Give Fashion Brand Case Study

Faculty of Business & Law MSc Marketing Module: Managing Marketing Resources 2009/2010 Assessors: John Temperley, Jon James Students: Michael Lukas Andelfinger, Lucy Marcella Baird, Naomi Hannah Griffiths, Shady Haddad, Alexander Pilz, Rainer Monteagudo Santi Assignment 1: Group Project – GIVe Fashion Brand case study Word Count: 2,996 Table of Contents 1. Introduction …………………………………………………………………………………………………. 1 2. Analysis of the Background of GIVe ………………………………………………………………….. 2. 1. GIVe – Brief Description ………………………………………………………………………………………………. 2 2. 2. Environmental Analysis ……………………………………………………………………………………………….. 3 2. 2. 1. MACRO Environment …………………………………………………………………………………………. 3 PEST Framework 2. 2. 2. MICRO Environment…………………………………………………………………………………………… Identification of relevant markets The Fashion/Luxury Market – Segmentation via psychological typologies Consumer Behaviour & Preference (Online – Environment) Competitors 2. 3. SWOT – GIVe ……………………………………………………………………………………………………………… 9 2. 4. Targeting and Positioning ………………………………………………………………….. …………………….. 11 2. 4. 1. Perceptual Map – GIVe ……………………………………………………………………………………. 1 3. Identification of Key Success Factors………………………………………………………………… 13 3. 1. Introduction ……………………………………………………………………………………………………………. 13 3. 1. 1. E-commerce …………………………………………………………………………………………………… 13 3. 1. 2. Service Marketing……………………………………………………………………………………………. 4 4. Conclusion ………………………………………………………………………………………………….. 16 5. Research Methods………………………………………………………………………………………… 17 6. Bibliography ………………………………………………………………………………………………… 18 Appendices: ? ? Appendix-A: PEST-Analysis – Fashion Industry Appendix-B: Mintel – Typologies i List of Figures

Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Report’s Structure…………………………………………………………………………………………….. 1 Outlets of GIVe ………………………………………………………………………………………………… 2 PEST Framework ………………………………………………………………………………………………. 3 Typologies ……………………………………………………………………………………………………….. Brand Compass ………………………………………………………………………………………………… 8 Perceptual Map …………………………………………………………………………………………….. 11 Glossary USP= PDI= Unique Selling Proposition Personal Disposable Income ii 1. Introduction The continuous globalisation forces every industry to produce more efficiently and faster to sustain competitiveness on the global market and to satisfy customer needs by offering unique consumer benefits (Johnson, Scholes, Whittington, 2008).

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The UK fashion industry for women’s wear is as well characterised by severe competition which makes it difficult for designers to develop a USP1 that will guarantee long-lasting customer relationships. In 2007, the overall growth concerning women’s designer wear was only 3. 2% 2008). (Mintel, Despite this fact and the economic downturn, George Davies who has successfully established three brands over the last three decades believes he has identified a gap in the market which he wants to fill with his new design line ‘GIVe’(Nexis, 2009).

The overall aim of this report is therefore to analyse and evaluate the business prospects of GIVe from a marketing management point of view between now and the end of 2011. The following figure illustrates the report’s structure in more detail: 1 2. Analysis of the Background of GIVe 2. 1. GIVe – Brief Description GIVe targets women over 35 years of age with an annual income of ? 40,000. This target group is looking for quality and high service quality at affordable prices.

However, offered fashion has to be luxurious and satisfy its desire for value and beautiful fabrics (Nexis, 2009). Introduced on October 1st, the 150-piece collection includes outerwear/knitwear/coats and is currently available at selected outlets illustrated in Figure 2 (Nexis, 2009): 2 2. 2. Environmental Analysis 2. 2. 1. MACRO Environment PEST Framework Every industry is inevitably confronted with environmental forces which cannot be influenced but which affect each business in the success of its long-run strategic decisions (Kotler, 2008).

These forces can be summarised in the so-called PEST-Analysis which aims at identifying key political/economical/social/technological aspects to examine the possible impacts of these macroenvironmental forces on a specific business. The PEST-Analysis concerning the fashion industry in the UK revealed the following key results (see Appendix-A): Political ? ? Increase in income tax ? decreasing PDI2 of consumers (Mintel, 2009) ‘Cheap imports’ are a political issue ? an increase in import taxes provokes more expensive products (Keynote, 2008) 3 Economical ? ? ?

Recession influences PDI of consumers ? decreasing purchasing power (Keynote, 2008) Oil prices (fuel/gas) lower PDI of consumers (Opec, 2009) Continuous globalisation provokes opportunity to look for substitutes ? increase in consumers’ purchasing flexibility (Johnson, Scholes, Whittington, 2008) ? Falling prices related to globalised sourcing contribute to increasing affluence of many households which now have more money to spend on luxuries (Mintel, 2009) Social ? Ageing population ? Need to adapt to greater needs of an ageing population (Mintel, 2008) ?

More and more people are not in a relationship or having kids ? PDI is higher due to fewer additional expenses (UK National Statistics, 2009) ? Inter-generational contract is about to collapse ? younger generation has to save for their pension ? decrease in PDI (UK National Statistics, 2009) ? Continuous digitalisation (cell phones/internet) influences consumers and their purchasing behaviour (Keynote, 2008) ? Unemployment rate in UK raised to 7. 9% in August 2009 (UK National Statistics, 2009) Technological ? ? ?

Continuous development of new media (Mintel, 2009) E-commerce is getting increasingly important for consumers (Keynote, 2009) There are some limits to the technological advances as there is a demand among the more affluent for natural materials (pure cotton/wool/cashmere/leather/fur) (Keynote, 2008) Most remarkably is that environmental forces like the economic downturn, rise in income tax, fuel/gas prices, and the collapse of the inter-generational contract are tremendously diminishing consumers’ PDI and possibly changing their purchasing behaviour. Consequently, GIVe’s target group is inevitably affected by these forces.

According to a survey of Mintel, women in the UK are therefore more likely to spend their money on other things than designer fashion (Mintel, 2008). 4 Other environmental forces such as the continuous globalisation and development of new media (mobile phones) are heavily affecting fashion designers, e. g. GIVe/Armani/D&G/Whistles/Karen Millen which makes it difficult to gain a competitive advantage over rivals as looking for substitutes has become much easier on part of consumers due to the rise of the internet and the development towards one global market (Johnson, Scholes, Whittington, 2008).

Overall, various environmental forces exist which have to be considered if GIVe is supposed to position itself as a long-standing brand creating long-lasting customer relationships. 2. 2. 2. MICRO Environment Identification of relevant markets A market consists of several market segments within which different strategic groups perform. Companies aimed at competing in a market are capable to touch different market segments with different products, exerting different target strategies competition in this “red ocean” (Kotler, 2008). Considering this aspect, (Johnson, Scholes, Whittington, 2008) is fierce. Thus, establishing a new usiness requires considerable investment, since determinants as per economies-of-scale and competing on the same customer base, are initially difficult to achieve. Consequently, considering Johnson et al. (2008) entering the “blue ocean” is deemed to be a strategic option for a new business. Therefore, identifying the niche within which a new business can be implemented is considered to be a highly complicated task which is subject to comparative studies of all segments in the market. GIVe aims at positioning in an “affordable luxury” niche concentration” strategy (West, Ford, 2006 p. 161). (Davis, 2009 p. 1), following a “single segment

The accentuated niche is now subject to evaluation to identify the potential success of GIVe’s strategic orientation. The Fashion/Luxury Market – Segmentation via psychological typologies By means of the “AIO-model” typologies in the fashion market: (Kotler, 2006 p. 140) the following psychographics elucidate different 5 Career-Wise-Women ? ? ? ? ? ? Age groups: late twenties/early thirties/forties Strongly AB Prevalent among full-time working mothers Like to look well dressed, proud of their sense of style Keeping up with the latest fashions is a highly motivational concern Highly enjoy shopping for clothes and skincare products

Sensible-Steady-Strong ? ? ? ? ? Age groups: late middle age Slight C2 bias Prevalent among non-working third age women (47%) – and grandmothers (40%) Least interested in being attractive to the opposite sex Least enthusiastic about shopping for clothes Home-Bodies ? ? ? Tend to be older High representation among widowed and/or retired Spend less than other women on clothes/skincare/cosmetics. Hedonists ? ? ? ? Majority: late teens/early twenties; also prevalent in older demographics Single (47%) and/or students (60%) C2D bias Unlikely to see their work as a career – but still want to get to the top, and/or to set up their own business ?

Like designer clothes, keeping up with the latest fashions (Mintel, 2008, Nexis, 2009) 6 Consumer Behaviour & Preference (Online – Environment) Women keen on multichannel Women tend to use the Internet either checking stock or reserving it for collection at a store, given the fact that almost half of women prefer seeing and touching products before buying. Over-35s check stock first The over-35s are keenest on using the Internet to check stock before a store visit. 35-44s keen on customer reviews 35-44s have a stake in customer reviews before deciding what to buy.

As AB’s, broadsheet readers follow this more considered approach (Mintel, 2008) 7 Competitors As Figure 5 illustrates, identified key competitors concerning GIVe are high-street brands such as Armani/D&G/Versace. These brands aim at positioning at the premium price end to guarantee a high level of exclusivity. By offering an own design-line available only at selected stores, GIVe attempts to compete with this strategic group. The second strategic group consists of Whistles/KarenMillen/Reiss which offers design fabrics at affordable prices.

Also aimed at offering affordable beautiful fabrics GIVe also wants to build up on high exclusivity. However, the desired USP should be provided by the high level of service quality and the ecommerce adventure, discussed later in the report. 8 2. 3. SWOT – GIVe 9 10 2. 4. Targeting and Positioning According to the results of the external and internal analyses it becomes obvious that GIVe is exerting a concentrated marketing approach (Kotler, 2008). The following perceptual map illustrates how GIVe aims to be perceived in the minds of its consumers.

However, it is questionable if the marketing mix within the positioning strategy will support the desired perception. 2. 4. 1. Perceptual Map – GIVe According to Kotler (2008), perceptual maps reveal information on consumer perceptions of a specific brand versus competing products on important buying variables. This outside-in approach assists companies in identifying the perceived value of their products in comparison to others and market niches which might represent an opportunity for future growth. Concerning GIVe, the following two buying variables have been chosen to create a perceptual map: ? Low-to-High-Price Low-to-High-Service Quality 11 As Figure 6 illustrates, 3 main areas of brand perception could be identified concerning women’s fashion in the UK. The brands Per Una/Next/George ASDA/H&M are perceived as offering reasonable fashion at relatively low prices, whereas the level of service quality is perceived as being rather low. Concerning high-street fashion retailers, Figure 6 reveals that there are two groups existing which vary in the perceived level of price and service quality.

The first group, consisting of Reiss/Whistles/Karen Millen, is perceived as offering fashion at relatively high prices compared to the rather moderate perceived level of service quality. Interestingly, there exists a big gap between the first and second high-street group which represents brands like Armani/D&G/Versace. Those brands aim at positioning themselves at the premium price end which supports their highly perceived level of exclusivity. However, the level of service quality is perceived as being almost the same as in respect of the first group, namely, relatively low compared to the demanded high prices for fashion.

Taking the identified gap between group 1 and 2, it can be assumed that there exists a potential consumer group which is unsatisfied with the degree of service quality but has decided to demand fashion from either group 1 or group 2 as no suitable substitutes are currently offered. Davies’s strategy of offering ‘affordable luxury’ by offering a high level of service quality to create the missed ‘boutique feeling’ might therefore be able to satisfy this specific customer need while competing with both group 1 and group 2. 12 3.

Identification of Key Success Factors 3. 1. Introduction GIVe has used several traditional marketing strategies as well as some pioneering ones. Secondary research into previous George Davies ventures, competitors marketing strategies, research and theory behind each factor has helped to measure and evaluate each strategy’s success and potential. Throughout the marketing management of GIVe there are two re-occurring elements which can be highlighted for their potential success; E-commerce and The-In-store customer service experience. 3. 1. 1. E-commerce

E-commerce is one of the key success factors to many fashion retailers, growing at an astonishing rate with 21. 6 million dollars of sales alone in the UK. With a predicted growing rate of double that by 2011 internet marketing and e-commerce are beginning to dictate the retail sector commerce concept is to reflect society’s movement to the internet; George Davies: “I’ve had to understand a lot of new things like Twitter, Facebook and blogging because that’s the route consumers have gone. I feel the high street has left itself open to the rise of that sort of medium. (Brown, 2009) (Chaffey, 2008). Davies intended the GIVe online store to work as a synergy with the bricks and mortar stores. The e- The GIVe website is designed not just as an e-tail outlet but a means for marketing and most importantly developing the GIVe brand. ‘It is online that the purest brands are being built, liberated from the real world burdens of stores and product manufacturing, these brands are free to soar’ (Klein, 2000 p. 198). Davies’ e-tail strategy is almost pioneering, as unlike his competitors, the online store is to be entirely aligned to his stores.

This has not been common in the UK yet, as brands are usually predominantly offline or online. This strategy is referred to as Aligned Expertise, ‘It combines expertise in offline and online retail strategies to produce a continuous outstanding experience for consumers’ (Okonkwo, 2007 p. 197). This strategy encapsulates everything George Davies has set out his brand to be, customer- focussed. ‘We wanted to have stores and an online channel that offers customers a fantastic 13 experience at whatever point they connect with us’ (K3 BTG, 2009).

Research has shown that effective customer support and service is more vital to a brand than the product offering or low prices, in attracting customers to shop online (Singh, 2002) and providing high service quality would increase a firm’s overall profitability (Yang and Fang, 2004). ‘Latest research from MINTEL Oxygen finds sales of fashion (clothing and footwear) online have increased by a massive 461% over the past 5 years alone, cutting through the ? 1 billion mark for the first time ever to reach ? 1. 2 billion in 2006. ’ (Mintel, 2009)

Davies’ previous success with the Next website, which has been one of the most successful online retail outlets, for this he also utilised a multi channel outlet approach, with in store and catalogue (Easey, 2009 p. 42). In comparison to GIVe’s competitors, Karen Millan and Whistles, the e-commerce technology is more advanced with a superior selection of facilities available to the customer. The previous success of Davies’ online adventures and the consistently growing online retail market are good projections for GIVe’s e-commerce operations and its strength as a key success factor. 3. 1. 2.

Service Marketing A new focus now at the forefront of services marketing is ‘relationship marketing’. This is a concept that has been around for years but which has more recently seen the impetus for its development. This is mainly due to the maturing of services marketing with the emphasis on quality, increased recognition of potential benefits for the company and the customer, and technological advances (Berry, 2008). ‘A high level of service is likely to be seen as increasingly important in the more mature age market, which demographically and economically will become more important in the future. (Easey, 2009 p. 211) Davies’ vision for his new retail venture GIVe was to create a brand new shopping experience for the consumer and to revolutionise the way women shop and browse in store which would in turn attain outstanding levels of customer service. He recognised that during this global economic crisis highstreet retailers were fighting over bringing the highest catwalk fashions to the consumers for the lowest prices, which has been made possible due to shorter lead times. ‘The high-street had chased 14 etailers such as Primark and Matalan on price and that had opened up space for a Womenswear chain offering exceptional quality within a highly serviced environment’ (Brown 2009). Davies believed that significant changes could be made to improve the level of service women received when shopping on the high street and saw a different meaning to the word value: George Davies: “Everyone has run after very low prices and in doing so had removed the service element of shopping. This brand is about moving service and technology to the highest level for the high-street customer.

No other store will be able to compete with the level of service. Service will always be paramount to the brand and the stores will give this collection its truly unique appeal. ” (Gallagher, 2009) For Davies, value is all about customer satisfaction and this is apparent in his new venture GIVe through its in-store technology and customer services offered. GIVe encompasses an integrated multi-channel IT system that will manage all sales channels and inventory, integrated with a warehouse management system.

This technology provides GIVe and its customers with a competitive advantage, enabling them to access real-time location and stock of products. The GIVe stores are all equipped with interactive touch plasma screens (Kiosk) which allow customers access to additional information about the in-store range as well as provide a link to the GIVe website, where they can view catwalk videos of the clothes and previews of next season’s collection. ‘In a retail setting the interaction between customers and sales persons constitutes a unique and important dimension of performance.

Such interaction could have a strong impact on retail customer loyalty. ’ (Darian et al. , 2001) 15 4. Conclusion According to the findings in the MACRO analysis it becomes obvious that UK’s whole population including ABC1 will be strongly affected by environmental forces such as the recession, rise in income tax, and the collapse of the inter-generational contract which will negatively affect consumers’ PDI. GIVe’s pricing strategy is out of line with its competitors, meaning, to gain an edge over its rivals, GIVe might have to lower its prices.

As identified in the PEST-Analysis, the continuous digitalisation influences consumers’ behaviour who increasingly use e-commerce as a source for doing all kinds of purchases. Concerning GIVe, Davies’ emphasis on creating high service quality by building a strong internet presence might therefore be the right choice to successfully develop his brand. Taking the findings concerning the MICRO-Analysis it becomes explicit that Davies aims at targeting four different typologies, which are as well consistent of different age groups, which might not appeal to one standardised product.

The attempt to satisfy these four different groups with one standardised product might therefore provoke a failure of GIVe. Consequently, being attractive to the whole segment there is a need for customisation, or at least mass customisation, albeit this could entail negative ramifications concerning cost – effectiveness. Hence, to appeal to all possible customers, being different in their age stages, within the typologies , Davies’ might be forced to redefine its target group, as the existing discrepancies within his target market will negatively influence sales and the establishment of GIVe as a strong brand.

In other words, a possible strategy could be, building a strong brand image through focus differentiation amongst one specific target group with the respective standardised product. Once having achieved a strong image he could extend the product range to appeal to different age and fashion interest groups within the typologies. Additionally, women in this demographic purchasing luxury fashion tend to be more brand-loyal. GIVe’s aim to attract consumers from competitors is therefore disadvantaged as it is not an established brand yet.

In addition to this, GIVe’s attempt to achieve sustained competitive advantage is questionable due to the fact that specific determinants, that cannot easily be adapted by competitors, for instance inimitability of the product, are not given. 16 All points considered, GIVe’s business prospects between now and the end of 2011 seem rather modest. Davies’ has to further investigate this potential market niche if GIVe is supposed to establish itself as a high-valued brand creating long-lasting customer relationships by offering not easy to imitate customer benefits. 5.

Research Methods We used a selection of secondary research methods to gather information which would answer the question and also help us to attain a greater understanding of the fashion retail market. Mintel was paramount to this project, allowing us to explore various statistics regarding demographics, the retail industry and consumer buying behaviour as well as detailed information on the female segment of the market GIVe is targeting. These statistics helped us to build a credibly sourced case as well as to make projections concerning buying and demographic trends.

GIVe’s modernity within the business sector has been a research limitation, detailed information on their business operations and projections are scarce. To overcome this we have used information from newspapers through the Nexis website and GeorgeDavies. com to find out about his previous ventures and why he believes GIVe can proceed and possibly succeed. These sources have been very valuable to research as they supported Davies’ vision about GIVe. When researching the key success factors it was first of all important to identify previous successful marketing strategies within the luxury fashion market.

Making comparisons with GIVe’s competitors supported insights into what strategies have previously succeeded; this was done through business reports and their websites. Furthermore, to successfully investigate how e-commerce and service quality can contribute to the creation of customer benefits, sources such as journal articles from Emerald (The Journal of Fashion Marketing and Management, The European Journal of Marketing) were used. Altogether, following this research structure and using the findings enabled the report to come up with suggestions about GIVe’s business prospects until 2011. 17 6.

Bibliography Berry, Leonard. L (2008) “Relationship marketing of service – growing interest, emerging perspectives” Journal of the Academy of Marketing Science, Vol 23 No. 4 Brown, J (2009) Retail Week, High Street Reaction to Online March too Slow, says George Davies, [Internet] Available from: [Accessed 7 October 2009]. Chaffey, D (2004) E-Business and E-Commerce Management, Second edition, Prentice Hall, England Darian, J. C. , Tucci, L. A. , Wiman, A. R. (2001), “Perceived salesperson service attributes and retail patronage intentions”, International Journal of Retail & Distribution Management, Vol. 9 No. 5, pp. 205-13. Davies, G (2009) Retail Week, High Street Reaction to Online March too Slow, says George Davies, [Internet] Available from: [Accessed 7 October 2009] Easey, M (2009) Fashion Marketing, third edition, Blackwell Science ltd, Oxford. Gallagher, L (2009) “Give by George Davies opens the door to a new era of women’s fashion retail” [Internet]Available from www. onlineprnews. com/news. 77171254484678 [Accessed 6 October 2009] Johnson, G. Scholes, K. Whittington R. (2008) Exploring Corporate Strategy: Text & Cases. 8th ed. Harlow, Pearson Education Limited. Keynote. 2009) UK Internet Market 2009 [Internet], UK Internet Market 2009. Available from: [Accessed 8 October 2009]. Keynote. (2008) Clothing & Footwear Industry 2008 [Internet], Clothing & Footwear Industry 2008. Available from: [Accessed 8 October 2009]. 18 Klein N (2002) No Logo, Harper Perennial, London Kotler, P. Armstrong, G. (2008) Principles of Marketing. 12th ed. New Jersey, Pearson Prentice Hall. K3 BTG (2009) George Davies’ GIVe fashion label selects K3 to help lead the fashion pack [Internet] Available from: [Accessed 1 October 2009]. Mintel. (2008) Designer Clothing – UK – August 2008 [Internet], Designer Clothing.

Available from: ; http://academic. mintel. com/sinatra/oxygen_academic/search_results/show&/display/id=227736; [Accessed 7 October 2009]. Mintel. (2008) High Street versus Out of Town Retailing – UK – June 2008 [Internet], High Street versus Out of Town Retailing. Available from: [Accessed 8 October 2009]. Mintel. (2009) Eye on intermediaries – Pensions and Retirement Income – UK – February 2009 [Internet], Eye on intermediaries. Available from: [Accessed 8 October 2009]. Mintel (2007) Online Retailing: Dressed for success [Internet] Available from: [Accessed 8 October 2009].

Mintel, (2006) Women’s Changing Lifestyles – UK – October 2007. [Internet]. Mintel. URL available from: < ttp://academic. mintel. com/sinatra/oxygen_academic/search_results/show&/display/id=221218/dis play/id=305118#hit1 > [Accessed, 11. October 2009] 19 Nexis UK. (2009) George Davies tells Dawn Collinson: I’ve been reasonably good at spotting the big trends [Internet], George Davies tells Dawn Collinson. Available from: [Accessed 7 October 2009]. Nexis UK. (2009) Clothes that look good and do good [Internet], Available from: [Accessed 8 October 2009]. Nexis UK. 2009) Famous Designer’s New Clothing Range Launched in Kendal Store [Internet], Available from: [Accessed 8 October 2009]. Nexis UK. (2009) Davies returns to trump rivals as high street dusts itself off [Internet], Available from: [Accessed 8 October 2009]. Okonkwo, U (2007) Luxury Fashion Branding, Trends, Tactics Techniques, Palgrave Macmillan, New York. Opec. (2009) Oil Prices — a time for reflection [Internet], Oil Prices — a time for reflection. Available from: [Accessed 8 October 2009]. Singh, M. (2002), “E-services and their role in B2C e-commerce”, Managing Service Quality, Vol. 12 No. 6, pp. 434-46. 20

UK National Statistics. (2009) National Population Projections [Internet], National Population Projections. Available from: [Accessed 8 October 2009]. UK National Statistics. (2009) Labour Market – Unemployment [Internet], Labour Market. Available from: [Accessed 8 October 2009]. West, D. and Ford, J. (2006) Strategic Marketing: Creating Competitive Advantage. Oxford University Press, Oxford Yang, Z. , Fang, X. (2004), “Online service quality dimensions and their relationships with satisfaction: a content analysis of customer review of securities brokerage services”, International Journal of Service Industry Management, Vol. 5 No. 3, pp. 302-26. 21 Appendix-A – PEST-Analysis – Fashion Industry POLITICAL ? Taxes o o ? Increase in income tax ? decrease in disposable income ‘Cheap imports’ (garments etc. ) are a political issue ? a potential import tax will make the end product more expensive ? ? ? ? ? ECONOMICAL Recession influences disposable income of citizens (decreasing purchasing power) Fluctuating exchange rates Oil prices (fuel) lower disposable income Continuous globalisation provokes the opportunity to look for substitutes on part of potential customers ? ncrease in purchasing flexibility The tendency as modern economies develop is for clothing to take a smaller percentage of people’s disposable income Falling prices related to globalised sourcing have contributed to increasing affluence of many households which now have more money to spend on luxuries ? ? Developed countries will not be able to compete with countries with low-cost manufacturing bases for this labour-intensive industry Consumer trends towards clothes made from organic or Fair-trade cotton o 30. % regularly/occasionally o 7. 6% regular basis SOCIAL ? ? ? ? ? ? ? ? Ageing population More and more people are not in a relationship or having kids ? disposable income is higher due to fewer additional expenses Decrease in pensions ? less disposable income for the elderly Inter-generational contract is about to collapse ? younger generation has to save for their pension ? decrease of disposable income Tremendous development of new media (cell phones, internet etc. influences consumers and their purchasing behaviour Social dress codes which partly determine the types of clothing/footwear bought in a particular ear ? now: relaxation of these codes The interest in health, fitness and sport has allowed sportswear to dominate the whole of the ‘leisurewear’ market Unemployment rate in UK raised to 7. 9% for 3 months to August 2009 ? ? ? ? TECHNOLOGICAL Continuous development of new media (cell phones, internet) E-commerce is getting increasingly important for potential customers Fashion has been influenced by technological materials.

This allows designers to produce warm, comfortable clothing that is more adaptable than ever before to the multiple demands of modern leisure There are some limits to the technological advances, however, because there is always a demand among the more affluent for natural materials (pure cotton, wool, cashmere, leather, fur, etc. ) Appendix-B – Mintel – Typologies Women’s Changing Lifestyles – UK – October 2007 Is the Future Female? In this final section Mintel summarises the future ambitions of women in different lifestage groups.

The section also gives an overview of the demographic characteristics, habits and attitudes of women in the four lifestyle typologies identified by Mintel’s typology groups. FUTURE GOALS Pre-/no family women Travelling more and gaining a place on the housing ladder are the major goals for women in the pre-/no family lifestage group; they also have goals related to their health/fitness, and developing their career: Family women Health and fitness is also a major goal for family women, and they also place a strong emphasis on improving their existing home. Travel remains in the top five future plans for this group: Third age women

Travelling more and becoming healthier/fitter vie for top place among the plans of third age women. Achieving their ideal weight is their third-placed target, above eating more healthily and making home improvements. Women in the retired group are considerably less likely than others to have particular goals for the future (38% said that none of the listed goals were among their future plans). Their top five were: Retired women A PORTRAIT OF TODAY’S WOMEN Here Mintel summarises some of the attitudes, habits and demographic characteristics of the four typology groups: Career Wise (22%) Age groups: late twenties, early thirties, forties.

Strongly AB. Prevalent among full-time working mothers, and third age women working full-time (42%). ? A third of working Career Wise women want to get to the top in their career; three in ten worry about work in their leisure time. ? Surprisingly interested in home surroundings, like cooking, home entertaining – but don’t spend much time on housework. ? Strong environmental and ethical conscience. ? Interested in finance, read financial pages, given to impulse purchases. ? Keen on exercise, have healthy diets – but still feel that their busy lifestyles mean they don’t take care of themselves as well as they should. Like to look well dressed, proud of their sense of style. ? Spend more than other women on clothes and skincare products. ? More interested than other women in technology and cars. ? Interested in cultural activities. ? ? ? Sensible, Steady and Strong (32%) ? Age groups: late middle-age. ? Slight C2 bias. ? Prevalent among non-working third age women (47%) – and grandmothers (40%). ? Working women in this group are not particularly ambitious; unwilling to sacrifice time with their family for the sake of their career. ? Happy to do housework, intolerant of untidiness. ? Get much pleasure from their garden. Concerned about ethical and environmental issues – but less prepared than Career Wise women to act on their consciences. ? Good at managing money, not given to impulse spending – but tend not to read the financial pages of newspapers. ? Tendency to insomnia. ? Least interested in being attractive to the opposite sex. ? Least enthusiastic about shopping for clothes. Home Bodies (20%) ? Tend to be older. ? High representation among widowed and/or retired (36%). ? Not particularly ambitious in career terms – but keener than most on setting up their own business one day. Like housework, spend more time than others on household chores. ? Keen cooks, healthy diets. ? Happy that they take good care of their health, least likely to suffer from headaches. ? Spend less than other women on clothes, skincare or cosmetics. 24 Hedonists (26%) ? Late teens/early twenties. ? Single (47%), and/or students (60%). ? C2D bias. ? Unlikely to see their work as a career – but still want to get to the top, and/or to set up their own business. ? Dislike housework, don’t mind untidiness. ? Finances not their strong point – not good at saving, or managing money, tend to spend without thinking. More likely than other women to smoke – and suffer more from coughs and sore throats. ? Like designer clothes, keeping up with the latest fashions. ? Spend more than other women on cosmetics. FORECASTING MORE ‘HOMELY’ WOMEN IN THE FUTURE? This sub-section provides a population forecast of the typologies featured throughout this report, in order to assess respective growth patterns on the basis of their demographic makeup. Mintel takes the penetration of each group by gender, age and socio-economic group, and using the expected changes to these demographics groups, the number of people in each group is forecast to 2012.

Projections are made under the assumption that the demographic composition of each group will remain the same over the forecast period. Women’s typologies Brief summary of typologies Career Wise (22%) Are the most career-minded and ambitious, they see their job as a career and something they value and enjoy for its own sake. They also quite traditional, relationship-wise, putting a high value on having a lasting relationship with one partner. Are cautious, sensible and risk-averse, with preparing for future eventualities at the forefront of their minds. They have a strong sense of the importance of a woman’s place in society.

Are perhaps the most traditional women, happier than others to be at home, both as a sense of responsibility – not shirking away from housework – and socially, preferring a ‘quiet evening at home’ rather than going out. As traditional women, they strongly value a lasting monogamous relationship. Live for now, enjoying life and not worrying about the future. They loathe doing any form of housework and shun a quiet evening in, in favour of going out. Their ‘want it all’ attitude makes them less amenable to monogamy. Sensible, Steady and Strong (32%) Home Bodies (20%) Hedonists (26%) 5 FIGURE 37: Women typology group, by age, socio-economic group and lifestage, 2007 Base: women aged 16+ Career Wise % All 16-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 D E Pre-/no family Family Third age Retired 22 22 30 28 30 18 7 31 24 18 15 10 32 24 24 7 Sensible, Steady and Strong % 32 15 23 33 35 44 37 29 32 36 31 29 20 28 40 37 Home Bodies % 20 13 17 15 15 20 36 18 19 19 22 28 10 18 18 36 Hedonists % 26 51 30 25 20 17 20 21 25 27 32 32 39 30 18 20 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, BMRB Quarter 3 2007/Mintel The demographic scenario

This forecast assumes that people’s attitudes change as they move through different lifestages, as the effects of having children and children leaving home mean that our priorities and mindsets also change significantly. It also assumes that as you age, you are likely to become more responsible and conventional. Assuming the demographic breakdown of consumer groups remains static, Home Bodies, particularly, and Sensible, Steady and Strong will show the most marked growth at 3. 6% and 3. 1% respectively over the forecast period. Both Career Wise and Hedonists are predicted to rise at a lesser rate than the overall female population, at 2. % and 2. 2% respectively. FIGURE 38: Forecast of women typology groups – assuming a static scenario, 2007 and 2012 2007 m Career Wise Sensible Steady and Strong Home Bodies Hedonists 5. 6 7. 9 5. 1 6. 8 2012 m 5. 8 8. 2 5. 2 6. 9 % change 2007-12 +2. 4 +3. 1 +3. 6 +2. 2 26 Total women SOURCE: GAD/Mintel 25. 4 26. 1 +2. 8 As the growth patterns are attributed to the demographic composition of each group, both Home Bodies and Sensible, Steady and Strong will benefit primarily from our ageing population (both groups are most likely to be over 55).

This will boost growth ahead of the GB female population. In contrast, growth in the Career Wise and particularly the Hedonists – who gravitate strongly towards the younger end of the age spectrum – will consequently show less growth. Socio-economically, however, there is a higher weighting towards a more affluent population in the future, which is strongly under-represented in the Home Bodies group, who have a high concentration of Es.

This makes it less likely that this group will grow at such a high rate in the next five years, as predicted in the standard forecast, hence a more realistic forecast is detailed below. The more realistic demographic scenario… It is more realistic to assume that people will keep their values and attitudes as they move through different lifestages, and for the purposes of this forecast, Mintel has transposed the ‘would be’ percentages for tomorrow’s pre-/no family lifestage in each of the typology groups, and moved each of the other percentages up to the next lifestage, as shown in the Figure below.

The resultant forecast is a more realistic one. FIGURE 39: Women’s lifestyle typologies, by projected lifestage, assuming people keep their attitudes as they move through different lifestages, 2007 Base: women aged 16+ Career Wise % All Pre-/no family Family Third age Retired 22 41 32 24 24 Sensible and Steady % 32 15 20 28 40 Home Bodies Hedonists % 20 1 10 18 18 % 26 44 39 30 18 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, BMRB Quarter 3 2007/Mintel …which looks like this

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