Clothing Market Research
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Clothing and Footwear Industry Market Review 2006
Description: The UK clothing and footwear market was worth an estimated £44.45bn in 2005, accounting for
just under 6% of total consumer expenditure. The historical perspective is important, showing that
this proportion of the typical household budget was 10% back in 1960, so that clothing (worth
£38.35bn) and footwear (£6.1bn), although among the basic human needs, are now less of a
spending priority.
The ability of consumers to spend less has been partly due to falling prices for these products.
Between 2001 and 2005, average clothing and footwear prices fell by 14.4%, while the general cost
of living went up by 12.6%, so that shoppers are buying far more in volume terms, even though
their spending in current prices is increasing only modestly.
In current terms, between 2001 and 2005, 21.2% more was spent on clothing for women, girls and
infants, taking the market to £24bn in 2005. Much less (£12bn) was spent on men's and boys'
clothing, which also grew more slowly between 2001 and 2005 (14%). Accessories and other
clothing costs (hire, cleaning, dressmaking, etc.) contributed a value of £2.35bn in 2005.
Falling prices are basically the result of importers and retailers being able to source cheaper
supplies from countries where production costs are lower. The major trade issue at present is the
Republic of China which, following the end of a world trade agreement in 2005, flooded the US and
EU markets with cheap products. In 2006, restraining action is being imposed on cheap Chinese
exports, and this could lead to some firming up of prices.
Discounting is also rife in the ultra-competitive UK retail market for clothing where, according to
our field research, a dozen major types of outlet are used for buying clothing or footwear, including
department stores (the most popular of all), independent boutiques and fashion chains, designer
outlets and street markets. Marks & Spencer remains the overall leader in the sale of clothing, but
its share is slipping, along with those of other mid-market stores, one of which — Littlewoods —
closed its doors in 2005. Stern competition is provided by discount specialists (e.g. Primark and TK
Maxx) and the non-food departments of multiple grocers such as Tesco and ASDA.
With cheap and discounted products being so widely available, many younger consumers are
distancing themselves by showing an interest in formerly exclusive, internationally renowned
brands, e.g. Prada (Italy), Chloe (France), Hugo Boss (Germany), Burberry (UK) and Donna Karan
(US), to name a small selection.
The rise of cheap imports has been near-fatal for much of UK manufacturing, where employment in
the whole of the textiles and leather-goods sector has slumped from nearly half a million in the
1980s to less than 140,000 by 2005. Output has shrunk severely but is now focused on specialist
clothing or luxury products, of which the vast majority are made in the UK for exporting to wealthy
consumers in other developed countries.
The former, large-scale producers of general clothing and footwear have virtually disappeared from
the UK. One successful exception, however, is C&J Clark Ltd (Clarks), the UK's largest
manufacturer — although this is now undertaken overseas — and also its leading footwear retailer.
A family-owned company with a turnover approaching £1bn, Clarks typifies the modern operator by
being vertically integrated, from design and manufacturing to importation to retailing. The
previously clear boundaries between manufacturer and retailer have also been crossed by
successful companies such as Gap Inc — the world's largest clothing retailer, with over 100 UK
stores — and Next PLC, which ranks among the top three in the UK clothing market, with Marks
and Spencer PLC and Arcadia Group Ltd (the owner of Topshop, Burton, Dorothy Perkins, Bhs and
other chains).
An exception to the rule of vertical integration is provided by sportswear, which features three
colossal, globalised manufacturers — Nike, adidas and Reebok — which prefer to retail their goods
through the sports specialists. adidas bought Reebok in 2005 and consolidation has also taken
place in UK retailing; three companies now own more than 1,200 outlets between them: JJB
Sports, JD Sports and Blacks Leisure.
The immediate future is uncertain, owing to the Chinese trading situation, and the clothing trade is
nervous as consumer confidence falls. However, we see no need to predict a major change in the
growth pattern of this mature market. Maturity means more polarisation between the discounters
— aided by cheap imports — and the full-price retailers. The latter are capitalising on younger
consumer demand for couture-house designs, quality materials and the individual styles sold as
part of the growing `fast fashion' trend, in which retailers entice customers by displaying only a few
garments for a short time before introducing new styles.
Contents: Executive Summary
1. Industry Overview
REPORT COVERAGE
Report Background
ECONOMIC TRENDS
Population
Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2000-2004
Gross Domestic Product
Table 1.2: UK Gross Domestic Product at Current and Annual Prices (£m), 2000-2004
Inflation
Table 1.3: UK Rate of Inflation (%), 2000-2004
Unemployment
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2000-2004
Household Disposable Income
Table 1.5: UK Household Disposable Income Per Capita (£), 2000-2004
Consumer Confidence
Table 1.6: Trends in Consumer Willingness to Borrow, (000, £ and £bn) November 2004, February
2005, May 2005, August 2005 and November 2005
MARKET SIZE
The Total Market
Table 1.7: The Total UK Market for Clothing and Footwear by Value at Current Prices (£m at rsp),
2001-2005
Table 1.8: The Total UK Clothing and Footwear Market by Value at Current Prices and Constant
2001 Prices (£m at rsp and index 2001=100), 2001-2005
MARKET SEGMENTATION
INDUSTRY STRUCTURE
Industry Synopsis
Table 1.9: Key Financial Ratios for UK Clothing Retailers (£000, % and £), 2005
Table 1.10: Key Financial Ratios for UK Footwear Retailers (£000, % and £), 2005
Table 1.11: Key Financial Ratios for UK Clothing Manufacturers (£000, % and £), 2005
Table 1.12: Key Financial Ratios for UK Footwear Manufacturers (£000, % and £), 2005
Industry Concentration
Number of UK Manufacturing Businesses
Employment
Distribution
MARKET POSITION
KEY TRENDS
Changes to the Industry Structure
The Move Away from Formality
Preference for Brands and Couture Labels
Role of China in Import Penetration
Price Deflation
Table 1.13: Retail Price Indices for Clothing and Footwear and All Consumer Items (indices
2000=100), October 2000 and 2003-2005
LEGISLATION
KEY TRADE ASSOCIATIONS
British Apparel & Textile Confederation
British Footwear Association
Other Associations
2. PEST Analysis
POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS
3. Key Note Primary Research
INTRODUCTION
RETAIL SOURCES FOR CLOTHING AND FOOTWEAR
Table 3.1: Retail Outlets Used for Buying Clothing and Footwear Ranked by Percentage of Adults
Buying, 2001 and 2005
Table 3.2: Retail Outlets Used for Buying Clothing and Footwear (% of adults), 2005
RETAIL SOURCES FOR FORMAL VS INFORMAL WEAR
DEMOGRAPHIC DIFFERENCES IN SOURCING CLOTHING AND FOOTWEAR
By Age
Table 3.3: Retail Outlets Used for Buying Clothing and Footwear by Age (% of adults), 2005
By Social Grade
Table 3.4: Retail Outlets Used for Buying Clothing and Footwear by Social Grade (% of adults),
2005
By Region
Table 3.5: Retail Outlets Used for Buying Clothing and Footwear by Region (% of adults), 2005
LEADING CLOTHING/FOOTWEAR BRANDS
Table 3.6: Penetration of Selected Clothing and Footwear Brands (% of adults), 2004
4. Competitive Structure
THE MARKETPLACE
MARKET LEADERS
Table 4.1: Selected Leading UK Clothing and Footwear Manufacturers and Retailers by Turnover
(£m), 2004/2005
Clothing Manufacturers
Burberry Group PLC
Company Structure
Financial Results
Courtaulds Textiles (Holdings) Ltd
Company Structure
Financial Results
Crystal Martin Holdings Ltd
Company Structure
Financial Results
Delta Textiles (London) Ltd
Company Structure
Financial Results
French Connection Group PLC
Company Structure
Financial Results
Jacques Vert PLC
Company Structure
Financial Results
Levi Strauss (UK) Ltd
Company Structure
Financial Results
Stirling Retail Services Ltd
Company Structure
Financial Results
Other Companies
Clothing Retailers
Arcadia Group Ltd
Company Structure
Financial Results
Marks and Spencer PLC
Company Structure
Financial Results
Next PLC
Company Structure
Financial Results
Other Retailers
Footwear Companies
C&J Clark Ltd
Company Structure
Financial Results
Other Footwear Companies
Sportswear Companies
OUTSIDE SUPPLIERS
MARKETING ACTIVITY
Main Media Advertising
Table 4.2: Main Media Advertising Expenditure on Clothing and Footwear (£000), Years Ending
September 2004 and 2005
Other Marketing Activity
5. Women's, Girls' and Infants' Clothing
INTRODUCTION
KEY TRENDS
Retail Prices
Table 5.1: Retail Price Indices for Selected Women's and Other Clothing Items (indices 2000=100),
October 2000-2005
Affordability
Sizing
Clothing Materials
Childrenswear
Retail Brands
Fashion Trends
Supply Chain
MARKET SIZE
The Total Market
Table 5.2: The UK Market for Women's, Girls' and Infants' Clothing by Value at Current Prices and
Constant 2001 Prices (£m at rsp), 2001-2005
By Market Sector
Table 5.3: The UK Market for Women's, Girls' and Infants' Clothing by Sector by Value at Current
Prices (£m at rsp and %), 2001, 2003 and 2005
SUPPLY STRUCTURE
UK Production
Table 5.4: UK Production of Women's Clothing by Value (£m at msp), 2001-2005
Imports and Exports
Origins of Imports
Retail Distribution
Table 5.5: Retail Outlets Used for Buying Clothing and Footwear in the UK by Sex (% of adults),
2005
MAJOR PLAYERS
Table 5.6: Leading UK Multiples Selling Women's and Children's Clothing by Number of Outlets,
2003 and 2005
ADVERTISING AND PROMOTION
Table 5.7: Main Media Advertising Expenditure on Women's Fashion Clothing (£000), Years Ending
September 2004 and 2005
Table 5.8: Main Media Advertising Expenditure on Jeans and Other Unisex Clothing (£000), Years
Ending September 2004 and 2005
Table 5.9: Main Media Advertising Expenditure on Women's Underwear and Lingerie (£000), Years
Ending September 2004 and 2005
BUYING BEHAVIOUR
Table 5.10: Household Spending on Women's, Girls' and Infants' Clothing by Age and Income (£
per week), 2004/2005
FORECASTS
Table 5.11: The Forecast UK Market for Women's, Girls' and Infants' Clothing by Value at Current
Prices (£m at rsp), 2006-2010
6. Men's and Boys' Clothing
INTRODUCTION
KEY TRENDS
Retail Prices
Table 6.1: Retail Price Indices for Selected Men's and Other Clothing Items (indices 2000=100),
October 2000-2005
The Casual Trend
Everyday Sportswear
Smart Leisurewear
Retailers
Brand Interest
MARKET SIZE
The Total Market
Table 6.2: The UK Market for Men's and Boys' Clothing by Value at Current Prices and Constant
2001 Prices (£m at rsp), 2001-2005
By Market Sector
Table 6.3: The UK Market for Men's and Boys' Clothing by Sector by Value at Current Prices (£m at
rsp and %), 2001, 2003 and 2005
SUPPLY STRUCTURE
UK Production
Table 6.4: UK Production of Men's Clothing by Value (£m at msp), 2001-2005
Imports and Exports
Origins of Imports
Retail Distribution
Table 6.5: Retail Outlets Used for Buying Clothing and Footwear by Sex (% of adults), 2005
MAJOR PLAYERS
Table 6.6: Leading UK Multiples Selling Men's and Boys' Clothing by Number of Outlets, 2003 and
2005
ADVERTISING AND PROMOTION
Table 6.7: Main Media Advertising Expenditure on Men's Fashion Clothing (£000), Years Ending
September 2004 and 2005
Table 6.8: Main Media Advertising Expenditure on Jeans and Other Unisex Clothing (£000), Years
Ending September 2004 and 2005
BUYING BEHAVIOUR
Table 6.9: Household Spending on Men's and Boys' Clothing by Age and Income (£ per week),
2004/2005
FORECASTS
Table 6.10: The Forecast UK Market for Men's and Boys' Clothing by Value at Current Prices (£m at
rsp), 2006-2010
7. Sportswear
INTRODUCTION
KEY TRENDS
Mainstream Leisurewear
Penetration of the Clothing Market
Design and Style
Fashion Fads
Performance Clothing
Retail Developments
MARKET SIZE
The Total Market
Table 7.1: The UK Market for Sportswear by Value at Current Prices and Constant 2001 Prices (£m
at rsp), 2001-2005
By Market Sector
Table 7.2: The UK Market for Sportswear by Sector by Value at Current Prices (£m at rsp and %),
2005
SUPPLY STRUCTURE
UK Production, Imports and Exports
Retail Distribution
Table 7.3: Retail Outlets Used for Buying Sports or Casual/Leisure Clothing and Footwear (% of
adults), 2005
MAJOR PLAYERS
Nike
adidas and Reebok
Other Sportswear Manufacturers
ADVERTISING AND PROMOTION
Table 7.4: Main Media Advertising Expenditure on Sports Clothing (£000), Years to September
2004 and 2005
Table 7.5: Main Media Advertising Expenditure on Sports Footwear (£000), Years Ending
September 2004 and 2005
BUYING BEHAVIOUR
Table 7.6: Penetration of the Top Three Sports Clothing and Footwear Brands by Sex, Age and
Social Grade (% of adults), 2004
FORECASTS
Table 7.7: The Forecast UK Market for Sportswear by Value at Current Prices (£m at rsp), 2006-
2010
8. Clothing Accessories
INTRODUCTION
KEY TRENDS
Cyclical Demand
Fashion Influences
Retailing
MARKET SIZE
The Total Market
Table 8.1: The UK Market for Clothing Accessories by Value at Current Prices and Constant 2001
Prices (£m at rsp), 2001-2005
By Market Sector
Table 8.2: The UK Market for Clothing Accessories by Value at Current Prices (£m rsp and %), 2005
SUPPLY STRUCTURE
UK Production, Imports and Exports
Table 8.3: UK Production of Miscellaneous Clothing and Accessories in the UK (£m at msp), 2001-
2005
Retail Distribution
MAJOR PLAYERS
Table 8.4: Leading UK Multiples Selling Accessories by Number of Outlets, 2003 and 2005
ADVERTISING AND PROMOTION
Table 8.5: Main Media Advertising Expenditure on Clothing Accessories (£000), Years Ending
September 2004 and 2005
BUYING BEHAVIOUR
FORECASTS
Table 8.6: The Forecast UK Market for Clothing Accessories by Value at Current Prices (£m at rsp),
2006-2010
9.Footwear
INTRODUCTION
KEY TRENDS
Vertical Integration
The Role of Brands
The Role of Imports
Survival Techniques
MARKET SIZE
The Total Market
Table 9.1: The UK Market for Footwear by Value at Current Prices and Constant 2001 Prices (£m at
rsp), 2001-2005
By Market Sector
Table 9.2: The UK Market for Footwear by Sector by Value at Current Prices (£m at rsp and %),
2001, 2003 and 2005
SUPPLY STRUCTURE
Table 9.3: Output of the UK Footwear Industry by Value (£m at msp), 2001-2004
Retail Distribution
Table 9.4: UK Retail Distribution of Footwear by Value (%), 2002 and 2005
MAJOR PLAYERS
ADVERTISING AND PROMOTION
Table 9.5: Main Media Advertising Expenditure on General Footwear (£000), Years Ending
September 2004 and 2005
BUYING BEHAVIOUR
Table 9.6: Household Spending on Footwear by Age and Income (£ per week), 2004/2005
FORECASTS
Table 9.7: The Forecast UK Market for Footwear by Value at Current Prices (£m at rsp), 2006-2010
10. A Global Perspective
DRIVERS OF INTERNATIONAL TRADE
STRUCTURE OF FOREIGN TRADE
GLOBAL BRANDS AND DESIGNERS
11. The Future
INTRODUCTION
Economic Trends
Population
Table 11.1: Forecast UK Resident Population by Sex (000), Mid-Years 2005-2009
Gross Domestic Product
Table 11.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2005-2009
Inflation
Table 11.3: Forecast UK Rate of Inflation (%), 2005-2009
Unemployment
Table 11.4: Forecast Actual Number of Unemployed Persons (million), 2005-2009
FORECASTS 2006 TO 2010
Table 11.5: The Forecast UK Market for Clothing and Footwear by Sector by Value at Current Prices
(£m at rsp), 2006-2010
FUTURE TRENDS
The Role of China
Market Growth
Retail Changes
Design Awareness
Demand for Premium Products
12. Consumer Confidence
METHODOLOGY
THE WILLINGNESS TO BORROW
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive
Items at Current and Constant November 2004 Prices (£ and £bn), November 2004, February
2005, May 2005, August 2005 and November 2005
The Desire to Borrow Stays Strong
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and
%), November 2004, February 2005, May 2005, August 2005 and November 2005
THE WILLINGNESS TO SPEND FROM SAVINGS
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase
Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2004,
February 2005, May 2005, August 2005 and November 2005
Consumers Increasingly Cautious
Table D: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and
%), November 2004, February 2005, May 2005, August 2005 and November 2005
13. Further Sources
Associations
General Sources
Government Publications
Bisnode Sources
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