Clothing & Footwear Industry Market Review 2008
Key Note Publications Ltd, February 2008, Pages: 170
The UK market for clothing and footwear was worth an estimated £48.55bn in 2007, divided between clothing (£42.45bn) and footwear (£6.1bn). Together, they account for barely 6% of total consumer spending, the lowest proportion in history. Like food and heating — the other basics of human survival — clothing and footwear have diminished in importance, in relative terms, in the household budget.
The main reason for this record low proportion of consumer spending has been the declining prices of these products. Most items of clothing and footwear now cost less than they did at the turn of the century, not only relative to earnings but also in absolute terms (i.e. at current prices).
In some categories, such as women's outerwear, prices have been falling for even longer, although the amount spent on women's clothing easily exceeds the amount spent on menswear, which has been generally sluggish. The trend towards casual dress has affected men more than women, who require larger wardrobes than ever to clothe themselves for work, formal and informal occasions, sport and family outings.
Underpinning the dramatic decline in prices has been the sourcing of clothing and footwear from countries that offer low labour costs. More than 90% of most apparel lines are imported. The People's Republic of China and Hong Kong are the leading exporters, but UK imports as a whole are spread across a range of countries, from Italy and Turkey to Vietnam and Bangladesh. Inevitably, the UK manufacturing base has shrunk dramatically, although exports of luxury and designer products have sustained the remaining industry.
Low prices have also been maintained by fierce high-street competition, with numerous distinct sectors competing for the clothing shopper's pound: department stores (e.g. Debenhams), chains such as Marks & Spencer (M&S) and Primark, supermarkets (e.g. ASDA and Tesco) and sports chains such as JJB Sports are all in competition with the specialists, both multiples (led by Next and Arcadia) and independent boutiques.
Despite the surfeit of discounting, polarisation between `cheap' and `luxury' is a growing feature of the market. We predict that the number of consumers who turn their backs on the bargain-basement products will increase in the future. Luxury brands from Europe and the US are spending record amounts on advertising to attract aspiring consumers, and cheap clothing is increasingly being tainted by ethical issues (labour conditions and the environment). However, there is no sign of a major surge in market value, so the share of consumer spending taken by clothing and footwear is likely to continue to fall over the next 5 years (2008 to 2012).
Executive Summary 1
1 Industry Overview 3
REPORT COVERAGE3
Report Background 3
ECONOMIC TRENDS4
Population 4
Table 11: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006 4
Gross Domestic Product 4
Table 12: UK Gross Domestic Product at Current and
Annual Chain-Linked Prices (£m), 2002-2006 5
Inflation 5
Table 13: UK Rate of Inflation (%), 2002-2006 5
Unemployment 6
Table 14: Actual Number of Unemployed Persons in the UK
(million), 2002-2006 6
MARKET SIZE 6
Table 15: The Total UK Clothing and Footwear Market by Value
at Current Prices (£m at rsp), 2003-2007 7
MARKET SEGMENTATION7
INDUSTRY STRUCTURE8
UK Manufacturing 9
Table 16: Clothing Production in the UK by Value (£m), 1999-2005 9
Manufacturing Employment 10
Table 17: Employee Jobs in UK Textile and Clothing Industries
(000), 2001-2006 11
Table 18: Number of VAT-Based Enterprises Engaged in the Manufacture
of Clothing and Footwear by Employment Sizeband, 2007 12
Distribution Structure 12
Table 19: Retail Outlets Used for Buying Clothing and Footwear
(rank and %), 2001 and 2005 13
GLOBAL MARKET POSITION 14
Table 110: UK Balance of Trade in Clothing and Footwear by Value
(£m), 2004-2007 14
KEY TRENDS15
Impact of Globalisation 15
Table 111: Imports of Clothing and Footwear From Selected Countries
of Origin by Value (£m), Year Ending August 2007 16
Price Deflation 17
Table 112: Retail Price Indices for Clothing and Footwear
(1987=100 and 2003=100), 2003-2007 17
Specific Market Trends 18
LEGISLATION18
KEY TRADE ASSOCIATIONS19
British Apparel & Textile Confederation 19
British Footwear Association 19
Other Organisations 19
2 PEST Analysis 21
POLITICAL FACTORS 21
ECONOMIC FACTORS 21
SOCIAL FACTORS21
TECHNOLOGICAL FACTORS 22
3 Key Note Primary Research 23
INTRODUCTION23
MOST POPULAR RETAILERS 23
Table 31: The Most Popular Retailers Used for Buying Clothing
and Footwear (% of adults), 2007 23
DEMOGRAPHIC ANALYSIS OF POPULAR RETAILERS’ CUSTOMERS24
Clothing Multiples 25
Table 32: Demographic Analysis of Users of Leading Clothing Multiples
(% of adults), 2007 26
Other Multiples Selling Clothing/Footwear 28
Table 33: Demographic Analysis of Users of Other Multiples
Selling Clothing and/or Footwear (% of adults), 2007 29
Supermarkets Selling Clothing 31
Table 34: Demographic Analysis of Users of Supermarkets for Clothing
(% of adults), 2007 32
4 Competitive Structure 35
THE MARKETPLACE 35
MARKET LEADERS36
Table 41: Leading Clothing and Footwear Companies by Turnover
(£m), 2006/2007 36
Clothing Manufacturers 38
Burberry Group PLC 38
Courtaulds Textiles (Holdings) Ltd 39
Crystal Martin Holdings Ltd 39
Delta Textiles (London) Ltd 40
French Connection Group PLC 40
Jacques Vert PLC 41
Levi Strauss UK Ltd 41
Stirling Retail Services Ltd 42
Clothing Retailers 42
Arcadia Group Ltd 42
Debenhams PLC 43
Marks and Spencer PLC 44
Mosaic Fashions Ltd 45
Next PLC 45
Primark Stores Ltd 46
Footwear Companies 47
Sportswear Companies 47
Other Major Companies 48
OUTSIDE SUPPLIERS50
MARKETING ACTIVITY50
Main Media Advertising 50
Table 42: Main Media Advertising Expenditure on Clothing and Footwear
(£000 and %), Year Ending September 2007 51
Table 43: The Most Heavily Advertised Clothing and Footwear Brands
(£000), Year Ending September 2007 52
Other Marketing Activity 52
5 Women’s, Girls’ and Infants’ Clothing 55
INTRODUCTION55
KEY TRENDS55
Fast Fashion and Designer Interest Counteract Fall in Prices 55
‘Anything Goes’ but Occasions Still Important 56
Children Aspiring to Adult Styles 56
Growth for Lingerie and Accessories Ranges 56
MARKET SIZE 56
The Total Market 56
Table 51: The UK Market for Women’s, Girls’ and Infants’ Clothing
by Value at Current and Constant 2003 Prices (£m at rsp), 2003-2007 57
By Market Sector 58
Table 52: The UK Market for Women’s, Girls’ and Infants’ Clothing by Sector
by Value at Current Prices (£m at rsp and %), 2003, 2005 and 2007 59
SUPPLY STRUCTURE60
Manufacturing 60
Table 53: UK Production of Women’s Clothing by Value (£m), 1999-2006 60
Distribution 61
Table 54: Share of Expenditure on Clothing and Accessories by Type
of Retail Outlet (%), 2006 62
Table 55: Retail Outlets Used by Women for Buying Clothing and Footwear
(% of women), 2005 63
MAJOR PLAYERS 63
Table 56: Leading UK Multiples Selling Women’s and Children’s Clothing
by Number of Outlets, 2007 64
ADVERTISING AND PROMOTION66
Table 57: Main Media Advertising Expenditure on Clothing Brands
(£000), Year Ending September 2007 67
Table 58: Main Media Advertising Expenditure on Lingerie
(£000), Year Ending September 2007 68
BUYING BEHAVIOUR68
Table 59: The Most Popular Retailers Used for Buying Women’s/Girls’ Clothing
(% of adults), 2007 69
Table 510: Demographic Analysis of Clothing Multiples Used for Buying
Women’s/Girls’ Clothing (% of adults), 2007 70
Table 511: Demographic Analysis of Other Multiples Used for Buying
Women’s/Girls’ Clothing (% of adults), 2007 72
FORECASTS 2008 TO 201274
Table 512: The Forecast UK Market for Women’s, Girls’ and Infants’ Clothing
by Value at Current Prices (£m at rsp), 2008-2012 75
6 Men’s and Boys’ Clothing 77
INTRODUCTION77
KEY TRENDS77
Casual Dress Trend 77
Multi-Purpose Sportswear and Jeans 78
Designer Labels More Important 78
Imports’ Dominance 78
MARKET SIZE 78
The Total Market 78
Table 61: The UK Market for Men’s and Boys’ Clothing by Value
at Current and Constant 2003 Prices (£m at rsp), 2003-2007 79
By Market Sector 79
Table 62: The UK Market for Men’s and Boys’ Clothing by Sector
by Value at Current Prices (£m at rsp and %), 2003, 2005 and 2007 80
SUPPLY STRUCTURE81
Manufacturing 81
Table 63: UK Production of Men’s Clothing by Value (£m), 1999-2006 81
Distribution 82
Table 64: Share of Expenditure on Clothing and Accessories by Type
of Retail Outlet (%), 2006 83
Table 65: Retail Outlets Used by Men for Buying Clothing and Footwear
(% of men), 2005 83
MAJOR PLAYERS 84
Table 66: Leading UK Multiples Selling Men’s and Boys’ Clothing
by Number of Outlets, 2007 85
ADVERTISING AND PROMOTION86
Table 67: Main Media Advertising Expenditure on Clothing Brands
(£000), Year Ending September 2007 87
BUYING BEHAVIOUR88
Table 68: The Most Popular Retailers Used for Buying Men’s/Boys’ Clothing
(% of adults), 2007 88
Table 69: Demographic Analysis of Clothing Multiples Used for Buying
Men’s/Boys’ Clothing (% of adults), 2007 89
Table 610: Demographic Analysis of Other Multiples Used for Buying
Men’s/Boys’ Clothing (% of adults), 2007 91
FORECASTS 2008 TO 201293
Table 611: The Forecast UK Market for Men’s and Boys’ Clothing
by Value at Current Prices (£m at rsp), 2008-2012 93
7 Sportswear 95
INTRODUCTION95
KEY TRENDS95
Globalised Sourcing and Branding 95
Consolidation in Branding and Sports Retailing 95
Sports Participation and Sports Leisurewear 96
MARKET SIZE 96
The Total Market 96
Table 71: The UK Market for Sportswear by Value at Current
and Constant 2003 Prices (£m at rsp), 2003-2007 97
Table 72: Sportswear’s Share of the Total Clothing and Footwear Market
by Value (%), 2003-2007 98
By Market Sector 98
Table 73: The UK Market for Sportswear by Sector by Value
at Current Prices (£m at rsp and %), 2007 99
SUPPLY STRUCTURE100
Manufacturing 100
Distribution 100
Table 74: Retail Sales of Sports Clothing and Footwear
by Type of Outlet by Value (%), 2007 101
Table 75: Retailers Used to Buy Sports Goods (% of adults), 2007 102
MAJOR PLAYERS 102
Table 76: Leading Suppliers of Sports Clothing and Footwear by Turnover
($, € and £), 2007 103
Nike Inc 103
adidas AG 104
Other Manufacturers 105
Major Sports Retailers 106
ADVERTISING AND PROMOTION107
Table 77: Main Media Advertising Expenditure on Sportswear Brands
(£000), Year Ending September 2007 107
BUYING BEHAVIOUR108
Sportswear Buying 108
Sports Participation 108
FORECASTS 2008 TO 2012109
Table 78: The Forecast UK Market for Sportswear by Value
at Current Prices (£m at rsp), 2008-2012 109
8 Clothing Accessories 111
INTRODUCTION111
KEY TRENDS111
High Point of a Cyclical Market 111
Role of Designer Brand Collections 112
Specialist Retailers Grow the Market 112
MARKET SIZE 112
The Total Market 112
Table 81: The UK Market for Clothing Accessories by Value
at Current and Constant 2003 Prices (£m at rsp), 2003-2007 113
By Market Sector 113
Table 82: The UK Market for Clothing Accessories by Sector
by Value at Current Prices (£m at rsp and %), 2007 114
SUPPLY STRUCTURE114
Manufacturing 114
Distribution 115
MAJOR PLAYERS 115
Table 83: Leading Multiples Selling Accessories by Number of Outlets, 2007 116
ADVERTISING AND PROMOTION116
Table 84: Main Media Advertising Expenditure on Clothing Accessories
(£000), Year Ending September 2007 117
BUYING BEHAVIOUR117
FORECASTS 2008 TO 2012118
Table 85: The Forecast UK Market for Clothing Accessories by Value
at Current Prices (£m at rsp), 2008-2012 118
9 Footwear 119
INTRODUCTION119
KEY TRENDS119
Globalised Sourcing and Vertical Integration 119
Influence of Branding 119
Designer Footwear 120
Casual Dress Changes Character of Market 120
From Wedges to Heels and Back 120
MARKET SIZE 121
The Total Market 121
Table 91: The UK Market for Footwear by Value at Current and
Constant 2003 Prices (£m at rsp), 2003-2007 121
By Market Sector 122
Table 92: The UK Market for Footwear by Sector by Value
at Current Prices (£m at rsp and %), 2000 and 2007 122
SUPPLY STRUCTURE123
Manufacturing 123
Table 93: UK Footwear Manufacturers’ Output by Value
(£m at msp), 2002-2005 123
Distribution 124
Table 94: UK Retail Distribution of Footwear by Value
(%), 1995, 2001 and 2007 124
Table 95: Leading Specialist Footwear Retailers by Number of Outlets, 2007 125
MAJOR PLAYERS 125
Table 96: Leading UK General Footwear Companies by Turnover
(£m), 2005/2007 126
C&J Clark Ltd 126
Other General Footwear Companies 127
ADVERTISING AND PROMOTION128
Table 97: Main Media Advertising Expenditure on Footwear
(£000), Year Ending September 2007 129
BUYING BEHAVIOUR130
FORECASTS 2008 TO 2012130
Table 98: The Forecast UK Market for Footwear by Value at Current Prices
(£m at rsp), 2008-2012 131
10 A Global Perspective 133
THE MAIN ISSUES 133
DESIGNER BRANDS 133
ROLE OF CHINA 134
11 The Future 135
FORECAST ECONOMIC TRENDS135
Population 135
Table 111: Forecast UK Resident Population by Sex
(000), Mid-Years 2007-2011 135
Gross Domestic Product 135
Table 112: Forecast UK Growth in Gross Domestic Product
in Real Terms (%), 2007-2011 136
Inflation 136
Table 113: Forecast UK Rate of Inflation (%), 2007-2012 136
Unemployment 137
Table 114: Forecast Actual Number of Unemployed Persons in the UK
(million), 2007-2011 137
FORECASTS 2008 TO 2012137
Table 115: The Forecast UK Clothing and Footwear Market by Value
at Current Prices (£m at rsp), 2008-2012 138
FUTURE TRENDS 138
The Inflation Question 138
The Political Issues 139
Changing the National Psyche 140
Polarisation 140
12 Further Sources 141
Associations141
General Sources 141
Government Publications141
Bisnode Sources 142
Understanding TGI Data 147
Number, Profile, Penetration 147
Social Grade 148
Standard Region 148
Key Note Research 149
The Key Note Range of Reports 151
Burberry Group PLC
Courtaulds Textiles (Holdings) Ltd
Crystal Martin Holdings Ltd
Delta Textiles (London) Ltd
French Connection Group PLC
Jacques Vert PLC
Levi Strauss UK Ltd
Stirling Retail Services Ltd
Arcadia Group Ltd
Debenhams PLC
Marks and Spencer PLC
Mosaic Fashions Ltd
Next PLC
Primark Stores Ltd
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