EBS7200 Global Luxury Industry and Business Handbook 23-24 BSCI

Executive summary

The following report has offered a detailed analysis of the market expansion strategy for Norton & Sons to propose a new ethical product using different concepts and theories using the Ansoff matrix, SWOT analysis, and PESTEL analysis within the global luxury industry business landscape. Norton & Sons will launch a “sustainable heritage clothing collection” in Australia using organically sourced materials like wool, cotton etc as these sustainable materials are produced without any harmful pesticides or chemicals.

Company vision: Evaluation of existing global activities

Established in 1821 on London’s Strand, Norton & Sons is a prominent company in the United Kingdom. The tailors of this brand developed expertise in lightweight clothing for its diverse consumers to maintain its position in the marketplace (Norton & Sons, 2024). Norton & Sons has a long history in the fashion industry, having produced clothing for well-known French designers Paul Poiret and Charles Frederick Worth. For many years, this firm collaborated with Sir Hardy Amies, the Queen’s designer. This company’s high arm-hole promotes both convenience and activity. These activities ensure that despite its 200 years of legacy, this business is still witnessed as the greatest house on the street for its stylish and vibrant practice. In general, this company’s vision is to be the greatest luxury brand in the world.

Figure 1: Brand logo Source: (Norton & Sons, 2024)
Figure 1: Brand logo Source: (Norton & Sons, 2024)

Market analysis: macro and micro trends and issues

Norton & Sons will benefit from identifying the current micro and macro trends and issues as this will assist the firm in expanding its market with new products. Thus, to significantly identify the trends and issues this report will use several useful theories such as SWOT analysis, PESTEL analysis and Ansoff’s Matrix.

PESTEL analysis

  • Political factorsGovernment approaches supporting luxury items could benefit this company and the trade policies between the United Kingdom and other nations could impact the export and import of used materials in the process of tailoring.

  • Economic factors: Fluctuation rates in the UK can affect the cost of used materials. This also impacts the affordability of the products for multinational consumers as well

    (Villegas, 2023). Downtowns related to finances in the UK can lead to lower consumer spending on such high products as bespoke tailoring.

  • Social factors: Changing customer patterns towards fast fashion or sustainable clothing alternatives could lead to issues for Norton & Sons (Zhang, Zhang and Zhou, 2021). In contrast, rising praise could benefit Norton & Sons in the UK marketplace.

  • Technological factorsIn the fashion sector, technological advancements could disrupt traditional tailoring approaches. On the other hand, the increase in online retail could offer several opportunities to reach a huge consumer base as well.

  • Environmental factors: Currently, in the UK, consumers prefer sustainable clothing to reduce environmental impact within the fashion sector (Villegas, 2023). In addition, rules related to sourcing raw materials such as exotic fabrics and lather could increase the cost of production.

  • Legal factorsEfficient intellectual property laws can safeguard this business’s designs from being copied. Also, regulations related to labour in the UK can affect production costs as well.

Figure 2: PESTEL analysis Source: (Villegas, 2023)

SWOT analysis

  • StrengthsThis brand has a positive reputation and long history as this business is famous for its use of traditional tailoring approaches with good materials [Refer to Appendix 1]. Using of finest materials assists in offering high-quality products. Offering bespoke tailoring experiences to consumers is the vital strength of Norton & Sons in the UK marketplace.

  • WeaknessThe high pricing of products is the main weakness of this brand as this brand’s bespoke tailoring and use of high-standard materials leads to high pricing (Norton & Sons, 2024). Also, limited availability can decrease the market potential for this brand as consumers have to wait to get the product.

  • OpportunitiesExpanding into new locations in vital cities will increase accessibility for the international consumer base as this business can target new markets as well [Refer to Appendix 1]. The online presence will offer huge opportunities for this brand and offering a vast range of items could appeal to a vast consumer base in the current dynamic business landscape.

  • ThreatsChanging fashion trends negatively impact the demand for this brand’s product (Forsey, 2023). Moreover, high competition will be one of the vital threats for Norton & Sons as many companies offer similar products to attract consumers.

Figure 3: SWOT analysis Source: (Forsey, 2023)

Ansoff’s Matrix

  • Market PenetrationThis company can emphasise increasing the sales of its existing bespoke tailoring to boost its revenue growth and maintain its market position in the UK marketplace.

  • Product DevelopmentIn this context, developing new products can mainly target current consumers or draw a new consumer base as this can be achieved by including a diffusion line (Hanlon, 2021).

  • Market DevelopmentThis company can focus on developing new markets while offering high-quality tailoring services to its consumers.

  • DiversificationProviding new products while partnering with other luxury brands can be a suitable diversification plan for this brand to maintain its brand position in the marketplace (Hanlon, 2021).

Figure 4: Ansoff’s Matrix Source: Self-created

Competitor analysis

Description

Norton & Sons

Henry Poole & Co

Norton & Sons established in 1821, is a prominent brand that developed expertise in lightweight clothing for its diverse consumers. The brand offers a classic style of clothing (Norton & Sons, 2024).

Since 1806, Henry Poole & Co. has provided the very best in fine British tailoring as this is famous for the creation of the dinner suit (Henry Poole Savile Row, 2024). This company offers classic and modern styles of clothing.

Norton & Sons also faces competition from several companies such as Anderson & Sheppard, Huntsman Corporation, Gieves & Hawkes etc. in the bespoke tailoring sector.

Compitative analysis (Source: Self-Created)
Compitative analysis (Source: Self-Created)

Market expansion strategy

New product

Norton & Sons will launch a “sustainable heritage clothing collection” in Australia using organically sourced materials like wool, cotton etc as these sustainable materials are produced without any harmful pesticides or chemicals. This will assist in mitigating environmental impact as well as assist in encouraging a healthier ecosystem for the future as well.

Figure 6: Australian consumer focus on sustainable clothing
Figure 6: Australian consumer focus on sustainable clothing

The above image shows that approximately 22% of Australian customers believe containing sustainable items available to buy in the apparel and fashion industry is extremely significant, according to a 2022 survey (Statista Research department, 2024). On the other hand, only 12% of consumers stated that they did not consider the availability of sustainable clothes products as necessary. In 2022, Thus nation registered a clothing industry income of about 18 billion U.S. dollars, with earnings predicted to come to around 22 billion U.S. dollars by 2027. Female clothing is the biggest part of the Australian clothing industry as these developing earnings of about 10 billion U.S. dollars in 2022, with the men’s clothing component valued at about four billion U.S. dollars less that year (Statista Research department, 2024).

Australia fabricates, exports, along with imports enormous amounts of fresh clothes yearly. With an average annual consumption of around 14 kilogrammes of new apparel, Australians rank among the world’s largest clothing consumers. The nation has a significant garment waste problem as a result of high consumption levels. In June 2023, the Australian Fashion Council (AFC) established an efficient plan that seeks to change the nation’s apparel sector by developing recycling matters, enlightening and authorizing clients via re-education movements on clothes purchase and disposal, and enabling circular industry models and exhibition procedures (Statista research department, 2024). Moreover, Australian customers are gradually leaving fast fashion and committing more to sustainable approaches as they are currently becoming more conscious of the negative consequences of unethical use of products. Therefore, based on the above discussion, it is evident that Australia must be an ideal place for Norton & Sons to launch their new product line in the future.

‌Brand positioning

Brand prism

  • PhysiqueThe elegant and sophisticated British style of this business is reflected by its coveted Savile Row location along with its historic aspects of Landorn’s Strand.

  • Personality: The company represents elegance and flawless craftsmanship with a rich history (Sandraiakovleva, 2024).

  • CultureNorton & Sons encourages its craftsmen to work together to be innovative.

  • RelationshipThis brand builds long-lasting connections with its consumers via mutual respect, and trust with personalised care to detail.

  • ReflectionThis business assists consumers in expressing their different identities and styles that are a reflection of their interests via custom tailoring as well (Sandraiakovleva, 2024).

  • Self-ImageWearing this brand’s products gives clients a sense of pride that shows high craftsmanship as well.

Brand Onion

Brand Onion provides a comprehensive model of branding that significantly emphasises the advantages along with the attitudes in addition to the basic principles. Moreover, the brand onion, which outlined the company’s refined and persistent personality through this new product line, is another example of its efficient brand positioning as well.

Brand extension

Australian customers are gradually committing to using sustainable approaches and therefore, extension in Australia must be an ideal.

4Ps Strategy

Product

The brand focuses on developing sustainable heritage clothing collections” in Australia using organically sourced materials like wool, cotton etc.

Price

The brand must adopt premium pricing as this strategy assists the business in offering high-quality clothing to consumers (Jayachandran, 2024).

Place

Australians rank among the world’s largest clothing consumers and Australian consumers seeking to use more sustainable clothing. Therefore, the Australian marketplace will be ideal for this expansion.

Promotion

The company will expand their product by collaborating with different and trusted partners in the Australian marketplace.

Market expansion strategy: ethical communication strategy

The ethical communication process is important for this business to create faith and launch the business in the sustainably focused clients of within Australia as transparent communication is important for increasing understanding among sustainable consumers about the business’s plan to employ sustainable materials such as sustainable cotton, wool etc, (Hameed et al. 2019). Therefore, this ethical communication strategy assists in mitigating environmental effects. This ethical communication strategy will assist in improving consumer curiosity towards the company and give benefits for the future. In addition, strengthening transparency with clients concerning the usage of sustainable materials can demonstrate consumer trust as currently, mitigating environmental impact is one of the primary considerations in Australia. Thus, the plan to contribute to the atmosphere positively will be communicated to provide transparency as this will capture consumers’ attention. In general, in these ways, the brand can maintain its ethical practices in this dynamic fashion sector.

Figure 7: Communication strategy Source: Self-created

Case study: analysis of one competitor

Henry Poole & Co. is a vital competitor for Norton & Sons as this business is renowned for having invented the dinner suit, and has been offering the finest in exquisite British tailoring since 1806 (Henry Poole Savile Row, 2024). This brand sells apparel in both traditional and contemporary designs. The brand seeks to maintain the classic matters that have made Savile Row the gold measure of tailoring while conquering the skill of adapting to the differences that the customers desire. Eventually, this business wants to deliver the timeless dignity of clothing. The brand also wants to be globally recognized as well by offering consumers a bespoke suit.

‌Customer persona for a specific, sustainable target segment, outlining key benefits

Figure 8: Customer persona Source: Self-created

Recommendations

Based on the above analysis it can be concluded that this brand needs to follow certain recommendations while launching its new product in the Australian marketplace. The brand must invest in improving its online presence as currently consumers are using online clothing shopping experiences (Bottrell, 2023). In addition, the brand needs to invest in sustainable sourcing partnerships to fulfill the demands of eco-friendly consumers while launching its product in the Australian marketplace. This suggestion will assist in maintaining its comparative edge in the fashion industry.

‌References

Bottrell, G. (2023) The Importance of a Strong Online Presence for Your Business. Available from :

https://www.linkedin.com/pulse/importance-strong-online-presence-your-business-gavin-bott rell.

Forsey, C. (2023) SWOT Analysis: How To Do One [With Template & Examples]. Available from : https://blog.hubspot.com/marketing/swot-analysis.

Hameed, I., Waris, I. and Amin ul Haq, M., (2019). Predicting eco-conscious consumer behavior using theory of planned behavior in Pakistan. Environmental Science and Pollution Research26,

pp.15535-15547.https://www.researchgate.net/profile/Idrees-Waris-2/publication/332197376

_Predicting_eco-conscious_consumer_behavior_using_theory_of_planned_behavior_in_Paki stan/links/624ef3eaef013420665f2d6c/Predicting-eco-conscious-consumer-behavior-using-th eory-of-planned-behavior-in-Pakistan.pdf

Hanlon, A. (2021) The Ansoff Model [Marketing strategy matrix] | Smart Insights. [Online] Smart Insights. Available from : https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/.

Henry Poole Savile Row (2024) – The History at London’s Savile Row. [Online] Henry Poole Savile Row. Available from : https://henrypoole.com/heritage-savile-row/our-story/.

Jayachandran, A. (2024) Premium Pricing. [Online] WallStreetMojo. Available from : https://www.wallstreetmojo.com/premium-pricing/.

Norton & Sons, (2024)Bespoke Tailors — Norton & Sons. Available from : https://www.nortonandsons.co.uk/.

Sandraiakovleva (2024) The Brand Identity Prism: What it is and How to Use it | VistaPrint US. [Online] Vistaprint Ideas and Advice US. Available from : https://www.vistaprint.com/hub/brand-identity-prism.

Statista Research department, (2024)Consumer expectations of sustainable clothing product availability Australia 2022. (2024) [Online] Statista. Available from : https://www.statista.com/statistics/1359971/australia-consumer-expectations-of-sustainable-cl othing-product-availability/.

Villegas, F. (2023) PESTEL Analysis: What It Is & What It Is For. [Online] QuestionPro. Available from : https://www.questionpro.com/blog/pestel-analysis/#:~:text=PESTEL%20is%20an%20acrony m%20for,arising%20from%20these%20four%20factors.

‌Zhang, B., Zhang, Y.-Z. and Zhou, P. (2021) Consumer Attitude towards Sustainability of Fast Fashion Products in the UK. [Online] Sustainability. Available from : https://www.mdpi.com/2071-1050/13/4/1646.

‌Appendices

‌Appendix 1: SWOT analysis

Strengths

Weakness

Opportunities

Threats

  • Long heritage and reputation

  • High-quality craftsman

  • Experience of Bespoke tailoring

  • High clothing price

  • Limited

availability

  • Expanding consumer base

  • Online presence

  • Diversificatio n of products

  • High competition

  • Shifting

fashion trends

Source: Self-created