products.

-        ‘River Island looks to tap into next wave of tech entrepreneurs.’ (retail-news) They have joined with retail and consumer company TrueStart which gains them access to technology start-ups and new tech.

-        Recently there profits have surged on ‘mini-me fashion’ which is a children fashion line that means customers of river island can dress there whole family in river island, this is one of their USP’s. 

-        River Island has a strong customer base, they stock children’s ware which is a big difference in their competitors such as Topshop who do not.

-        In the past they had a celebrity collaboration with Rihanna which attracted customers who were Rihanna fans and may not have shopped in River Island before, and boosted sales. (telegraph article)

-        ‘renowned for stylish, affordable fashion’ (River Island official site)




Weaknesses:
-        River Island do not offer student discount throughout the year like other high street retailers do who are similar e.g. Topshop and New Look.
-        River Islands cloths are not as ‘fashion forward as other brands.
-        Collections and products are not turning over as quickly as competitors such as Zara who’s turnover is every 2 weeks, they need to keep up with the change in retail.
-        River Island have not done a menswear collaboration, they should as this would attract a new type/ wider range of consumers.
-        There supply chain may not cope with seasonal surges in retail which means the likes of Zara have an advantage. (retail week)
-        Not all River Island stores have menswear and kids within them which is a weakness as people may not be able to easily access those collections.
-        River Island do not have a plus size collection which is a weakness as other retailers now are introducing their own plus size collections e.g. New Looks, Boohoo and many others.
-        They also do not have a maternity wear collection which the likes of Topshop have.

Opportunities:
-        They could start up a store point’s card which would be different from what other retailers such as Topshop do, it could be a card you scan when you make a purchase and you get points, could be similar to the monsoon or M and S rewards card.
-        Should start student discount so that they do not loose student’s sales to the likes of Topshop.
-        River Island have many international opportunities to open up more stores and expand, for example they have plans on opening in Australia after launching an online site for down under. (retail-week article)
-        They could start a plus size collection which could be an opportunity as shops such as Topshop do not have one so could be a way into a niche market.
-        They can build on having more USP’s by adding a beauty line in competition with other retailers to boost sales.
-        As they do lots of occasion and night wear maybe add an affordable prom line to increase sales in prom and university ball’s seasons.
-        Do more basics that are cheaper than main lines to boost add on sales?
-        Do more celebrity collaborations as the success of Rihanna boosted sales. Could do someone like Ella Eyre or Little Mix. 
-        Another opportunity is around pay day to start up promotions and new collections so that people are tempted to spend money.
-        If there is a particularly rainy day put coats and umbrellas at the front of the store for example to sell and get people to come in.
-        If there are sudden drastic weather changes make sure to have the correct stock out even if it means changing the Window or bringing forward old stock.
Threats:
-        Political effects such as increasing the minimum wage may affect the likes of River Island as it would mean they would have less money and may even have to reduce stores or staff.
-        Environmental factors are another threat, environmental factors can affect supply chains meaning that if there is a storm or natural disaster in the country the retailer sources from it can affect the orders and if products would be able to reach the UK. For example ash clouds effect the supply chain in many businesses. (BBC news article)
-        If IT and online stores continue rapid growth it could threaten sales instore and the amount of people who still want to shop in store.
-        Economy issues e.g. a recession may affect people parting with money.
-        Weather is a big threat because if there is a cold summer or hot winter it will effect peoples buying patterns. E.g. if they get coats out in autumn and there is no cold weather it will affect the sales and figures.
-        If the government raises taxes etc. it will effect a retailer.
-        Competitors are a big threat to River Island and other retailers, cheaper retailers such as boohoo and misguided sell similar fashions as River Island but at a much cheaper price as they are online retailers so can threaten River Islands sales.
-        Another threat is the demand of quick turnover, companies such as Zara have a very quick turnover so it may threaten and place high demands on River Island.
-        If a key staff member ever resigned and left for another retailer could reflect negatively on River Island and the brand as a whole.


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