Brief History OF Urban Outfitters - Essay Sample

Abstract

Urban Outfitters is one of the leading firms that majorly specializes in lifestyle and fashion wear on the retail level. Besides, the company also operates a Wholesale segment under the then free people brand. It has been for over 44 years responsible for the creation and management of retail stores that offer unique fashion wears, accessories, and household goods. The company has been on a mission to create environments that promote emotional bonds with the clients. To ensure all the customers around the world get all their services, the company markets and sell their products via e-commerce websites and modify mobile applications. From these strategies, then the company has realized “an annual growth of over 11% in a span of five years and recording a sales of almost 3.3 dollars” (Securities and Exchange Commission, 2015). The company is very old as its first store was opened in 1970 next to the prestigious University of Pennsylvania in Philadelphia but was incorporated officially six years later. However, the first Anthropologie store was not opened until 1992(Securities and Exchange Commission, 2015). After several years of business success, it expanded its market by moving some of its operations in Europe, in which the first outfitter's stores were located in London. In addition, the first-ever free people store was established in the Garden State Plaza Mall in Paramus, in the City of New Jersey in November 2002, followed by a Terrain Garden center in Glen Mills in Pennyslavvia again, 2008 followed by another first European Anthropologies store in London in the years 2009 October. And then, in August 2011, the very first Bldn store was established in Houston, Texas. (Securities and Exchange Commission, 2015).

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Introduction

From the history of the company, it is important to note that the operations are broadly divided under three main segments; retail, wholesale, and subscription. The retail level is further divided into Anthropologie, Bhldn, Urban Outfitters Brand, Terrain, free People, and Menus, and Venues. The main function of the retail segment is to avail goods and services directly to consumers through the stores, online websites, special mobile applications, digital businesses, franchised stores, and consumer contact center. The wholesale is a more complex segment that is divided into; Free people, urban outfitters, and Anthropologie, which sell through departments located around different countries by coordinating with the retail stores and digital ventures. The main function of the wholesale segment is to design, make specifically, and market clothes, intimates, and household goods. The subscription segment is a unique category that consists of the Nuuly brand, which, in essence, is a monthly ladies wear subscription rental services that were launched early last year. The following segments are broadly discussed below.

Urban Outfitters Strategy

Since the firm operates in a difficult to enter the monopolistic market, the company strategist established strategies to not only make them thrive but also to stand out, from the product to services it offers. Therefore, unlike its competitive companies like Fitch that provide a relatively uniform range of commodities, it is unique due to its stylish clothes and commodities. This narrows down to its ability to formulate interactive plans.

The success of the retail segment is accredited by the firm's ability to continue producing relevant and unique goods and services, increasing the consumer's shopping experience. This strategy is referred to as omnichannel. The operation layout of the retail is in a way that the stores are fully equipped by having everything the then consumer needs. The strategy helps checks the performance since it analyses activities in regards to the single omnichannel but not as separate channels. To determine this, the company checks metrics like consumer tariffs and the number of units sold per monetary transaction made at each store, mobile applications, and also on the websites. At the retail level, every store division targets a particular audience. For instance, the urban Outfitters aims to reach young adults, particularly those between the ages18 of 28, by offering fashionable mix products, an attractive store environment, and architectural design, mobile application, and websites. In addition, urban outfitter stores are strategically located in fancy metropolitan areas and university environments, and malls that encourage more consumers to visit since they are more likely to visit their fellow peers in these areas.

However, the commodities at the Anthropologie brand are completely y different since they are designed to target sophisticated women of age 28 and 45. The product in this category includes apparel, couple wear, shoes, home products, gifts, and decoration products, beauty items while the Bhldn deals with weeding ranging from gowns, shoes, decorations, bridesmaid wears, jewelry. And those engaged to engage in outdoor activities, the terrain store is the ideal place to visit since they deal with sporting and gardening wear. The separation of commodities at different levels has provided both a wider market and has been responsible for the company's bond and fresh image. By concentrating on one type of product in a detailed way, it has become unbearable. In the sight of the public, the company appears as an available close friend; therefore, those who shop feel extremely comfortable. Unlike other companies, Urban Outfitters offers essential commodities that people regularly need, ranging from clothes, household items, cosmetics, books, and music, and many more.

The social network is a very useful tool in conducting business, especially in this technology infested world we currently live in. About two out of five people are active social media users. The social platform can have helped the Urban Outfitters to connect to very many clients across the world. The Social Network system like Facebook and Twitter has enabled the affordable and quick spread of advertisements. In addition, the platform has created a base in the creation of new ideas since the organization can receive feedbacks on areas to introduce or develop. The use of this technology is particularly beneficial in targeting teenagers since they are regular users. Therefore, this technology has attracted even more young folks, hence, boosting sales.

Global Marketing

Urban outfitters have, for many years, now enjoyed the benefits of the global market and the more opportunities that come with it. The stores in different areas are organized on a brand basis in the specific geographical area, each being headed by a district manager. The managers in each district are solely mandated with the responsibility of monitoring and ground supervision of store managers. Every store manager has the responsibility of ensuring that daily operational activities are conducted in a steady and swift manner so that the operations are not halted in whichever way. Besides its store managers, all the different stores have a unique workforce that caters to the needed of those consumers visiting or those purchasing online. For instance, then the staff of a Bhldn many include an event manager. Then true elements of a successful business venture are the ability to acquire, train, and keep hardworking store managers, visual supervisors, and all the workforce.

With the reality of competition, especially those that are in the retail and wholesale sector is particularly foreign markets, Urban Outfitters strategy has ideally softened the competition ground for them. The company's retail segment competes on the following grounds; the strategic location of the stores, accessible websites, mobile applications, and persuasive catalog layout, uniqueness, style, and continuous availability of merchandise and relevancy, and most importantly, the quality of services given to consumers. Since the Anthropologie, Free People, and Urban Outfitters have proved over recent years to be strong brands, the company understands how and when to reach the target market in these categories.

Conclusion

To stay on top of the game, Urban outfitters has implemented four main growth strategies to steer it further towards success; market penetration, product development, market development, and diversification in the line of products they deal in. To expand and thrive for a very long time in the competitive market, urban outfitters have launched a project to open more retail stores in the USA. In addition, the firm needs to conquer new international markets by at least having a store in countries with a potential market. However, for long term prosperity, the company’s decision-makers need to address some other factors like how to curb the increasing competition from other e-commerce giants that offer similar products but at a much lower price. As it grows even bigger, the decision-makers should focus on establishing a stable organizational structure.

Work Cited

Securities and Exchange Commission. “URBAN OUTFITTERS, INC." 2015