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Assignment 1 Apparel Merchandising

MF TECH SEM -1
Submitted to – PROF. AMIT KUMAR
ANJANEE
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Research About
International Apparel
Retailer/Brand
RETAILE
R BRAND

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RETAILER 

AMAZON
1 Amazon was founded by Jeff Bezos in Bellevue,
Washington, on July 5, 1994. The company started as an
online marketplace for books but expanded to sell
electronics, software, video games, apparel, furniture, food,
toys, and jewelry. ... Amazon is the largest
Internet company by revenue in the world.
 “
“If you do build a great
experience, customers tell
each other about that. Word
of mouth is very powerful.”
- Jeff Bezos

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 ABOUT AMAZON
For the last two decade Amazon.com has been serving customer worldwide.
Amazon.com was founded by Jeff Bezos back in 1995.The founders vision
was to build a virtual shopping place for book lovers. Amazon.com brings the
world largest book store to the door step of the people around the world. All
people has to do is search and select the desired book. It took 30 day to
deliver books to the customers of 50 states and 45 countries. Amazon.com
was a huge success in nineties.Amazon.com became a platform for the
retailer and individuals in 2000.Amazon.com offers their services towards
four types of customers, consumers, sellers, enterprises and content
creators. (Annual report 2013) Amazon serves customer through the popular
web site www.amazon.com. Now a day customers can access through
mobile technology.Amazon.com apps are also available for the customers.

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 Annual net revenue of Amazon from 2004 to 2019

The time series shows the net revenue of Amazon.com's

e-commerce and service sales from 2004 to 2019, in
billion US dollars. In the last reported year, the
multinational e-commerce company's net revenue was
280.5 billion U.S. dollars, up from 177.86 billion US
dollars in 2017. Amazon.com, an American electronic
commerce company originally founded in 1994, is the
world’s largest online retailer of books, clothing,
electronics, music and many more goods. In 2019,
Amazon's net revenue from subscription services
segment amounted to 19.21 billion U.S. dollars.
Subscription services include Amazon Prime, for which
Amazon reported 150 million paying members 7
worldwide at the end of 2019 .
Annual Growth of Amazon from 2004 to 2019

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 Amazon marketing strategy

One of the best ways to use the full power of Amazon is to tap into its
advertising capabilities. With such a huge reach into consumer markets,
it’s a unique channel for advertising specific products, building your
brand awareness, and more. Amazon uses the high runner strategy to
market its products. This strategy uses data to uncover which products are
in the highest demand in every category. Amazon's pricing algorithm then
prices those products competitively and bids heavily on advertisements to
pull people to these products. Once a consumer is on the Amazon site,
they’re likely to buy accessory products at full price.   

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 TARGET COUSTOMER

⬥ Some defining features to Amazon is targeted to 13- to 17-year-olds, who are

part of Generation Z, the demographic group that's
target coustomer want to
on track to surpass the millennials in size and,
consider are: someday, spending power. Already, Generation Z is
• Gender the largest media audience, comprising 26 percent
• Age group of all viewers, or four percentage points more than
millennials, according to Nielsen. Introducing teens
• Income level
to Amazon by providing them with their own
• Location logins may capture a generation that's notoriously
• Occupation connected to their phones and devices.
• Hobbies & Interests

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 Who are the strongest competitors of Amazon
⬥ Let us discuss in detail who are the strongest competitors of Amazon.
1. eBay
2. Walmart
3. Home Depot
4. Etsy
5. Best Buy
6. Flipkart
7. Kroger
8. Target
9. Netflix
10. Microsoft Azure
11. Facebook
12. FedEx
13. Alibaba
14. JD.com 11
Amazon Apparel Product Types

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 Amazon Price Point
Amazon’s pricing model is based around keeping prices as low as possible for the
buyer. This means the prices of products can change numerous times, even during
a single day. Keeping prices low drives loyalty within their customer ranks, and
ultimately results in Amazon benefitting from merchants competing for the Buy
Box.
Total price or landed price is the price with everything included - this is what
the customer pays at the end of the purchasing process. The following are
included in the total price:

1) Shipping and handling charges

2)Discounts, rebates, or special sales/promotions
3) Shipping method
4)Business practices, such as any reduction or elimination of shipping
charges on an order, or of any other order-related fees and expenses
5)Low-price guarantees
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 AMAZON Vendor Selection Criteria

Categories and criteria of vendor
Vendor selection cycle:
selection process are point out below:
Identify Suppliers
 Quality: Services/supply.   ↓
 Logistics: Schedule or volume effectiveness. Measure
 performance
Technology or Innovation: Resources.
↓
 Commercial aspects: Price. Supplier Feedback
 Risk: Financial stability.     ↓
 Safety: Industrial safety. Certification

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 Amazon CSR Policy

Amazon maintains a corporate social

responsibility program for communities. These
stakeholders are significant because they
influence consumer perception on the
company's goods and services. The interests of
communities include development support,
such as through education, healthcare and
environmental conservation.
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BRAND

NIKE
2 NIKE, Inc. is an American multinational corporation that is
engaged in the design, development, manufacturing, and
worldwide marketing and sales of footwear, apparel,
equipment, accessories, and services. The company is
headquartered near Beaverton, Oregon, in the Portland
metropolitan area.
 “
“To Bring Inspiration and
innovation to every athlete in the
world” Nike Inc If you have a
body, you are an Athlete - add by
the Bill Bowerman Co-Founder of
Nike
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 ABOUT NIKE
It is recognized as an American Multinational Corporation. It is
involved in the design, improvement, manufacturing, global
marketing and auctions of sports products (Hays, 2000). It is one of
the leading merchants of athletic shoes with apparel and a prime
producer of sports gears. It has total revenue of US$24.1 billion in
2012. A total of 44000 individuals work for the company globally. The
brand value of the company was $19 billion in 2014. It was built in
1964 by Bill Bowerman and Phil Knight (Hays, 2000). It was official
become Nike in 1971.The company functions retail stores under the
name of Nike town. It has sponsored many high profile athletes and
teams such as Cristiano Ronaldo as an athlete and FC Barcelona as
football club.
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 ⬥ NIKE Sales Revenue 2006-2020 

NIKE annual/quarterly revenue history and growth rate from 2006 to 2020.
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top
line item on an income statement from which all costs and expenses are
subtracted to arrive at net income.NIKE revenue for the quarter ending
August 31, 2020 was $10.594B, a 0.62% decline year-over-year.

 NIKE revenue for the twelve months ending August 31, 2020 was $37.337B, a 6.26%
decline year-over-year.
 NIKE annual revenue for 2020 was $37.403B, a 4.38% decline from 2019.
 NIKE annual revenue for 2019 was $39.117B, a 7.47% increase from 2018.
 NIKE annual revenue for 2018 was $36.397B, a 5.96% increase from 2017.

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Annual Growth of NIKE from 2006 to 2020

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 NIKE marketing strategy

Nike is successful because it has some of the best, if not the best,
marketing in the world. Their brand is the #1 brand in the
sporting goods industry and is the 14th most valuable brand in
the world. 61 The Nike business strategy is clear, invest in building
your brand through emotional marketing and sports celebrity
endorsements, develop products that have high-quality, market-
leading technology and buy out competing sports brands. 

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 TARGET COUSTOMER

Nike is unique in the fact that they have a very general targeted
demographic segment –their stated target market is “all athletes”.
However, this does not mean Nike does not use market segmenting
to more precisely define various market segments. Nike’s largest
markets are North America followed by Western Europe and
China. Although with apparel and sports the market can be
broad, for the most part Nike primarily targets consumers
who are between the ages of 15-40. The company caters to
both men and women athletes equally, and is placing an
increasing focus on tweens and teens to build long-term
brand loyalty.

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 Who are the strongest competitors of NIKE
Nike is a company that designs, develops, and markets
footwear, apparel, equipment, and accessory products.
Nike's top competitors are
⬥ Anta
⬥ lululemon athletica
⬥ VF Corporation
⬥ Adidas
⬥ Reebok
⬥ ASICS
⬥ FILA
⬥ Puma
⬥ Under Armour
⬥ Skechers
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⬥ New Balance
 NIKE Product Types
• Air Force (shoe)
• Air Jordan
• Nike Air Max
• Nike Air Yeezy
• Chuck Taylor All-Stars
• Converse (shoe company)
• Nike Free
• Jordan Spiz'ike
• Jumpman (logo)
• Nike Mercurial Vapor
• Nike Air Max 97
• Nike Blazers
• Nike Terminator
• Nike Total 90
• NikeID
• Nike CTR360 Maestri
• Nike Grind
• Nike Hypervenom
• Nike Ordem
• Nike Shox
• Nike Tiempo
• Nike+ FuelBand
• Nike Skateboarding
• Space Hippie
• SPARQ Training
• Swoosh
• Nike Vision
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 NIKE Price Point

Nike Pricing Strategy

When the company brings out new design products into the

market, Nike uses this strategy to set high initial prices. By
implementing this strategy, Nike tries to skim money from the
customers who want the product and are willing to purchase it at
that price. In 2014 Nike initiated a new pricing strategy. The company
determined from a market analysis that its customers appreciated the value
that the brand provided, which meant that it could charge a higher price
for its products. Nike began to raise its prices 4–5 percent a year. Footwear
News reported on the impact of their strategy.

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 NIKE Vendor Selection Criteria

Categories and criteria of vendor
selection process are point out below: Vendor selection cycle:

Identify Suppliers
• Quality: Services/supply.            ↓
• Logistics: Schedule or volume effectiveness. Measure performance
• Technology or Innovation: Resources.            ↓
• Commercial aspects: Price. Supplier Feedback
           ↓
• Risk: Financial stability.
Certification
• Safety: Industrial safety.

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 NIKE Corporate Social Responsibility

Nike CSR and Sustainability Main points : –

• Commitment to reducing the carbon footprint

• Innovative manufacturing.
• Keeping human voice at the heart of everything it does from manufacturing to marketing.
• Develop a new palette of sustainable materials.
• Inventing close-loop products.
• Moving to complete renewable energy.
• Diverse workplace and inclusive culture that becomes a catalyst for innovation.
• Investing and encouraging employees to invest in communities and markets where Nike
operates.

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THANK
YOU!