Retail Companies and Strategies to Promote Their Products

Current Event

Freeman, H. (2014, April 7). Chanel and Mulberry bag prices have soared -- but why? The Guardian http://www.theguardian.com/fashion/2014/apr/07/chanel-mulberry-bag-prices-designer-wealthy-fashion-russia-china-middle-east

Freeman's article discusses with regard to how major retailers such as Chanel and Mulberry have directed their attention toward markets that initially seemed unprofitable. When considering the rising number of individuals expressing interest in handbags from the two companies, it would seem that the East has a strong word to say in the industry. As emphasized in the article, bags produced by the two companies have found a huge market in developing countries like China, Russia, and in diverse nations in the Middle East. First world concepts appear to have little to do with some of today's fashion icons.

While some of the world's most notable fashion firms have built much of their empire on the back of middle-class people who indulged themselves in products that way overpriced, things have changed in recent years. Chanel and Mulberry, for example, are among companies that no longer feel satisfied with selling bags for as much as 500 pounds. They went to the next level and acknowledged the developing market in countries like Russia and China, where some of the world's wealthiest consider 500 pounds to be pocket change. Aiming for such a market can certainly be risky, but considering the profits that the world of fashion saw in the last few years, it would be safe to say that some companies can abandon interest in middle and lower classes altogether and solely focus on people who are absurdly rich and unhesitant about buying they consider to be in accordance with their status.

The way that fashion retailers restructure their marketing strategies is certainly intriguing. Finding new markets to expand one's horizons seems impossible to many, but studying is the key to discovering impressive business opportunities.

REPORT: People Are Shopping Online, But They're Buying Things In Person. Business Insider: http://www.businessinsider.com/sc/find-out-why-retailers-spend-millions-on-mobile-advertising-2014-2#ixzz2z5C0oAOP

Online shopping is not as impressive as it once was. While the number of people buying things from the internet is constantly growing, it seems that the masses have started to express more and more interest in actually going to store and buying clothes. Surprisingly, technology plays an important role in this equation -- smartphones are used as means to get in touch with stores and to actually interact with sellers. One of the reasons why this happens is that individuals seem to be more interested in seeing things they buy and in trying them on before going through with the purchase.

Geo-targeting is one of the newest forms of promoting products. Fashion companies focus on using mobile ads that reach out to people depending on their location. For example, someone who is in a certain region is going to be provided with commercials showing stores next to him or her. This is an incentive for many people, as they feel it would be better for them to go to a particular store instead of buying products from the respective shop online.

With smart devices currently being some of the most important things in the lives of many people, it seems perfectly natural for retail companies to concentrate on using these as a means to interact with their customers better. Geo-targeting is certainly an interesting option, taking into account how numerous people use maps on their devices immediately after seeing a product they are interested in.

Jung, P. Social media is a highly valuable tool for retailers. The Guardian: http://www.theguardian.com/media-network-partner-zone-ebay/social-media-retail-brands-ebay

Social media has changed much about the retail environment. While people previously tried to use acquaintances as a tool to determine the impact that a piece of clothing could have on the masses, they currently have access to an environment where they can get actively involved in a phenomenon known as social shopping. As retail is starting to shift its focus to social mediums, these respective mediums respond through introducing friendlier strategies with regard to people and retailers. Companies like eBay and Pinterest have recently introduced tools that users can take on with the purpose of significantly customizing the way they shop.

eBay's 'Help Me Shop' tool is especially impressive when considering the freedom it provides users with. People can practically put an end to buying things on impulse and can buy them after using their friends in order to determine whether or not a certain purchase is likely to reflect positively on their lives. eBay provides shoppers with the opportunity to share things they like with their friends and get feedback. The sharing process occurs via social environments like Facebook or Google+ and people can have access to a wide range of options they can use either with the purpose to suggest things to their friends or to create polls where their acquaintances can vote with regard to a product they are interested in buying.

Retailers have a bright future in social environments and it is thus important for them to acknowledge this in order to keep their position on the market or to improve it. Shoppers are drawn into an interactive setting where the experience is as enjoyable as the purchase itself. It's virtually as if shopping turns into a game and people appreciate the experience itself rather than considering it a simple process that they have to go through in order to buy things.

Duhigg, C. (2012, February 16). How Companies Learn Your Secrets. The New York Times: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all&_r=0