Fashion Online - UK - August 2009

ISSUES IN THE MARKET
Main themes
Definitions
Abbreviations
FUTURE OPPORTUNITIES
Living offline (trend from Inspire)
Keeping the 25-34s happy
Men online: Tackling their priorities
MARKET IN BRIEF
Continued growth for online fashion
Wider choice and online launches boost market
Technology usage also adds to growth
Improving service and websites a plus
Internet usage growth stalls
Economic downturn and sourcing costs will have an impact
Potential for growth from new shoppers
Next and M&S lead in terms of market penetration
Free shipping and returns top consumers' demands
Winners and losers
What the future holds
INTERNAL MARKET ENVIRONMENT
Key points
Fashion now the most popular online purchase
Figure 1: Top websites purchased from in the last three months, April 2008-April 2009
Product ranges widen and more retailers go online
Discounting expands on the internet
Card frauds not putting shoppers off
Figure 2: Experience of computer-based security threats, and the impact it has had on web usage behaviour, April 2009
Improving customer experience
BROADER MARKET ENVIRONMENT
Key points
More affluent consumers
Figure 3: Forecast adult population trends, by socio-economic group, 2004-14
Consumer expenditure will take a hit
Figure 4: Trends in personal disposable income and consumer expenditure, 2004-14
Internet penetration and broadband use: Two thirds now have access
Figure 5: Broadband internet at home penetration, 2003-09
Potential for m-commerce
Figure 6: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age and working status, 2003-09
Rising prices to encourage upmarket shift
Figure 7: UK actual and projected price inflation, in clothing and footwear, 2004-14
More 25-34s and over-45s
Figure 8: UK population, by age groups, 2004-09 and 2009-14
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Video 'Look Books' – how to reach the 18-25s
UniQlo – exploiting the possibilities of Web 2.0
Engaging the male consumer
Delivery – finding the right level of convenience
Online discounting – the boom continues
Reaching customers with mobile technology
MARKET SIZE AND FORECAST
Key points
Online fashion market to reach £4.1 billion
Figure 9: Market size and forecast of online consumer expenditure on clothing and footwear, 2004-14
Figure 10: Online spending, as a percentage of total spending on clothing and footwear, 2004-14
Figure 11: Online spending, 2004-14
Factors incorporated in the forecast
MARKET IN CONTEXT
Key points
Online retail share growth slows
Figure 12: Online and total retail sales, at current prices (excl. VAT), 2004-09
Fashion's share of online sales rises
Figure 13: Online retail sales of clothing and footwear, compared to total online retail sales (excl. VAT), 2004-09
Online retailing now 8.8% of clothing and footwear spending
Figure 14: Consumer online and total spending on clothing and footwear, at current prices, 2004-09
BRAND COMMUNICATION AND PROMOTION
Key points
Overall spend on online fashion
Figure 15: Main monitored media advertising spend on online fashion, 2004-08
New launches boost ad spend
Latest campaigns
Figure 16: Main monitored media advertising spend on fashion online, by media type, 2004-08
CHANNELS OF DISTRIBUTION
Key points
Multichannel retailers have largest share
Figure 17: Estimated shares of online fashion market, by channel, 2009
Figure 18: Estimated market share, online retailers, total online fashion market, 2009
Next and Shop Direct Group top share rankings
COMPANIES AND PRODUCTS
Asos
Arcadia
Boden
Debenhams
Figleaves
Shop Direct Group
Marks & Spencer
N Brown
Next
Freemans Grattan Holdings
Asda
New Look
Net-a-Porter
John Lewis
WHO BUYS FASHION ONLINE?
Key points
One third of internet users have not bought online
Figure 19: Shopping online for clothes, June 2009
Men reluctant browsers and online shoppers
Older consumers also hesitant
WHERE THEY BUY CLOTHING ONLINE
Key points
Figure 20: Where they buy clothes online, 2008 and 2009
Next and M&S see strong growth
Figure 21: Where they buy clothing online, June 2009
Figure 22: Where they buy clothing online (continued), June 2009
Next and M&S vie for market leadership
Next leader among 25-34s
Debenhams a hit online with under-35s
Few retailers achieve gender balance
ATTITUDES TOWARDS BUYING ONLINE
Key points
Figure 23: Attitudes towards shopping online, June 2009
Online shopping cuts store time
Men and ABs cut store time
Young and multichannel
Free shipping and returns are top
Figure 24: Reasons to visit online clothing retailer websites, June 2009
Women keenest on free shipping and returns
Under-25s like customer reviews
Under-25s like website add-ons
CONSUMER TYPOLOGIES
Key points
Figure 25: Online fashion retail consumer typologies, June 2009
Group 1: Happy Browsers (32%)
Group 2: Web Worriers (39%)
Group 3: Net Negatives (29%)
Not having garments to hand a major put off for some
Further attitudinal findings
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 26: Top ten types of websites purchased from in the last three months, April 2008-April 2009
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 27: Main monitored media advertising spend on fashion online, by advertiser, 2004-08
APPENDIX – WHERE THEY BUY CLOTHING ONLINE
Figure 28: Most popular bought clothes from online retailers, in last 12 months, by demographics, June 2009
Figure 29: Next most popular bought clothes from online retailers, in last 12 months, by demographics, June 2009
Figure 30: Most popular attitudes towards shopping online, by demographics, June 2009
APPENDIX – ATTITUDES TOWARDS BUYING ONLINE
Figure 31: Most popular attitudes towards shopping online, by demographics, June 2009
Figure 32: Next most popular attitudes towards shopping online, by demographics, June 2009
Figure 33: Shopping online for clothes, by demographics, June 2009
Figure 34: Most popular reasons to visit online clothing retailer websites, by demographics, June 2009
Figure 35: Next most popular reasons to visit online clothing retailer websites, by demographics, June 2009
Figure 36: Most popular reasons to visit online clothing retailer websites, by demographics, June 2009
APPENDIX – CONSUMER TYPOLOGIES
Figure 37: Attitudes towards shopping online, by target groups, June 2009
Figure 38: Target groups, by demographics, June 2009
Figure 39: Attitudes towards shopping online, by shopping online for clothes, June 2009
Figure 40: Most popular attitudes towards shopping online, by bought clothes from online retailers in last 12 months, June 2009
Figure 41: Next most popular attitudes towards shopping online, by bought clothes from online retailers in last 12 months, June 2009