Marks and Spencer Enters China Case Solution

1. What considerations of style and design, color, and product quality did M&S overlook?

Research indicates that Marks & Spencer was not sensitive to changing customer needs. Even though Marks and Spencer claimed to cater to different target markets with various needs and requirements, the brand failed to comply with its statements on various occasions.

1. Design

It managed to introduce Asian fit bras and sizes 6 and 4 for women who had a petite body structure, but at the same time, it failed to produce apparel that fits the Chinese’ typical body structure. Its clothing line was based on British model size which resulted in low satisfaction among the Chinese consumers. M&S also overlooked the Chinese taste preferences. E.g., M&S offered chocolates that were sweeter than the normal taste buds of Chinese people. 

2. Style & Quality

The brand also focused more on providing clothes to middle-aged women and men and failed to take into account the young, passionate female shoppers who happen to do impulse buying. Even though Indigo Limited and Autograph Collection were designed for the younger population, their dull products seemed to be “old-fashioned” to young boys and girls. Ignoring the demographics (preferences, personalities, buying habits) of the younger population proved to be detrimental to M&S’s sales because such a profitable segment of the market was untouched. 

The disposable income of young female shoppers is higher compared to middle-aged women. This shows how the brand showed slower competitive responses in the fast-paced fashion world. The products of M&S are positioned to be not too premium but they are also not categorized to be at the lower price spectrum. As a result, it caused a stir in the Chinese market as high-income consumers wanted products like Gucci but low-income consumers could not afford M&S’s products. 

3. Colors and Varying Age Groups

M&S’s products would seem likable to mothers. However, the brand overlooked the consumers within the 18-34 age bracket who constituted the majority of the Chinese population. The products were not fashionable, the style was not classy, and the packaging was certainly not flashy as liked by most consumers. The color of the clothes seemed dull. Instead of focusing on mature shoppers, Marks and Spencer should have targeted the younger consumers and designed its products accordingly. 

2. What factors influence international pricing decisions (that M&S should consider)?

1. Changing consumer trends

Marks and Spencer should consider changing consumer preferences in international markets while determining the prices. When it entered the Chinese market, the main dilemma was the division of the population between rich and poor people. The middle-class consumers wanted to buy high-end brands and the lower-class individuals could not afford M&S’s products. As a result, the brand should introduce a common ground in terms of pricing strategies to cater to all market segments.