Competition In The Australian Clothing Retail Market: A Study Of Rhodes And Beckett

Background of the study

The retail market is that market where products and services are sold in small batches and not in bulk. Thus, the market completely caters to the end users and not business customers.  For every industry, there is a retail market and similarly, clothing industry also has a retail market for selling the clothes for every category of consumers (Goncharova, Orlov and Urbanová, 2013). In the Australian market, the retail market of clothing industry is facing intense competition from foreign brands and the purchasing power of consumer has also declined due to increase in house rent in the last few years. This research project describes the level of competition in the retail market of Rhodes and Beckett which has been grown in the country in regards to clothing industry (Wang, Meng and Zhang, 2014). Further, the report describes the research done on identifying the state of competition by conducting the survey through a questionnaire. Moreover, the data has been analysed and the results are listed thereof.  

In Australia, the clothing industry of retail market is observing the many problems because of intense competition from the foreign retailing brands. On top of that, a consumer has started spending lesson clothes due to increase in housing rent from last few years. This has created difficulties for the retail Australian clothing brands (Cheung, 2015). Along with that, bricks and mortar online companies have expanded its market in retail industry and it supplies all type of products in Australia that has declined the sales of the clothing industry.

In 2006, Rhodes and Beckett, which is a retail clothing firm, were incorporated. This company supplies ready to wear clothes for men and women focusing on suits, shirts, and other formal wear materials. However, in recent years, the company has lost their market shares in Australia due to fierce competition from foreign retailing brands and other causes as well (Lo, 2013). The decline has been caused due to economic uncertainty of Australia which has reduced the purchasing power of citizens. Secondly, chain stores and franchisee stores of Zara, H&M and many more such brands have been opened in Australia and it has made more difficult for Rhodes and Beckett to cope up with the market trends. Lastly, international retailers are expanding their market share in the Australian market, due to which Australian or local brands are facing tough competition (Nagy, 2013).

Aim: To identify the reasons for competition in the Australian economy in clothing retail market in comparison with the foreign brands with that of local brands – A study of Rhodes and Beckett.

Objectives

• To analyse the state of competition in the economy of Australia in clothing retail market in comparison with the foreign brand with the local brands
• To identify the strategies used by foreign brands in the Australian market
• To recommend the strategies to Australian brand to be used for competing against international brands like Zara and H&M.

It is a scholarly text of the papers written by famous authors in the related field of research. Further, it describes the current knowledge inclusive of substantive findings and theoretical and methodological contributions for a specific topic (Lo, 2013). It is regarded as secondary sources and does not provide new or original experimental work. Literature review for present research is as follows:

According to the views of Yoon, Park and Kim 2013 competition prevails in every market of every industry and it is necessary because it provides the customers with various choices and this way customer can get more varieties to choose from. Basically, it is an act of striving gain of something by establishing superiority over others. Bergantino, Capozza and Capurso 2015 described that competition is good as long as it is healthy and played fairly by the players.

Research Aim and objectives

Scotti and et al., 2012 defined that after globalisation, the intensity of competition has increased because earlier only local brands were competing with each other but with the introduction of foreign brands in the Australian market, the intensity of competition rose. The reason is that outside brands bring more varieties and choices for the people of Australia this way the local brand has to face tough competition in the market and even their existence becomes the question. According to Brandouy, Mathieu and Veryzhenko 2012 foreign brands should not be allowed to compete in the country because it reduces the fame of local brands. Due to this, the existence of local brands becomes difficult. However, Graef, Wahyuningtyas and Valcke 2014 argued that with the introduction of foreign brands, people could be more aware of the different culture and they could have more choices and varieties to choose from. This way they get more exposure regarding different country’s dressing style.

Babic and Podobnik 2014 commented that government should fix the quota of foreign companies entering the local market. This way both types of brands can get recognition from the consumers. In the present case, international brands are occupying their share and local brands are continuously losing it.

Wan, Zhang and Yuen 2013 described that there are various strategies that are used by companies to establish their brand in a foreign land. They get more ideas from their host countries and this way they can easily apply it to a foreign land for attracting more customers. On the other hand, local brand is stuck with same ideas because they do not have exposure to other lands. Carruthers and et al., 2013 supported the fact and explained that foreign brands apply marketing strategies for promoting its brand and it attracts the customers through lucrative offers. This way they can establish their superiority in the Australian market. Moreover, by providing excellent quality clothes, they cater the market of the clothing industry.

On the other hand, Bergantino, Capozza and Capurso 2015 argued that local brands are not laid back brands, they also provide good quality clothes like Rhodes and Beckett but the problem is that foreign brands are highly funded and this way they can provide superior quality clothes. However, local brands do not have sufficient fund for the same. Similarly, they cannot do costly ads for promoting the brand. That is why; the awareness could not be created. If they do so, then the company will start facing heavy losses.

On the other hand, Goncharova, Orlov and Urbanová 2013 defined that in today’s era, it has become necessary that companies must do heavy marketing in order to establish their brands. Foreign brands are excellent in doing so that is why they are flourishing in the Australian market. Moreover, the international brands use effective communication strategies for communicating with their customers (Brandouy, Mathieu and Veryzhenko, 2012). Moreover, they also provide exclusive services to them like offers, discounts, after sales services, etc.

The design of the research project includes organization of research activity in order to efficiently achieve the aims of the research. Further, the research design provides a strategy for conversation of the conceptual research problem into a practical research project (Mackey and Gass, 2015). It is basically considered as the blueprint or whole layout of the research and there are several of types of designs included. These are descriptive design, diagnostic design, experimental and exploratory designs (Lewis, 2015).

State of competition in clothing industry retail market

For the present study, the researcher has used descriptive research design because this design will help the researcher to organize the entire research data in an effective manner (Silverman, 2016).  Furthermore, through this, an author could analyse the level of competition in the retail market of the clothing industry in the country Australia.

There are basically two types of the time horizon for the research study and it is regarded as a time framework and within this time limit, the project must be accomplished. The two-time horizons are longitudinal and cross-sectional (Vaioleti, 2016). The longitudinal time horizon is that in which data collection is referred to as the gathering of data on a repeat mode over an extended period of time. Further, that data is used when the study is concerned about the investigation of change over the time. On the other hand, the cross-sectional time horizon is one where specific time is already mentioned and on the basis of which data is collected (Flick, 2015).

For the current study, the researcher has utilised cross-sectional time horizon because it is a one-time research and researcher will not examine the phenomena over the change of time (Panneerselvam, 2014). Furthermore, the allotted time for the entire research is 9 weeks and within this course of time, the investigator has to conclude its research.

The current research project investigated the state of competition in the retail market in clothing industry (Bryman and Bell, 2014). Thus, many techniques have been developed for measuring the level of competition from the international brands. The most common practice in business research is to use rating scales. Moreover, Mackenzie and et al., 2012 suggested that survey is the most common way of measuring the opinions of the customers regarding their preferences in buying clothes.

Thus, for the present study, the researcher has used a mixed questionnaire for collecting the information regarding the competition level incorporating both quantitative items (i.e. using a rating scale for responses) and open-ended items (Kuada, 2012). This data collection method is appropriate for a descriptive research study.

Data is collected for analysing the given topic of the research study. For that aspect, using various sources, data is gathered by the researcher (Riedl, Davis and Hevner, 2014). There are two types of data collection method and that are the primary source and secondary source. The primary source includes survey method, observation method and focus group method. The data gathered from these sources are primary data. Further, secondary sources include literature review, books, journals, internet, etc. Information collected from these sources is termed as secondary data (Tavakoli, 2012).

For the present study, the researcher has gathered the information using both primary and secondary sources (Mackey and Gass, 2015). For primary data, survey method has been used and in that questionnaire has been prepared [Appendix 1]. The survey has been taken from the customers of formal clothes and the sample has been taken as 30 people. Further, the secondary data is collected using literature review of different authors who have conducted the research in a similar field.

Strategies used by foreign brands

Data which have been collected using two sources; primary and secondary and the gathered data have been analysed under this section. It is very essential to analyse the data because, through it, the result can be concluded. Furthermore, there are two ways to analyse the data collected by the researcher (Bryman and Bell, 2014). The first is the thematic style and the other is the statistical method. Most of the time, qualitative data is analysed using thematic style and the quantitative data is assessed using statistical style. The current study is descriptive in nature and it is qualitative as well. Therefore, the researcher has used the thematic style for analysing the data that have been collected using questionnaire (Mackenzie and et al., 2012).

The timeline is prepared by the research in order to provide general guidance that within this time, the project aim must be accomplished (Riedl, Davis and Hevner, 2014). For that aspect, Gantt chart has been developed as follows:

Table 1: Gantt chart

Activities/Weeks	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7	Week 8	Week 9
Introducing the topic of the research
Writing the literature review
Finalization of methods for conducting actual research
Finalization of sample size
Conducting survey to gather information
Analysis of data using thematic style
Presenting the findings of the analysis and generating the result
Concluding the project
Identifying certain limitations

Data analysis is regarded as an important element in order to draw the valid and reliable conclusion for meeting out the aim and objectives of the research study. Under this section, analysis of data has been carried out with respect to the data collected from primary source using questionnaire. The data is gathered from surveying the Australian customers in a clothing retail market (Graef, Wahyuningtyas and Valcke, 2014). Further, the analysis is carried out using tables and graphical presentation. This has helped the researcher in carrying out the calculations like frequency distribution and charts. This will be beneficial to analyse the level of competition in the retail market in the clothing industry in comparison with foreign brands and that of local brands like Rhodes and Beckett. Analysis has been done using thematic style were themes have been formed to conclude the final results (Bergantino, Capozza and Capurso, 2015).

Theme 1: Formal clothes are generally purchased

Response	Frequency
Formal clothes	25
Informal clothes	5

The formal suits are mainly worn by the executives. However, in Australia, people generally wear formal dress including shirts, suits and other formal wears. Thus, from this survey, it has been analysed that 25 people out of 30 wears formal clothing and purchase that only and only 5 people purchases informal dresses for other reasons. Therefore, it can be said that formal clothing has more demand than informal clothes in Australia.

Theme 2: Participants like to buy from international brand showrooms

Response	Frequency
International brand showrooms	18
Local brand showrooms	10
Local vendors	2

When participants were asked about the brand preference, they responded that before the incorporation of international chains, consumers used to buy from the local brand like Rhodes and Beckett. After the incorporation of international brands, the preference has shifted towards these brands. Therefore, it has been assessed that 18 participants out of 30 prefer to buy from international brands. But there are still 10 consumers who like to buy from local brand showrooms. While only 2 people are willing to buy from local vendors. It can be assessed that living standards of people in Australia have increased.

Theme 3: Respondents agree that international brand sell more quality products than local brands

Response	Frequency
Strongly Agree	6
Agree	20
Neutral	3
Disagree	1
Strongly Disagree	0

Research Methodology

When asked about the product quality, most of the respondents got to agree on the fact that international brands provide more quality products than local brands. 20 out of 30 participants are agreed that international brand provides high-quality products, 6 people strongly agreed with the fact. 3 people are neutral but 1 is disagreeing with the fact. Thus, it can be said that international brand does not compromise on quality terms.

Theme 4: Attractive offers is the major reason for luring towards internal brands

Response	Frequency
Latest trends	15
High quality products	12
Attractive offers	30
Status Symbol	15

International brands have applied the strategies to lure the customers towards it. The major strategy is to promote their products by putting attractive offers on them. All the respondents are attracted towards the international brand clothing is due to their attractive offers which do not make any difference in price of local brands clothes. Moreover, 15 participants are attracted due to latest trends the foreign brand brings in the country and this attracts them to buy the clothes from there. Furthermore, 12 are attracted due to high-quality delivery and 15 are attracted due to the status symbol. Thus, it can be analysed that these are some of the strategies which have been applied by the foreign brands to lure the customers in Australian retail market.  

Theme 5: International brand has got more ratings in different parameters

Response	Frequency
	International Brand	Local Brand
Product quality	5	3
Trendy clothes	4	2
Service provided by salesperson	4	2
Attractive offers	5	3
Price	3	5

Participants were given a chance to rate different parameters with respect to international brand and local brands on a scale of 1-5. From this, it has been analysed that international brand provides effective services to their customers and this is also one of the strategies of these outside brands and provides a strong reason that why customers are attracted towards these brands. The foreign brand is effective in providing excellent product quality, trendy clothes, effective services of the salesperson, attractive offers. However, the relatively high price is a drawback for the foreign brands.

Theme 6: Respondents are highly satisfied with the product purchased from international brands

Response	Frequency
Highly Satisfied	25
Satisfied	3
Neutral	2
Dissatisfied	0
Highly dissatisfied	0

The researcher has asked the respondents regarding their purchase at International brands like Zara and H&M that whether they are satisfied with it or not? In response of this, respondents gave their replies that they are highly satisfied with their purchases. 25 participants out of 30 are highly satisfied with the purchase, 3 are satisfied and 2 are neutral about it. Thus, the frequency of high satisfied people is more and thus, it can be concluded that foreign brands satisfy the needs of the customers.

Theme 7: Participants are satisfied with the product purchased from international brands

Response	Frequency
Highly Satisfied	5
Satisfied	12
Neutral	10
Dissatisfied	3
Highly dissatisfied	0

The similar question asked of them regarding local brans purchasing and to which they replied that they are satisfied. However, the frequency of satisfied people is not more as it is close to neutral. 12 people out of 30 are satisfied and 10 are neutral. This implies that on an average people are not completely satisfied with their purchases at local brands.

Theme 8: International brands have occupied more market share than local brands in Australia

Response	Frequency
Strongly Agree	5
Agree	20
Neutral	3
Disagree	2
Strongly Disagree	1

Lastly, it was asked to the respondents that whether they agree with the fact that international brands have occupied a larger share of the market in Australia. For which, 20 participants got agreed, 5 were strongly agreed, 3 were neutral about the fact, 2 were disagreed and 1 was strongly disagreed. It can be analysed that consumers are well aware that international brands own the retail market of Australian clothing industry.

Theme 9: Various preferences provided by participants regarding the type of clothes they would purchase in future

Consumers were asked an open ended question to provide their preferences regarding clothing for future. For which they replied that they want to buy more trendy clothes for dressing well but in relatively lower prices. Further, they also responded that they want to move their preferences towards informal dressing than the formal one.

Theme 10: Suggestions provided for improving the product quality as well as service quality in Rhodes and Beckett

Participants suggested that Rhodes and Beckett can improve their product quality by incorporating high quality materials and buying from genuine manufacturers. Further, they can also provide better services by availing offers to their customers or by providing free accessories along with the dresses. In addition to this, the company could provide easy accessibility to the customers.

Conclusion

The aim of the project explains that researcher has to identify the competition in the Australian economy in clothing retail market in comparison to an international brand with that of the local brand. Further, the objectives have been made to accomplish the aim of the research. The first objective is to describe the state of competition in the economy of Australia in clothing retail market. The second objective is to recognize the strategies used by the foreign market to establish their brand in the Australian market. The data for analysis has been gathered from primary sources using questionnaire method where 30 people were surveyed. Secondly, secondary data has been collected using literature reviews. Moreover, the researcher has used descriptive research design to organize the entire research and thematic method has been used for analysis of the collected data.

From this report, it has been concluded that state of competition has increased after the incorporation of foreign brands into the Australian market. After that, the influence of these brands increased over the consumers. Furthermore, the strategies used by these companies to establish their brand strongly and those are to provide high end services to their customers, providing lucrative offers to them, providing high quality products, promoting their brand for creating high awareness among users. Thus, it can be concluded that international brands have occupied the larger market area in Australian economy and customers are now more attracted towards these brands rather than Rhodes and Beckett.

It can be recommended to the Rhodes and Beckett as well as other local brands of Australia that they must improve their product quality as well as service quality in order to attract the large number of customers (Wang, Meng and Zhang, 2014). Moreover, marketing strategies should be adopted by them for improving their sales and increasing their brand value. Along with that, online services should be started by them for easy accessibility to the customers and this will improve their sales. Moreover, lucrative offers must be provided to the customers, which will attract them towards this brand (Yoon, Park and Kim, 2013).

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