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fashion marketing

helen goworek

the UK fashion market


the UK retail clothing market was estimated to
be worth ______in 2012 (Mintel, 2012)
Clothing is the second largest UK retail sector
(Mintel, 2007)
______________ is the largest market
segment, accounting for approx. half of UK
clothing sales

Source: Mintel, 2012


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Major issues in fashion marketing


The marketing mix differs from other sectors
high emphasis on product and an unusual
promotional mix
Reliance on catwalk fashion and celebrities to
set trends
Globalisation of manufacturing has affected
clothing prices
Conflict between fast fashion and
sustainability of clothing
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large shops and chains = around 75% of the UK


fashion market
The top 12 retailers accounted for 57% of the UK
fashion market in 2008 (M&S holding 12%)
the volume of the UK clothing market is increasing,
while prices are decreasing
in 2000, 73.6% of clothing sold in the UK was
imported, in 2005 this rose to 95%
between 2001 and 2005, average clothing and
footwear prices fell by 14.4% (Key Note 2006)

between 2001 and 2005 21% more was spent


on womens, girls and infants clothing (Key
Note 2006)
in recent years sales have moved towards
value and luxury brands at the expense of the
middle sector of the mass market
supermarkets have increasingly gained market
share

The Marketing Mix:


the four
Ps

product

price

promotion

place

CUSTOMERS
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the structure of the fashion and textiles


industry
textiles manufacturers
fashion promotion:

clothing manufacturers
trade press and
trade fairs

retailers
mass media

CUSTOMERS
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product

What makes a product successful?


UNIQUE SELLING PROPOSITION
USP
Well-defined product concept prior to
development
Analysis of target markets requirements

When purchasing a fashion product what is the


consumer actually buying?

the tangible product and intangible bundles


of benefits e.g.

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Who participates in fashion product


development?
designers

buyers

technologists

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Fashion design and buying involve developing


commercially acceptable fashion products
within the following parameters :
price
appeal to the target customer
technology
timescale

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Jean-Paul Gaultier
Prada

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Product life cycle

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Focus groups
Can be organised by agencies or internally
e.g. Group of mums and dads for childrenswear:
Opinion on range
Opinion on competition
Understand your customers way of thinking in
relation to your product range

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price within the


fashion marketing mix

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fashion market levels


UPMARKET designer level
Haute couture
Ready-to-wear
------------------------------MIDDLE MARKET branded
Designer diffusion ranges
Branded merchandise
--------------- --------------MASS MARKET High St
Upper
Middle
Lower
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Designer level
upmarket, expensive
price bracket
one-off creations
(couture fashion) or
ready-to-wear fashion

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parent companies
Prada Miu Miu, Jil Sander, Helmut Lang
LVMH Marc Jacobs,
Pucci, Celine
Gucci YSL, Alexander McQueen, Stella
McCartney, Balenciaga
PPR (Pinault Printemps Redoute)
PVH (Philips van Heusen) Calvin Klein,
Michael Kors
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Middle market
Designer diffusion collections and
fashionable brands
e.g.
Mass market
High street stores and mail order
1.
2.
3.
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retail prices have to achieve certain profit


margins e.g. 3 x cost price
value retailers have much lower margins due
to fast sales turnover and supermarket pricing
principles e.g. George, Matalan, Primark

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Hourly labour costs US$ 2002


Germany
$28
Japan
$20
US
$18
UK
$16
Portugal
$5
China
$2
India/Indonesia $0.75
(Lasserre, 2006)
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Most people perceive a


relationship between
brand image and quality
The price charged for a
companys merchandise
will reflect the status of
that companys brand
image

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Shoppers in Britain are getting the best bargains


since Margaret Thatcher was prime minister.
Official figures show many common items cost
less now than in 1987, even though wages have
risen substantiallywomens clothing is nearly
25% cheaper now than in 1987.
(Grimston & Smith, 2003)

Deflation has occurred in the fashion market due to


mass market stores trying to keep pace with the value
sector.

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retail price setting

a)
b)
c)

retail prices are balanced between:


customer perceptions
manufacturers costings
retailers required profit margins
own label retailers typically sell at 3 x cost price
branded merchandise is typically sold at 2 or 2.5 x
cost price
selling prices are set by merchandisers and buyers
in mass market retailers

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Merchandise (stock
controllers/allocators/optimisers)
 planning budgets
 deciding the number of lines
within the range
 selection meetings
 placing orders
 markdowns and repeat orders
 progress meetings
 reviewing sales figures
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price architecture
key entry prices/basics
mid range
premium lines

BEST
BETTER

GOOD

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Paul Smith
mainline
menswear
mainline
womenswear
PS

jeans
accessories

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major differences in retail prices are caused by


quantities, i.e. economies of scale
at designer level the customer is paying for
exclusivity
fashion promotion is a proportionately high cost for
designer merchandise
the promotion entices the customer with its brand
image, for which the customer pays a premium

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Price can be used as a promotional aspect:


Discounts loyalty card holders/magazine
readers
Three for two
Buy one get one half price
BOGOF
Blue cross sale
THE COSTS INCURRED IN FASHION PROMOTION
CAN HAVE A HUGE IMPACT ON RETAIL
SELLING PRICES
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promotion
Advertising
Heavy reliance on
fashion photography and
selection of model

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Fashion companies rely mainly on belowthe-line methods of promotion

fashion shows
PR agencies
editorial
advertorials
press offers and discounts
press launches
point-of-purchase (POP)
packaging
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sponsorship
personal selling
internet (non-transactional websites)
special offers
competitions
viral marketing (networks, word-of-mouth,
can be internet-based e.g. blogs)
guerilla marketing (non-traditional methods
of promotion)
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place (distribution)
methods of distribution:
retail (bricks and mortar) e.g.
independents
dept. stores
fashion multiples
variety chains
concessions
franchises
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visual
merchandising
(VM)
mail order
internet (has
overtaken
catalogue
shopping in sales
turnover)
multi-channel
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location
global markets
location of retail branches
store interiors (store design)
location of product within store (VM)

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Contemporary fashion marketing


issues
The sustainability impacts of clothing
Challenging and competitive retail environment due
to current financial situation (e.g. Dolcis, Bay Trading,
Shoezone, Peacocks, La Senza, Blacks)
The trend away from bricks and mortar retailing
towards online retailing
Read Drapers, Retail Week, Mintel reports and the
Journal of Fashion Marketing and Management if you
are interested in this sector
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summary
The UK retail clothing market was estimated to be
worth
Product
designers, technical staff and buyers develop fashion
products

Price
relates to manufacturing costs, promotion and customer
perceptions of brand image
price deflation relates to import saturation

Promotion
advertising photographers and models
heavy reliance on below-the-line promotion

Place
VM and store design are significant in the fashion market
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bibliography and further reading


Easey, M. (2002) Fashion Marketing: 2nd edition Blackwell
Science: Oxford

Goworek, H. (2006) Careers in Fashion and Textiles


Oxford: Blackwell Publishing
Goworek, H. (2007) Fashion Buying second edition
Oxford: Blackwell Publishing
Grimston, J. and Smith, D. (2003) Prices in Britain
lowest for 15 years Sunday Times July 20th 2003
Hines, T. and Bruce, M. (2006) Fashion Marketing:
Contemporary Issues 2nd edition London:
Butterworth Heinemann

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bibliography
Jackson, T. And Shaw, D. (2009) Mastering Fashion
Marketing London: Palgrave Macmillan
Kierstan, A. (2004) Tesco will slash prices for summer
Drapers 24/4/04
Kotler, P., Armstrong,G., Saunders, J. and Wong, V.
(2004) Principles of Marketing: The European Edition
Prentice Hall Europe
Mintel (2010) Clothing Retailing Report
Tungate, M. (2008) Fashion Brands: Branding Style from
Armani to Zara 2nd edition London: Kogan Page
Varley, R. (2006) Retail product management buying
and merchandising 2nd edition London: Routledge
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bibliography
Vogue October 2006
Vogue October 2007
www.lvmh.com
www.philippelasserre.net
www.retailmap.co.uk
www.vogue.co.uk

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websites

Online journals Journal of Fashion Marketing and Management (available at NTU)


Global Journal of Fashion Marketing
Fashion Practice

online databases (e-search in NTU library)


Key Note (2008) Clothing and Footwear Industry
Key Note (2006) Clothing and Footwear Industry
Mintel (2002) Retail Intelligence Clothing Retailing
Mintel (2009) Retail Intelligence Clothing Retailing
Mintel (2009) Retail Intelligence Value Clothing Retailing
Mintel (2010) Retail Intelligence Clothing Retailing
Mintel (2012) Clothing Retailing UK

www.drapersonline.com
www.ftv.com (fashion TV)
www.fuk.co.uk (fashion UK)

Find fashion jobs in Drapers and www.retailchoice.com

arcadiagroup.co.uk
style.com
usc.co.uk
vogue.co.uk
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