Underwear Retailing - UK - April 2009

ISSUES IN THE MARKET
Main themes
Definition
Abbreviations
FUTURE OPPORTUNITIES
Shoppers have less money in the same style as the headings below
Women need to be measured
Multi-packs could be re-thought
Trading Up, Trading Down, Trading Over (trend from Inspire)
Shop your age (trend from Inspire)
MARKET IN BRIEF
Size and shape of market
Decline in 2009
What the market needs: New opportunities
Strongest and weakest
The future
INTERNAL MARKET ENVIRONMENT
Key points
Buying and gifting trends
Women buying lingerie and underwear
Figure 1: Lingerie items women bought, 2002, 2004, 2006 and 2008
Women’s expenditure on bras
Figure 2: Women’s expenditure on bras, 2002, 2004, 2006 and 2008
Men buying and spending on underwear
Figure 3: Men’s expenditure on underwear, 2006 and 2008
Gifting: Women buying and spending on men’s underwear
Figure 4: Women’s expenditure on men’s underwear, 2006 and 2008
Gifting: Men buying and spending on women’s underwear
Figure 5: Men buying and spending on bras, 2002, 2004, 2006 and 2008
Figure 6: Men’s expenditure on women’s underwear, 2002-08
Fashion trends
Growth of niche segments
Fitting issues
Celebrities
Fast fashion and lead times
BROADER MARKET ENVIRONMENT
Key points
PDI and consumer spending
Figure 7: Personal disposable income (pdi) and consumer expenditure, 2004-09, 2013
Weak Pound will mean some higher prices
Unemployment increasing
Figure 8: Unemployment as a percentage of the workforce, 2004-13
The challenge of the changing age structure
ABC1s continue to grow but may choose to save
Marriages and birth rates
COMPETITIVE CONTEXT
Key points
Make-up with a feel-good factor
Figure 9: Underwear, make-up and footwear, retail value sales, 2004-09
Footwear is hot for fashion
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
The ‘Bra Fitting Bus’
Creating a sports community
Support in the night
Men can benefit from shaping up
Underwear with real attraction
Getting technical with lasers and sound
Tights for men
Pyjamas become eco-fashionable
MARKET VALUE AND FORECAST
Key points
Adult underwear overview
Figure 10: Retail sales, women’s and men’s underwear, 2004-09
Women’s underwear
Men’s underwear
 FORECAST
Figure 11: Retail sales of adult underwear, women’s and men’s, 2004-14
Figure 12: UK retail sales of lingerie, 2004-14
Figure 13: UK retail sales of hosiery, 2004-14
Figure 14: UK retail sales of men’s underpants, vests and socks, by value and volume, 2004-14, at current and constant 2008 prices
Figure 15: UK retail sales of men’s and women’s nightwear, 2004-14
Factors used in the forecast
MARKET SEGMENT PERFORMANCE
Key points
Women’s lingerie
Figure 16: Retail sales of lingerie, 2004-09
Women’s hosiery
Figure 17: Retail sales of hosiery, 2004-09
Men’s underpants, vests and socks
Figure 18: Retail sales of men’s underpants, vests and socks, by value and volume, at current and constant 2004 prices, 2004-09
Men’s and women’s nightwear
Figure 19: Retail sales of men’s and women’s nightwear, 2004-09
 THE FUTURE
THE CONSUMER – WHERE THEY BUY
Key points
Figure 20: Where they bought underwear for themselves in the last 12 months, 2005, 2007 and 2009
Figure 21: Where they bought underwear for themselves in the last 12 months, January 2009
M&S dominates as underwear destination
Specialists do well in a competitive market
Internet storms ahead
Clothing multiples less impressive
 THE TOP FIVE
Figure 22: Where they buy underwear, the last 12 months, by gender, age and social grade, January 2009
M&S is strong but value competition could increase
Primark is the youth destination
Supermarkets build on family convenience
 INCREASING COMPETITION
Figure 23: Where they buy underwear, last 12 months, by gender, age and social grade, January 2009
Specialists could be taking young consumers from clothing multiples
Internet is a key channel for brands
Next is hot for men
Figure 24: Where they buy underwear, last 12 months, by gender, age and socio demographic sub group, January 2009
Going for a Burton
New Look broadening opportunity
THE CONSUMER – WHERE THEY BUY HOSIERY
Key points
Figure 25: Where they buy hosiery, the last 12 months, 2007 and 2009
Figure 26: Where they buy hosiery, the last 12 months, January 2009
Tough competition for top slot
Fragmented market
Lack of desire
 TOP FIVE
Figure 27: Where they buy hosiery, the last 12 months, by gender, age and socio demographic sub group, January 2009
M&S head-to-head with Tesco
Primark dominates youth sector
Tesco overtakes Asda
Figure 28: Where they buy hosiery, the last 12 months, by gender, age and social grade, January 2009
Debenhams’ young aspirational appeal
Men most likely not to buy
 UNDERWEAR VERSUS HOSIERY BUYING
THE CONSUMER – ATTITUDES TO BUYING UNDERWEAR AND HOSIERY
Key points
Figure 29: What they think about buying underwear and hosiery, January 2009
Replacement motivation dominates
Multi-packs the most popular
Buying less but buying better?
 USAGE AND PRICE/BUDGET ATTITUDES
Figure 30: What they think about buying underwear and hosiery, by gender, age and socio demographic sub group, January 2009
Teens and twenties most interested
Multi-packs more common in hosiery
Less money = less purchasing this year
 FASHION AND QUALITY/STYLE ATTITUDES
Figure 31: What they think about buying underwear and hosiery, by gender, age and social grade, January 2009
The importance of fit
The treat opportunity
Outerwear fashion can drive sales
Men most interested in designer underwear
 WHERE THEY BUY UNDERWEAR BY ATTITUDES
Figure 32: Where they buy underwear, by attitudes, February 2009
‘Wants’ appeal of lingerie
Positive Debenhams
Figure 33: Where they buy underwear, by attitudes, February 2009
 WHERE THEY BUY HOSIERY BY ATTITUDE
Figure 34: Where they buy hosiery, by attitudes, February 2009
Fashion and quality issues
CONSUMER TYPOLOGIES
Key points
Figure 35: Consumer typology groups, February 2009
Group 1: Receivers (24%)
Group 2: Replacers (58%)
Group 3: Buyers (18%)
CHANNELS OF DISTRIBUTION
Key points
Figure 36: Retail sales of underwear, outlet types by value, 2004-08
Variety stores
Value retailers
Clothing multiples
Department stores
Supermarkets
Specialist retailers
Pureplayers
RETAIL ADVERTISING AND PROMOTION
Key points
Spending trends
Figure 37: Main monitored media advertising expenditure on lingerie and underwear, 2003-07
Who is spending where
Figure 38: Main monitored media advertising expenditure, on underwear and lingerie, by top advertisers, 2003-07
RETAIL COMPETITOR ANALYSIS
Key points
Specialists
Figure 39: Underwear and hosiery retailer specialists positioning, channels, sales and strategies, 2009
Non-specialists
Figure 40: Underwear and hosiery selected non-specialists positioning, strategies and evaluation, 2009
RETAILER PROFILES
Key points
 SPECIALISTS
La Senza
Figure 41: La Senza product offer, 2009
Ann Summers
Figure 42: Ann Summers and Knickerbox, product offer, 2009
Smaller specialists
Figure 43: Smaller lingerie specialists, 2009
 ONLINE SPECIALISTS
Figleaves.com
Brastop.com
Mio Destino
Glamorous Amorous
Stockingshq.com and tightsandmore.com
 NON SPECIALISTS
Marks & Spencer
Arcadia Group
 DEPARTMENT STORES
Debenhams
John Lewis
House of Fraser
Other department stores
 VARIETY STORES
Bhs
 MULTIPLE CLOTHING SPECIALISTS
H&M
New Look
Next
 VALUE CLOTHING RETAILERS
Matalan
Primark
Peacock Group (Peacocks and Bonmarche)
TK Maxx
 SUPERMARKETS
George at Asda
Tesco
Sainsbury’s
Mail order
Avon
APPENDIX – INTERNAL MARKET ENVIRONMENT
Underwear trends and influences
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 44: Working population of women and men, and unemployment, 2004-13
Figure 45: Age groups, 2004-13
Figure 46: Demographic groups, men and women, 2004-13
Figure 47: Number of marriages and births, 2004-13
APPENDIX – RETAILER PROFILES
 PRODUCT OFFER OVERVIEWS
Marks & Spencer
Figure 48: Marks & Spencer, underwear brands/product offer, 2009
Arcadia Group
Figure 49: Arcadia Group, underwear brands/product offer, 2009
Debenhams
Figure 50: Debenhams, underwear own-brands/product offer, 2009
Figure 51: Debenhams, underwear external brands/product offer, 2009
John Lewis
Figure 52: John Lewis, underwear brands/product offer, 2009
Other department stores
Figure 53: Premium department stores, underwear brands/product offer, 2009
Bhs
Figure 54: Bhs, underwear brands/product offer, 2009
H&M
Figure 55: H&M, underwear product offer, 2009
Next
Figure 56: Next, underwear brands/product offer, 2009
Other multiple clothing stores
Figure 57: Other clothing specialists underwear brands/product offer, 2009
New Look
Figure 58: New Look, underwear brands/product offer, 2009
Matalan
Figure 59: Matalan, underwear brands/product offer, 2009
Primark
Figure 60: Primark, underwear brands/product offer, 2009
Asda
Figure 61: George at Asda, women’s underwear brands/product offer, 2009
Tesco
Figure 62: Tesco, underwear brands/product offer, 2009
Mail order
Figure 63: Main mail order catalogues, men’s and women’s underwear offer overview, 2008
APPENDIX – WHERE THEY BUY UNDERWEAR
Figure 64: Where they bought underwear for themselves in the last 12 months, by, region and supermarket used, January 2009
Figure 65: Where they bought underwear for themselves in the last 12 months, by region, and supermarket used, January 2009
Figure 66: Where they bought underwear for themselves in the last 12 months, by region and supermarket used, January 2009
APPENDIX – WHERE THEY BUY HOSIERY
Figure 67: Where they bought hosiery for themselves in the last 12 months, by gender, age, social grade, region, newspaper readership, daily internet usage, supermarket used, January 2009
Figure 68: Where they bought hosiery for themselves in the last 12 months, by region, newspaper readership and supermarket used, January 2009
APPENDIX – THEIR ATTITUDES TO UNDERWEAR AND HOSIERY BUYING
Figure 69: What they think about buying underwear and hosiery, by gender, age and social grade, January 2009
Where they buy underwear versus where they buy hosiery
Figure 70: Where they buy underwear, by retailer, February 2009
Figure 71: Where they buy underwear, by retailer, February 2009
Figure 72: Where they buy underwear, by retailer, February 2009
Figure 73: Where they buy underwear, by attitudes, February 2009
Figure 74: Where they buy underwear, by attitudes, February 2009
Figure 75: Where they buy underwear, by attitudes, February 2009
Figure 76: Where they hosiery, by attitudes, February 2009
Figure 77: Where they buy underwear and hosiery, by attitudes, February 2009
Figure 78: Where they buy underwear and hosiery, by attitudes, February 2009
APPENDIX – TYPOLOGIES
Figure 79: Typologies, by gender, age and socio-economic group, February 2009
Figure 80: Average number of retailers, by age groups, February 2009
Figure 81: Number of underwear retailers shopped at, by gender, age and social grade, February 2009
Figure 82: Number of hosiery retailers shopped at, by gender, age and social grade, February 2009