Table of Contents
Executive Summary
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- The market
- Market factors
- Ageing population presents a challenge
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- Figure 1: Trends in the age structure of the UK population, 2006-16
- Socio-economic shifts present opportunities
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- Figure 2: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
- The consumer
- Quality and exclusivity are the constituent elements of luxury
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- Figure 3: Definitions of a luxury brand, by gender, July 2011
- High price and designer labels define luxury for under-25s
- Young women associate customisation with luxury
- Two thirds of adults buy luxury brands
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- Figure 4: Views on shopping for luxury brands, September 2011
- Four in ten are premium bargain hunters
- Men are most willing to pay the full retail price
- Older shoppers and Es eschew luxury goods
- The feelgood factor associated with luxury items stimulates sales
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- Figure 5: Motivations for buying luxury goods for self, by gender, September 2011
- Over-55s and ABs look for quality and extra features
- The younger generation make image-driven ‘tribal’ luxury purchases
- Clothing is the top luxury purchase
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- Figure 6: Categories in which luxury brands have been purchased in the last 12 months, by gender, September 2011
- Figure 7: Consumers buying luxury clothing, by age, socio-economic group and working status, September 2011
- 25-34s are the main purchasers of non-clothing luxury goods
- Department stores dominate within the luxury sector
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- Figure 8: Retailers where luxury/designer brands have been purchased, by socio-economic group, September 2011
- Under-25s are attracted to designer stores
- Guilty consciences impede spending
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- Figure 9: Attitudes towards designer brands, September 2011
- Half of shoppers shun obvious designer imagery
- Exclusivity and advertising is important for young shoppers
- What we think
Issues in the Market
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- Who buys luxury brands?
- Which features do brands need to be considered ‘luxury’?
- How is the luxury clothing market performing?
- Is the boundary between luxury and mainstream within the clothing market blurring?
- What are the main factors boosting the premium clothing market?
- How are multiple media channels being used within the luxury clothing market?
Future Opportunities
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- Trend: Make it Mine
- Trend: Prove It
Internal Market Environment
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- Key points
- Spending on womenswear
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- Figure 10: Annual expenditure on womenswear, 2007-11
- Spending on menswear
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- Figure 11: Expenditure on menswear, 2007-11
- Under-25s are most image-conscious
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- Figure 12: Attitudes towards appearance, by gender and age group, 2011
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- Figure 13: Attitudes towards appearance, 2007-11
- Demand for designer clothes peaks among 15-24s
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- Figure 14: Consumers wearing designer clothes, by gender, age and socio-economic group, 2011
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- Figure 15: Consumers who think that wearing a ‘designer’ label improves a person’s image, by gender, age and socio-economic group, 2011
- Longevity is important
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- Figure 16: Selected attitudes towards fashion and clothing, by gender and socio-economic group, 2011
- The young generation are avid followers of fashion
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- Figure 17: Consumers who wear just anything and don’t worry about it vs. those who like to keep up to date with the latest fashions, by gender, age and socio-economic group, 2011
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- Figure 18: Trends in attitudes towards fashion and clothing, 2007-11
- Style versus comfort
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- Figure 19: Consumers who buy clothes for comfort, not for style, vs. those who care more about style and attractiveness than quality, by gender, age and socio-economic group, 2011
- Under-25s are big spenders
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- Figure 20: Attitudes towards buying clothing, 2007-11
Broader Market Environment
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- Key points
- ABs to boost market
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- Figure 21: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
- C2s are aspirational buyers
- Ageing population presents a challenge
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- Figure 22: Trends in the age structure of the UK population, 2006-11
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- Figure 23: Trends in the age structure of the UK population, 2006-11 and 2011-16
- Rise in 25-34s counters the decline in under-25s
- Decline in UK residents travelling abroad
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- Figure 24: Number of overseas visits by UK residents, by region visited, 2003-10
- Youth unemployment continues to breach record highs
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- Figure 25: Number of unemployed 16-24s in the UK, January-August 2011
- Under-25s are most optimistic about their finances
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- Figure 26: Current financial situation, by age, June 2011
- Turbulence in the eurozone but UK GDP growth stronger than expected
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- Figure 27: Trends in GDP quarterly percentage change, Q1 2004-Q2 2011
- Consumer confidence remains in deep negative territory
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- Figure 28: Trends in consumer confidence, January 2008-September 2011
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Designer brands flock to London
- Multiple media advances
- Customisation spurs individuality
- Designer collaborations make luxury brands accessible
- Retailers branching into more premium lines
- Online price promotions
- Breaking the plus-size taboo?
Retail Competitor Analysis
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- Key points
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- Figure 29: Number of stores of top designer brands, 2010
- The market for designer brands is buoyant
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- Figure 30: Key financials of top designer brands (global), 2009-10
Brand Communication and Promotion
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- Key points
- Adspend tentatively picks up in 2010
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- Figure 31: Main monitored media advertising expenditure of designer/high-end clothing brands, 2007-11
- Press advertising holds supremacy
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- Figure 32: Main monitored media advertising expenditure of designer/high-end clothing brands, % share by media type, 2007-10
- Chanel continues to dominate in adspend
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- Figure 33: Main monitored media advertising expenditure, by designer/high-end clothing brands, 2007-10
The Consumer – What Defines a Luxury Brand?
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- Key points
- Luxury brands denote quality
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- Figure 34: Definitions of a luxury brand, by gender, September 2011
- Luxury brands have an air of exclusivity
- Under-25s and Ds align luxury brands with high prices
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- Figure 35: Consumers who define luxury brands as having a high price, September 2011
- Designer labels define luxury goods for 16-24s and Ds
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- Figure 36: Consumers who define luxury brands as having a designer label or visible trademark, September 2011
- Women think customisation is a defining factor
- Status and respect is key for younger generation
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- Figure 37: Consumers who define luxury brands as something that gives the owner status or respect, September 2011
- One in seven think celebrity endorsement defines high-end items
The Consumer – Views on Shopping for Luxury Brands
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- Key points
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- Figure 38: Views on shopping for luxury brands, September 2011
- Four in ten look for discounts
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- Figure 39: Consumers who only buy luxury brands if they are drastically reduced in price, by gender, age and socio-economic group, September 2011
- Men and under-35s are most willing to pay full price
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- Figure 40: Consumers who sometimes buy luxury brands at full price as they think they’re worth the price, by gender, age and socio-economic group, September 2011
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- Figure 41: Consumers who try to budget other household expenses and dining out in order to buy luxury brands, by gender, age and socio-economic group, September 2011
- One in 50 are prolific buyers of luxury brands
- Over-55s and Es avoid premium items
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- Figure 42: Consumers who don’t buy any luxury or high-end brands regardless of sale prices, by gender, age and socio-economic group, September 2011
The Consumer – Motivations for Buying Luxury Goods for Self
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- Key points
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- Figure 43: Motivations for buying luxury goods for self, by gender, September 2011
- Females are indulgent shoppers
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- Figure 44: Consumers who are motivated to buy luxury goods for themselves as treat purchases, by age and socio-economic group, September 2011
- Older ABs are attracted to quality
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- Figure 45: Consumers who are motivated to buy luxury goods for themselves because of the quality/craftsmanship, by age and socio-economic group, September 2011
- Working under-25s like to reward themselves
- Technological features draw in over-55 men
- Under-25 shoppers are image-driven
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- Figure 46: Motivations for buying luxury goods for self, by gender and age, September 2011
The Consumer – Categories Luxury Brands are Purchased In
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- Key points
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- Figure 47: Categories in which luxury brands have been purchased in the last 12 months, by gender, September 2011
- Clothing is the top luxury category
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- Figure 48: Consumers buying luxury clothing, by age, socio-economic group and working status, September 2011
- Beauty versus electronics
- Under-35 C2s drive luxury footwear sales
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- Figure 49: Consumers buying luxury footwear, by age and socio-economic group, September 2011
- 25-34s buy watches and jewellery
- Bags are mainly bought by female 25-34s
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- Figure 50: Consumers buying luxury handbags or manbags, by age and socio-economic group, September 2011
- Furniture and home appliances
The Consumer – Where Luxury or Designer Brands are Purchased
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- Key points
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- Figure 51: Retailers where luxury/designer brands have been purchased, by gender, September 2011
- Department stores are the leaders in luxury
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- Figure 52: Retailers where luxury/designer brands have been purchased, by socio-economic group, September 2011
- DEs seek out luxury brands in discount retailers
- Third party etailers are preferred by under-35 C2s
- Outlet malls and designer villages are favoured by ABs
- Independent boutiques most popular in London
- One in ten shop at designer stores
- AB 25-34s stock up on luxury goods when they travel
The Consumer – Attitudes Towards Designer Brands
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- Key points
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- Figure 53: Attitudes towards designer brands, September 2011
- Most people feel guilty spending a lot
- Over-55s and Es avoid flamboyant designer symbols
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- Figure 54: Consumers who avoid owning obvious designer initials/patterns/logos because it’s not their taste/style, by gender, age and socio-economic group, September 2011
- Half of Britons believe luxury brands promise high quality materials
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- Figure 55: Consumers who think that designer/luxury brands are made from better quality materials and those who think designer/luxury brands are designed/styled better, by gender, age and socio-economic group, September 2011
- 25-34 ABs think designer brands are styled better
- Exclusivity is a key factor for under-25 ABs
- Designer brands are price prohibitive for a third of Britons
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- Figure 56: Consumers who would like to own designer/luxury brands but cannot afford them, by gender, age and socio-economic group, September 2011
- A fifth of under-25s get the designer ‘bug’
Appendix – Internal Market Environment
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- Figure 57: Annual expenditure on clothing, by category, 2007-11
- Figure 58: Annual expenditure on clothing, by category, 2007-11
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- Figure 59: Annual expenditure on womenswear, by demographics, 2011
- Figure 60: Annual expenditure on menswear, by demographics, 2011
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- Figure 61: Attitudes towards appearance, by demographics, 2011
- Figure 62: Attitudes towards fashion and clothing, by demographics, 2011
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- Figure 63: Attitudes towards buying clothing, by demographics, 2011
- Figure 64: Agreement with the statements on personal appearance, by demographics, 2011
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Appendix – The Consumer – What Defines a Luxury Brand?
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- Figure 65: Most popular definitions of a luxury brand, by demographics, September 2011
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- Figure 66: Next most popular definitions of a luxury brand, by demographics, September 2011
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Appendix – The Consumer – Views on Shopping for Luxury Brands
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- Figure 67: Views on shopping for luxury brands, by demographics, September 2011
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- Figure 68: Definitions of a luxury brand, by views on shopping for luxury brands, September 2011
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Appendix – The Consumer – Motivations for Buying Luxury Goods for Self
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- Figure 69: Most popular motivations for buying luxury goods for self, by demographics, September 2011
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- Figure 70: Next most popular motivations for buying luxury goods for self, by demographics, September 2011
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- Figure 71: Views on shopping for luxury brands, by most popular motivations for buying luxury goods for self, September 2011
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- Figure 72: Views on shopping for luxury brands, by next most popular motivations for buying luxury goods for self, September 2011
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- Figure 73: Definitions of a luxury brand, by most popular motivations for buying luxury goods for self, September 2011
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- Figure 74: Definitions of a luxury brand, by next most popular motivations for buying luxury goods for self, September 2011
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Appendix – The Consumer – Categories Luxury Brands are Purchased in
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- Figure 75: Most popular categories luxury brands have been purchased in the last 12 months, by demographics, September 2011
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- Figure 76: Next most popular categories luxury brands have been purchased in the last 12 months, by demographics, September 2011
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- Figure 77: Categories luxury brands have been purchased in the last 12 months, by most popular definitions of a luxury brand, September 2011
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- Figure 78: Categories luxury brands have been purchased in the last 12 months, by next most popular definitions of a luxury brand, September 2011
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- Figure 79: Categories luxury brands have been purchased in the last 12 months, by most popular motivations for buying luxury goods for self, September 2011
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- Figure 80: Categories luxury brands have been purchased in the last 12 months, by next most popular motivations for buying luxury goods for self, September 2011
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Appendix – The Consumer – Where Luxury or Designer Brands are Purchased
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- Figure 81: Most popular retailers where luxury/designer brands have been purchased, by demographics, September 2011
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- Figure 82: Next most popular retailers where luxury/designer brands have been purchased, by demographics, September 2011
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- Figure 83: Motivations for buying luxury goods for self, by most popular retailers where luxury/designer brands have been purchased, September 2011
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- Figure 84: Motivations for buying luxury goods for self, by next most popular retailers where luxury/designer brands have been purchased, September 2011
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- Figure 85: Categories luxury brands have been purchased in the last 12 months, by most popular retailers where luxury/designer brands have been purchased, September 2011
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- Figure 86: Categories luxury brands have been purhcased in the last 12 months, by next most popular retailers where luxury/designer brands have been purchased, September 2011
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Appendix – The Consumer – Attitudes Towards Designer Brands
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- Figure 87: Agreement with the statements ‘I avoid owning obvious designer initials/patterns/logos because it’s not my taste/style’ and ‘Once a luxury/designer brand is worn/bought by lots of people, I no longer consider them luxury’, by demographics, September 2011
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- Figure 88: Agreement with the statements ‘Designer/luxury brands are made from better quality materials’ and ‘Designer/luxury brands are designed/styled better’, by demographics, September 2011
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- Figure 89: Agreement with the statements ‘The more I see luxury/designer brands the more I seek them out’ and ‘I would like to own designer/luxury brands but cannot afford them’, by demographics, September 2011
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- Figure 90: Agreement with the statement ‘I would feel guilty spending a lot of money on a designer/luxury brand’, by demographics, September 2011
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