ADRIANA IANCU ESSAY (new )

To understand how UK Online Retailers like Hermes UK have been affected by big online retailers Name: ADRIANA IANCU 22125825 Instructor Amrutha Maria

Contents To understand how UK Online Retailers like Hermes UK have been affected by big online retailers ........... 1 Introduction ................................................................................................................................................. 1 Background .................................................................................................................................................. 1 Reason to choose this topic ..................................................................................................................... 2 Research question ................................................................................................................................... 2 Trends in Retail ............................................................................................................................................ 3 Artificial Intelligence ................................................................................................................................ 3 Sustainability Fashion .............................................................................................................................. 3 COVID-19 ................................................................................................................................................. 4 Swot analysis of Hermes UK ........................................................................................................................ 5 Strengths ................................................................................................................................................. 5 Weaknesses ............................................................................................................................................. 5 Opportunities .......................................................................................................................................... 6 Threats ..................................................................................................................................................... 6 PESTLE Analysis ............................................................................................................................................ 7 Political Factors ........................................................................................................................................ 7 Economy-Related factors ......................................................................................................................... 7 Social factors ............................................................................................................................................ 8 Technological ........................................................................................................................................... 8 Legal ........................................................................................................................................................ 8 Environmental ......................................................................................................................................... 8 Recommendations ....................................................................................................................................... 8 Conclusion ................................................................................................................................................. 10 References ................................................................................................................................................. 11

2 Hermes is well-known in the high-end British market. Two of the most popular items from the brand are the Kelly and Birkin bags, which are highly sought after by fashionistas. Aside from that, the company also sells scarves, shoes, jewellery, and wallets. Throughout the United Kingdom, you can find Hermès in both high-end boutiques and mainstream department shops. If you're in the market for high-end items, be sure to stop by the store's main site in London's West End. The business has both an online shop and a number of localised brick-and-mortar stores spread out across the country. Hermes UK has a rich history that has contributed to the development of the high-end retail sector. As a result of this commitment to quality, the company has become one of the most recognised in the world, and its products are highly respected by fashion-conscious consumers. London, England, 10 August 2020 Advent International has made a major investment in Hermes UK, one of the world's largest and most seasoned private equity firms (Advent). As stated by Otto Group, it has joined forces with Advent for its Hermes Group businesses in Germany and the UK (Smith et al., 2020). To be specific, Advent will purchase 75% of Hermes UK and 25% of Hermes DE. Hermes Germany also owns the BorderGuru and ParcelLock Joint Venture companies (Cherrett et al., 2017). Reason to choose this topic There have been several shifts and layoffs in the retail industry in the past few years. As a student of business with an interest in the fashion sector, I'd like to research any trends that may affect it in the future.

3 Trends in Retail Artificial Intelligence Artificial intelligence (AI) is expected to replace custom apps in the retail industry. Anyone can apply for something, whether they do so online or in person. If A.I. technology geared at consumers were standard, Hermes shoppers would conduct all of their business online. Online merchants are more likely to employ A.I. technology now that customers are less likely to be worried about their data being compromised. Stores are cautious to deploy "in-store I.A. apps" since they don't want to annoy their customers. The use of AI in the study of A.R. and V.R. could prove to be rather fruitful (Tripathi,

5 Sustainability and Consumerism in the Fashion Industry in 2019. (14.0 kg). Accordingly, a drop in business is inevitable as a result of this shift in concentration. The fast-mode market is dominated by women and the young working class, thus businesses catering to this demographic will need to radically alter their marketing techniques to meet consumer demand. Policymakers should be aware that public concern for sustainability can lead to concrete, monetary responses (Shorrock, 2020).

6 COVID-19 Numerous unique, potentially game-changing changes are happening in the retail sector at the moment, and they will have an effect on customers everywhere. Customers are initially driven to switch from traditional shops to competitors due to the former's accessibility to customers or the latter's unpredictable availability during emergencies. Second, after an incident has occurred, clients can still buy support services and link up with their preferred suppliers (and reduce attachment towards others perceived not to have helped, for example, those unable or unwilling to provide delivery slots for previously loyal customers). Third, consumers may come to appreciate services they once rejected but which ultimately prove useful in monitoring their spending patterns. Clientele of a certain demographic have been educated on the merits of doing business online, including speedy and easy delivery, convenient shopping, and payment methods other than cash (Nguyen et al., 2020). SWOT analysis of Hermes UK Many people consider Hermes International, a maker of expensive accessories, to be the most valued luxury label. The company has been around for a while, has a strong reputation, and is known for making excellent products. Since the 1950s, the organization's emblem has been a photograph of the duke's horse, making it an instantly recognisable symbol across the globe. After five generations, the Hermès family still owns Hermes International, a cutting-edge manufacturer of luxury leather goods. Once every 20 seconds, Hermès sells a silk scarf (Menon et al., 2019). Strengths

8 curve. The desire for luxury items is affected by economic changes, which could affect the sales of Hermes UK products. PESTLE Analysis PESTLE is a useful tool for analysing the macro-external factors that have an impact on a company. PESTLE is an acronym for the Political, Economical, Societal, Technological, Legal, and Environmental analysis (Malone et al., 2017)

9 Political Factors Currently, international politics are in a state of extreme instability. Anxiety levels are high as a result of unpredictable governments, the British decision to leave the EU, and the French desire to do the same. Many world leaders, like Donald Trump in the United States and Vladimir Putin in Russia, are known for acting erratically, according to Flórez et al (2017). Economy-Related factors Although it is still the world's most powerful country, the United States did poorly in 2016 as a result of the global economic recession. As the number of nations with saturated markets shrank, the wealthy started putting their money into developing and emerging economies. Capital from the United States started to dry up. The United States experienced a decrease in production, but commodity prices also declined. The United Kingdom's economy is beginning to show signs of improvement, which could mean better times ahead for Hermes UK.

11 Recommendations Luxury products have seen tremendous growth in sales over the previous decade. Luxury brands like Gucci and Cartier are preferred by consumers because of the high quality and status symbols connected with those brands. Due to the uniqueness, rarity, and high quality of luxury goods, consumers may unconsciously associate these characteristics with the company's name. This has led to an increase in interest in high-end products all over the world, especially in the markets of the United States and Asia. There are three main factors that help a luxury clothing brand stand out from the crowd. Hermès is one of the most sought-after labels among the well-off. Thanks to its established reputation, the firm has a wealth of unrealized potential. The company's long-term goals include increasing its global presence through the promotion and sale of its high-quality offerings. However, in today's competitive industry, it will surely be difficult to keep its brand and its products. Annual reports suggest that Hermes has an opportunity to extend its brand abroad, notably in Asia, where it has so far been successful.

12 An impressive amount of achievement has been achieved by the company. In response to the rising demand for high-end products—driven in part by the wants of celebrities and those who want to impress their guests at special events—affluent marketplaces have emerged. Because of its success in other Asian nations, Hermes has been able to grow its market share in Japan by 30 percent in the past year. a strong desire for expensive items. Competition in specialised industries has increased as a result of expanding consumer demand, opening up amazing new channels for enterprises to offer their products to Asian consumers. Think about these ideas as potential new routes for the brand: extending the brand's reach by entering new markets and trends, with a particular emphasis on the Asian market and clients. In China, Hermès unveiled their newest yuan xiao label. Everything about this label, from the concept to the manufacturing to the choice of materials, was done in China. Recent years have seen a rise in the demand for luxury products in places like the United States and Europe. However, Hermès predicts that luxury fashion will explode in China in the near future. The repercussions would be felt for quite some time. Maintaining its standing in the market requires the use of only the finest materials, craftsmanship, and components. In the sections that follow, Keep using the strategies that have set Hermes apart, such the indefinite waiting list. This secures the brand's continued success by giving it a leg up in the marketplace. Conclusion Hermès is a French high-end label with a heritage of almost 180 years. Hermes's growth on a global scale can be attributed to the company's strong familial links and autonomous leadership We currently have over 370 locations open and over a thousand staff. The research reveals that

14 References Floetgen, R. J., Strauss, J., Weking, J., Hein, A., Urmetzer, F., Böhm, M., & Krcmar, H. (2021). Introducing platform ecosystem resilience: leveraging mobility platforms and their ecosystems for the new normal during COVID-19. European Journal of Information Systems , 30 (3), 304321. Smith, L. E., Potts, H. W., Amlot, R., Fear, N. T., Michie, S., & Rubin, J. (2020). Adherence to the test, trace and isolate system: results from a time series of 21 nationally representative surveys in the UK (the COVID-19 Rapid Survey of Adherence to Interventions and Responses [CORSAIR] study). MedRxiv . Cherrett, T., Dickinson, J., McLeod, F., Sit, J., Bailey, G., & Whittle, G. (2017). Logistics impacts of student online shopping–Evaluating delivery consolidation to halls of residence. Transportation Research Part C: Emerging Technologies , 78 , 111-128. Tripathi, S. (2020). Companies, COVID-19 and respect for human rights. Business and Human Rights Journal , 5 (2), 252-260. Shorrock, E. (2020). Farm to Fashion: A Multidisciplinary Approach to Teaching Fiber Production, Sustainability, and Slow Fashion. Sustainability in Fashion , 1 (1). Nguyen, T. N., Nogueira, R. G., & Jovin, T. G. (2020). Response by Nguyen et al to Letter Regarding Article,“Mechanical Thrombectomy in the Era of the COVID-19 Pandemic: Emergency Preparedness for Neuroscience Teams: A Guidance Statement From the Society of Vascular and Interventional Neurology”. Stroke , 51 (8), e172-e173.

15 Menon, B. K., Hill, M. D., Davalos, A., Roos, Y. B., Campbell, B. C., Dippel, D. W., ... & Goyal, M. (2019). Efficacy of endovascular thrombectomy in patients with M2 segment middle cerebral artery occlusions: meta-analysis of data from the HERMES Collaboration. Journal of neurointerventional surgery , 11 (11), 1065-1069. Malone, R. W., Kersebaum, K. C., Kaspar, T. C., Ma, L., Jaynes, D. B., & Gillette, K. (2017). Winter rye as a cover crop reduces nitrate loss to subsurface drainage as simulated by HERMES. Agricultural water management , 184 , 156-169. Flórez, L. V., Scherlach, K., Gaube, P., Ross, C., Sitte, E., Hermes, C., ... & Kaltenpoth, M. (2017). Antibiotic-producing symbionts dynamically transition between plant pathogenicity and insect-defensive mutualism. Nature communications , 8 (1), 1-9.