Research Report on Cotton On

Group

Executive Summary
This report is an in depth research into the Cotton On group. The purpose is to
explore and conduct a SWOT analysis, positioning the company in comparison to its
competitors, discuss the current and future state of the TCF industry in Australia and
to finally draw conclusions and recommendations based on all findings.
The findings of this report discovered that Cotton On is an extremely successful
company in Australia which is thriving in an industry filled with global competitors.
Major conclusions from this report is that Cotton On has needed to adapt to the
changing climate of fashion retail in Australia, introducing a strong online platform
both on social media and online stores in order to compete with increasing overseas
competition. They have branched into various consumer segments successfully.
As a group our major recommendations are for global expansion to allow them to
explore relatively new markets such as Asia, improving their online store to capture a
larger online audience and create a seamless online and instore retail experience
and small improvements to quality to match close competitors such as H&M and
Jeanswest.
Contents Page
Introduction
1 History and Background of the Company
2 Situation Analysis (SWOT)
2.1 Strengths
2.1.1 Wide market coverage
2.1.2 Locations (easily accessible)
2.1.3 Global presence
2.1.3 Global presence
2.1.4 Quality fast fashion is reflected at a low cost
2.1.5 Cotton On foundation
2.1.6 High Stock Turnover
2.2 Weaknesses
2.2.1 Inability to respond to trends rapidly
2.2.2 Internal communication is slow and poor between head office and
retailers
2.2.3 Low quality products
2.2.4 Poor customer service
2.2.5 Poor Store Layout
2.2.6 Unreliable Shipping from the website
2.3 Opportunity
2.3.1 Global expansion in growing markets such as the Middle East, China
and South America
2.3.2 Opportunity to increase customer flow by exploring innovative
promotional strategies (in Australian and overseas stores)
2.3.5 Improving the online store
2.3.5 Develop innovative product diversity
2.4 Threats
2.4.1. International competitors global expansion
2.4.2. Increase scarcity in retail rental space in major Australian cities.
2.4.3. Poor supplier conduct threatens marketing and brand image
2.4.4. Consumer attitudes towards buying large quantities of clothing and
footwear is declining in Australia.
2.4.5. Australias ageing population
3 Companys Positioning Strategy and Consumer Segments
3.1. Cotton On
3.2. Cotton On Body
3.3. Rubi Shoes
3.4. Typo
3.5. Supre
3.5. Factorie
3.6. Cotton On Kids
3.7. Cotton on Free
4 External Environments Impact on the TCF Industry
4.1.1 Increase in wealthy immigration levels
4.1.2 Australias ageing population
4.2. Economic Impacts
4.2.1 Employment levels
4.2.2 Fluctuating Exchange rate
4.3 Competition
 4.31 International brands moving into Australia
4.4 Social cultural
4.41 Shopping online has become convenient for businesses and consumers
4.42 Impulse buying using smartphones or tablet devices
4.5 Political and Legal
4.51 FTA
4.52 Labeling Laws
4.6 Technology
4.61 Google unveils new Purchases on Google.
5 Conclusions from Situation Analysis
6 Recommendations based on Conclusions
6.1 Global Expansion
6.2 Improve Online Store
6.3 Improve Quality
6.4 Increase Airfreight
6.5 Innovative Promotional Strategies
Introduction
The following is a research report on the marketing activities of Cotton On Group.
The aim is to understand the fashion brand and how to conduct a marketing
business report. This is an assignment administered by the Marketing subject within
the Associate Degree of Fashion and Textile Merchandising at RMIT University.
Information has been gathered from a variety of secondary sources, both digitally
and from textbooks. Primary research consisted of a face-to-face interview with a
current Cotton On employee along with follow up information from staff at head-
office.
The scope of this report ranges from the History of Cotton On Group, the marketing
elements, and summaries of findings.
Material included are company history, background, a situation analysis, the
companys positioning strategy, their consumer segments, external environmental
factors (currently and potentially impacting the Textile, Clothing and Footwear
industry), conclusions, and recommendations. No financial information is included in
this report.

Limitations to this report consist of limited primary information from the organization
itself, depth of research could be inconsistent, and report writers being novice to
marketing.
This report was requested by Yuping Li for the Marketing subject of the course.