Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- UK designer fashion sales boosted by tourism
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- Figure 1: Total spend by overseas residents in the UK, 2007-17
- Outlook for UK consumers more challenging
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- Figure 2: Consumers’ future financial confidence, Jan 2009-Sep 2017
- Companies and brands
- Pureplays driving online innovation
- Increasing focus on digital advertising
- The consumer
- Purchasing peaks among 16-24s
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- Figure 3: What designer fashion items consumers have bought in the last 3 years, August 2017
- Self-purchasing drives market, but many also gift
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- Figure 4: Who designer fashion items were bought for in the last 3 years, August 2017
- Most only shop every six months or less
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- Figure 5: Frequency designer fashion items were bought in the last 3 years, August 2017
- Departments stores remain popular
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- Figure 6: Where designer fashion items were bought in the last 3 years, August 2017
- Brand ethics are not a priority for many
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- Figure 7: Important factors when buying designer fashion, August 2017
- Price sensitivity among consumers
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- Figure 8: Attitudes towards designer fashion, August 2017
- What we think
Issues and Insights
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- Encouraging more frequent purchases
- The facts
- The implications
- Tapping into online fashion shoppers
- The facts
- The implications
- Opportunities to drive higher-value purchases
- The facts
- The implications
The Market – What You Need to Know
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- A tougher outlook for UK consumers…
- …but the UK’s HNWI population rising
- Aging population could impact the market
- Uplift in inbound tourism driving growth
Market Drivers
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- Rising inflation puts pressure on consumers
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- Figure 9: Real wage growth – Average weekly earnings vs inflation, Jan 2014-Sep 2017
- Consumer confidence weakening
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- Figure 10: Consumers’ future financial confidence, Jan 09-Sep 17
- Number of HNWI in the UK continues to rise
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- Figure 11: Number of HNWIs in the UK, 2008-16
- Changes to the population structure
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- Figure 12: Trends in the age structure of the UK population, 2014-24
- Figure 13: Trends in the age structure of the UK population, 2014-24
- Value of Sterling falls following Brexit vote
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- Figure 14: Selected international currency exchange rates, annual averages, 2003-17
- Figure 15: Sterling exchange rate versus selected currencies, annual averages, 2013-17
- Inbound tourism boosted by weak Sterling
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- Figure 16: Total overseas residents’ visits to the UK, 2007-17
- Uplift in overseas spending forecast
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- Figure 17: Total spend by overseas residents in the UK, 2007-17
- Average spend per visit declining
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- Figure 18: Average spend per visit to the UK, 2012-16
- Britain a popular tourist destination for French…
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- Figure 19: Top 20 markets by volume of visits to the UK, 2016
- …but Americans account for more tourism spend
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- Figure 20: Top 20 countries by total amount spent when visiting the UK, 2016
- Middle Eastern shoppers spend the most per visit
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- Figure 21: Top 20 countries by average amount spent per visit to the UK, 2016
Companies and Brands – What You Need to Know
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- Pureplay retailers gain momentum
- Ongoing investment in technology
- Transparency increasingly important
- More focus on designer menswear
- Leading designers shift advertising spend
Online
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- Online growing share of total fashion spend in the UK
- Multi-brand pureplays growing fast
- MatchesFashion sales exceed £200 million
- Yoox Net-A-Porter strong growth continues
- Farfetch GMV up 60% in 2016
- Others struggle to create compelling online offer
- Avenue 32 closure
- Style.com closure
- New players in the market
- LVMH unveils 24 Sèvres
- Oki-Ni relaunches
- New standalone e-commerce sites
- eBay eyes growth in luxury
- Online retailers’ competitive strategies
- Improved order fulfilment
- Boosting customer experience
- The importance of physical retail environment
- International expansion
- Social media and content developments
- Emphasis on exclusivity
Launch Activity and Innovation
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- Growing demand for sustainability
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- Figure 22: Selfridges Material World Campaign, 2017
- Capturing consumers with provenance
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- Figure 23: Burberry Makers House, September 2016
- Designer fashion brands get personal
- The Store of the Future
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- Figure 24: Farfetch Store of the Future, 2017
- Other store technology developments
- Heathrow’s connected mirror
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- Figure 25: Heathrow’s Connected Mirror, 2017
- Harrods’ helps customers navigate its store
- The new Rent the Runway store
- Messenger service replicates in-store experience
- Leading designers serve the underserved
- Experiential retail boosts designer store proposition
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- Figure 26: Harrods Wellness Clinic, 2017
- Pop-up retail spaces
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- Figure 27: The Burberry Balloon at Heathrow, 2017
- New demand for made in Britain
- High street collaboration trend continues
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- Figure 28: H&M x Erdem, 2017
- Menswear Focus
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- Figure 29: Harvey Nichols menswear department, 2016
Advertising and Marketing Activity
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- Louis Vuitton is the highest spending advertiser
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- Figure 30: Recorded above-the-line, online display and direct mail advertising expenditure on fashion by selected leading designers, 2012-17
- Press remains the biggest media channel
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- Figure 31: Recorded above-the-line, online display and direct mail advertising expenditure on fashion by selected leading designers, 2012-17
- Key campaigns
- Inclusivity in fashion advertising
- Tapping into the new influencers
- Campaigns focus on humour and escapism
- Changes in French fashion advertising
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Young people drive the market
- Most buy for themselves
- Infrequent shoppers
- High levels of online purchasing
- Quality and fit most important
- Trust in designer fashion low
What They Buy
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- Affluent, young people most likely to purchase
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- Figure 32: Consumers that have purchased designer fashion in the last 3 years, August 2017
- Casual clothing and footwear drive the market
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- Figure 33: What designer fashion items consumers have bought in the last 3 years, August 2017
- Women most likely to invest in designer bags
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- Figure 34: What designer fashion items consumers have bought in the last 3 years, by gender, August 2017
- Young people actively buying across categories
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- Figure 35: What designer fashion items consumers have bought in the last 3 years, by age, August 2017
Who They Buy For
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- High levels of self-purchasing
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- Figure 36: Who designer fashion items were bought for in the last 3 years, August 2017
- Older Millennials most likely to gift
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- Figure 37: Who designer fashion items were bought for in the last 3 years, by age, August 2017
- Affluent shoppers buy for their partner
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- Figure 38: Who designer fashion items were bought for in the last 3 years, by socio-economic status, August 2017
- Gifting higher among parents
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- Figure 39: Who designer fashion items were bought for in the last 3 years, by parental status, August 2017
Frequency of Purchase
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- A third buy once a year or less
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- Figure 40: Frequency designer fashion items were bought in the last 3 years, August 2017
- Men shop more frequently
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- Figure 41: Frequency designer fashion items were bought in the last 3 years, by gender, August 2017
- The 25-34s most likely to shop monthly
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- Figure 42: Frequency designer fashion items were bought in the last 3 years, by age, August 2017
How and Where They Shop
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- Online purchasing almost level with in-store
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- Figure 43: How designer fashion items were bought in the last 3 years, August 2017
- Department stores attract most shoppers
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- Figure 44: Where designer fashion items were bought in the last 3 years, August 2017
- Women more likely to shop via brand’s official website
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- Figure 45: Where designer fashion items were bought in the last 3 years, by gender, August 2017
- Pureplays popular with 25-34s
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- Figure 46: Where designer fashion items were bought in the last 3 years, by age, August 2017
- One in four affluent ABs shop at designer outlets
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- Figure 47: Where designer fashion items were bought in the last 3 years, by socio-economic status, August 2017
- Footwear buyers more likely to shop online
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- Figure 48: How designer fashion items were bought in the last 3 years, by what they bought, August 2017
- Jewellery shoppers buy direct from brand
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- Figure 49: Where designer fashion items were bought in the last 3 years, by what they bought, August 2017
- Retailer loyalty high
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- Figure 50: Repertoire of where designer fashion items were bought in the last 3 years, August 2017
Important Factors When Purchasing
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- Quality most important to consumers
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- Figure 51: Important factors when buying designer fashion, August 2017
- Women want items to coordinate with their wardrobe
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- Figure 52: Important factors when buying designer fashion, by age and gender, August 2017
- Customer service important to older men
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- Figure 53: Important factors when buying designer fashion, by age and gender, August 2017
- Parents buy into brand names
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- Figure 54: Important factors when buying designer fashion, by parental status, August 2017
Attitudes towards Designer Fashion
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- Demand for craftsmanship high
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- Figure 55: Attitudes towards designer fashion, August 2017
- Magazines still inspire older Millennials to purchase
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- Figure 56: Agreement with attitudes towards designer fashion, by age, August 2017
- Men more willing to pay more for British fashion
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- Figure 57: Agreement with attitudes towards designer fashion, by gender, August 2017
- Rental services most likely to resonate with young
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- Figure 58: Agreement with attitudes towards designer fashion, by age, August 2017
- Renting designer fashion – CHAID analysis
- Methodology
- Online shoppers interested in renting designer fashion
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- Figure 59: Designer fashion – CHAID – Tree output, August 2017
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- Figure 60: Designer fashion – CHAID – Table output, August 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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