Marks & Spencer (M&S) was originated in England
and marched to Hong Kong in 1988. M&S department store in Hong Kong is
wholly-owned by M&S Head Office in England till 30 December 2017.Starting
from 30 December 2017, Al-Futtaim owned the
M&S HK and Macau franchise, based on their agreement, more stores will be opened in Hong
Kong and Macau.
There are around 29 stores in Hong Kong
(16 Core shops, 13 food shops). M&S provides larger size clothing, British
food and beverage, snacks. The products are known for their high quality and
fair trade. Facing the strong competitors, the sales of M&S the food
business is increasing while the clothing business is dropping. In this
situation, M&S is expanding their food and beverage business in Hong Kong.
More M&S food store is opened while numbers of core shops will be decrease.
is struggling to compete in the market for clothing, selling fresh food and
food products with many strong competitors. The rapidly changing consumer trends, consumption pattern and consumer
perceptions of the market have been changed. M&S needs to find new fashion
styles that suitable for Hong Kong customers and
what they prefer.
customers highly price sensitive; lead to more a competitive environment.
M&S clothing products are out of swim and expensive; the current clothing
range is not suitable for Hong Kong customers. Also, people in Hong Kong are
not so familiar with the British
food and beverage, snacks, people are more willing to try the Japanese food and
Korean food more. M&S lacks the ability to understand the changes in social
trends in Hong Kong.
Factors & Internal Factors
Global warming is a hot topic in the world. People are more conscious to their
health and environmental protection. They will concern what a company does
to combat climate change, reduce waste, recycle and support fair trade. It
leads M&S concern more in its productions.
M&S launch Plan A which is an
environmental-friendly project globally.
M&S is selling products and determining how these products are consumed and
disposed of by consumers. M&S will use
less packaging and less
bags to save the environment and natural resources. Also, recycling
is one of the most
important parts in
The advanced technologies to introduce products are more widely in the market
for online shopping and fast delivery. New technology can be used to identify
the new fashion and trend change in different parts of the world. M&S HK
only run the website but without any products’ information, not even provide a
mobile app. Although conducting surveys on the website is a good idea to
collect customers’ feedback and understanding their demands, but still far not
enough in today competition.
Operating Cost and Human Resources:
The operating cost in Hong Kong is getting higher and higher. The rising labour
cost and rental which accounts for the largest portion. This means that the
increased cost in resulting less profits. Also the manpower is a real challenge
in Hong Kong. Apart from shortage, people in Hong Kong always looking for an
opportunity to have a career change, seeking for a better payoff and working
environment. It leads to a high turnover rate.
In order to increased brand awareness and boost the sales
in a short period of time, we will launch a Facebook contests. It should be
eye-catching, make people pay attention to and try to understand our contests.
We will create different social media fans page/ accounts; invite popular
YouTubers and different online media like “100 most” and “WHIZOO” to take
videos for us to promote the campaign. The video will
show how YouTuber or KOL do
shopping in M&S and create their own recipes as an example. The contests
will also promote on other social media like Instagram and Twitter, attracts
different social media users. The contest will be hold on Facebook. This
contest will be in two-part. It will begin with a recipe contest; by customers
submit their best recipes by using M&S food and beverage or snacks. The
other part is voting the recipes. We will ask “Fans” to generate the content,
their own recipes with M&S products and post on our Facebook page.
With this addition voting element, it can further
increase the brand awareness by suggesting the voters try on each of the
recipes, which will buy and use M&S products. The important part is that
they will share the votes with their friends. The winners can enjoy cash and
As we understand M&S HK is weak in technological, for long-term business development,
foster communication with the target markets and build a stronger relationship
between the M&S and customers in Hong Kong. M&S HK will invest more in
the technological area. It is a must to develop the website, online service and
the social media accounts to interact with the public. Furthermore, develop
mobile apps, we understand people now using mobile phone shopping are more
frequent than using computers. As mentioned, the consumption pattern and
consumer perceptions of the market
have been changed. People usually go online to do the information search, check the products’ details and compare different
products before they do
the actual purchase. Even more, they will choose online shopping rather go to the retail store in-person.
Many strong competitors of M HK provide details product catalog on website, provide online
shopping and delivery services. If M provide the same or better service,
it can increase its competing power in HK market. Social media accounts are not
only can be used to interact with target customers, it can also be a tool to
collect consumers’ data, feedback and shopping preference. After gathering and
analysis all data, it can help in long-term business development and future
rapidly changing consumer
trends, consumption pattern and consumer
perceptions of the market have been changed. M&S need to change. The
markets and customers will never stay and wait. Starting
on re-building the brand awareness, M&S may get back on track. “The time
for action is now. It’s never too late to do something.” (Antoine de