The information in this document would present an understanding of the consumers market in the UK to support clearance retailers gain new customers and subsequently increase its revenue and profits for the year 2010.
The online clearance retail market is set to worth more than £1 billion as more consumers favour online retail over traditional brick-and-mortar stores. The retail market has been affected by the economical recession throughout 2008 and 2009 which contributed to the decrease in the home and furniture market by 3.2 per cent. Also the increase of the value added tax to 17.5% in 2010, resulted in increasing the prices and pushing the consumer index down. A research done in Lancaster University in 2007 showed that more people believe the internet and computers are useful and convenient. Moreover, another survey from emarketer.com in 2010 revealed that more women in the UK will be online than men reaching 51.5% in 2012. Furthermore, market surveys report that 68% of people have bought a home related item online. These figures are justified by the fact that 80% of the homes in the UK have broadband Internet service translating to more than 20 million people.
The main secondary goods retailers in the market are What a Find.com and the U.S based companies, Overstock.com and TK Maxx. Furthermore, EBay and Amazon compete with their large customer base and strong brand name which make them a direct target for consumers looking for bargain end of line products. The secondary goods companies has a competitive edge due to their model that is appealing to retailers as it supports them make value of products that have reached their end of sales round. As such, such companies compete aggressively by working on increasing their associated brands and continue presenting value products. The target customers are working and retired women aged 34 to 60 living in the UK. The audience is brand loyal and would welcome offers and promotion from their favourite brands. As such, the main message is: “Luxurious lifestyle you can afford ”. Similar companies should work on joining the Nectar.com program to increase their customer base and maintain ties through a retailer’s brand-oriented loyalty program.