URBAN OUTFITTERS

Urban Outfitters

Urban Outfitters

Q.1) Explain why Sears or Wal-Mart cannot effectively create a trendy counterculture image?

Wal-Mart cannot effectively create a trendy counterculture image as it sells clothes at a lower price. Therefore, trendy clothes would not be effective because the cost associated with the clothes will be lower as compared to the others. Shoppers seek Wal-Mart to be the perfect place for a bargain, as the store has been offering everything at a comparatively lower price. This store relies on a bulk buying, so it can provide a better variety for its customer. Whereas on the contrary, Urban Outfitters buy their merchandise in smaller quantities and every item they sell is priced, at a much higher price in order to make it into a modern counter culture item.

However, when speaking about Sears, they are not in the same league as Wal-Mart, as they do not offer their customers price cuts such as roll back price. They do buy their items in bigger quantities as compared to Urban Outfitters. Sears, therefore, charge a much higher price than Wal-Mart as they offer high-end items to their customers, which are not offered, at Wal-Mart. Also, they mass produce their personalized items and buy them in bulks. The items they offer are geared, towards all customers and not only one customer. Therefore, competition is an immense problem for all the stores which has such names, as the purchasing power goes down during the recessionary period.

Additionally, both the stores spend millions of dollars every year to reinforce their current brand image in people's mind. This is will pose a difficulty to change their current consumer's perception about their company's image. They need to retain their customers and not to lose them so they will not try this strategy.

Q.2) Could the big-box stores sell merchandise identical to Urban Outfitters?

The big-box stores can quite replicate the merchandise urban outfitters is selling. However, it is not likely that they would sell the same items as their merchandise is produced, under a private label and cannot be sold in any other retail outlet. Moreover, Urban Outfitters sell merchandise which is labeled as Edgy and cool which makes them highly selective of the items they are selling.

Moreover, big box will have trouble finding the same materials in order to replicate the designs of Urban Outfitters. Also, if Big Box tends to imitate urban outfitters designs or merchandise then it will ...