Table of Contents
Issues in the Market
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- Main themes
- Definitions
- Abbreviations
Future Opportunities
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- Capitalising on consumers’ willingness to trade down
- Better, and cheaper
- Fostering the Bargain-hunting mentality
- The thrill of the chase
- Simplifying the shopping experience
- As easy as ‘price’, ‘fabric’, ‘wash’
Market in Brief
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- Value clothing worth £8.1 billion
- Supermarkets fall back while Primark leads
- Downturn helps to boost the market
- Bargain hunting and tight budgets are key
- Greater fashionability, better stores
- Future opportunities and challenges
Internal Market Environment
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- Key points
- Clothing selling prices plummet in 2009
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- Figure 1: Implied price deflator, clothing, garments, percentage change, quarter on corresponding quarter of previous year, Q1 2006-Q2 2009
- Increasing importance of store design
- Ethical concerns of consumers put aside?
- No flight towards quality
- Online retailing takes off
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- Figure 2: Transactional websites in value clothing
Broader Market Environment
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- Key points
- Consumer spending takes a hit as households rebuild savings
- The clothing hit
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- Figure 3: Items that adults are cutting back on in the recession, February 2009
- 25-34s set to be the big opportunity
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- Figure 4: Trends in the age structure of the UK population, 2004-14
- Upmarket consumers set to increase
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- Figure 5: Trends in the socio-economic structure of the UK adult population, 2004-14
- Retirees present a major challenge for the sector
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- Figure 6: Trends in the lifestage structure of the UK adult population, 2004-14
- Unemployment set to hit consumer confidence
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- Figure 7: Employment and unemployment, by gender, 2004-14
- Key consumer groups now online
Competitive Context
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- Key points
- Value clothing absorbs most clothing growth
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- Figure 8: UK consumer spending on clothing, and value clothing, including VAT, current prices, 2004-09
- Consumers cut back on ‘fun’ spending categories
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- Figure 9: UK consumer spending on clothing and other complementary and competitive goods and services (£million including VAT, at current prices, 2004-09
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- How to make the Internet pay its way
- Making value environments more interesting
- Ditching celebrities in the downturn
- Capturing the interest of younger and more upmarket customers
Market Size and Forecast
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- Key points
- Value clothing market maintains growth
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- Figure 10: UK value clothing market, including VAT, 2004-14
- Value clothing specialists’ performance recovers
- Factors used in the forecast
Retail Competitor Analysis
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- Key points
- Specialist value leaders power ahead
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- Figure 11: Value clothing retailers’ key data and estimated clothing sales, 2008
- Primark performance strongest
- Supermarkets fail to match the specialists
- Market share
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- Figure 12: Value clothing retailers’ estimated market shares, 2007-09
Companies and Products
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- Major specialists
- Matalan Ltd
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- Figure 13: Matalan’s brands, 2009
- Figure 14: Matalan: Group financial performance, 2004/05-2008/09
- Peacock Group
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- Figure 15: Peacocks and Bonmarché sub-brands, 2009
- Figure 16: Peacock Group: Financial performance, 2004/05-2008/09
- Primark
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- Figure 17: Primark: Brand portfolio
- Figure 18: Primark: Financial performance, 2004-09
- TK Maxx
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- Figure 19: TK Maxx: Financial performance, 2004/05-2008/09
- QS Group
- Non-specialists
- George at Asda
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- Figure 20: Asda Group financial performance, 2005-07
- Tesco Plc
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- Figure 21: Tesco: Brand portfolio
- Figure 22: Tesco UK financial performance, 2005-09*
Brand Elements
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- Key points
- Brand map
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- Figure 23: Attitudes towards and usage of value clothing brands, September 2009
- Brand qualities of value clothing brands
- Supermarkets friendliest, but Sainsbury’s lags behind
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- Figure 24: Personalities of various value clothing brands, September 2009
- Experience of value clothing brands
- Tesco and Asda most popular, Matalan set for resurgence?
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- Figure 25: Consumer visitation of various value clothing brands, September 2009
- Brand intentions for value clothing brands
- Knowledge lacking for TJ Hughes, Matalan strong on consideration
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- Figure 26: Consideration of various value clothing brands, September 2009
- Brand satisfaction for value clothing brands
- George edges ahead for customers
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- Figure 27: Satisfaction with various value clothing brands, September 2009
- Brand commitment to value clothing brands
- Primark is top choice
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- Figure 28: Commitment to various value clothing brands, September 2009
- Tesco
- What the consumer thinks
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- Figure 29: Attitudes towards the Tesco brand, September 2009
- Peacocks
- What the consumer thinks
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- Figure 30: Attitudes towards the Peacocks brand, September 2009
- H&M
- What the consumer thinks
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- Figure 31: Attitudes towards the H&M brand, September 2009
- George at Asda
- What the consumer thinks
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- Figure 32: Attitudes towards the ASDA/George brand, September 2009
- Primark
- What the consumer thinks
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- Figure 33: Attitudes towards the Primark brand, September 2009
Brand Communication and Promotion
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- Key points
- Value cutbacks mirror clothing ad trends
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- Figure 34: Main monitored media advertising expenditure, by value clothing retailers, 2005-09
- Supermarkets the major spenders
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- Figure 35: Main monitored media advertising expenditure by value clothing retailers, by fascia, 2005-09
The Consumer – Where Value Clothing is Bought
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- Key points
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- Figure 36: Percentage of adults shopping for clothing at leading value clothing retailers in the past 12 months, October 2009
- Primark takes the lead in value clothing
- Supermarkets fall back since 2007
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- Figure 37: Percentage of adults shopping for clothing at selected leading value clothing retailers in the past 12 months, October 2009 versus September 2007 and February 2005
- Primark gains among the young
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- Figure 38: Primark: Market penetration, by age and socio-economic group, 2009 vs. 2007
- George loses women and the middle aged
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- Figure 39: George at Asda: Market penetration, by age and socio-economic group, 2009 vs. 2007
- Matalan wins younger audience
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- Figure 40: Matalan: Market penetration, by age and socio-economic group, 2009 vs. 2007
- Tesco suffers segmenting problems
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- Figure 41: Tesco: Market penetration, by age and socio-economic group, 2009 vs. 2007
- TK Maxx picks up on younger, upmarket audience
- Peacocks misses out on the affluent and men
- Over-45s are attracted to charity shops
- Bonmarché hits the 65+ demographic
- Men most likely not to shop at value clothing retailers
The Consumer – Attitudes Towards Value Clothing
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- Key points
- Female bargain hunters are key
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- Figure 42: Attitudes towards buying value clothing, June 2009
- 35-44s see good value for money
- Women more likely to buy on a budget
- Quality not trusted
- One in seven skimps on clothing spending; under-25s shop on price
- Fast fashion a draw for women, not men
- Under-25s buy because of wide choice
- Upmarket ABs most concerned about cheap labour and quality
- Youngest consumers the keenest
- Few enjoy the value shopping experience
- Statements on attitudes by where they shop
Target Groups
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- Key points
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- Figure 43: Target groups for value clothing retailers according to attitudes towards buying value clothing, October 20009
- Group 1: Tight Budgeters (15%)
- Group 2: Quality Concerned (60%)
- Group 3: Value Hunters (26%)
Appendix – Broader Market Environment
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- Figure 44: GDP quarterly percentage change, 2004-09
- Figure 45: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
- Figure 46: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14
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- Figure 47: British internet penetration at home/work/place of study or elsewhere, by demographics, 2002-09
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Appendix – Where Value Clothing is Bought
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- Figure 48: Most popular retailers bought value clothing from in the last 12 months, by demographics, October 2009
- Figure 49: Next most popular retailers bought value clothing from in the last 12 months, by demographics, October 2009 (continued)
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- Figure 50: Other retailers bought value clothing from in the last 12 months by demographics, October 2009 (continued)
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Appendix – The Consumer – Attitudes Towards Value Clothing
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- Figure 51: Most popular statements on buying value clothing, by demographics, October 2009
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- Figure 52: Next most popular statements on buying value clothing, by demographics, October 2009 (continued)
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- Figure 53: Most popular statements on buying value clothing by demographics, October 2009 (Continued)
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- Figure 54: Most popular retailers bought value clothing from in the last 12 months, by statements on buying value clothing, October 2009
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- Figure 55: Next most popular retailers bought value clothing from in the last 12 months by Statements on buying value clothing, October 2009 (Continued)
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- Figure 56: Other retailers bought value clothing from in the last 12 months, by statements on buying value clothing, October 2009 (continued)
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- Figure 57: Most popular statements on buying value clothing, by retailers bought value clothing from in the last 12 months, October 2009
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- Figure 58: Next most popular statements on buying value clothing, by retailers bought value clothing from in the last 12 months, October 2009 (continued)
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- Figure 59: Other statements on buying value clothing, by retailers bought value clothing from in the last 12 months, October 2009 (continued)
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- Figure 60: Statements on buying value clothing, by target groups, October 2009
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Appendix – Target Groups
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- Figure 61: Target groups, by demographics, October 2009
- Figure 62: Retailers bought value clothing from in the last 12 months, by target groups, October 2009
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