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Chapter Two The Fashion Market and the Marketing Environment 2. 1 Introduction A market is a place for buying and selling, for exchanging goods and services, usually for money. The fashion market is unusual because until early in the twentieth century it was almost solely the domain of kings, queens, aristocrats and other important people. As will be seen, great changes, mainly due to technology and increasing globalization, mean that we now have a fashion marketplace open to everyone. Fashion can be a re? ection of the time, from the utilitarian clothing of the war years to the yuppie look of the buoyant 1980s.
Fashion also can be a re? ection of individuals. Clothes are often chosen to re? ect among other factors our age, gender, lifestyle and personality. Because fashion is both a re? ective and yet creative discipline, it is necessary for fashion marketers to be aware of the factors surrounding the market and develop a broad understanding of the issues that can affect the garments that are seen in any high street store. 2. 2 The development of the fashion market 2. 2. 1 Origins of the modern fashion market Until relatively recently, fashion had always been elitist and was used by its adopters to show that they were above the common people.
Even the inventions of the eighteenth and nineteenth centuries; the spinning jenny, the water frame and the sewing machine have not had as great an effect on the market as have cultural changes and the explosion of the media during the twentieth century. The end of World War I, in 1918, really marked the start of mass fashion. Style began to be in? uenced by the fashion designers of Paris, Milan, New York and London. In the 1930s ? lm personalities and later pop stars all played their part in spreading or even starting fashion trends.
Some fashion styles are more easily explained than others. World War II forced hemlines up because of a shortage of material. In the 1950s newer freer styles made corsets less and less necessary. However, other fashions are less easily explained and are regarded by some as merely a whim or the market just looking for a change. Technology played its part in advancing mass production methods, so that from the 1930s onwards ordinary people could buy copies of designer fashions from high street stores within weeks of the big fashion shows. The media started to become an important in? ence in the late 1970s. People became more selective in what suited them, and magazines and books advised them on creating their own style. Designers could no longer dictate the styles as they had up to the 1960s. ‘Street fashion’ styles, developed by young people themselves in towns and cities, also affected designer clothes. London was at the forefront of the fashion scene in the 1960s and early 1970s. Mary Quant was in her heyday and her clothing was famous the world over. It was the time of Carnaby Street, and Biba made famous by Barbara Hulanicki. The in? ence of royalty on fashion made a comeback with the Princess of Wales in the 1980s as many women copied the lace and ruf? es which she wore. While not the ? rst to introduce lifestyle segmentation to the market, George Davies, then chief executive of the Next chain, is undoubtedly the best known. His retailing phenomenon, targeting a particular age and lifestyle group, exploded onto the marketplace and had many other high street retailers following suit. Changes towards a healthier lifestyle advocated by the medical profession and the increase in leisure time have encouraged people to take up more sport, particularly jogging and aerobics.
Membership of health clubs and gyms has increased in recent years. So the clothing from this and other activities has moved into everyday wear. The future for the fashion industry is mapped out, perhaps more than at any time in its history. In? uences from the demographic structure, concern for the environment and further adoption of new technologies are all inevitable. These factors could sti? e designers if they are not careful or could offer them greater challenges than any they have had to face so far. 19 The Fashion Market and the Marketing Environment 20 Fashion Marketing . 2. 2 Recent developments in the fashion market Consumer demand for clothing is now more fragmented and discerning. Retailers are wary of carrying high levels of stock, major demographic changes are occurring, and many different styles and fabrics are available. These have all resulted in the mass market for clothing being fragmented and are eroding the advantages of long-run manufacture. Previously the UK textile industry had a reputation for being dictatorial and short on choice. This was blamed on the nature of the relationship between retailers and manufacturers.
Clothing retailing was dominated by a few large groups who exercised enormous power in the wholesale market for garments and fabrics. Retailers emphasized basic garments with very little fashion content, and Marks and Spencer in particular set very detailed speci? cations for fabrics, making-up and quality. Manufacturers such as Courtaulds and Carrington Viyella geared their production to large volumes of basic fabrics for a few major customers. It became uneconomic to deal with orders that either were small or required much design detail.
Competition among retail chains was over the price and quality of garments. Since then the market share of the multiple retailers (such as Bhs, Debenhams and Marks and Spencer) has been affected ? rstly by the emergence of smaller specialist chains (Benetton, Next) then grocery supermarkets (‘George’ at Asda and Tesco). Mintel 2005 estimates that ‘George’ sales in 2004 (excluding VAT) were ? 1. 07 billion and that non-specialist retailers of this type enjoyed an increase in sales of 13% from 2003 to 2004, with this rising trend continuing.
Further European retailers (Zara, H&M) have also gained market share in the UK by importing low-cost garments. To avoid competing with the abundance of low-cost imports, the big retailers have responded by increasing the speed with which they introduce fashion and style changes. This, in turn, has forced suppliers to manufacture shorter runs of garments with higher design and fashion content. In some parts of the market there has been a distinct shift in retail competition away from an emphasis on garment price to non-price factors, such as design, quality and fashion.
However, this non-price competition has had only a limited success with even Marks and Spencer and its strong ‘British Made’ slogan, turning to importing more cheaply from overseas. Value retailers such as Matalan, Primark and TK Maxx, who have attracted the more price conscious shopper, have enjoyed considerable success in other sectors of the market (Table 2. 1). The Fashion Market and the Marketing Environment Table 2. 1 UK trade in clothing (? million), 2001???2005 2001 2002 9 806 2 506 7 300 11. 1 2003 10 341 2 713 7 628 4. 5 2004 10 884 2 729 8 155 6. 9 2005 11 543 2 679 8 864 8. Imports Exports Balance of trade % change year on year 9 160 2 592 6 568 Source: HM Customs and Excise. ?? Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland). 2. 3 The fashion market: size and structure 2. 3. 1 Structure of the fashion market Apart from technology, another reason why fashion is now available to the masses is that there are several levels at which fashion clothing functions, as shown in Figure 2. 1: Trickle down Haute couture Designer wear Street fashion or mass markets Trickle up Figure 2. Levels of fashion. ? Haute couture houses are the major fashion houses of the world, run by recognized, internationally famous designers. They show their collections at least twice a year and sell individual garments for thousands of pounds. For many designers the catwalk shows are essentially a publicity exercise for the many goods that are sold under their name such as perfume and accessories. 21 ? ? Designer wear is shown at pret a porter. The move into readyto-wear clothing by designers meant that they could offer their stylish designs and high quality to a wider audience.
The garments are still highly priced, although in hundreds of pounds sterling rather than thousands. They are to be found in the designers’ shops, independent stores and some of the more exclusive department stores. Designs are not unique, but are still produced in limited numbers and, although some garments are produced abroad, there is very strict quality control. Mass market or street fashion is the market area in which most people buy their clothes. New fashions can be in the high street stores extremely quickly and what the customers lose in exclusivity they can make up for in value for money.
This is one area of the market that is undergoing many changes and this chapter will look at how it is being affected. 22 Fashion Marketing This three-tier view of the market is perhaps oversimplistic as there are many strata and price levels between the ones mentioned. Many customers do not stick to any one level when buying their clothes. The more af? uent will buy several haute couture out? ts but turn to designer wear for every day. Women who mostly buy designer ready-to-wear may occasionally splash out on a couture dress for a very special occasion.
Those who generally only buy mass market clothing may still buy designer wear occasionally, if only from the discounted rail. In the early twenty-? rst century celebrity fashion icons have moved to mixing their out? ts with some designer pieces and some from high street stores. At times it is dif? cult to identify the origin of our clothing and to decide who has the power in the marketplace. Is it the ? bre and fabric industry that, after all, make the cloth for the garments? Is it the designers? Or perhaps the retailers are the power base in the market?
Ultimately it should be the customer, but traditionally the fashion market has been one where the customer was dictated to and so merely followed along almost blindly. The fashion ? ow chart in Figure 2. 2 illustrates the ? ow of goods between the various participants in the marketplace. Later it will be seen that there is even more choice in deciding where the goods will be manufactured (see Section 2. 5. 2). 2. 3. 2 Size of the fashion market All three levels of the market have shown some growth in domestic clothing demand in recent years. Growth of the total UK market for
The Fashion Market and the Marketing Environment Fibre industry Raw material suppliers Research facilities Fibre marketing companies Fibre mills, etc. Selling agents Support services: Fashion forecasting consultants Advertising, promotion and public relations agencies Manufacturers Designers Fashion centres Wholesalers Retailers: Shops Mail order Catalogues Party plan Ultimate customer Figure 2. 2 Fashion ? ow chart. clothing has grown by over 16% from 1994 to 2004 and retail sales for 2006 are predicted to be nearly 50 billion (Table 2. 2). UK imports now greatly exceed exports, having increased from ? . 1 billion to ? 11. 5 billion from 2001 to 2005 with the main traders being Hong Kong, China and Turkey (see Table 2. 1). UK exports have remained steady at about ? 2. 5 billion per annum over the same period with about 73% of this output going to other European countries. As less UK manufactured clothes are sold in the home market the proportion of goods being exported is actually increasing. The ? gures become more complex as UK manufacturers are developing their own production facilities overseas to take advantage of lower wages and production costs (Table 2. 3). 23 Table 2. Some major developments in fashion Pre-nineteenth century 1918 onwards 1930s 1939???1945 1950s and 1960s 1970s to 1990s 1990s 2000 onwards 2002 onwards Fashions only for the rich and powerful Start of mass fashion Film personalities in? uencing popular clothing World War II ??? raised hemlines Freer styles, fewer control garments Growth of multi-nationals and mass media in? uence Increase in branded and designer label goods Growth of electronic shopping Increasing in? ux of cheap foreign manufactured clothing 24 Fashion Marketing Table 2. 3 Consumer spending on clothes Consumer Expenditure at Current Prices in ?
Million 2000 Clothing Footwear Total % change on year 31 048 4 431 35 479 6. 3 2001 32 103 4 719 36 822 3. 8 2002 33 927 5 165 39 092 6. 2 2003 35 689 5 466 41 155 5. 3 2004 37 112 5 680 42 792 4. 0 2005 38 067 5 661 43 728 2. 2 Source: Consumption, The Blue Book 2006. 2. 3. 3 Employment in the fashion sector Employment in the manufacturing of clothing textiles and leather production in the UK has now fallen to rank 24th out of the 25 categories of manufacturing industry recorded by the Government. Two main factors have reduced the numbers employed in the sector in recent years to only 132 000 in 2006 (Table 2. ). New technologies have reduced the need for many workers, particularly in the more skilled areas of pattern cutting as much of this can be computerized. The computer systems still need to be manned by a skilled workforce, but retraining has to be done and still there will be redundancies. The far more important factor has been the stiff level of cheap competition from abroad. With an inability to raise prices in the face of a depressed domestic market and crippled by large debts, many ? rms have had to make savage cuts in their labour force and investment plans as the alternative to going out of business.
In the late 1990s many major UK clothing manufacturers suffered as their customers Table 2. 4 Recent decline in employment ? gures in textile clothing and footwear industries (in ‘000s, in June each year) 1998 331 1999 304 2000 273 2001 230 2002 205 2003 169 2004 149 2005 136 2006 132 The Fashion Market and the Marketing Environment Source: ONS. Table 2. 5 Production output indices of total manufacturing industries and textiles, leather and clothing industries in the UK (index 2002 100, 2001, 2005) 2001 Total manufacturing industries Textiles, leather and clothing 103. 2 108. 1 2002 100. 0 100. 0 2003 100. 98. 1 2004 101. 9 87. 0 2005 101. 3 83. 2 Source: Monthly Digest of Statistics. Table 2. 6 Production of textile and textile products in UK, 2000???2006 (index 2003 100) 2000 122. 4 2001 107. 2 2002 99. 7 2003 100 2004 98. 1 2005 90 2006 89 Source: ONS. chose to source garments from cheaper overseas suppliers. The UK clothing industry is made up of small, medium and large manufacturers. The smaller manufacturers feed off the larger companies by offering specialist ? nishing services. As the larger retailers turn to overseas manufacturing or supplying, so the vulnerable smaller companies suffer.
Table 2. 5 shows the fortunes of the fashion industry in the context of the decline in manufacturing (Table 2. 6). 2. 3. 4 The current role of London in the fashion business Fashion centres of the world have always included London, even before the era of Carnaby Street and Mary Quant, but recently designers have been choosing not to show in London. Now that London Fashion Week no longer has the ? nancial backing of the French Chambre Syndicale (the French organization that decides which fashion houses may join the ranks of the haute couturiers), the number of exhibitions has declined.
With it no longer being a requirement 25 to show in London, designers have taken the opportunity to save the expense of showing at yet another fashion week, instead concentrating on the ones which they feel will be most prestigious and best covered by the media. This shift away from London is of concern to the industry, particularly for the knock-on effect that it will have on everything from employment to tourism. Cities which are taking a more prominent role in the fashion year are New York, Tokyo and, new to the list, Shanghai. 26 Fashion Marketing 2. 3. 5 The British High Street
In contrast to Italy and most of the rest of Europe, UK has a much more consolidated market sector with only a few players as the big earners. Mintel (2005) stated that the top ? ve UK retailers account for almost 45% of sales. The leading players by turnover being Marks and Spencer, Next, Arcadia Group (comprising Top Shop, Etam, Wallis, Dorothy Perkins, Burton, Miss Selfridge, Out? t and Evans), Matalan and Bhs. This dominance of the big players makes it hard for independent stores to get a foothold into the marketplace. It is hard to compete on price when dealing with high rents and cheap imported clothes. 2. Marketing environment Fashion is ultimately about change. Every season there are new fashions that lead to obsolescence of last year’s clothes. Many of these changes are brought about by designers trying to create something new to satisfy customers, but others are because of in? uences beyond the control of designers or manufacturers. These are all gathered together in what is called the marketing environment, as shown in Figure 2. 3. Some changes occur very slowly while others can affect the market much more quickly; some are within a company’s control and others are way beyond it. 2. 5 Micro-marketing environment
Factors which ideally are within companies’ control are to a greater or lesser extent their suppliers, marketing intermediaries (which help to get the goods from the factory to the consumer) and the consumers themselves. For customers the providers of fashion may seem to have a variety of sources, for instance the designer who has the idea for The Fashion Market and the Marketing Environment Macro-environment Technology Demographics Political Legal Micro-environment Competitors Suppliers Manufacturers Intermediaries Consumers Publics Social Economic Environmental Cultural Adapted from Kotler, P. (1994), Marketing Management, 8th edn. Prentice Hall International, New Jersey. Figure 2. 3 The marketing environment. Adapted from Kotler, P. (1994), Marketing Management, 8th Edition, Prentice Hall International, NJ. the style, the manufacturer who makes up the garment or the retailer to whom the consumer goes to buy the garment. 2. 5. 1 Designers While Paris is often thought of as the fashion capital of the world in fact there are ? ve main cities supplying designs and new ideas to the international market. Paris is historically seen as the fashion capital and has the edge on many other cities as its fashion industry is taken very seriously by government and citizens alike.
The haute couture designers are protected by the French Chambre Syndicale, which has strict codes of practice for any designer wishing to style him- or herself as an haute couture house. The main French designers are Yves St Laurent, Chanel (now run by Karl Lagerfeld), Christian Dior, Pierre Cardin, Jean Paul Gaultier, Sonia Rykiel and Christian Lacroix. The British are also making an impact in France, with Julian MacDonald and John Galliano securing senior designing roles in French fashion houses. Milan is the other fashion capital of Europe, and Italians have always taken fashion very seriously.
There are probably fewer wellknown designers, such as Giorgio Armani, Franco Moschino, Muicca Prada, Emanuel Ungaro and Versace, now headed by Donatella, sister to the founder Gianni who was tragically murdered in 1997, but Italy is a country whose people and retail set-up, with many more independent stores, is a successful environment for young designers. 27 London is no longer the focal point of fashion that it once was, though it still produces many internationally in? uential designers. Many are quite small ? h by international standards but others have their designs bought by the rich and famous from all over the world. Although London is no longer a major centre, the UK clothing industry is still signi? cant and exports are actually growing in contrast to internal sales. The city also retains many successful designers such as Bruce Old? eld, Jasper Conran, Matthew Williamson, Alexander McQueen, Dame Vivienne Westwood, Paul Smith, Katharine Hamnett, Joseph Ettedgui, Rifat Ozbek, Amanda Wakely, Betty Jackson and Caroline Charles. In America the major centre is New York.
To a considerable extent American fashions are con? ned to the home market, although all the big names are known and bought internationally. American designers include Ralph Lauren, Calvin Klein, Oscar de la Renta, Marc Jacobs, Vera Wang and Donna Karan. Tokyo, the centre of the Japanese clothing market, has a reputation for a distinct style and for almost a lack of colour. There has been considerable growth in recent years at the top end of the Japanese clothing market by designers, especially since 1981 when Comme des Garcons and Yamamoto took Paris by storm.
This is a fashion city that is destined to continue to grow with such designers as Yohji Yamamoto, Comme des Garcons (Miss Rei Kawakubo), Issey Miyake, Junya Wantanabe and Kenzo. The Middle East is now considered the sixth fashion terminus of the world, not because any designs come from here but because it is where the submerged 11% of the fashion industry goes. Much clothing is bought by women either within or while on holiday from such places as Dubai, the United Arab Emirates, Kuwait, Bahrain and Saudi Arabia. The overall market pattern now is that designers either make for themselves or subcontract to British or overseas manufacturers.
Likewise retailers have their own designers and make them up in their own factories, subcontract their own designs to home or overseas manufacturers, or buy garments designed and made up by other companies. 28 Fashion Marketing 2. 5. 2 International sourcing The UK clothing industry is being squeezed further between the highly price-sensitive volume market which gets its supplies from lowwage economies and the quality end of the market which is increasingly supplied from Europe. The level of imports to the UK from the relatively high-cost producers on the continent has ? ally succumbed to pressure from other parts of the world and is decreasing. Supplies come from three main sources: 1. UK, Europe and just beyond (Germany, France, Italy, Portugal, Eire, Turkey and more recently Romania) making up about 20% of UK clothing imports. Italy has traditionally been the major player here with Germany and France in close second place. 2. The Far East (Hong Kong, China, South Korea, Thailand, Taiwan, Malaysia, Indonesia and Mauritius). The two major players here are Hong Kong and China. They contribute, almost equally, to the 30% of clothing entering the UK from the Far East. 3.
Asia (India, Bangladesh and Sri Lanka). These main three players contribute to more than 12% of UK clothing and accessory imports. Predictions that the reduction of quotas for Chinese goods would have a negative impact on these countries do not seem to have held true so far. The greatest increase in supply has come from China and this is only expected to increase further now that quotas have been all but dropped to the UK and most of the rest of the world. However this does not seem to have affected UK exports suggesting there are different ranges of products being trade such as knitwear, rainwear and high-quality tailored items.
Imports from eastern European countries such as Romania have been seen to rise, as they have bene? ted from preferential access by the European Union (EU) in order to aid their economic restructuring prior to the abandonment of Multi-Fibre Agreement (MFA) quotas. The days when Marks and Spencer used to boast that its garments were almost all produced in the UK, have long gone and they have suffered from criticism by some of the groups discussed later in Section 2. 5. 9. The Fashion Market and the Marketing Environment 2. 5. 3 Manufacturers
In the late 1990s and early 2000s a gloomy picture was painted as a result of the move towards global sourcing. Several larger clothing companies such as J. Baird Ltd closed factories and others such as Dewhurst in the north-east of England who relied on a few major customers such as Marks and Spencer have suffered from this loss of business. There has been a reduction in the clothing manufacturing industry in the UK and many foreign companies have changed from both designing and manufacturing to one of merely cut, make and trim (CMT) for other people’s designs.
Other parts of this chapter look at the way forward for the UK manufacturing industry. There is undoubtedly a role that it can play in the international sourcing market if it exploits the strengths of ? exibility and quality and moves away from 29 competing on price alone. It is in these areas that the UK is still exporting its fashions, although Table 2. 5 illustrates the changing fortunes in the import and export of clothing. Clothing manufacturers have had to improve their manufacturing methods. There has been severe cost cutting in some areas coupled with an increased emphasis on good design in other areas. 0 Fashion Marketing 2. 5. 4 Marketing intermediaries These are the main channels that help to get the goods from the manufacturer to the consumer. A detailed consideration of marketing intermediaries is given in Chapter Eight. Their roles can be many and varied. The main ones are: ? ? ? ? ? ? retailers, agents, distributors, wholesalers, advertising agencies, market research agencies. The intermediary having the greatest in? uence on the clothing market is the retailer group. British clothes retailing is unique in that 70% of garment sales come from only 17 retail chains.
The larger chains have taken an increasing share of the growing clothing market at the expense of the smaller ? rms. In 2004 the Arcadia group (formerly Burton), which included Dorothy Perkins, Top Shop, Top Man, Miss Selfridge, Wallis, Evans, Burtons and Out? t, had sales, estimated by Mintel, of ? 1527 million from their clothing outlets numbering more than 2000. Supermarkets have had an increase in the share of the clothing market; however, the largest market share still goes to Marks and Spencer despite the company’s recent dif? culties from which 2006 seemed to be a turning point.
In Italy, by comparison, 95% of clothes are sold by single shops. On the whole, competition, particularly on price, has intensi? ed since the 1990s. Customers are increasingly looking for value for money; but are not totally driven by price; they also want good design, comfort and quality. Companies have had to rationalize and restructure to combat increasing competition, cheaper imports and changing customer expectations. In consequence, many womenswear multiples have been forced to segment markets more effectively, making their customers much more aware of the markets that are being catered for.
This has led and will increasingly lead to a narrowing of product ranges. Retailers always need to be aware of how demographic factors can affect their core 15- to 29-year-old customer and adjust their offering accordingly. Demographic changes often force retailers to reposition themselves in the marketplace as was seen a few years ago when Top Shop, suffering from a reduction in the number of 15???20 year olds, decided to increase the age of their target customer upward. Targeting certain groups in terms of age and, often as important, lifestyle will become ever more crucial.
Research into market trends and close co-operation with chosen target groups can help retailers. As the ‘middle youth’ market of women in their forties continue their youthful interest in fashion, there are opportunities for some retailers to try to keep customers loyal for longer. Others, such as H&M, have professed concern that the presence of too wide a target market in their stores could alienate their core younger customers. The Fashion Market and the Marketing Environment 2. 5. 5 Fashion predictors For the consumer it must be quite baf? ng to understand how each year designers, manufacturers and retailers all seem to know what styles and colours will be in fashion. The reality is that since the 1970s there have been companies who specialize in fashion prediction and act as consultants to interested parties in the fashion world. Companies such as the Paris-based organizations Peclers and Promostyl, France, and London-based Worth Global Style Network (WGSN) sell their predictions on styles, colour and the market for the coming season or even further in advance for up to 18 months.
There are at least 10 main organizations of this type in the world, although some specialize in speci? c markets such as childrenswear. Their predictions are not all identical, although there are usually many similarities between them. These predictions help manufacturers and retail buyers alike to make and stock the fashions; styles and colours that will be ‘the fashion’ for a coming season. However, at the end of the day the ? nal decision rests with the customer in deciding whether to buy or not. 2. 5. 6 Consumers Once fashion was dictated to consumers and there was little choice but to accept what was on offer.
The tables are beginning to turn and the consumer has more power to accept or reject fashions. Recognizing this, clothing producers are researching the market more to see what will be acceptable before ? lling the stores with goods that just end up being discounted at sale time. Consumers of all descriptions are more fashion educated and consequently more fashion conscious. They are demanding products that are designed to perform in special ways. Most want to express their 31 personalities through their appearance and therefore their choice of clothing. The increasing numbers of working women want garments designed for their particular needs.
They understand fashion cycles and they know when a style has become tired. Manufacturers must constantly research and develop new ? bres, fabrics and uses for these to keep up with the consumer’s higher level of ability to select from the vast choices on offer. However, there are other changes in the marketplace affecting consumers’ attitudes, values and priorities. They are suffering some degree of fashion fatigue. For some the desire to acquire is more muted and rather than spending their income on fashion clothing they prefer to choose from a much wider range of products, services and leisure pursuits.
In the past, fashion styles, types of garments and advertising were all deeply in? uenced and directed by the interests and needs of the young consumer. Now that the increasing numbers of older consumers are becoming a market to be reckoned with, things must change or opportunities will be lost. The trend is towards people dressing more to please themselves. They won’t be dictated to. People are more self-reliant and cautious and careful for their individuality. They are putting more emphasis on self. Recognition of the new fashion consumer may mean that the fashion models of today will have the opportunity of a longer career than they ? st imagined. Elle McPherson’s modelling career saw no sign of ending as she entered her forties and Twiggy who started her modelling career in the 1960s is still popular, with the turn around of Marks and Spencer being largely attributed to using her in their advertising. To a small degree the shape of the fashion model is showing signs of change with more magazines producing features using size 16 models. This trend probably started with the then somewhat voluptuous Sophie Dahl being heavily featured in fashion magazines and on posters, although now at a size 10 she has ditched the trend herself. 2 Fashion Marketing 2. 5. 7 Competition within the fashion market Consumers today are presented with a bewildering array of choice, yet it is probably in the clothing market more than any other that the consumer complains that he or she cannot ? nd what they want. The clothing producers and retailers are working hard to correct this, but increasing competition and very small margins have made many ? rms wary of too much investment and experimentation. The high street stores have had to work much harder at tempting consumers and at times it seemed as if price cuts were their only weapon.
However, much of the major competition happens at the sourcing of goods rather than in the stores, as summarized in Figure 2. 4. It The Fashion Market and the Marketing Environment Low transport costs Shorter lead times Single market Multi-fibre agreement Globalization More competition in sourcing at the retailer level Low cost Eastern European producers Figure 2. 4 Competitive forces in fashion sourcing. has been mentioned that globalization and sourcing from wherever cheapest is increasingly becoming the trend, particularly among European competitors.
This is enabling them to keep overall costs down, while offering merchandise of good design and quality. Since the opening of the single European market, competition from continental clothing producers has increased further, partly because of lower transport costs and shorter lead times. With a single MFA quota for the EU, the highly concentrated and accessible British clothing market has become even more of a target than it was previously. There are also concerns about increased low-cost competition from some eastern European countries whose pleas for special treatment of their exports to the EU are showing sings of success.
Now that Poland, Hungary and the Czech Republic have joined the EU, they too have gained free access to this vital market as will Turkey which is a candidate country. The clothing industries in these countries, in conjunction with EU companies, have undergone major restructuring and re-equipping. This has enabled them to present some formidable competition. 2. 5. 8 Direct and indirect competition for fashion products Marketers have to realize that with increased choice consumers have many different ways to spend their money. In the western world people rarely need to buy clothes out of pure necessity.
A woman does not merely choose between one dress and another; she also may choose between a new dress or hiring one, or making one or even to spend her money on something completely different like a handbag 33 or entertainment. A man may choose between one jacket and another, or he may choose between a jacket and some new golf clubs. When consumers have to choose between similar goods such as one shirt or another, the garments, stores or manufacturers can be described as being in direct competition. However, when the goods are different, but perhaps ful? l similar needs, like he woman choosing between buying and hiring a dress, then the stores and manufacturers are deemed to be in indirect competition. 34 Fashion Marketing 2. 5. 9 Publics There are many groups of publics that can affect a company’s success, notably the ? nancial institutions, unions and pressure groups to name but a few. The concept of fashion marketing publics is developed further in Chapter Eight within the context of fashion promotion. Perhaps one of the most powerful groups to affect the fashion market is the media. A report in the fashion press after a designer shows a collection can have disastrous results.
It is for this reason that some fashion editors have been criticized for having too much power and in? uence on the market. Whether true or not, much time and effort is spent between fashion editor and designer to try to maintain good relations between the two. It is hoped that this courting may result in a favourable article at a critical time. While many national newspapers have strong fashion pages, the two most recognized fashion magazines in the UK are Vogue and Elle. Both are seen as essential reading for the woman or man who wants to know the important people and events in the fashion world.
Powerful as these magazines are, neither has the overwhelming importance of the 92-year-old publication and premier daily newspaper for the women’s fashion and retail industry in the USA as Women’s Wear Daily, whose editor John Fairchild has long been regarded as a fashion guru. Another force which seems to be having an impact is the pressure groups, concerned with the use of cheap labour and unethical practices. Anti-sweatshop campaign groups, in particular Labour Behind the Label, No Sweat and Tearfund have criticized manufactures whose production practices are deemed unethical.
Their concerns have been taken up by the media and many retailers are now taking a much closer interest into the conditions under which their garments are being made. 2. 6 Macro-marketing environment Factors considered within the macro-environment affect not only the company, but all the other members of its micro-environment, namely The Fashion Market and the Marketing Environment Macro-environment Technology Political Demographics Micro-environment Social Economic Environmental Cultural Legal Figure 2. 5 The macro-environment. ts suppliers, consumers, etc. These generally have a much wider in? uence and their effects become apparent more slowly than factors within the company. Factors within the macro-environment are cultural and social, political and legal, demographic, technological and environmental (Figure 2. 5). The inter-relationship of macro-environmental factors is most easily discerned in matters of world tension. Political, legal, social and economic matters become entwined to exert a great impact upon general levels of consumption. Consumer con? ence was thought to have been dented by the Gulf War in 1991, which, although now over, has in? uenced consumer thinking. The war and terrorist activities in London have also affected the market as tourists stayed away for fear of terrorist action, which has particularly in? uenced more upmarket brands and retailers such as Jaeger and Austin Reed. 2. 6. 1 Political and legal Politics and law might seem a world away from fashion but both can have extensive consequences for manufacturers. With such globalized sourcing of suppliers, world political events can aid or hamper the acquisition of supplies.
A new legal requirement, be it in the product or the methods of manufacture, can have a make or break effect for some companies. The General Agreement on Tariffs and Trade and the Multi-Fibre Agreement The Arrangement Regarding International Trade in Textile, popularly known as the MFA, is an international agreement that regulated imports of textile and clothing products into western industrialized countries from low cost, mainly developing countries. Operating under the auspices of the General Agreement on Tariffs and Trade (GATT), the MFA currently has 43 signatories, the EU ounting as 35 one. Until January 2005, under the system most imports of textiles and clothing into developed countries were subject to detailed quantitative ceilings, implemented through a combination of import and export licences. The MFA was therefore unique in international regulation of trade in industrial products in that it was a formal departure from the free trade principles of GATT. Especially as there is no regulation on exports from industrialized countries to low-cost producers and there are no regulations between the EU and USA.
Originally signed in 1973, the MFA has been renewed on several occasions, most recently in 1994 in Uruguay where an agreement was made to phase out the quotas over a 10-year period which ended on 1 January 2005. This regulated, gradual dismantling of three decades of protection for western textile and clothing industries has had a huge impact on the UK clothing market, probably even more so than for some of its other EU partner’s countries for whom imports from developing countries as well as exports to them would grow.
However during 2005 imports from China quickly grew by more than 100% for many items and so the EU set up its own quotas to control the in? ux of Chinese clothing and footwear. In a hurry to beat the deadline for new quotas, Chinese manufacturers speeded up imports and quickly exceeded their full years’ quota. Consequently 75 million items of Chinese manufactured clothing were held in European ports until a resolution for their release was reached in August 2005.
Whilst, many of the items were school uniform required by retailers for sales prior to the autumn school term, there was also a large amount of underwear leading to the dispute being called the ‘Bra Wars’. These new agreed quotas will last until 2007. Legal aspects: children’s nightwear and other safety considerations All children’s nightdresses and dressing gowns, including threads and trimmings, have to comply with British Standard BS 5722. Those which do not must be labelled ‘keep away from ? re’. While manufacturers had two years to comply completely with this standard, some were still taken unawares.
Hoods on children’s coats and jackets can no longer be drawn by a cord for fear of strangulation or being caught in something such as a fairground roundabout, which could result in the child being dragged along by the cord. Minimum wage The introduction of the minimum wage in 1995 undoubtedly affected UK clothing manufacturers. Labour costs in North Africa and the Far 36 Fashion Marketing East showed a widening gap from UK labour costs and many British clothing manufacturers set up their own units abroad, initially favouring Morocco, Tunisia and Sri Lanka, and more recently moving further a? eld mainly to China.
British and European manufacturers also have to conform to a more stringent set of legal obligations and working standards than many other countries. Copyright Any design is the creative work of the designer ??? it is an original and priced as such. Imitation can be said to be the highest form of ? attery, but it is unlikely that any designers who have had their creations copied would agree. There are essentially two types of copying, either of a logo or of a design, as shown in Figure 2. 6. Both are very frustrating and often it is too late to do anything about it when, or if, the copying is discovered.
Logo copying might be imitations of the Lacoste crocodile, Mickey Mouse T-shirts or the copy of a registered design feature such as the Levi’s stitching marks. Copies of this type are an infringement of trademark and the perpetrator can be sued. Design copying can happen in one of two ways: ? rst, before the garment is on general release, the thief can sketch designs at a fashion show, or steal the design sketches, computer tapes or discs from the designer’s place of work, or even steal the actual garments. This can mean that the copies get into the shops at the same time as or even before the original.
Secondly, designs can be copied once they are already in the stores. Copies are usually cheaper and of inferior quality to the original and can give the original designer many problems. First, they will lose sales to the cheaper versions. At ? rst sight the copies may not seem The Fashion Market and the Marketing Environment Copying of logos Copying of design Stealing designs Stealing garments Copying garments on sale Figure 2. 6 Copying of fashion. 37 any different to the unsuspecting buyer who usually would go for the cheaper version.
Frequently it is only after wearing the garment or more particularly washing it that the quality differences become apparent. Fabrics do not wash or clean as well and seams will not hold as well. These quality differences can lead the original designer to get an unjustly poor reputation among the consumers who think that they are buying original labels. Retailers could be criticized for encouraging this practice. Now that goods can be produced very quickly, high street stores pride themselves on having high fashion ‘copies’ available within their stores only days after they have been seen on the catwalks.
Fashion magazines often have features, such as the Sunday Times’ Style magazine’s ‘skinted and minted’, showing their readers how to get a designer look at a fraction of the price by buying from high street stores. It is very dif? cult to decide at what point these items are blatant copies or merely following a fashion trend. Copying of designs is not new. In 1975 the Fashion Design Protection Association was set up by Achilleas Constantinou of Ariella Fashion after he saw many of his designs in stores that he knew his company had not supplied.
This was subsequently taken up by the British Clothing Industry Association (BCIA) who lobbied to get the Department of Trade and Industry to bring out the Copyright Designs and Patents Act in 1988. The aim of this Act is ‘to protect creativity without restricting competition’. Designers are encouraged to claim copyright of their designs by signing and dating their original drawings. However, designs are often copied and sold in other countries without the designer ever knowing, although the effect might be felt in decreased sales and reputation. So these laudable efforts have not really solved the problem. Aside from the practical dif? ulties of time and cost in pursuing legal actions against the suppliers, there is still the problem of deciding when a fashion house is merely following a trend and when it is breaking the law. One solution, used by Levi’s, is to monitor the market outlets constantly, to make life harder for the counterfeiters. This may not be possible for a smaller company, especially when any monitoring has to be done internationally. Most of the copies are made abroad, to enable cheaper manufacture and avoid copyright laws. Another tactic used by Levi’s is to tightly control the distribution of their red label tag stitched into all their jeans.
They count out an exact number for their manufacturers and require exactly that number of pairs of jeans back from them, so preventing the manufacturer from producing overruns and selling them as originals. Such is the problem that in November 1999 the Consumer Affairs Minister, Dr Kim Howells, attended the Sports Industries Federation 38 Fashion Marketing ‘War on Counterfeiting’ conference in London. He pledged to ‘Crack down on the “Ma? a Gangsters” who peddle counterfeit sportswear costing the economy billions of pounds. Consumers need to know that fake goods are dangerous and damaging and rarely last as long as the genuine article’.
Many companies are trying to do this crackdown themselves. Mulberry, the Bond Street producer of original leather handbag designs, took out 17 legal actions against retailers for copying their designs; only one reached court as the other 16 were all settled out of court. In all cases Mulberry won, either compensation or at least the withdrawal and destruction of stock. The Fashion Market and the Marketing Environment 2. 6. 2 Technological As in all areas of industry new technology is making great inroads to improve quality of life and increase speed and quality of manufacture.
In the area of fashion and clothing there have been many inventions. Some have had only minor effects on the market, whereas others have or are about to revolutionize them. Other innovations in fabric technology are in the introduction of a variety of different properties in fabrics. Available in stores is heatsensitive hosiery to keep the wearer warm or cold; moisturizing hosiery and underwear with a built-in fragrance capable of surviving up to 40 washes. Fibres and fabrics Lycra is not a fabric. The trademark Lycra is the property of the US-based chemical company Du Pont and is an Elastane ? re that lends itself to whichever fabric it is mixed with. Lycra is therefore an additive that gives knitted and woven textiles the quality of lasting stretch and recovery. It was ? rst developed in 1959 and its ? rst real use in garments was in the 1960s in ski wear and men’s cord trousers. It was really not until the 1980s that it took off in knitted garments. Lycra has become a household name associated with dancewear, swimwear, hosiery, cling-to-? t fashion separates such as leggings and vest dresses, in fact anything knitted. Lycra overcomes problems of ? t and movement for body-hugging designs. Manufacturers obviously bene? from associations with a consumer recognizable brand in premium, superior quality garments and fabrics. Such is the swimwear market’s reliance on Lycra that swimwear designers do not design their collections until they have received Du Pont’s own fashion forecasts. Lycra is now being mixed with woven fabrics for outerwear and tailoring to take advantage of such bene? ts as improved appearance, 39 better drape and less wrinkling. There is more development into adding Lycra to other cloth to create a wide diversity of fabrics. This has resulted in all kinds of ? nishes for fabrics using Lycra such as bubble, cire, shiny, matt, satin ? ish or printed. The development of Lycra into other clothing, notably sportswear, has led to the increase of interest and sales in sportswear for professional, hobby and leisure purposes. The clothing industry is extremely labour intensive, but installation of modern machinery ? tted with the latest electronic controls is helping to improve productivity. In the sportswear clothing ? eld there have been huge developments in energy transfer fabrics which transfer heat away from the body so allowing sportsmen and -women to remain cool during their activity. Computers The dramatic increase in the use of computers has not passed by he fashion world, as shown in Figure 2. 7. One of the main uses of computer systems is that of computer-aided design (CAD). The implication that this can have on the speed of transition of goods from design to the shop ? oor is quite phenomenal. It also has great implications for the employment sector in this industry. It may be the saviour of the UK clothing industry if it is accepted quickly enough. A CAD system can perform a wide variety of tasks: ? ? 40 Fashion Marketing The programmer designs a motif. The motif can be enlarged to any size, and duplicated to cover a piece of cloth.
This can then be viewed on the computer screen to see how the design will look on the draped fabric. Computer-aided design Virtual reality scanners Computers for fashion marketing Electronic Point of Sale Body scanners Figure 2. 7 Computers in fashion marketing. ? ? ? ? ? The fabric can be tried in different colourways. The fabric can then be printed either directly onto the fabric using a bubble jet printer, or for larger lengths of fabric a printing layout can be produced. The operator can then design a garment, perhaps a blouse, by selecting different sleeves, collar, yoke, length, etc.
The software will then print out a paper pattern to any basic measurements given. It can also plan a layout for the pattern pieces to achieve the optimum use of the fabric. The Fashion Market and the Marketing Environment There is no reason why all these tasks cannot be performed by one skilled computer operator; however, the question today must be whether we need to train designers or computer operators. Although in 1992 only 150 out of 9000 fashion companies in the UK were using these systems to design garments, this number has increased dramatically, particularly as the systems become more ? xible and prices are reduced. These programmes can dramatically speed up the time it takes for a garment to get into the stores. They are also very cost effective both in terms of time saved and in minimizing fabric wastage. Perhaps the biggest saving that these systems can offer is in the area of pattern making and grading. Some high street retailers like to deal with designers using this system as they can easily ask for adjustments to be made without delaying delivery time. So decisions are made more quickly and the buyer has more choice and in? ence. Made-to-measure has been used as a means of producing garments since the inception of clothing. Since the industrial revolution, standardized sizing has gained prominence as it brings affordable garments to many markets. With growing populations comes diversity, the need for ? exibility and the desire for better ? tting clothes for all, not just those who can afford it. CAD can take a customer’s measurements and reproduce designs or patterns for many different garments, quickly and accurately. It also can grade patterns for different sizes.
A further development in technology for the clothing market is for use in the made-to-measure market, where a system like a body scanner can be used to measure body size and shape within seconds to provide electronic tailoring. In the future, virtual reality could transform the fashion business. There would be no need for supermodels or scrambles to get the front row at the fashion show. Designers could have the model they wanted parading around their salons, while clients could view whole couture collections in the comfort of their own homes. 41 Another major computerized invention for the retailer is EPoS (Electronic Point of Sale).
This is very familiar in our supermarkets where bar codes are scanned to give the price. The bar codes can also tell the clothing retailer such information as size of garment, colour and how long it has been in stock. This information can then go into a central system that controls stock, and can, if necessary, rapidly reorder. Computerized links with suppliers are growing in importance, speeding up order processing and improving the accuracy of transactions. The use of computers and EPoS has become very important in retail success in data capture at the point of sale, management of the merchandise and links with suppliers.
Those retailers who have invested in these systems will fare best in the future. Internet With 86% of all homes in the UK having Internet access in 2006, clothes shopping via the web is predicted to continue to increase from the estimated 4. 1 billion or 1. 8% of retail sales estimated by Mintel (2005). While most fashion retailers now have established websites, but there are mixed fortunes in terms of online purchases. The tactile dimension of clothing purchases, the salience of colour matching with skin tones and the variability in sizing are all factors that continue to inhibit the use of the Internet by some customers.
In addition, many consumers still express concerns about the security of passing credit card details over the Internet. The body scanner mentioned above could be used to see whether the clothes available via a website will ? t the consumer before a purchase is made. Companies that have been most successful such as Next use a multi-channel format of store, catalogue and website. Other successes have been amongst those who specialize in selling online such as Asos with their celebrity inspired fashions or Figleaves with lingerie.
Television shopping Still in its infancy, shopping via interactive television direct from the armchair has a similar potential to change how we buy clothing. However, growth of this area is limited by the same inhibitors as those connected with Internet shopping. Figures from Mintel (2003) estimate sales to be worth ? 395 million and only take a 2. 7% share of the total home-shopping market. Body scanners Body scanners are a way of collecting 3D data about a consumer’s body shape and size. By standing, fully clothed, in a booth or pod, up 42 Fashion Marketing to 3000 body measurements can be taken in a matter of seconds by cameras and lasers.
Minutes later an accurate true to scale 3D body model can be produced. This technology is already being put to a variety of uses. Whilst mass production companies can now ensure that their garments more closely ? t the average consumer, the greater bene? ts will be made by the made-to-measure market for which measurement is both quick and accurate. Retailers are also ? nding uses for this technology. Selfridges, on Oxford Street, London, offer body scanning in order to produce custom-? t jeans. The customer can choose the fabric, rise and leg style and be assured of a perfect ? tting pair of jeans.
In some Gap stores consumers can use the body scanner to help them ? nd which brands and sizes will offer the best ? t. There are even predictions that body scanners could eliminate the need for changing rooms. The one market where they could reap most bene? ts are in clothing purchased online. Internet sales still suffer from consumer dissatisfaction due to poor ? t and consumers frequently do not bother to return goods that don’t ? t, they just don’t bother shopping with that company again. In time consumers could have their own body scan on their computer they could ‘try on’ clothes from participating online retailers.
Early efforts in this area have been made by some organization such as Landsend to offer ‘My Virtual Model???’. An attractive mannequin can be programmed to assume a customer’s shape, skin tone, hairstyle and facial features, and customers can try clothes on their model to check ? t and co-ordination of different out? ts. Clearly this is more fun than accurate but as a tool for getting the customer involved with the merchandise it is very effective. The Fashion Market and the Marketing Environment 2. 6. 3 Demographics This is the study of changes in the size and make-up of the population.
While these changes occur slowly and can be predicted well in advance, only the foolish manufacturer ignores the effect they might have on business. The UK has begun to undergo a quite radical change in the make-up of its population and many of these changes will have strong repercussions on the fashion clothing market. Customer size As a nation we are changing shape and businesses are being forced to cope with the larger customer. Adult obesity rates have almost quadrupled in the past 25 years and now 22% of Britons are obese, classed as having a body mass index of over 30, and three-quarters are overweight.
The implications for the fashion industry are obvious 43 in terms of sizes, stock levels and styling. Not only are people heavier but the average height for both men and women has increased by 10 mm. This has implications for all sorts of goods and services such as transport, furniture and clothing. Many clothing manufacturers are offering goods in a wider range of sizes or a more generous cut, although some have pandered to their customers’ vanity and disguised the increase in size, Marks and Spencer have admitted that a size 12 made in the 1980s is not exactly the same as the equivalent size now.
Even high fashion retailers targeting the younger consumer are realizing the need to cater for a broader range of sizes. Top Shop now offers a selection of their clothing up to size 16 and Next up to size 22, although availability is greater online or in the directory. Apart from offering a wider range of sizes, some stores have a special own range in store, e. g. Bhs’s range ‘Extra’, and H&M’s range BiB. Many stores, including Marks and Spencer, also have petite ranges and New Look has a range for women over 5 7 . There are also more retailers catering solely for the larger customer.
High and Mighty, as the name suggests, is a growing chain for men. Dawn French has an upmarket store in South Molton Street in London for women sized 16 and upwards. If the trend continues the time may come when it is the size 10s who are complaining that they cannot ? nd anything to wear. An ironic contrast, however, is the concern for people, particularly women, who try to stay extremely thin or have eating disorders. For them, stores are stocking jeans in sizes 6, 4 and sometimes even smaller. Changes in the family The much quoted statistic of the family with 2. 4 children has changed.
In recent years it has ? uctuated around the 1. 8 mark. Couples are tending to marry later and start a family later. This gives them the opportunity to become more ? nancially stable, to get further on in their careers and to have more disposable income to spend on their children, some of it on clothing. More exclusive children’s clothing shops have, like many others, suffered during the recession of the early 1990s. However, there is still a substantial designer market for childrenswear whether the garments are bought as gifts from generous grandparents or as regular clothing by more ? ancially indulgent parents. With more people remarrying and starting a second family in their late thirties and early forties, there is a need for maternity wear for the more mature expectant mother, who may also be working at the time. Whilst the high street caters quite well for the younger mother 44 Fashion Marketing within high street stores such as New Look and H&M, there are several successful companies who sell mainly via catalogue or online. JoJo, Maman, Bebe and Isabella Oliver offer more upmarket ranges with a high design element to cater for the more mature and more af? uent mother to be.
These mothers will also want to keep a youthful appearance consistent with their young children so there are other market opportunities for post-natal ranges. Further details about the role of the family in purchasing behaviour are given in Chapter Three. Age changes in the population The British population is forecast to rise by less than 2% between 2005 and 2010, but the signi? cant impact on the clothing sector is the large changes to the structure of the population. Not withstanding minor ? uctuations, the long-term decline in the number of 15??? 24 year olds, high spenders on clothing, continues, albeit slowly.
Table 2. 7 illustrates how different age ranges will be affected. Children Over the past 15 years there have been ? uctuations in the size of the population in different children’s age bands. However, it is estimated that, despite the increasing trend for women to be older when they The Fashion Market and the Marketing Environment Table 2. 7 (in ‘000s) Population trends (male and female), Great Britain % Change Age range 0???4 5???9 10???14 15???19 20???24 25???29 30???34 35???39 40???44 45???59 60???64 65???74 75???84 85 Total 2000???2005 3. 48 6. 39 0. 72 9. 14 11. 39 7. 88 9. 36 0. 4 12. 98 5. 57 7. 37 2. 19 5. 41 5. 08 2. 25 2005???2010 2. 15 3. 27 6. 36 1. 94 7. 75 10. 77 7. 52 9. 34 0. 65 4. 29 20. 58 7. 56 1. 86 16. 87 2. 34 2010???2015 0. 64 2. 15 3. 34 6. 25 1. 60 6. 88 9. 79 7. 70 9. 33 6. 91 8. 33 15. 68 8. 10 12. 15 2. 27 Source: Adapted from Government Actuary. 45 have their ? rst child or even the move towards having a ‘second family’ with a new partner, there will be little growth in the children’s market. However, changes in the children’s market can still present many opportunities for clothing and footwear demand for infants.
Many retailers have recognized this and the market is very competitive. Retailers can best compete by offering good styles and designs with good value for money. The premium end of the market shows room for some expansion with many children’s only label such as Miniman and Oilily, plus many adult designer labels offering diffusion children’s ranges such as Baby Dior, Moschino, Armani, Ted Baker and DKNY. The 10???14 years of age children’s market remains underdeveloped in retail terms at present. Marks and Spencer have all but withdrawn their attempt to appeal to teenagers.
Next fare better but sell most of the teen boys range online or via the Next Directory. The one apparent success with stand-alone stores was Tammy Girl a younger extension of the Etam range. Now under the control of Philip Green, owner of the Arcadia group and Bhs, Tammy would appear to have been demoted and is now only offered within the Bhs stores, reinforcing the opinion that this is a very dif? cult sector at which to win. The increasing interest in sportswear and sportswear labels would suggest that it is the sports out? tters that are best satisfying this group.
Traditional core market aged 15???34 The traditional core market for clothing suppliers, that of men and women between the ages of 15 and 34, declined rapidly between 1990 and 2000 when stores for whom the lower end of this market was key, such as Miss Selfridge, suffered as they saw their customer base drop by about a twelfth. This age group has remained fairly steady since then. Whilst the high spending 15???34 year olds will continue to remain steady in numbers as a group until 2010, there will be a drop in the 30 year olds at the top end of this market.
There may be some consolation in the fact that the 20-year-old group will grow slightly, although they also have most demands on their ? nances with mortgages and many are starting to have families. The mature market In 2005 almost 56% of all inhabitants in Britain were aged 35 years or older. By 2010 the number of 45???54 year olds is expected to rise more rapidly than any other age group. Previously people of this age would have been grouped together with older consumers who traditionally spend less on clothing, particula