Womenswear Retailing - UK - July 2008

ISSUES IN THE MARKET
Main themes
Definitions
INSIGHTS AND OPPORTUNITIES
Women are tiring of fast fashion
It’s all about the experience
Eco/ethical clothing has more appeal to older women
What opportunities from social networking sites?
Third agers are a key opportunity
MARKET IN BRIEF
A challenging market
Underlying drivers
Outside competition
Major themes and opportunities
Trading up
Differentiating
What’s selling
Retailer winners and losers
Selected retailers – performance and prospects
Online shopping
Eco and ethical trading issues
Where consumers shop
Consumer attitudes
Future developments
FAST FORWARD TRENDS
Trend 1: Brand experience
Definition:
What’s next?
Trend 2: Deseasonalization
Definition:
What’s next?
Trend 3: Nomadic exploration
Definition:
What’s next?
INDUSTRY INSIGHTS
Key points
The market – women’s spending trends
Product categories – what’s selling
Pricing – the trading up movement …
… But some trading down
Challenge of competition
International expansion
Collaborations with celebrities/designers
Online shopping
How much will online sales grow?
Eco and ethical trading issues
Store design and the customer expertience
Customer service and the consumer experience
The future
INTERNAL MARKET ENVIRONMENT
Key points
Price deflation and real value
Figure 1: Clothing and footwear deflator, 2003-13
Buying cheap…
…but attitudes are changing
Ethics and the environment
Figure 2: Consumer attitudes, ethical and environmental issues, by gender, March 2007
The celebrity stamp of approval
Older women – the untapped market
Going online
BROADER MARKET ENVIRONMENT
Key points
The shift to over-45s
Figure 3: Age structure, UK, 2002-12
More potential for value growth
Figure 4: Adult population trends, by socio-economic group, 2003-13
Figure 5: Working population of women, 2003-13
A less buoyant economy
Figure 6: Trends in PDI and consumer expenditure, 2003-13
MARKET IN CONTEXT
Key points
Making the outfit
Figure 7: UK sales of women’s footwear, accessories and womenswear, 2003-08
Self-presentation
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
ASOS supports new talent
Uniqlo’s pop-up store
H&M extends collaborations
H&M stands divided
Jane Norman branches out into accessories standalones
Supermarkets go online
Topshop makes use of social networking
Kookai gets into kidswear
Matalan stores get a makeover
Sainsbury’s getting into organic Tu
Peacocks goes for more fashion online
John Lewis gets the supermodel/celebrity treatment
Marks & Spencer launches SATC stylist range
A positive sting in fashion
Fashion is close to the heart
MARKET SIZE AND FORECAST
Key points
Total clothing sales
Figure 8: Sales through all clothing retailers, 2000-07
Total sales of womenswear
Figure 9: Retail sales of all womenswear, UK, 2003-08
Total sales of women’s outerwear
Figure 10: Retail sales of all women's outerwear, UK, 2003-08
Impediments to sales growth
On the plus side
Looking to the future
 FORECAST
Figure 11: Forecast of UK retail sales, all womenswear, 2003-13
Figure 12: Forecast of UK retail sales of all womenswear, at current and constant 2008 prices, 2003-13
Greater affluence keeps growth stable
Figure 13: Forecast of UK retail sales of women’s outwerwear, at current and constant 2008 prices, 2003-13
Women’s outerwear weaker than total market
Factors used in the forecast
THE CONSUMER – WHERE THEY BOUGHT CLOTHING
Key points
Figure 14: Where they buy clothing, May 2008
Where do they go?
Figure 15: Where women have bought clothing for themselves, 2002-08
Marks & Spencer remains strongest for over-45 ABC1 women
Next’s customers getting older
Primark is not just a magnet for teens and twentysomethings
George and Tesco battle it out for family shoppers
Figure 16: Where they buy clothing, by age and socio-economic group, May 2008
Debenhams needs to boost spend from younger women
Matalan’s core budget shoppers could be wooed by supermarkets
River Island taking over from Topshop?
Figure 17: Where they buy clothing, by age and socio-economic group, May 2008
Charity/second-hand shops get a boost
Mail order/Internet polarisation
John Lewis yet to attract younger women
Figure 18: Where they buy clothing, by age and socio-economic group, May 2008
Gap needs to stem the tide
Sainsbury’s has the M&S appeal
Figure 19: Where they buy clothing, by age and socio-economic group, May 2008
THE CONSUMER – WHAT THEY THINK OF CLOTHES SHOPPING
Key points
Figure 20: What they think of shopping for clothing, May 2008
Special occasions offer an opportunity for all womenswear retailers
Shopping is social and therapeutic
Keeping up with the latest fashion is expensive
Figure 21: What they think of buying clothes for themselves, by age and socio-economic group, May 2008
Are women tiring of fast fashion?
Where are the key basics?
Figure 22: What they think of buying clothes for themselves, by age and socio-economic group, May 2008
THE CONSUMER – WOMEN’S ATTITUDES TOWARDS CLOTHING
Key points
Figure 23: Women’s attitudes towards clothing, May 2008
The eco/ethical issue
Figure 24: Women’s attitudes towards clothing, by age and socio-economic group, May 2008
Getting the balance right
Unconfident 45-54s?
Figure 25: Women’s attitudes towards clothing, by age and socio-economic group, May 2008
THE CONSUMER – WHAT WOMEN THINK OF BUYING CLOTHES FOR THEMSELVES
Key points
Figure 26: What they think of buying clothes for themselves, May 2008
Clothes shopping enjoyment declines with age
Financially challenged more likely to hate clothes shopping
Figure 27: What they think of buying clothes for themselves, by age and socio-economic group, May 2008
Fashionable forties/fifties are a key opportunity
Young remain keen on fashion, but some lack confidence
Figure 28: What they think of buying clothes for themselves, by age and socio-economic group, May 2008
 TYPOLOGIES
Figure 29: Consumer typologies, May 2008
Key findings
Group 1: Oblivious Shoppers (49%)
Group 2: Caring, Confident but Cautious (25%)
Group 3: Jaded Worriers (26%)
RETAIL MARKET SHARES
Figure 30: Estimated market shares of leading retailers in womenswear*, 2002-07
RETAIL COMPETITOR ANALYSIS
Key points
Figure 31: Summary evaluation, major and selected smaller womenswear retailers, 2008
Positioning and strategy
Figure 32: Womenswear retailers’ positioning, strategy and analysis, 2008
Sales performance
Figure 33: Retailers’ sales performance, 2008
RETAILER PROFILES
 MAJOR RETAILERS
Marks & Spencer
Figure 34: Marks & Spencer: Womenswear own-brand portfolio, 2008
Figure 35: Marks & Spencer: Clothing price architecture, 2004-08
Figure 36: M&S: Financial performance, 2005-08
Next
Figure 37: Next: Financial performance, 2004-08
Arcadia Group
Miss Selfridge
Dorothy Perkins
Evans
Figure 38: Evans: Sub-branding portfolio, 2008
Wallis
Topshop
Figure 39: Arcadia: Financial performance, 2004-07
Bhs
Figure 40: Bhs Ltd: Financial performance, 2004-07
 CLOTHING MULTIPLES
Alexon Group
Alex & Co
Eastex
Dash
Kaliko
Minuet Petite
Ann Harvey
Bay
Figure 41: Alexon: Financial performance, 2004-08
Baugur Group (excluding HoF and Mosaic Fashion Group)
Jane Norman
Whistles
CC (Country Casuals – part of Austin Reed Group)
Figure 42: CC: Financial performance, 2005-07
Fat Face
Figure 43: Fat Face: Financial performance, 2004-07
French Connection
Figure 44: French Connection: Financial performance, 2004-08
Gap
H&M
Figure 45: H&M: Womenswear own-brand portfolio, 2008
H&M – COS
Figure 46: H&M: Financial performance, 2005-07
Hobbs
Figure 47: Hobbs: Financial performance, 2005-08
Inditex
Zara
Figure 48: Inditex: Financial performance, 2004-07
Jaeger
Figure 49: Jaeger: Financial performance, 2005-07
Jigsaw/Kew
Figure 50: Jigsaw: Financial performance, 2004-06
Kookai
LK Bennett
Figure 51: LK Bennett: Financial performance, 2006 and 2007
Mango
Figure 52: Mango: Financial performance, 2004-07
Monsoon
Figure 53: Monsoon: Financial performance, 2003-07
Mosaic Fashion Group
Warehouse
Oasis
Coast
Principles
Karen Millen
Figure 54: Mosaic Fashion Group: Financial performance, 2005-08
New Look
Figure 55: New Look: Womenswear, own-brand clothing portfolio, 2008
Figure 56: New Look: Financial performance, 2004-08
Phase Eight
Figure 57: Phase Eight: Financial performance, 2005-07
Reiss
Figure 58: Reiss: Financial performance, 2005-07
River Island
Figure 59: River Island: Financial performance, 2003-06
Uniqlo
 DEPARTMENT STORES
Debenhams
Figure 60: Debenhams: Own-brand, womenswear portfolio, 2008
Figure 61: Designers and Debenhams, womenswear portfolio, 2008
Figure 62: Debenhams: Financial performance, 2004-07
John Lewis
Figure 63: John Lewis: Womenswear own-brands, 2008
Figure 64: John Lewis: Womenswear, positionings and external brand product offer, 2008
Figure 65: John Lewis Partnership: Financial performance, 2004-08
House of Fraser
Figure 66: House of Fraser: Womenswear own-brands, 2008
 INTERNET RETAILERS
ASOS.COM
Figure 67: ASOS: Financial performance, 2004-08
 VALUE RETAILERS
Matalan
Figure 68: Matalan: Own-brand, womenswear portfolio, 2008
Figure 69: Matalan: Financial performance, 2004-08
Primark
Figure 70: Primark: Womenswear own-brand portfolio, 2008
Figure 71: Primark: Financial performance, 2003-07*
The Peacock Group
Figure 72: Peacocks and Bonmarché: Womenswear, sub-brands, 2008
Figure 73: Peacocks: Financial performance, 2003-07
TK Maxx
Figure 74: TK Maxx: Financial performance, 2004-07
 SUPERMARKETS
George at Asda
Figure 75: George at Asda: Womenswear sub-brands, 2008
Sainsbury’s
Tesco
Figure 76: Tesco: Womenswear sub-brands, 2008
RETAIL ADVERTISING AND PROMOTION
Key points
Above-the-line promotion
Figure 77: Main monitored media expenditure on womenswear, 2003-07
Rapid rises
The big names
APPENDIX
Abbreviations
Figure 78: cosmetic surgery procedures, UK, 2003-08
APPENDIX: WHERE THEY BUY OUTERWEAR
Figure 79: Where they buy outerwear, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 80: Where they buy outerwear, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 81: Where they buy outerwear, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 82: Where they buy outerwear, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 83: Where they buy outerwear, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
APPENDIX: WHAT THEY THINK OF SHOPPING FOR CLOTHES
Figure 84: What they think of shopping for clothes, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 85: What they think of shopping for clothes, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
APPENDIX: WOMEN’S ATTITUDES TOWARDS CLOTHING
Figure 86: Women’s attitudes towards clothing, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 87: Women’s attitudes towards clothing, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
APPENDIX: WHAT WOMEN THINK OF BUYING CLOTHES FOR THEMSELVES
Figure 88: What women think of buying clothes for themselves, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 89: What women think of buying clothes for themselves, by Mintel’s Special Groups, region, ACORN groups, technology users, daily newspapers, commercial TV viewing and supermarket used, May 2008
Figure 90: Typologies, by attitudinal statements, May 2008
Figure 91: Typologies, by age, socio-economic group, ACORN group, TV viewing, region, daily newspapers and supermarket used, May 2008