A conceptual model of diversification in apparel retailing: the case of Next plc

Abstract

This paper examines the nature of diversification within a successful UK apparel retailer, illustrating the competitive advantages which may be accrued as a consequence. Analysis of the Next business model and its corporate development suggests that diversification of brand, product, channel, format, foreign market and business support variables concentric to the core brand management competency of the company may be successful in creating sustainable competitive advantage for an apparel retailer. The paper proposes a conceptual model for the diversification of an apparel retailer, demonstrating hypothetical factors which may be used in the diversification of an apparel retail business in contemporary markets.

The Valuation Analysis of NEXT.PLC based on the DCF Model

“…The NEXT business model and corporate development suggest that clothing retailers can maintain a competitive advantage by varying brand, product, channel, format, foreign market, and business support variables around their brand management competence. The paper presents a potential model for diversifying a modern clothes business [1].…”

Making the Marque: Tangible Branding in Fashion Product and Retail Design

“…This is not least the case within the fashion apparel marketplace, an environment characterized internationally by fierce competition, short product lifecycles and unpredictable consumer demand (McColl & Moore 2010;Wigley 2011). As a consequence, fashion businesses are recognized as possessing many of the World's most influential, innovative and valuable brands: of Interbrand's Top 100 "Best Global Brands", twelve are owned by businesses selling product ranges comprised by either general apparel or by luxury and sporting clothing and accessories; Louis Vuitton and H&M are each judged as more valuable than globally iconic brands such as Ikea, Volkswagen, Pepsi and Sony (Interbrand 2011); and the logos of Zara, Ralph Lauren, Hugo Boss and Chanel proliferate in shopping streets and malls around the World.…”