You are on page 1of 35

Fashion

Retail Management
Assignment 1

Fortuna Then S3432437



Executive Summery

This report follows an analysis of the Melbourne Brand HoMie, explores the brands
background, investigates the factors effecting the brand in its environment and a
competitor analysis, the purpose is to offer an overview look at their current station
and make recommendation on how the business can grow.
The brand HoMIe offers youth street wear with a unique business model. The whole
business is run with the purpose of helping Melbournes homeless, the two founders
of the store first founded a charity called homeless of Melbourne which has a
Facebook following of 30,000 people, and after which created the brand HoMie
which allows consumers to buy new apparel while helping the homeless. For every
item of clothing purchased items of equal value will go to a homeless person in
Melbourne. The brand started up last year in June 2015, went online in August 2015
and launched a female range in December 2015. Currently it has moved out of its
original store location in Melbourne central and is temporarily trading out of a small
portable hut in Melbourne central. The website is up and running but very
underdeveloped. The OBM analysis found the brand relies heavily of the goodwill of
their business model, which was extremely evident in the radar analysis as their
results were skewed mainly to giving back to the community.
In the OBM it was found resources such as donations from consumers and donations
of new sellable apparel from other retailers were heavily influenced by the goodwill of
the business model. This is a weakness for HoMie because it makes them very
vulnerable to the possibility of new entrants that have similar business models. If that
situation were to occur they would have no differentiating factor. The competitor
analysis supported this again as they rated lowly for value for money, low for
accessibility, average for fashion-ability of items, low for quality and high for giving
back to society. Through the VRIO analysis it showed that the brand is new and
underdeveloped so any advantages they had were not fully realised, as they were
not organised to exploit them. Therefore no SCA was found. The chosen location for
a new store was Brunswick, as their main criteria found through interviewing a HoMie
employee was affordability and space as they currently only have a small temporary
store which struggles to house 6 people inside let alone the small amounts of stock it
carries. Brunswick Street shopping precinct was chosen because of cheaper rental
yet still adjacent to the city. It is positioned on a shopping strip so the shop can share
in footfall traffic the other stores have.

The HoMie brand is new and exciting but has a lot of work to do to establish
themselves and fully realise the financial benefits of their current advantages, with
hopes of increased revenue and expansion in the future.
Introduction:
This assignment follows the analysis of a Melbourne brand HoMie an in-depth look of
their business, environmental and competitor analysis and from there offer an
overview look at their current situation and offer recommendation of how the brand
can expand and grow for example in terms of a new store presence.
Background
Brief History of HoMie:
HoMie is a new start up brand launched in June 2015 that sells youth oriented street
wear. The brand opened its first store in Melbourne Central in June 2015, launched
its online store in August 2015 and in December 2015 a female range was also
added to the brand. Initial plans were to only run for a month but ten months later
according to their Facebook page theyre still going strong. At the moment theyre
temporarily operating out of a portable hut in Melbourne Central, their old location
has been taken by a commercial brand thats renovating the shop space to suit their
own needs. Due to this information we can assume they will be moving into a new
shop space somewhere in Melbourne Central in the future.
About the Brand:
The defining attribute of the brand is the unique value proposition HoMie offers its
customers. The ability to buy new fashion while simultaneously allowing them give
back to the community and help a good cause. For every item sold HoMie will give
an item of equal value to the homeless. Another differentiating quality of the brand is
the VIP days, once a month the store closes its
doors and open exclusively to a group of
homeless people. They provide them with free
clothes, refreshments, makeup and hair
makeovers and employment advice.
Online Presence:
The brands online presence is currently well
established in terms of brand awareness with

6500 Facebook followers however the actual store website is extremely


underdeveloped and underutilised. Simple functions like add to cart are not
functioning for some items. There is no shipping information and limited product
information such as where the garment was made and fabric composition. It makes
shopping for the consumer difficult.
Primary fashion goods:
HoMies goods and services mix (W3_RCO3) consist of their primary fashion goods
focus on youth oriented street wear predominantly made from a cotton jersey with
plain colours and simple logos and prints. For a casual look and daytime wear.

Situation Analysis
Osterwalder Business Model Analysis:
Through the OBM analysis of the business it was quite obvious after completion how
reliant the brand is on the goodwill of their business model. The majority of key
resources and partners are heavily influenced by the goodwill of their business
model, for example the volunteers that man their retail store, the retailers that donate
sellable apparel to the business which are essentially free goods they can sell for
revenue and the initial support of Melbourne Central Management has meant that
they have received cheaper rental, almost halved (TheAge 2015) and the brand
appears in the centres marketing giving them exposure to new customers.
The main value proposition offered to consumers (W2_RCO1) is essentially their
business model, the ability to give to the homeless while buying new fashion items
for themselves. They also have a good Facebook following on their brands page of
6500 followers; again the main attraction to consumers would presumably be the
goodwill of the business model.
One of HoMies biggest challenges (W1_RCO1) is to operate while serving a profit,
since their brand essence is being able to give back to the community, they must first
cover their costs (W1_RCO4) in order to sustain themselves as a business before
being able to give back to the Melbourne homeless community. As a firm it is
important for them to understand their costs for them to be economically sustainable
and hence socially sustainable thereafter. Their cost structure is made up of the
necessary costs for operating an online store and a physical store. Items such as
rent, manufacturing, transport to the store or to online customers homes
A key weakness of the brand is that their main recourses, partners and to a certain
extent their revenue income is influenced by the goodwill of their business and it is
the goodwill in those consumers, suppliers and partners that allow the business to
operate smoothly and allow continuous cash flow. However it is important to note
that the firms ongoing fixed costs are generally not affected by the goodwill of their
business and are consistent regardless of how many sales and donations have been
made. This is a weakness as the firm depends on the generosity of consumers and
supplier to run smoothly, however these are not easily forecasted and may not be
consistent unlike their fixed costs, which are essential to cover in order to stay in
business.

Environmental Analysis:
Key findings were the opportunities of online sale growth for the future and the use of
data analytics to better understand the online consumers and utilise the website to
align with customers needs. This is relevant to HoMie because they only have one
physical store and one online. HoMies website is incredibly underdeveloped and a
major opportunity for them to capitalise on, to increase sales and develop their
technological relationship (W2_RCO05) with customers. Similarly the trend of word
of mouth marketing via social media is strong and only set to continue and with their
strong brand following on Facebook which is an advantage for them and an
opportunity for them to encourage people to share their experiences with their HoMie
purchase.
Some of the main threats found were the rapidly decreasing value of the Australian
dollar, which cuts into HoMie profits by raising the cost price of manufacturing. Some
of the major consumer trends were consumers becomes more demanding in terms of
faster service in apps and delivery times. Higher expectations of items to always be
on sale and a new way of shopping leaning towards bargain hunting behaviour are
all threats for HoMie as their online website is underdeveloped their current offering
is not competitive. Their price points are also not cheap, so the price driven
consumer would most likely not shop at this brand.
TOWS Analysis:
Strengths and Opportunities;
Since the brands business model has already been accepted well by consumers the
next step would be to boost awareness on a bigger scale to improve sales and online
and in store foot traffic. One strategy could be to use a fashion ambassador such as
a designer to create fashionable ranges, which would generate awareness for people
that may know the designer but not the brand.
Weaknesses and Opportunities;
Due to weakness of low capital and underdeveloped brand an opportunity may be to
find in demand skilled individuals that share in the brands vision to work for them at a

cheaper cost or volunteer basis. For example a much needed buyer, or designer to
create and rollout more products.
Creating a range that targets a higher income-earning segment, which has more
expendable income and is a more attractive market rather than youth wear as their
current market is limiting in capital revenue terms.
As one of their weaknesses is a high price point, which stems from a new evolving
supply chain, they could focus on streamlining operations to generate efficiencies
and lower costs to ascertain more working capital.
A major weakness and limiting factor for the brand is their website, therefore it is
recommended that the brand improve their website to increase sales through online
channel and overall revenue.
Improve online website as it is their current main and only shop and income stream
increase sale through online channel and overall revenue. Provide information such
as shipping and product info, and fix faults such as ability to add to cart, for pleasant
and easy experience for consumers.

My Company Inc
BeeKeeper
Glue
Stussy
Savers
Salvation Army

Adjusted Competitor Radar Chart


Value for
money

2.5
2
1.5
1
0.5
0

Giving back
to society

Easily
accessable

Fashionability
of items

Quality

Adjusted Competitor Rating


My Company Inc

Value for money

BeeKeeper

Easily accessable

Glue

Stussy

Fashionability of
items

Savers

Quality

Salvation Army

Giving back to
society

The competitor analysis shows HoMie is not performing well for value for money, as
their goods are currently high priced compared to industry competitors and poor
quality. They rated low for accessibility as the website is not fully functioning and
does not allow you to add all of their goods to cart. Their one physical store is going
through a period of moving where theyre trading out of a small hut, however the
location of Melbourne central is very attractive sales and foot traffic wise. They rated
average for fashion ability of items, low for quality and high for giving back to society.
VIRO Analysis:
Valuable
Good Social

Rare

Hard to

Organised to

Imitate

Exploit

YES

NO

YES

NO

YES

YES

YES

NO

YES

NO

YES

NO

YES

YES

YES

NO

media following
Unique business
model
Good relations
with suppliers
Good relations
with centre
management
No SCA was found, as the firm is not organised to exploit any competitive
advantages they may have such as they good social media following and unique
business model. This is due to the firm being undeveloped since it is a new brand
and in its early stages of growth and expansion. One setback is not having a
consolidated and stable physical store. A staff member at HoMie said that they have
moved around a lot and this creates confusion for consumers going to their original
location and not seeing them there, there is also no information on their website to
say they have moved. The only inclination is a post on their Facebook page with a
photo of their new location and saying they have moved. It is important to clearly
communicate to consumers such as a sign at their old shop and a post on their
website stating they have moved to maintain good relationships with customers,
increase awareness of the brand and in the long run increase sales (W1_RCO5).

It is true that with time and stable growth HoMie will naturally develop a better
website and wider product range but these are still the two main recommendation to
help capitalise on their strengths and gain a SCA for themselves.
The will also provide a better total retail experience (W1_RCO2) for the end
consumer.
Location Decision within Melbourne:
After speaking to a staff member at HoMie Melbourne Central it was found that they
are planning to move outside of Melbourne Central. Also that the rent is no longer
halved, initially it was but now it has gone back to normal. They said they were
looking at Brunswick and St Kilda mainly due to space and affordability.
Taking into account some of important criteria for HoMie was affordability and space,
as the temporary little hut they are in now at Melbourne central is very small, they are
struggling to fit merchandise and even many customers in there. Brunswick Street is
the recommended chosen location due to close proximity to city, good foot traffic due
to location in the shopping strip. This would mean they receive walk through traffic
from people already shopping or dining in the area.
This location is also a good balance between what they can afford, visibility and
accessibility to customers. Being in an area adjacent to the city the consumers living
in Fitzroy would most likely be in a higher income bracket and higher disposable
income due to the higher house prices. They would presumably have better
purchasing power than consumers further out of the city, which creates more
attractive trading conditions for HoMie. The location is also still accessible to
consumers since it is in an area that is adjacent to the city and visibility is not
compromised too much as its adjacent to the city.

Conclusion
In conclusion HoMie is a new and underdeveloped brand with a lot of potential due to
the demand from consumers wanting more sustainable products and brands. They
currently have an online and small temporary physical store with a limited range of
high priced products of street wear. It is recommended to consolidate their store and
choose a location to set up a permanent shop so there is less interference with daily
trade. The website is in a much needed update and much basic info is lacking. The
supply chain must also realise some efficiencies as the price is currently too high, or
marketing campaigns are needed to communicate more specifically how the money
from the garnet is broken down and allocated, which would make consumers more
likely to want to purchase the clothing. The HoMie brand is new and exciting but has
a lot of work to do to establish themselves and fully realise the financial benefits of
their current advantages, with hopes of increased revenue and expansion in the
future.

Appendices
Appendix A.
Relevant Content Outcomes (RCOs)
Week 1: The Smart Approach
RCO1 Fashion Retail Challenges
RCO2 Total Retail Experience
RCO3 Creating Fashion Retail Solutions
RCO4 Retailing Costs and Profit
RCO5 Relationships with suppliers and customers
Week 2: Creating & Sustaining Value
RCO1 Value what it is, what it does
RCO2 Retail Value Chain
RCO3 Value Oriented Retail Strategy
RCO4 Service Retailing relationships
RCO5 Technology & Ethical relationships
Week 3: Strategic Planning
RCO1 Smart tools of Fashion Retail Strategic Planning
RCO2 Retail management and staff capabilities
RCO3 Goods and services mix
RCO4 Company objectives: sales; profits; image; customer satisfaction; resources
RCO5 Retail market analysis factors SWOT was performed to geneate stsate of
p/o
RCO6 Retail strategy control: activities; audit; feedback
Week 4: Global Strategic Planning
RCO1 Why go global?
RCO2 Planning growth strategies
RCO3 Global Export Assessment list
RCO4 Three pillars of Fashion Retail Global Strategy
RCO5 Fashion Retail Global Strategy factors: company; consumer; operational;
merchandising; store location

Appendix B.
OBM Analysis

Key Partners

Key Activities

Value Proposition

Manufacturing

that gives to the

sellable apparel

Design and

homeless while

sourcing

buying fashion. For

Online: back of

On, Nelson Clothing,

Followers on FB
page

about the
homeless (most

VIP Days; once a

likely living in

every purchase an

month the now

Melbourne) that
want to do

Trend Clothing and

house, inventory

item of clothing of

closed store in

many more).

management,

equal value will be

Melbourne Central

something to

Melbourne Central

distribution and

given to someone

would close its

alleviate the

Management: The

logistics

in need additionally

doors and open

problem

all profits go

exclusively to a

towards the

select group of

homeless of

homeless people,

Melbourne.

offering them food,

support of the centre


has meant cheaper
rent nearly halved
(TheAge 2015) and

Customer Segments
1. People who care

Street wear fashion

Retailers for donated


(Snow gum, Cotton

Customer
Relationships

Giving equal unit


sales to homeless

free marketing.

clothes, makeup

Manufacturing

and hair and job


advice for free.

2. People who want


to buy new fashion
while helping a
good cause.

3. Young people who


want to buy casual

Key Resources

Channels

Main physical store


in prime location to

Online store

Facebook page:
Homie the brand

tell brand story

and Homeless of

Volunteers to

Melbourne which is

operate retail store

also created by

Donated apparel

owners.

from retailers

Public following on

Physical store in
Melbourne Central

FB page (6500
followers)

Online website

Cost Structure

Revenue Streams

Rent

Donations

Manufacturing

Clothing sales online and through store

Distribution

Logistics and inventory management

Online website maintenances

street wear to wear


for their own end
use.

Appendix C.
PESTE
PESTE Table 1

Global level

Regional level

National/

Local level

Country level
Political/Legal

Pg1. China Free Trade

Pn1. Possible Elimination of

Factors

Agreement

Penalty rates for retailers

Pg2. Rising cost of

Pn2. Double Dissolution

manufacturing in China

Election
Pn3. Possible elimination of
Carbon tax
Pn4. Liberalisation on trading
hours during public holidays

Economic Factors

Eg1. Rapidly decreasing Aus

En1. Possible GST increase

Dollar

En2. Industry revenue expected


to grow (IBISWorld 2016)
En3. Jobs growth (Turnbull
2016) and disposable income
expected to increase in 2015-16
(IBISWorld 2016).
En4. Consumer sentiment
expected to rise in 2015-16
(IBISWorld 2016).
En5. Growing trend for

El1. High Rent Prices

Australian brands to acquire


other brands (IBISWorld 2016).
En6. Interest rates remain low
(Hodgson, F 2015).
En7. Unemployment rates are
slowly increasing (Hodgson, F
2015).
Social,

Sg1. The Rise of Asia

Sn1. Urbanisation

Demographic,

Sn2. Ageing population

Cultural

Sn3. consumer wanting faster

Factors

service; real time results on


apps and same day delivery
(Rowsell, V 2015)
Sn4. Consumers becoming
accustomed to price reductions
(IBISWorld 2016)
Sn5. The rise of the health
conscious consumer
Sn6. - Increase in bargain
hunting behaviour (IBISWorld
2016)

Technological

Tg1. Online Sales Growth

Factors

Tg2. Using data analytics to


understand the online
consumer (Hodgeson, F
2015)
Tg3. Omni Channel Trend
Tg4. Growing use of
smartphones
Tg5. Word of Mouth via
online and social media
Tg6. Sharing Information up
and down the supply chain
Tg7. Demand for mass
customisation
Tg8. Using drones for
delivery

Ecological/

Eg1. The globalisation of

Environmental

supply chains

Factors

Eg2. Waste management


Eg3. The use of cotton by
many brands water and
pesticides.
Eg4. Growing awareness and

demand for environmentally


friendly products

Appendix D.
PESTE rationale
PESTE Table 1

Global level

Regional level

National/
Country level

Political/Legal

Factors

China Free Trade

Possible Elimination of Penalty

Agreement will reduce

rates for retailers, which would

taxes and tariffs between

reduce costs of trading on

Australia making trade

weekends and out of normal

more profitable for both

hours.

countries.

-Double dissolution election

Increased pay and

leading to job uncertainty in the

standards in China is

government sector and reduced

slowly pushing up the

spending on non-essential items

price for manufacturing in

and overall industry revenue.

China thus retailers are

-Possible elimination of the

looks elsewhere to

carbon tax would reduce

source goods or absorb

operating costs for firms and

a slight margin decrease.

increase their margin.


-Liberalisation on shop trading
hours would make it harder for
smaller shops to compete on
public holidays however elevate
restrictions on overall industry

Local level

activity (IBISWorld 2016).

Economic Factors

- Rapidly decreasing Aus

- Possible GST increase, which

- High rent prices in

Dollar has made purchasing

would increase prices for

Melbourne with no forecast

outside the country more

consumers.

to decrease are a costly

costly and thus the majority

- Industry revenue expected to

fixed costs for bricks and

of retailers that source

grow 2.7% in 2015-16 and the

mortar stores.

manufacturing outside the

five years through to 2020-2021

country, would see an

grow at a rate of 1.2% per

increase to their costs and a

annum. (IBISWorld 2016)

decrease in margin.

-Jobs Growth according the


Malcom Turnbull (2016) in the
last few months has risen and
when people have job certainty
consumer sentiment is higher
which has a positive correlation
on household expenditure.
-Disposable income expected to
increase in 2015-16 presenting

industry operators with


opportunities to increase firm
revenue (IBISWorld 2016).
- Consumer sentiment expected
to rise in 2015-16 however fall in
2016-18, volatile environment
for retailers to operate in
(IBISWorld 2016).
- Growing trend for Australian
brands to acquire other brands
in order to increase market
share, streamline operations to
gain efficiencies and ascertain
economies of scale and pass on
cost savings to consumer, also
allowing them to compete with
international competitors
(IBISWorld 2016).
- Interest rates remain low thus
loans are more attractive to
consumers (Hodgson, F 2015).
- Unemployment rates are
slowly increasing which will

reduce those consumers


discretionary and expendable
income (Hodgson, F 2015).
Social,

-Rise of Asia; rapid increase

-Urbanisation creates more

Demographic,

in income, expanding

opportunities in the city, as

Cultural

population and increase in

consumers are more

Factors

temporary and permanent

concentrated in the city area.

migration (McKenna, G 2015)

-The rise of the health conscious

into Australia changes the

consumer has lead to a major

market and consumer

growth market for sports and

attributes and overall creates

fitness apparel.

a bigger market with more

- Consumer buying behaviour

disposable capital (Pash,

has seen an increase towards

2014).

bargain hunting as consumers


have focused on reducing debt
and increasing their savings
(IBISWorld 2016)
- An expectation amongst
consumers for goods to always
be on sale as they have become
accustomed to seeing price
reductions (IBISWorld 2016)

- The expectation from


consumer is they are wanting
aster than ever service in terms
of real time results on apps and
same day delivery (Rowsell, V
2015)
-Aging population with wealth
accumulation presents an
attractive segment to target.
Technological

Factors

A trend where
information is shared
across the supply chain
to improve efficiencies.

Demand for mass


customisation had seen
some build business
models around that
concept.

Demand from online


shopping, general
acceptance and
development of online

only stores has changed


the retailing landscape
but also present
opportunities for bricks
and mortar to sell online
and thus increase there
revenue. Online sale
channels drive growth for
year ahead (IBISWorld
2016)
-

The use of data analytics


by retailer to hep
understand the online
consumer and their
behaviour (Hodgeson, F
2015)

Strong trend in word of


mouth marketing via
online reviews and
comments on social
media increases a
retailers transparency
(Hodgeson, F 2015).

Use of drones for faster


and cheaper delivery
(Amazon, Dominos
Pizza and Deutsche Post

Growing use of
smartphones, adoption of
mobile technologies and
increase in mobile
shopping segment.

Omni channel: 33% of


retailers surveyed said
that Omni channel
retailing as their number
1 priority for 2015, an
increase from 2014 22%
(Deloitte as cited in
Hodgson, F 2015)
Increase in retailers
trying to merge the online
and offline experience by
implementing strategies
to improve overall
experience, leading to a

shift in the use of floor


space, traditionally used
for driving sales but now
can be used to engage
and interact with
consumer. Customers
are now using all
platforms to shop,
whether that be
researching online,
comparing prices on their
device and completing
the purchase in store or
online (Rowsell, V 2015)
Ecological/

-Growing awareness and

Environmental

demand for environmentally

Factors

friendly products by
consumers
-The use of cotton by many
brands has a negative effect
to the environment through
substantial use of water and

pesticides.
-The globalisation of supply
chains has increased the
distance a garment travels
substantially and thus the
energy and atmospheric
pollution involved in
transporting it.
-Waste management as
landfill physical space is
limited

Appendix E.
PESTE Time ratings

Political Factors

Short Term Rating

Rank

Medium Term Rating

Rank

Pg2. Rising cost of

4/5

Pg1. China Free Trade Agreement

5/5

manufacturing in China
Economic

Eg1. Rapidly decreasing Aus

Factors

Dollar
En6. Interest rates remain low

Pn1. Possible Elimination of


5/5
5/4

En4. Consumer sentiment


expected to rise in 2015-16
(IBISWorld 2016).

4/4

Social-

Sn1. Urbanisation

5/5

Demographic

Sn3. consumer wanting faster

5/5

Factors

service; on apps and delivery


(Rowsell, V 2015)
Sn4. Consumers becoming
5/5

(IBISWorld 2016)
Sn6. - Increase in bargain
hunting behaviour (IBISWorld
2016)

5/3

En5. Growing trend for Australian

5/4

brands to acquire other brands

(Hodgson, F 2015).

accustomed to price reductions

Penalty rates for retailers

5/5

(IBISWorld 2016).

Long Term Rating

Rank

Sg1. The Rise of Asia


3/5

Technological
Factors

Tg1. Online Sales Growth


Tg5. Word of Mouth via online

5/5

Tg2. Using data analytics to

5/5

understand the online consumer

and social media


Tg3. Omni Channel Trend

(Hodgeson, F 2015)
4/5

Tg4. Growing use of


smartphones

3/5

Ecological/

Eg3. The use of cotton by many

5/5

Environmental

brands water and pesticides.

Factors

5/5

Appendix E.
PESTE Time ratings
Opportunity
Ratings

5-5

Threat

Short-Term

Medium-Term

Long-Term

Short-Term

Sn1. Urbanisation

Pg1. China Free Trade

Eg1. Rapidly decreasing

Tg1. Online Sales

Agreement

Aus Dollar

Growth

Tg2. Using data

Sn3. consumer wanting

Tg5. Word of Mouth via

analytics to understand

faster service; on apps

online and social media

the online consumer

and delivery (Rowsell, V

Eg3. The use of cotton

(Hodgeson, F 2015)

2015)

by many brands water

Sn4. Consumers

and pesticides.

becoming accustomed to
price reductions
(IBISWorld 2016)
Sn6. - Increase in
bargain hunting
behaviour (IBISWorld
2016)
Tg1. Online Sales
Growth
Tg5. Word of Mouth via
online and social media.

Medium-Term

Long-Term

5-4

En6. Interest rates

En5. Growing

remain low (Hodgson, F

trend for

2015).

Australian brands
to acquire other
brands (IBISWorld
2016).

4-5

4-4

Tg3. Omni Channel

Pg2. Rising cost of

Trend

manufacturing in China

En4. Consumer
sentiment expected to
rise in 2015-16
(IBISWorld 2016).

5/3

Pn1. Possible
Elimination of Penalty
rates for retailers

3/5

Tg4. Growing use of


smartphones
Sg1. The Rise of Asia

Appendix F.
TOWS Table

Good Facebook page following

Low capital

Positive brand perception

Brands focus is heavily skewed to

Socially sustainable

charity initiative resulting in

Unique business model

underdeveloped segments such as

Store in prime location with high foot

product category offering and website

traffic

development

Good relationship with centre

Target customer (youth street wear) is


comparatively in the low income scale

management

relative to older segments

Underutilised and under developed


website

People within firm do not possess


complimentary skillsets to the
business, the two founders are
passionate about the homeless issue
but not experienced in managing a
retail brand

Strengths
Opportunities

Fashion ambassador to create

Weaknesses

Find in demand skilled individuals that

fashionable ranges and generate

share in the brands vision to work for

awareness for the brand

them at a cheaper cost or volunteer

simultaneously

basis. For example much needed


buyer, designer to create and rollout

more product.

Create more good relationships with


major shopping centre management in

Create a range that targets a higher

hope of reduced rental due to good

income-earning segment, which has

cause and positive image for centre

more expendable income and is a

through association for brand, this

more attractive market rather than

would allow the brand to expand more

youth wear.

realistically.

Focus on streamlining operations to


generate efficiencies, lower costs to
ascertain more working capital.

Improve website to increase sale


through online channel and over
revenue

improve online website as it is their


current main and only shop and
income streamo increase sale through
online channel and overall revenue.
Provide information such as shipping
and product info, and fix faults such as
ability to add to cart, for pleasant and

easy experience for consumer.

Threats
New brands that enter the
market with similar
business model

HoMie need to be able to compete


with other retailers on other levels not
solely on the goodwill of their business
model, therefore their product range
needs to be strengthen in terms of
affordability which will naturally occur
over time as efficiencies in their supply
chain are realised. In terms of fashionability the range could use a boost.
Implementing these changes in the
retail value chain (W2_RCO2) would
give consumer better value and results
from the chain.

References:
Anderson, S 2015, Homeless of Melbourne: Storytelling and support for rough
sleepers on citys streets, ABC News, 24 October, viewed 18 April,
<http://www.abc.net.au/news/2015-10-24/storytelling-support-for-rough-sleepers-onstreets-of-melbourne/6874010>.
Anderson, S 2016, Malcolm Turnbull confirms ABCC will trigger double dissolution
elction, ABC News, 19 April, viewed 21 April, < http://www.abc.net.au/news/2016-0419/turnbull-confirms-abcc-will-trigger-double-dissolution-election/7337306>.
Hodgson, F 2015, Australian retail 2015: Welcome to the Hunger Games!, Ferrier
Hodgson, viewed 16 April 2016, <
http://www.ferrierhodgson.com/~/media/Ferrier/Files/Documents/Publications/Retail/2
015/AustralianRetail_2015_Welcome%20to%20the%20Hunger%20Games.pdf>.
IBISWorld, 2016, Clothing Retailing in Australia, industry report, viewed 18 April
2016, retrieved from Database IBISWorld.
McKenna, G 2015, Here are the four mega-trends challenging Australian business in
the next 20 years, Business Insider, 3 March, viewed 16 April 2016,
<http://www.businessinsider.com.au/here-are-the-four-mega-trends-challengingaustralian-business-in-the-next-20-years-2015-3>.
Pash, C 2014, These 5 Huge Trends Will Determine Australias Future, Business
Insider, 5 June, viewed 18 April 2016, < http://www.businessinsider.com.au/5-hugetrends-that-will-determine-australias-future-2014-6>.
Webb, C2015, HoMie: The store where homeless are the new VIP shoppers, Age,
25 June, viewed 18 April 2016, <http://www.theage.com.au/victoria/homie-the-storewhere-homeless-are-the-new-vip-shoppers-20150622-ghuek3.html>.
Rowsell, V 2015, What 2015 hold for Australian retail, Australian Business Review,
9 January, viewed 22 April 2016, <
http://www.theaustralian.com.au/business/business-spectator/what-2015-holds-foraustralian-retail-/news-story/98915acd3758edf7d913f7ed8cc5dea7>.

You might also like