UK Fashion Industry
MANSOOR AKRAM DENIZ KURUGOLLU SUNDEEP RAI JASON NEUMAN VLADIMIR GEORGIEV
Agenda I. DEFINE THE INDUSTRY SECTOR II. SECTOR SIZE AND CONCENTRATION III. KEY TRENDS IN THE BUSINESS ENVIRONMENT IV. GROWTH RATE AND SECTOR SIZE PROJECTIONS V. WHICH ARE THE KEY FIRMS IN THE SECTOR?
I. Industry Sector Fashion
Retail and manufacturing
Boundaries
Industry Sector Cntd‌  Standard Industry Classification (SIC) 52.41 52.42 52.42/1 52.42/2 52.42/3 52.43/2
Retail sale of clothing Retail sale of adults' fur and leather clothing Retail sale of children's and infants' clothing Retail sale of other women's clothing Retail sale of other men's clothing Retail sale of leather goods
II. Sector Size and Concentration
Source: Š British Fashion Council 2008
II. Sector Size and Concentration Impact of the Industry
Key Trends in Business Environment
Exchange rate
Recession
Eco-Fashion
Aging Population
Male attitudes towards Fashion
Online retail
IV. Growth Rate and Sector Size Projections
•VAT •Workers Spending •Income Tax
Source: © British Fashion Council 2008
IV. Growth Rate and Sector Size Projections Forecasts for the UK Economy (000, % and million), 2009-2013 Year UK resident population (000) Gross domestic product growth (%) Inflation (%)
2009
2010
2011
2012
2013
61,858
62,309
62,761
63,209
63,650
-3.9
0.2
1.9
2.4
2.6
-1.3
1.7
2.3
2.9
2.5
†
The Forecast Total UK Clothing Retailing Market by Sector by Value at Current Prices (£m at rsp), 2009-2013 % Change Year 2009 2010 2011 2012 2013 2009-2013 Women’s 19,216 19,312 19,602 20,092 20,896 8.7 garments Men’s garments 10,992 10,970 11,079 11,412 11,787 7.2 Children’s 6,996 6,926 6,995 7,086 7,298 4.3 garments Clothing 2,080 2,122 2,186 2,252 2,326 11.8 accessories Total % change yearon-year Source: © Mintel 2010
39,284
39,330
39,862
40,842
42,307
0.1
0.1
1.4
2.5
3.6
7.7
IV. Growth Rate and Sector Size Projections
Recession Olympics
Material Prices
Source: © British Fashion Council 2008
V. Key Firms in the Sector
Marks & Spencer
16.0% 14.0%
Next UK
Primark Stores New Look
12.0%
%
Arcadia Group
Market Share
18.0%
10.0% 8.0% 6.0% 4.0%
2.0% 0.0% 2005
2006
2007
2008
2009
Source: Mintel Clothing Retailing 2010-2006
Stores Openings International Expansion
V. Key Firms in the Sector 1. Marks & Spenser PLC
3. Arcadia Group
2. Next PLC
Taveta Investments Ltd (100%) Shareholders
4. Primark
Shareholders
Sir Philip Green
5. New Look
Associated British Foods PLC (100%) Wittington Investments (50+%) The Garfield Weston Foundation (79%)
Apax Funds & Permira Funds 55.4%, Founder 22%, Board Directors
Garfield Family
Adapted from Van Frederikslust R. A. I., James S. (2008)
V. Key Firms in the Sector Strengths
Weaknesses
Variety of UK high street
Product Positioning
Primark in the new sector of
Ultimate ownership
disposable fashion
Rivalry of competitors
Q&A