CLOTHING & FOOTWEAR STATISTICS

CLOTHING
The clothing market grew by 0.9% in 2003 to reach a value of £20.4 billion. By 2008 the market is estimated to be worth £22.2 billion, an increase of 9.6% since 2003. In 2003 womenswear accounted for 59% of the apparel retail market in Britain.

The market accounted for 15.2% of the European apparel retail market in 2003.

SMALLER FASHION MULTIPLES 2005

Smaller fashion multiples are among the winners in the clothing market.

The clothing market is highly fragmented – particularly in womenswear, the main driver – and is highly competitive. The market is polarising into two main models: the value-driven one with low prices and volume sales; and the smaller fashion multiple that has lower volume but a higher margin. Both produce stronger growth than the mass middle market which is being squeezed out of the equation.

And the grouping of smaller fashion multiples produces larger and more credible businesses.

Slow growth and price deflation have been two constants in the clothing market over the past three years and are likely to remain so for at least a couple more. In this environment we expect to see more grouping of smaller fashion brands like the Mosaic Fashion Group.

Verdict on Smaller Fashion Multiples 2005 covers a representative sample of successful smaller fashion multiples employing best practices for this model. This highlight a number of shared features including:
– The common feature of investment in design, ensuring these winners stand out from the crowd and justify their higher price positioning
– A higher cost ratio to sales of design facilities and marketing offset by higher margins
– More flexible distribution channels than mass market retailers

CLOTHING & FOOTWEAR

The U-shaped curve showing the sales performance of clothing retailers against all retailers in the past decade is partly a reflection of consumer expenditure being diverted towards non-clothing items (such as mobile phones) during the late 1990s and clothing retailers benefiting from the consumer spending boom following the turn of the millennium.

Another factor that explains the shape of the curve is the market itself and the way it has changed. Consumers have become more selective in the past ten years, a trend which clothing multiples have capitalised on since 2001. Indeed, the growth of the sector in recent years has been driven by strong performances from clothing multiples, which is particularly impressive considering that it has taken place against a backdrop of deflation and increased competition from grocers and department stores.

The late 1990s saw specialist footwear retailers lose share of all retail sales. Their share now seems to have stabilised at around 1.8%. The year-on-year fluctuations most likely reflect fashion trends moving towards or against the styles sold by specialists, as well as the popularity and level of activity of non-specialists.