Top Shop Marketing Strategy Case Study

Top Shop Marketing Strategy Case Study

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Opportunities Top Shop Marketing Strategy Case Study

  • Expected political opportunities or threats in China for Top Shop

The People’s Republic of China is one of the most stable countries in the world. Top Shop, therefore, expects a business-friendly environment.

  • Expected social opportunities / threats in China for Top Shop

The social setup as well as fashion tastes and preference of the Chinese people quite different from that in the western world. This is a threat to Top Shop.

  • Expected economic opportunities / threats in China for Top Shop

China is the fastest growing economy in the world. This gives an opportunity for companies like Top Shop to expand and reach the rest to Asia.

  • Expected technological opportunities / threats in China for Top Shop

The China and her neighbours have the world most advanced technology in the world. This reduces the cost of production for goods and services. Therefore Top Shop has an opportunity to add their sales alongside their profits.

Top Shop Marketing Strategy Case Study

  • Expected environmental opportunities / threats in China for Top Shop

Being the world most industrialised country, China poses a huge threat to the environment. Investing in environmental conservation gives Top Shop an opportunity to impress the Chinese government.

  • Expected legal opportunities / threats in China for Top Shop

In order to provide job opportunities as well as goods and services for her large population, the Chinese government has created a business friendly legal environment. This is an opportunity for Top Shop to infiltrate and expand in the Chinese market.

The Porter’s diamond theory suggests that in addition to the factor conditions, the demand conditions, related & supporting industries, strategy, structure, and rivalry also determine the attractiveness of a state for international expansion, so, considering the theory for the Top Shop, please answer the following questions:

  • Demand conditions in China benefits or threaten the expansion of Top Shop in the market

China has a large population of the high and middle income earners. This guarantees the demand for Top Shop’s goods, which benefits its expansion.

  • Related & supporting industries in China benefits or threaten the expansion of Top Shop in the market

The Chinese economy is well advanced and has a large number of supporting industries. The existence of a variety of auxiliary services definitely benefits the expansion of Top Shop.

  • Strategy, structure, and rivalry in China benefits or threaten the expansion of Top Shop in the market

A good number of Chinese companies are owned by the government. This poses a threat to the existence and expansion of Top Shop and other privately owned companies.

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Competitiveness of Top Shop Marketing Strategy Case Study

  • Competition intensiveness in the fashion market in China

The Chinese fashion market is crowded with both local as well as international firms. This makes the level of competition for the existing demand very intensive.

  • Unique features of the Top Shop to attract Chinese consumers

Top Shop is a well established brand in the Western world. Its good will definitely attract the attention of the middle and high income earners in China, who love the Western way of life.

  • Most significant strengths of Top Shop in the fashion market in China

Top Shop’s parent company, Arcadia Group, has vast resources. This keeps Top Shop at an advantage over her competitors.

  • Strategic position of Top Shop in the fashion market

Given the fact that Top Shop is a Western company in the Chinese market, it should apply a combination of the market penetration and market development strategic positions.

Top Shop Marketing Strategy Case Study

Opportunities and Threats for Top Shop SWOT Questions

  • Opportunities for Top Shop in China

In addition to increasing its sales by joining the Chinese market, Top Shop has an opportunity to bring Chinese goods to the Western world which diversifies their business further.

  • Expected threats for Top Shop in China

Top Shop is being a Western company, may not understand the tastes and preferences of the Chinese people. This is a real threat to its survival in the Chinese market.

  • Opportunities and threats

Top Shop will succeed in the in the Chinese market. This is mainly due to her partnership with

  • Major factors that may contribute to the success of Top Shop in China

There are two major factors that may contribute to the success of Top Shop in China namely: its partnership with and its exposure to vast financial resources.

  • Major barriers to the success of Top Shop in China

The main barrier to the success of Top Shop in China is its lack of awareness of the Chinese tastes and preferences.

Strategic Marketing Plan for Top Shop Marketing Strategy Case Study

  • Proper market entry strategies for Top Shop in China

The two most appropriate strategies for infiltrating the Chinese market are partnering with a local firm like or buying a local company.

  • Expected benefits / threats for Top Shop to adopt the standardisation strategy in China

The benefit of adopting the standardisation strategy is the reduction in the cost of production. The threat is the lack of compatibility of Top Shop’s good with the local tastes and preferences.

  • Expected benefit / threats for Top Shop to adopt the localisation strategy in China

The benefit of adopting the localisation strategy is that the good and serviced match the local tastes and preferences.

  • Top Shop standardisation or localisation strategy

Top shop should choose the localisation strategy.

  • Target market segments for Top Shop in China

Top Shop should target footwear, women, and children clothing.

  • Major characteristics of the target consumers of Top Shop in China

The target consumers for Top Shop in China are high and middle income earners with a taste for the Western way of living.

  • Product strategy for Top Shop in China

Top Shop should specialize on the target consumers in order to establish itself in China. Get the cheapest paper writing service now!

Top Shop Marketing Strategy

Topshop Expanding Business in China Fashion Market: Top Shop Marketing Strategy

Most assets in China are owned by the government, hence threats of corruption. Foreign investors argue this system lacks transparency. However, the stable political environment could result to stable business operations. Topshop may face a culture shock. This is because most people may not be willing to change their traditional way of dressing. Despite that, it could offer new markets to those willing to dress differently.

The Chinese Economy

China’s economy has risen tremendously over the past five years. The available labor and high rate of growth in the urban areas could increase sales at Topshop. However, the high inflation rates could pose a threat to their operations. China is densely populated. In addition, about 90% of its citizens are literate. This means Topshop consumers can comfortably shop online. However, the high ageing population increases the dependency ratio. This limits the presence of cheap labor.

Technological Mechanisms of Production

China established technological mechanisms of production. They include the intranet, extranet, internet, and mobile telecommunications. However, a threat is that Topshop risk facing insecure payment methods. Because China is highly polluted, most companies prefer online businesses. This favors Topshop. However, some clients still prefer physical shopping. Although China has a lot of rules that regulate businesses legally, there is lack of business protection.

China’s Population & High Demands

High demands mean consumers are interested in products, hence highly beneficial. It could offer room for Topshop to expound its operations. Related industries to Topshop such as Topman and Shangpin will definitely aid expand operations in China. It’s because the businesses are known for their quality delivery of customer demands. The strategy, rivalry, and structure are benefits for expansion of Topshop.

This is because Topshop adopt successful strategies and structures from other regions and implement them in China. Zara and H&M are major rivals of Topshop in China. They’re all strategically positioned in well accessed places. However, Topshop is bound to succeed. This is due to its major strength in the market which is diversity. It offers creative and diverse lines of its products. This could massively attract Chinese consumers.

Topshop is exposed to many clients in China. However, it faces threat from Zara which cooperates with top icons in the fashion industry in China. Topshop is however likely to succeed. Given that it has other successful stores, its experience will help beat competitors off the fashion market. Since Topshop is new in the Chinese fashion industry, it’s likely to face challenges stabilizing in the market. Customer loyalty by Zara’s clients could be a problem to Topshop.

Standardization Strategy

The proper market strategy for Topshop would be the standardization strategy. Adopting it would help retain their brand. Its services and products are not changed and can easily be identified by the new consumers. Costs in terms of advertising would be low. This is in comparison to new established stores. However, it limits uniqueness and adaptation. It restrains the company from identifying potential opportunities.

The localization strategy would also be beneficial. It takes products direct to clients at specified regions. This would facilitate growth and promote a good reputation. However, the strategy would lead to increased crime for example. To position itself strategically, Topshop can adopt partnering and the standardization strategy. These strategies promise Topshop performance and sustainability.

Top Shop Marketing Strategy Case Study

The Chinese Market

The major characteristics China consumers’ exhibit is the desire for high quality fashion. In addition, there is that tendency to shop online. All these are advantageous to Topshop. I could suggest Topshop to maintain the authenticity of its products. In addition, prices can remain constant, and endeavor to give discounts for example. At the end of the day, clients are intrigued by high quality, rather than low prices.

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