UK Fashion Industry

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