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Final dissertation
Date - August 2023, Term 3
Module: Personal Project
The objective of this project is to delve into the impact of introducing a radical transparency approach by fast fashion brands on the enhancement of consumer loyalty and the elevation of retention rates within the Gen-Z and Millennial consumer segments in the United Kingdom. This research seeks to explore whether the adoption of such a strategy will foster a deeper connection between these brands and their target audience, subsequently leading to a more steadfast and lasting relationship.
By dissecting the effects of radical transparency, we aim to unravel its potential to not only attract but also retain the loyalty of the discerning Gen-Z and Millennial consumers, who are becoming increasingly conscious of ethical and sustainable practices in the fast-paced fashion realm.
Often the most difficult information to share is the most important to share because it builds the trust of the people you are sharing it with (Dalio 2018), which is precisely why Radical transparency can be a potential tool for fast fashion brands to build loyalty among consumers.
RatiONale
The rationale for conducting this research is driven by the increasing demand for radical transparency in the fast fashion industry and its potential impact on consumer loyalty, and retention rates among Gen-Z and Millennials in the UK. Radical transparency, which involves disclosing detailed information about the production processes, materials, and social and environmental impacts by being more open. It could be used as a potential strategy for brands to address these concerns and build loyalty among consumers.
litERATURE Review
The concept of radical transparency can be traced back to the works of management theorist Ray Dalio, who popularised it through his book "Principles" in 2017. He defined it as a philosophy and practice of revealing information that is considered private, confidential or sensitive. This concept, has a wide range of benefits for the brands that implement it. It reduces politics, since everything is out in the open. It lets brands combat misinformation and greenwashing. It reduces bad behaviour since it can be monitored.
This proactive transparency not only fosters trust among consumers and partners but also bolsters the overall credibility and integrity of the brand, contributing to its long-term sustainability and success in an increasingly conscientious and interconnected business landscape.
theoritical Framework And methodology
An initial investigation was carried out involving a sample of 159 individuals from the United Kingdom, encompassing both Generation Z and Millennial demographics. The main objective of this phase was to gather data through a survey. Subsequently, rigorous statistical techniques were employed to scrutinize the collected data and determine the validity of the formulated hypothesis. This analytical process aimed to establish whether the conjecture holds true or if it can be refuted based on the empirical evidence obtained from the survey responses.
Regression and Co-relation analysis were conducted on the findings obtained from the survey and it was concluded that all the five hypothesis were accepted.
Discussion, Analysis and conclusion
Discussion and analysis were conducted on all the five hypothesis, thereby proving all the hypothesis.
output
Based on our research affirming the positive influence of embracing radical transparency in the UK's fast fashion sector on brand loyalty and customer retention, we proposed a tailored brand strategy. This strategy focuses on engaging younger audiences (Generation Z and Millennials) by emphasizing transparency and sustainability. While this approach offers a competitive advantage and improves supply chain efficiency, it necessitates careful consideration of consumer perception and potential cost implications. By proactively embracing transparency, engaging with credible third-party organizations, and complying with future regulations, brands can position themselves favorably and capitalize on the growing demand for ethical fashion.
