ISSUE
03
tail
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Blue Print
03
Trend and insight report from American Express
EMBER 2013
luxury retail AMERICAN EXPRESS AUSTRALIA LIMITED (ABN 92 108 952 085). 速REGISTERED TRADEMARK OF AMERICAN EXPRESS COMPANY
NOVEMBER 2013
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ISSUE 03 :
Blue Print
LUXURY RETAIL
THE RISE OF THE PEACOCK
Welcome GEOFF BEGG VICE PRESIDENT & GENERAL MANAGER GLOBAL MERCHANT SERVICES AUSTRALIA & NEW ZEALAND AMERICAN EXPRESS
WELCOME to BluePrint.™ Inside, you’ll find the very latest market trends and consumer insights, produced in conjunction with Australia’s leading online business content site, Business Spectator.
In this edition, our last before the holiday season, we report how Australian men are taking an increasing interest in style – in particular high-end fashion. We hear from the Australian menswear retailers (both traditional and rising) who are already taking advantage of this massive, and unexpected, market: the Aussie male’s new-found interest in looking sharp. And while we feature other businesses, it’s your business that continues to be a key partnership for American Express. I trust you’ll look upon the content within as a useful resource. Finally, my team is always open to hearing your feedback or questions, so please don’t hesitate to call your individual Client Manager, or the Merchant Services team on 1300 363 614.
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omething dramatic is happening to Australian men. They are increasingly becoming fashion and style conscious, arguably for the first time ever, prompting a new phenomenon known as ‘the peacock’. ‘The peacock’ refers to alpha males who revel in their unique style and fashionable dress, a kind of plumage designed to attract mates. According to Henry Bucks managing director Tim Cecil, his company is certainly enjoying the resurgence of interest in men’s fashion. “I don’t know if it is the impact of shows such as Mad Men or the effect of the film The Great Gatsby, but Australian men have been certainly showing a lot more interest in fashion over the last two to three years,” Cecil said. Retailers should be fascinated by this phenomenon. Bain and Company last year estimated worldwide revenues from men’s clothing in 2012 at 26
billion Euros ($34 billion), a 10 per cent increase on the previous year. Not only has there been a dramatic increase in the value of this market, but there has also been a significant change in buying patterns. Men are generally taking a greater interest in their clothes than ever before, with many buying for themselves rather than relying on their wives or partners to buy for them. One argument for the emerging awareness and appreciation of fashion in the current era is that men can now shop and compare fashion online, rather than having to deal with a ‘mall environment’ designed specifically for female shoppers. Men can take time to make a decision, rather than feel rushed or uncertain. Websites such as fashion leaders East Dane from the US (the male counterpart of the enormously successful shopbop.com) and England’s Mr Porter.com are booming. They make it very easy for men to buy trusted brands online, and they have a sensible returns policy. Shopbob’s President Jeff Yurcisin explained to The Wall Street Journal that male online customers have vastly different habits when it comes to shopping than females. They’re far more likely to visit on a weekly, not daily basis, buy brands they’ve purchased in the past, and rely on the advice of an expert over a friend. Mr Porter, which stocks brands such as Comme des Garcons, Balenciaga, Valentino and Burberry, is a maleoriented sub-brand of the Net-a-Porter site. It is much more than just a source of clothing and accessories; it also provides advice and engagement with customers.
I don’t know if it is the impact of shows such as Mad Men or the effect of the film The Great Gatsby, but Australian men are certainly showing a lot more interest in fashion over the last two to three years TIM CECIL, CEO HENRY BUCKS
ISSUE 03 :
Blue Print Mr Porter’s Editor-in-Chief Jeremy Langmead says the idea is about filling a gap in the market by providing a dedicated online men’s store that provides customers with information and advice. “At the moment, shopping online for men means entering a unisex environment and finding a little tab for menswear at the top left of a homepage. We don’t want that. It’s the online equivalent of having to walk through the beauty hall of a department store in order to find the men’s suits,” Langmead says. “Mr Porter is designed, created and curated to make it a totally guy-friendly shopping experience.” “Men are dressing up more now, becoming a lot more knowledgeable about brands and style. But as they become more knowledgeable, they less feel the necessity, or urge, to have to brave the bricks and mortar stores. They want to be able to shop more conveniently from the office or home.” Meanwhile, there has been a quiet revolution with the tried and trusted upper end of the men’s fashion market. Brands such as Australia’s Harrolds are making themselves relevant by matching their tailored product with highly contemporary style and doing it with a ‘salon’ feel. Customers may be treated to a glass of sparkling wine or even a freshly made espresso in a man-friendly domain that blends the sense of the craft of tailoring and contemporary style brilliantly. Melbourne clothing icon Henry Bucks, one of the world’s last major menswear businesses to remain in
LUXURY RETAIL
THE RISE OF THE PEACOCK
At the moment, shopping online for men means entering a unisex environment and finding a little tab for menswear at the top left of a homepage JEREMY LANGMEAD MR PORTER
family hands, is almost a gentlemen’s club, offering an amazing array of ready-to-wear and made-to-measure outfits, but supporting its clients with everything from a barber shop through to shoe or umbrella repairs – even providing a dry-cleaning service. There are three stores in Melbourne, two in Sydney and one in Adelaide, a thriving catalogue business (via mail order and the internet), and occasional ‘trunk shows’ that travel to most Australian cities presenting the seasonal collections. Henry Bucks is one of the few Australian retailers still making its own shirts, with the vast bulk sourced in either Fiji or Bangladesh. Henry Bucks is also famous for its incredible range of small fashion items, from cufflinks to cravats and everything in between. “We have really seen a resurgence of interest in classic, quality men’s
fashion. There has even been an upsurge of interest in people taking on the tailoring trade,” Cecil said. “I think in the past there was a tall poppy syndrome operating in Australia where other men were quick to comment on someone being a little flamboyant. Nowadays, it is very acceptable. “Our AFL footballers are taking their clothing seriously. The Brownlow Medal presentation has become a very important men’s fashion event. “We are noticing a lot of our customers are doing their research on the web. People are very time-poor these days and they want to maximise their shopping time. They can do this by knowing what they want before they come in to Henry Bucks.” With growing numbers of men drawing inspiration from blogs such as The Sartorialist, it’s unsurprising that a refined, elegant approach to
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10% increase
Bain and Company estimated worldwide revenues from men’s clothing in 2012 at 26 billion Euros ($34 billion), a 10% increase on the previous year SOURCE: BAIN AND COMPANY
fashion has become so popular. But men are more reliant on guidance from experts. David Bell, a Wharton School marketing professor, told The Wall Street Journal that shopping can highlight significant differences between the sexes. While window-shopping can be quite enjoyable for women, “for a man to walk into a retail environment and walk out with nothing – that would
be a failure”, Bell said. Employing a ‘clicks and bricks’ strategy allows men to decide on a garment before they set foot into the store to purchase it, ensuring that the experience is a streamlined and successful one for consumer and retailer alike. This article represents the views of the author only and not those of American Express.
$402 billion
The world market for menswear is expected to exceed $402 billion in 2014. This represents market expansion of over 14% during a five year period SOURCE: WWW.REPORTLINKER.COM
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