Clothing Retailing - Ireland - April 2011

ISSUES IN THE MARKET
Key themes
Definitions
Abbreviations
INSIGHTS AND OPPORTUNITIES
Fashion gurus vs. celebrities
Online shopping continues to grow
Dressing for success
MARKET IN BRIEF
Money woes putting pressure on clothing market
Shift to value-oriented clothing
Yet market value endures
Increased desire to look well dressed
Personal appearance important to most
High level of interest in fashion well help drive the market forward
FAST FORWARD TRENDS
Trend 1: Carnivore, Herbivore...Locavore
What’s it about?
What we’ve seen
What next?
Trend 2: Girly Men
What’s it about?
What we’ve seen
What next?
INTERNAL MARKET ENVIRONMENT
Key points
Household debt still at high levels
Figure 1: Agreement with statements relating to personal situation and finances, NI and RoI, June 2011
High debt breeds more sensible spenders
Figure 2: Agreement with statements relating to debt management, NI and RoI, June 2011
Clothing – second most likely spending area to see cut
Figure 3: Areas consumers have cut back spending in the last 12 months, RoI and NI, July 2010
In-home trend has knock on effect on clothing market
Online clothing retail beginning to find its feet
Figure 4: Consumers with a broadband connection at home, RoI and NI, 2004-10
Could online websites help drive footfall in stores?
Figure 5: Agreement with statements relating to shopping online, NI and RoI, June 2011
Cult of the celebrity
Figure 6: Agreement with the statement “Celebrities influence my purchase decisions”, NI & RoI, 2006-10
Celebrities have a high influence on fashion
Figure 7: Products most interested in learning about from a celebrity, US, June 2009
Types of stars consumers trust
Figure 8: Rating the trustworthiness of particular types of celebrities, US, 2009
Ethical concerns
Concerns hold strong
Figure 9: agreement with the statement “I only buy products from a company with whose ethics I agree”, NI and RoI, 2006-10
Not easy being green
Figure 10: Agreement with the statement “It’s worth paying more for environmentally-friendly products”, NI and RoI, 2005-10
Increasing obesity will see demand increase for bigger sizes
Cotton prices increase
Higher costs of living won’t help
BROADER MARKET ENVIRONMENT
Key points
Tough times ahead will see clothing sales stagnate
Figure 11: Economic outlook, RoI and NI, 2008-10
Government cutbacks might sink the economies further
Confidence still shaky
Figure 12: Consumer Sentiment/Confidence Index, UK (inc NI) and RoI, June 2008-June 2011
Gaining confidence in time for Christmas
Figure 13: Gifts purchased for Christmas, NI and RoI, 2010
Unemployment limits spending on clothing
Figure 14: Unemployment rates, RoI and NI, January 2009-March 2011
Demand for fashion among older consumers
Figure 15: Population, by age, RoI, 2006-41
Figure 16: Population, by age, NI, 2008-58
Figure 17: Agreement with the statement “I like to keep up with the latest fashions”, by age, NI and RoI, 2010
16-24 sector in danger of shrinking
Figure 18: Agreement with statement ‘Having to emigrate to find work/go to college’, by age, NI and RoI, June 2011
More demand for children’s clothing
Figure 19: Number of births per year, RoI and NI, 1989-2009
COMPETITIVE CONTEXT
Key points
Jewellery important to consumers
Figure 20: Agreement with statements relating to jewellery, NI and RoI, 2010
Recession dents jewellery business
Clothing seen as better Christmas gift
Figure 21: Gifts purchased for Christmas, NI and RoI, 2010
Footwear a strong rival for clothing
Figure 22: Expenditure in the last 12 months on shoes, NI and RoI, 2010
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
100% green clothing
Bring the social element to online clothes shopping
Secret stores might help excitement to bricks and mortar shopping
Making clothing far more functional
Offering new types of promotions at Gap
Catering to rears of all shapes and sizes
Adding functional benefits that appeal to sweaty men
MARKET SIZE AND FORECAST
Key points
2011 marks the turning point for the clothing market
Figure 23: Market value of Irish clothing retailing market , IoI, RoI and NI, 2005-16
Online sales helping to prop-up NI market
Mobile internet could help boost footfall in near future
Womenswear accounts for 65% of the total clothing market
Figure 24: Estimated retail sales of womenswear, IoI, RoI and NI, 2005-16
Menswear market remains steady despite falling spending power
Figure 25: Estimated retail sales of menswear, IoI, RoI and NI, 2005-16
Low job security helping to drive work wear sales in the menswear segment
Figure 26: Consumers agreeing that “Job Security” most concerns them, by age, RoI and NI, 2011
COMPANIES AND PRODUCTS
Arcadia Group
ASOS
Arnotts
Asda
Benetton Group
BHS (British Home Stores)
Brown Thomas
Debenhams
Dunnes Stores
H&M
Heatons
Marks and Spencer (M&S)
Matalan
Next
Primark/Penneys
Tesco
THE CONSUMER – EXPENDITURE ON CLOTHING
Key points
Spending on coats and rain coats average
Figure 27: Expenditure in the last 12 months on coats/raincoats, NI and RoI, 2010
€30-74 the average spending for jackets
Figure 28: Expenditure in the last 12 months on jackets, NI and RoI, 2010
Four in five Irish consumers have not bought a suit in the last year
Figure 29: Expenditure in the last 12 months on suits, NI and RoI, 2010
Shirt spending average
Figure 30: Expenditure in the last 12 months on shirts, NI and RoI, 2010
Trousers spending unaffected by recession
Figure 31: Consumers spending between £20-49/€30-74 in the last 12 months on trousers, NI and RoI, 2008-10
Spending on T-shirts and polo shirts increase slightly
Figure 32: Expenditure in the last 12 months on T-shirts/polo shirts, NI and RoI, 2007-10
Your T-shirt, your way
Low spending on sports attire
Figure 33: Expenditure in the last 12 months on sports clothing, NI and RoI, 2010
Spending on jumpers sweatshirts and cardigans quite average
RoI women spend more on dresses than NI women
Figure 34: Expenditure in the last 12 months on dresses, NI and RoI, 2010
Skirts a low spending priority
Average spending on women’s blouses and tops
Figure 35: Expenditure in the last 12 months on blouses/tops, NI and RoI, 2010
Purchasing of jeans dips between 2009 and 2010
Figure 36: Consumers who have purchased jeans in the last 12 months, NI and RoI, 2005-10
Figure 37: Expenditure in the last 12 months on jeans, NI and RoI, 2010
Motivations for buying jeans
THE CONSUMER – ATTITUDES TOWARDS PERSONAL APPEARANCE
Key points
Figure 38: Agreement with statements relating to personal appearance, NI and RoI, 2010
Looking well-dressed important to two out of three consumers
Figure 39: Agreement with the statement “It is important to me to look well dressed”, NI and RoI, 2007-10
Looking well-dressed more important to women than men
Figure 40: Agreement with the statement “It is important to me to look well dressed”, by gender, NI and RoI, 2010
Attraction to the other sex an important fashion consideration
Figure 41: Agreement with the statement “It is important to be attractive to the opposite sex”, by gender and marital status, NI and RoI, 2010
Fountain of youth
Figure 42: Agreement with the statement “It is important to keep looking young”, by gender and age, NI and RoI, 2010
Comforting clothes more important to 65+
Figure 43: Agreement with the statement “I buy clothes for comfort, not for style”, by gender and age, NI and RoI, 2010
No need for comfort in certain types of outfits
Figure 44: Agreement with selected statements relating to personal appearance, NI and RoI, 2010
Irish consumers consider themselves stylish
Figure 45: Agreement with selected statements relating to personal appearance, NI and RoI, 2010
Designer labels matter less to RoI consumers during recession
Figure 46: Agreement the statement “A ‘designer’ label improves a person’s image”, by gender and age, NI and RoI, 2005-10
THE CONSUMER – ATTITUDES TOWARDS CLOTHING
Key points
Figure 47: Agreement with selected statements relating to clothing, NI and RoI, 2010
Durability is a key concern among Irish consumers
Figure 48: Agreement with the statement “I make my clothes last”, NI and RoI, 2007-10
Making things last across all levels of affluence
Figure 49: Agreement with the statement “I make my clothes last”, by social class, NI and RoI, 2010
Practical dressers
Figure 50: Agreement with the statement “I try to dress in the most practical way”, by socio-economic group, NI and RoI, 2010
Clothing for a night out a seen as important
Figure 51: Agreement with the statement “When I go out, I want to look elegant”, by gender, NI and RoI, 2010
Decline in the on-trade may call for less going out clothes
Figure 52: Alcohol sales, by indexed value, on- and off-trade split, all-Ireland, 2004-14
New season, new clothing
Figure 53: Agreement with the statement “Every season I buy some new clothes”, by gender and age, NI and RoI, 2010
Fewer agree that they spend a lot on clothes
Figure 54: Agreement with the statement “I spend a lot of money on clothes”, NI and RoI, 2007-10
Figure 55: Agreement with the statement “I spend a lot of money on clothes”, by gender, NI and RoI, 2010
CONSUMER TARGET GROUPS
 NI TARGET GROUPS
Figure 56: NI consumer typologies, 2010
Social Shoppers
Comfort Seekers
Well-dressed
Style Hounds
 ROI TARGET GROUPS
Figure 57: RoI consumer typologies, 2010
Comforters
Well-groomed
Attracters
Body Conscious
APPENDIX
Broader market environment
Unemployment
Figure 58: Number of unemplyed, by gender, NI, 2005-10
Figure 59: Unemployment rate, by gender, RoI, 2005-10
Figure 60: Number of redundancies, by gender, RoI, 2005-09
Expenditure on clothing
Figure 61: Expenditure in the last 12 months on coats/raincoats, NI and RoI, 2010
Figure 62: Expenditure in the last 12 months on jackets, NI and RoI, 2010
Figure 63: Expenditure in the last 12 months on suits, NI and RoI, 2010
Figure 64: Expenditure in the last 12 months on trousers, NI and RoI, 2010
Figure 65: Expenditure in the last 12 months on sports clothing, NI and RoI, 2010
Figure 66: Expenditure in the last 12 months on T-shirts/polo shirts, NI and RoI, 2010
Figure 67: Expenditure in the last 12 months on any outwear for adults, NI and RoI, 2010
Figure 68: Expenditure in the last 12 months on shirts, NI and RoI, 2010
Figure 69: Expenditure in the last 12 months on jumpers and sweatshirts, NI and RoI, 2010
Figure 70: Expenditure in the last 12 months on any menswear, NI and RoI, 2010
Figure 71: Expenditure in the last 12 months on dresses, NI and RoI, 2010
Figure 72: Expenditure in the last 12 months on skirts, NI and RoI, 2010
Figure 73: Expenditure in the last 12 months on blouses/tops, NI and RoI, 2010
Figure 74: Expenditure in the last 12 months on jumpers/cardigans/sweatshirts, NI and RoI, 2010
Figure 75: Expenditure in the last 12 months on any womenswear, NI and RoI, 2010
Figure 76: Expenditure in the last 12 months on children’s clothing, NI and RoI, 2010
Figure 77: Expenditure in the last 12 months on jeans, NI and RoI, 2010
NI and RoI clothing usage – demographics
Figure 78: Consumer usage of clothes, by type, by demographics, NI, 2010
Figure 79: Consumer usage of clothes, by type, by demographics, RoI, 2010
NI personal appearance TGI
Figure 80: Most popular attitudes towards personal appearance, by demographics, NI, 2010
Figure 81: Further attitudes towards personal appearance, by demographics, NI, 2010
RoI personal appearance TGI
Figure 82: Most popular attitudes towards personal appearance, by demographics, RoI, 2010
Figure 83: Further attitudes towards personal appearance, by demographics, RoI, 2010
NI – Attitudes towards clothes
Figure 84: Most popular attitudes towards clothing, by demographics, NI, 2010
Figure 85: Further attitudes towards clothing, by demographics, NI, 2010
Figure 86: Further attitudes towards clothing, by demographics, NI, 2010
Figure 87: Least popular attitudes towards clothing, by demographics, NI, 2010
RoI – Attitudes towards clothes
Figure 88: Most popular attitudes towards clothing, by demographics, RoI, 2010
Figure 89: Further attitudes towards clothing, by demographics, RoI, 2010
Figure 90: Further attitudes towards clothing, by demographics, RoI, 2010
Figure 91: Least popular attitudes towards clothing, by demographics, RoI, 2010
RoI cluster groups
Figure 92: RoI consumer typologies, 2010,
Figure 93: RoI consumer typologies, by demographics, 2010,
NI cluster groups
Figure 94: NI consumer typologies, 2010,
Figure 95: NI consumer typologies, 2010