An Overview of the Designer Clothing Market in the UK Fashion Retail industry

Introduction The United Kingdom has for a long time been regarded as the origin of some of the most innovative and creative fashion designers in the world. The UK fashion labels have had a very big economic impact in the country. Despite being the home to many top fashion designers in the world and the largest fashion houses, the United Kingdom has been unable to retain most of them.Advertising We will write a custom dissertation sample on An Overview of the Designer Clothing Market in the UK Fashion Retail industry specifically for you for only $16.05 $11/page Learn More The UK retail fashion industry is regarded as one of the most fragmented and competitive markets in the world. The industry has been prosperous for a very long time drawing in a lot of revenue. However, the industry is currently facing a very difficult times in its history. Reduction in consumer spending due to the rise in living costs and inflation has resulted in a decrease in sales a nd investment in designer clothing. Increase in counterfeit products in the market has also pulled people from the retail fashion industry further reducing sales and dooming some companies to bankruptcy. Opportunities for success however still exist for companies that are innovative and flexible enough to maintain competitive advantage through improving value to their products. Fashion Retail Industry The fashion retail industry generally began in the 19th century. Most of the clothes before the 19th century were handmade. The invention of the sewing machine in the early 20th century and the construction of factories led to the mass production of clothing (Cumming 2004). During this time, most of the clothing was made in standard sizes and their cost was fixed. The fashion industry first started in England after which it slowly spread to the rest of the world. â€Å"In the UK and in the United States, the fashion industry has been one of the largest employers† (Jardine 1999). Changes in mode of production and the need for cheaper raw materials and labour have seen industries moving overseas to countries in the third world and China. Fashion can be described as the popular style or a style that differentiates the current period from the past. In the clothing industry, fashion describes an ultra-modern piece of clothing that describes the period in which people are living in (Law 2004).Advertising Looking for dissertation on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More In modern time, Fashion not only describes clothing but also other accessories such as footwear, jewelry and bags among others. Fashion exists in three main categories which may further be split into other categories. The main categories are: Haute Couture, ready to wear and mass market (Jones 2005). Haute couture Haute Couture describes custom-fitted piece of clothing that is exclusively made for a single person. These types of cl othing are usually created from very expensive, high quality fabrics and sewn together with intense consideration to detail (Jones, 2005). This time consuming work is usually carried out with experienced seamstresses and is done by hand. In France, the term is protected by law and can only be used by fashion companies that meet a given set of criteria. However in other parts of the world, the term describes expensive and exclusive custom-fitted clothing. Ready to Wear This are clothing that can be described as a cross between mass-market cloths and Haute Couture. They are clothing made in factories and sold in standard size but tailored to a person’s frame (Law 2004). They are usually created from a single design, made with factory machinery and in standard patterns using quicker production techniques. Ready to design clothing are usually more informal and practical than haute couture and can be worn by the average citizen. In some cases, ready to wear clothing are produced i n limited numbers to create a sense of style. Ready to wear can either exist as bespoke or made to measure. In high-end fashion, this type of garments are usually crafted after a famous dress or design that is then copied and advertised using fashion shows to raise the consumer perception of the designer. High-end set to wear clothing are frequently produced by fashion abodes who present their collected works during the fashion week. Mass market These types of clothes are produced to cater for the general population. They are created from a single pattern, mass produced in factories and released in the market.Advertising We will write a custom dissertation sample on An Overview of the Designer Clothing Market in the UK Fashion Retail industry specifically for you for only $16.05 $11/page Learn More In recent times, mass market products may be copies of ready-to-wear garments, produced under the factory system with materials that are not as expensive and have lower quality that both ready to wear and Haute Couture. Mass market products are released in a number of standard sizes in order to cater for as many people as possible (Law 2004). Designer Clothing Brands Designer clothing is used to describe clothing that has the logo of a distinguished fashion designer (Jones Robb 1997). In the fashion industry, designer clothing is used to describe highly creative clothing made for the high-end market by various distinguished fashion houses. In some cases, designer clothing may not be creations of the fashion designer but rather a work by a manufacturer who has struck a deal with the fashion house (Katics Peterson 1994). The degree to which these designer clothes resemble the designer’s creation may vary according to the agreement between the designer and the manufacturer. Designer clothing is those clothing made by either: a European couturier such as Chanel; a European luxury goods house such as Gucci; or a sportswear label suc h as Calvin Klein (Levitt 1993). In the United Kingdom top designer brands include: Burberry, Christian Dior, Hermes, and Fred Perry among others. Fashion designing on the other hand can be defined as the art of crafting fashionable clothing (Key Note 1998). In recent time however, fashion not only describes clothing but other accessories such as foot ware, jewelry and bags. Fashion designing has evolved not only to becoming an acceptable career choice but also a course to be studied in school. Designers are usually required to The UK fashion Retail Industry Unlike the normal clothing industry, the design industry deals with high end products that are often marketed through the use of fashion shows. In the designer clothing industry, the top designers and fashion houses act as trend setters for the global fashion industry. The trends set by companies such as Christian Dior, Armani, Louis Vuitton etc. not only strengthen the global fashion industry but also add value to various consu mer clothing products that try to draw content and inspiration from the designer sector.Advertising Looking for dissertation on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More The UK fashion retail industry is the third largest in Europe worth over thirty billion pounds. The United Kingdom fashion retail industry has over 35 million consumers all of whom spend over 6% of their income on clothing (Sharp 2009). Unlike most of the other parts in the world, Britons are very fashion conscious and thus the clothing turnover volume is quite high in the UK. According to Jones (2005), there are various aspects involved when examining the retail fashion industry: Size and the growth rate of the industry. Structure of the industry Consumer decision making process Rate of change in product demand The fashion cycle Direction in which new styles enter the industry Market Size The UK fashion retail industry can be said to have began in the beginning of the 20th century. Growth during this time was small, as between 1906 to 1938, only a 38% growth was realized (Jones 2005). During the World War II period, rationing was instituted in the country and the fashion industry experienced a dramatic decrease in size. After the war, the fashion retail industry slowly regained its size. The period between 1975 and 1990 saw an increase of over 70% in the retail clothing market (Law 2004). Due to increase in wealth and reliance on fashion, the current fashion retail industry is far mush above that in the 90s. Changes in the UK fashion retail industry has however been growing very slowly since 2004 due to poor economic conditions brought about by the global recession. The table below summarizes the spending habits of UK consumers during different years in recent history: 1964 1984 1994 2004 % % %  £ millions % Food and Drink 17.1 12.3 10.7 63,873 9.4 Alcohol and Tobacco 11.3 7.2 5.0 26.312 3.9 Clothing and Footwear 3.8 4.2 4.8 47,236 6.9 Clothing only 3.0 3.4 4.0 41,208 6.0 Housing 25.9 24.2 21.0 118,160 17.3 Household goods and services 5.3 4.9 5.5 40,503 5.0 Health 2.1 2.1 2.0 11,356 1.7 Transport 11.5 15.3 14.7 97,422 14.3 Commun ication 0.5 1.0 1.4 15,985 2.3 Recreation and Culture 4.3 6.8 8.9 90,603 13.3 Education 1.4 1.4 1.6 9,565 1.4 Restaurants and Hotels 14.0 13.6 12.7 78,280 11.5 Miscellaneous services 9.3 10.3 13.1 81,898 12.0 Total domestic expenditure 100 100 100 681,193 100 Source: Jones (2005) The changes in consumer spending especially in the fashion industry may be due to the change of products, social change or a change in the demographics. The large increase in consumer expenditure in the fashion industry over the years can be clarified by reference to increase in real income and consumption. The UK fashion industry is thus likely to continue being attractive to both foreign and domestic fashion house and other fashion suppliers. In the UK market, women’s clothing account for over 56% of the total fashion industry. A research by Mintel (2000) most of the men in the UK are not really concerned about their appearance. The report also noted that only about 2% of UK men buy th e latest clothing and accessories and that only 7% of men are shopaholics compared to 20% of women. Consumer Decision Making Process Consumer decision making in fashion retailing is mainly influenced by the mode of marketing and social-demographic factors. The mode of advertisement generally has a very impact on convincing consumers to buy a product. The use of fashion shows has been very successful over the years since consumers get to see exactly what they are buying and the glamour behind the show is especially attractive to women buyers. The availability of the internet has taken marketing global. Fashion houses and production companies can promote their wares through the internet increase their visibility. However, a survey carried out by Karayanni (2003) concluded that online shopping in the fashion retail industry will never outdo personal selling especially in the UK. He notes that women, especially young women, in the United Kingdom love the feel and thrill of shopping. Wom en like window shopping, trying out new dresses and the feel of carrying home a new dress. This according to them, is the only means of shopping. The internet is rather impersonal and can only help in alerting people when a new fashion line has been released or to list the collection that a fashion house has. In 1994, the number of women working was about 53%. According to Scott (2009), this number had risen to 70% in 2008. The large number of working women, increase in shopping centers and the availability of credit facilities encourages shopping. Most women consider fashion shopping as a leisure activity or as a means to alleviate stress. This leads to increase in expenditure and thus a growth in the fashion industry. Cultural change has also played a major role in determining the direction in which the fashion retail industry in taking. Over the years, the UK has been becoming more and more culturally diversified. This has brought about changes in food and style of clothing. Cert ain social changes such as the new trend where more and more employee wear informal clothing to work and increase in leisure activities all cause a change in the UK fashion retail industry. Concept, Structure and Characteristic of Designer Clothing Brands The designer fashion industry is mainly concerned with producing high-end high quality fashion that are more exclusive and are generally marketed through the use of fashion shows. Most fashion houses share the same characteristic and infrastructure. In the design fashion industry, most of the products are launched after a given period of time. These launching seasons may vary but most fashion houses/brands have a minimum of two seasons each year. Smaller fashion design house generally tend to use student interns and freelances to develop their clothing line. This is mainly to manage cost while at the same time importing expertise from a variety of sources. Large businesses on the other hand are already established and while they so metimes consult freelancers, they usually have a team of designers who have had ample experience in designing. The fashion houses engage in massive research and development activities in order to keep up to date with the latest trends (Kaiser 1990). They usually search for better and high quality fabrics from many sources and release new collections at least after every six months. The top fashion houses usually release more than two collections every year to correspond with the fashion shows in important parts of the world. Unlike other industries, the fashion industry main form of marketing is through trade fairs and fashion weeks. There are three important fashion centers in the world: London, Milan, Paris and New York City. A fashion show in these four main cities usually attracts a lot of attention from the general public, major supplies, television stations, influential persons and magazines. Most fashion houses release one collection each international trade fair. This not on ly grants them international recognition but the fairs act as a means to market and sale their products. Designers usually collaborate with stylists, who are responsible for generating media attention, brokering celebrity endorsements, and promote collaboration between the fashion houses (Murphy 1999). During the initial stages, most fashion house produce their goods in the UK. After gaining enough capital and coverage, the fashion house usually collaborate with manufacturers in other countries where consumer volume is higher and the cost of production lower. Marketing Mix The marketing mix involves elements involved in marketing that will enable a company to produce need-satisfying goods and also improve consumer loyalty while creating awareness for new consumers (Pepall, Daniel Norman 2005). There are seven important elements in the marketing mix. In designer clothing market marketing mix is mainly geared on keeping consumers happy while at the same time create awareness for a ne w collection line as soon as it is availed. The marketing mix used by most Designer clothing brands include: Product Unlike some industry where the product is produced and the market is searched afterwards, the designer clothing industry must find out what is in style and what is not. The main success in designer clothing is producing clothing of high quality and in fashion. The clothes have to be in synch with the time and period of sale. The product cycle of most designer clothing is not long therefore most designer clothing houses must produce clothing that will last the initial hype and generate enough revenue (Kotler 2009). Design houses are required to carry out intensive research on consumer perception and the social and culture change happening around them. They need to be aware of any change in taste in order to produce goods that will conform to the prevailing fashion. Price Due to the high quality of produced goods and due to the fact that most designer clothes are made t o target the high end market, most of the products developed by the designer clothing houses are usually expensive. Renowned designer houses are usually not considered with price wars as they have a constant supply of loyal consumers who are capable of buying their products. Houses such as Galliano, Hermes, Burberry, Christian Dior etc. are major fashion houses and usually price their products according to clientele and according to the style and quality of the products (Katics Peterson 1999). Smaller fashion designer houses usually put competitive house that depend on the level of exposure, economic conditions and the period in which they released their collection. If an upcoming designer company releases its collection when notable houses have also released theirs, it would be necessary for the house to target other consumers by reducing the price of the products. Place As noted earlier, most of the products in the fashion industry are sold through retailers. Products from design er clothing companies are usually sold in their own retail outlets or a few selected retailers in the country. In most places, there is a fashion district where many designer clothing retail shops are concentrated and in some places it may only be a street full of designer clothing retailing shops. Most of the retailing outlets are usually in the middle of town centers in order to attract more customers. Many fashion houses have also situated there retailing outlets in high-end districts in order to avail themselves to wealthy consumers. Retailing shops are usually uniquely decorated in order to portray style and sophistication that the buyers of designer clothes may relate to or wish to relate to. Promotion Promotion in the designer clothing industry differs a lot as compared to other industry. First, the main means of designer clothing promotion is through participation in fashion week and the various trade fairs held all over the world. The UK designer clothing companies are very fortunate as they can easily participate in three of the major fashion week shows in the world. The other mode of promotion is through personal selling. Most consumers of designer clothes are women accounting for about 56% of all buyers. Women generally enjoy the fuss and feel of buying a new clothe. Clothing is just not a simple activity rather it is a leisure activity, a ritual and to some even a therapeutic process. Personal selling thus becomes very important as a woman not only gets to interact with the clothes but also with the person offering their services. The last main important means of promotion in the designer clothing industry is through branding. A clothe is as only as good as its brand in the designer clothing industry. Companies try to build up their brand name by constantly realizing innovative and creative designs that increase their visibility in the world. A company with a strong brand is like to attract a large number of loyal buyers. Most consumers in the des igner clothing market are driven to consumption mainly due to brand names. People Designer clothing industry is mainly about attitude. From the models on stage to the sales clerks in retail shops, all the people connected with designer clothing brand should portray class and sophistication (Kaiser 2009). The people working for designer clothing brands should not only be trained on how to do their jobs but should personify the business in all their activities. Most consumers of designer clothing link the product with the service provided. This is because excellent service is just as important as buying the product itself. Therefore it is important that everybody connected with the brand have excellent communication skills, be classy and be kind and patient because one bad review might cause a dent in consumer perception. Process Process involves all activities involved in delivering services to a customer (Sharp 2006). Waiting time, after sales service, and the helpfulness of the sta ff are all important aspects of the process. Designer clothing companies are usually well managed and thus there is minimal waiting time and the sales personnel are usually trained to be helpful, well mannered and knowledgeable about the company’s products. The company should always ensure that customers are kept informed about important events such as fashion shows and new about the release of new collections and their price. Overlooking the process might lead low consumer satisfaction, bad reviews and poor perception of the brand Physical Evidence In designer clothing industry, a company should be able to prove that it indeed can provide high-end classy clothing. This is usually personified by its ability to compete well in the fashion shows and the nature and organization of it retail outlets (Jones 1996). Participation is one of the important ways that a company can provide physical evidence that its clothing can meet consumer expectation. The premises of these companies must be spectacular, eye catching and able to convey class. This will generate word of mouth that will attract more and more consumer to the premises. Designer Clothing Brands in the UK In 2009, the fashion retail industry in the UK was worth  £52 billion (Grail 2010). The UK high-end designer clothing companies are about than 400 as per 2009 London fair. As of 2009, the adult designer clothing market was worth  £1.9 billion accounting for 6.5% of the entire adult fashion retail industry. The top 10 designer brands contributed more than 40% of the total designer clothing sales (Grail 2010). Due to the poor economic conditions being experienced, the sales of designer clothing in the United Kingdom are growing very slowly. The companies still enjoy sales from loyal consumers and sales from foreign companies have increased considerably during the last five years, especially sales in China Overview of Notable Brands Burberry Burberry Inc. is a luxury fashion house originating in Bri tain. It became widely known for the trench coat design created by Thomas Burberry, its founder. The company’s brand has been ranked as the 98th most valuable brand internationally. In 2010 the company had an operating income of  £171.1 million and a net income of  £82.2 million. It has stores in over 473 locations with 15 stores in England. The company produces clothing, fashion accessories and perfumes (Nielson 2011). Christian Dior Christian Dior is a French company that also operates in the United Kingdom. It was started by the designer of the same name in 1946. The company mainly deals with Haute Couture aimed at the high end market. The company operates about 160 boutiques in various parts of the world and has over 76, 000 employees as of 2010. In 2010, the company had a net profit of â‚ ¬1.261 billion, an operating income of  £4.142 billion and assets worth over  £41.20 billion (Nielson 2011). Chanel Chanel is a French fashion house founded in 1909 by the Fr ench couturier Gabrielle Chanel. The company deals with Haute Couture, perfumes, hand bags and other fashion accessories. The company went after elegance and turned away from â€Å"sexy†. The company has about 1,270 employees and very few stores worldwide. In 2010, the company had revenue of  £1.809 billion with a net income of  £280.3 million (Nielson 2011) Hermes This is also a high-end fashion house originating in France. The company specializes in leather, perfume, handbags and ready-to-wear items. The company was founded in 1837 by Thierry Hermes (Colino 2010). In 2010, the company had total revenue of  £2.401 billion, a net income of  £421.7 million and assets worth  £2.919 billion. The company has over 8000 employees in different parts of the world (Nielson, 2011). Louis Vuitton It is also a French fashion house that also operates in most parts of the UK. It was founded in 1854 by a designer of the same name. The company produces ready-to-wear, shoes, hand ba gs, luxury trunks, jewellery and leather goods. The company markets its products through high-end retail stores, boutiques and the internet. In 2010 the company had total revenue of over  £2.1 billion (Louis Vuitton 2011). Conclusion The fashion retail industry has been described as the most dynamic, competitive and fragmented market in the world. In 2009, it was worth over  £52 billion and was one of the biggest employers in the country. The Fashion industry has been experiencing some problems mainly due to the global recession and imitation designer clothes from countries such as India and China. To maintain competitive advantage, designer clothing companies should revise their marketing mix and ensure that they not only keep consumers but also attract more consumers both from the UK and from the rest of the world. This paper has looked at the nature and characteristic of the UK fashion retail market as well as the characteristic of designer clothing market. It can be seen tha t the designer clothing market is not under too much pressure from the economic slowdown since most of its consumers are wealthy and can afford to buy whenever the need arise. An overview of the marketing mix used by designer clothing companies has been provided to understand how they operate. The designer clothing market accounts for over 6.5% of the total fashion retail market therefore it is worth a lot of money and with proper business strategy one may stand to earn a lot from this industry. References Colino, N., 2010. The Hermà ¨s Scarf: History Mystique. Thames Hudson, New York Cumming, V., 2004. Understanding Fashion History. Costume Fashion Press, New York Grail, R., 2010. The Global Fashion Industry – Growth in Emerging Markets. Grail  Reports, 3(12):1-25 Jardine, A., 1999. Traditional Retailers face the High Noon. Marketing, 16(9), pp23-24 Jones, R. M., 1996. Demographics, Distribution of Income and Wealth and the Marketing of Fashion in the UK. Journal of Te xtile Institute., 90: pp1-14 Jones, R. M., 2005. The Apparel Industry. Wiley and Sons, New York Jones, R.M Robb P., 1997. The demand for clothing in the UK and Sweden. The  Journal of Fashion Marketing and Management,1, pp.113-120 Law, K., 2004. Fashion change and fashion consumption: the chaotic perspective. The  Journal of Fashion Marketing and Management, 8(4), pp.362-375 Levitt, T., 1993. The Globalization of Markets. Harvard Business Review,56, pp. 92-103 Louis Vuitton, 2010. Annual Report. Web. Kaiser, S., 1990. The Social Psychology of Clothing. Macmillan, New York Karayanni, D., 2003. Web shoppers and Non-shoppers. European research Journal,  15(3), 141-152 Katics, M. Peterson B., 1994. The effect of rising competition on import competition in market power. American Economic review, 88, pp. 107-120 Key Note. 1998. Clothing Manufacture. Key Note Ltd: Hampton, Middlesex Kotler, P. 2009. Principles of Marketing. New York: Prentice Hall. Pepall, L., Daniel J. Norman, J ., 2005. Industrial Organization, Contemporary Theory  and Practice. Ohio: Thomson South-Western Scott, D. 2009. The record number of Women Employed in the UK. BBC news. Available at:  http://news.bbc.co.uk/2/hi/uk_news/7638056.stm Sharp, T. 2006. Marketing and the 7 Ps. Strategic Management. 8(12), pp. 4-8 This dissertation on An Overview of the Designer Clothing Market in the UK Fashion Retail industry was written and submitted by user Jimena H. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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