Abstract
The online fashion retail market has boomed in the last five years and shows no signs of stopping. In 2007, Mintel estimates that the market was worth £2.38 billion and for 2008, this is expected to increase by 26.3% to £3 billion. The market is being driven by a widening in consumers' online purchasing repertoires from established categories like entertainment goods, making it one of the fastest-growing categories.
New groups of consumers are being won over by the widening choice of fashion on offer online, as high street retailers progressively abandon their concerns about selling on the internet and decide that they cannot be without a presence there.
Only a very few bricks-and-mortar retailers are holding out from selling online; these are mostly at the very cheapest end of the market, such as Primark and Tesco, or at the top end, like Selfridges. They will be forced to change their minds, as customers come to expect as the norm a transactional website in addition to physical stores, and are disappointed if it is not available.
Main reports themes:
- Online expenditure is expected to make up 6.1% of clothing and footwear spending in 2008. This will start to have an impact on high street fashion retailers' overall business models.
- Factors like widening broadband take-up and the increasing availability of fashion online are helping to drive the market, but could this be derailed by security worries?
- M&S has taken the lead among the multi-channel players. How are the others performing?
- The 20-24s think there is more choice online, while men think it is cheaper. How can retailers make the most of their customers' particular views and tastes?
- How are different groups like multi-channel retailers, pure-players and catalogue retailers performing?
- How can less keen customer groups like men and older consumers be encouraged to buy?
Table of Contents
- Issues in the Market
- Main issues
- Definition
- Industry Insights
- Key points
- Impact from the economic downturn
- Expectations for 2009
- The best online fashion retailers
- Customer expectations and delivery
- What is happening within website navigation?
- Is offline presence essential?
- Marketing strategies trends
- Which e-tailers are best at marketing?
- Will any retailers be able to hold out against going online?
- How can returns rates be reduced?
- What are the obstacles and the opportunities for future growth?
- Internal Market Environment
- Key points
- The growth of the 35-44 shoppers
- Figure 1: Percentage of internet users buying clothing and footwear in the past three months, by gender, age, socio-economic group and presence of children, July 2006 and April 2008
- Fashion close to overtaking books
- Figure 2: Top ten, physical goods retailers' websites, actually purchased from in the last three months, 2003-08
- Broadband: More and faster
- The growth in mobile access
- Figure 3: Broadband internet, at home penetration, 2003-08
- Increasing availability of ranges online
- Internet fraud worries still important
- Figure 4: Extent to which security concerns affect purchasing on the web, April 2008
- Improving customer experience
- Broader Market Environment
- Key points
- Increased price sensitivity?
- Figure 5: PDI, at current and constant 2003 prices, 2003-13
- Spending slowdown
- Figure 6: Consumer expenditure, 2003-13
- The over-45s to grow
- Figure 7: UK population, by age, 2003-13
- Clothing and footwear price deflation
- Figure 8: Clothing and footwear spending, 2003-08
- Professional and managerial jobs will boost online sales
- Figure 9: UK adult population aged 15+, by socio-economic group, 2003-13
- Market Size and Forecast
- Key points
- Online fashion market booms
- Figure 10: Market size and forecast of online retail sales of clothing and footwear, 2003-13
- Forecast
- Figure 11: Market size and forecast of online retail sales of clothing and footwear, 2003-13
- Figure 12: Market size and forecast of online retail sales of clothing and footwear, 2003-13
- Figure 13: Online spending as a percentage of total spending on clothing and footwear, at current and constant 2008 prices, 2008-13
- Online spend to take up a tenth of market
- Factors used in the forecast
- Market in Context
- Key points
- Online retail sales
- Figure 14: Online and total retail sales, at current prices (Inc. VAT), 2003-08
- Fashion' s share of online
- Figure 15: Online retail sales of clothing & footwear compared with total online Retail sales (Inc. VAT), 2003-08
- Online becomes major fashion distribution channel
- Figure 16: Consumer online and total spending on clothing and footwear, at current prices, 2003-08
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Channels of Distribution
- Catalogue retailers dominate
- Multi-channel to expand further
- Figure 17: Shares of online fashion market, by channel, 2008 (est)
- The Consumer -- Where Do They Buy Clothing Online?
- Key points
- Online clothing shopping -- trend data
- Marks & Spencer opens up lead on high street rivals
- Figure 18: Where they buy fashion online, for themselves and for others, May 2008
- Marks & Spencer a success with AB women
- Debenhams attracts young audience
- John Lewis attracts upmarket gifters
- Next weak on attracting male shoppers
- Figure 19: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- Oasis and River Island weak in buying for others
- Burton and Topman competing head on
- Few Dorothy Perkins female shoppers buy for others
- Monsoon fails to attract its core 35-54 audience
- Figure 20: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- Sports shops could attract more upmarket customers
- Austin Reed and Wallis miss out on self buyers
- Figure 21: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- New Look misses out on older groups
- Tesco a popular choice
- Catalogue operators retain their audience
- ASOS level with Topshop
- Figure 22: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- La Redoute could attract more men
- Figleaves attracts male gifters
- Auction sites hugely popular across the spectrum
- Almost half of men haven' t bought clothing online
- Figure 23: Where they have bought clothing online, by age, gender and socio-economic group, May 2008
- Retail Competitor Analysis
- Key points
- Leading pure-players
- Figure 35: Leading pureplay online fashion retailers, 2008
- Catalogue operators
- Figure 36: Leading catalogue fashion retailers, 2008
- Multi-channel retailers
- Figure 37: Leading multi-channel online fashion retailers, 2008
- Evaluation
- Figure 38: Online retailers, evaluation, 2008
- Retailer recommendations
- Retailer Profiles
- Arcadia
- Market positioning
- Strategic evaluation
- Financial performance
- Figure 39: Arcadia, turnover, operating profits and margin, 2002-07
- Brands/product offering
- Advertising and marketing
- ASOS
- Market positioning
- Strategic evaluation
- Financial performance
- Current trading
- Figure 40: ASOS, Group financial performance, 2002-08
- Brands/product offering
- Operational issues
- Advertising and marketing
- Boden
- Market positioning
- Strategic evaluation
- Financial performance
- Figure 41: JP Boden & Co, financial performance, 2001-06
- Brands/product offering
- Operational issues
- Advertising and marketing
- Debenhams
- Market positioning
- Strategic evaluation
- Financial performance
- Figure 42: Debenhams, gross transaction value, turnover, operating profits, pre-tax profits and margin, 2002-07
- Brands/product offering
- Operational issues
- Advertising and marketing
- Figleaves.com
- Market positioning
- Financial performance
- Figure 43: Figleaves Global Trading Ltd, turnover, operating profits and margin, 2002-07
- Brands/product offer
- Advertising and marketing
- Littlewoods Shop Direct Group
- Market positioning
- Strategic evaluation
- Financial performance
- Figure 44: Littlewoods Shop Direct Group, turnover, operating profits and margin, 2002-07
- Brands/retail offering
- Operational issues
- Advertising and marketing
- Marks & Spencer
- Market positioning
- Strategic evaluation
- Financial performance
- Figure 45: M&S UK, retail sales, by merchandise category, operating profits and margin, 2005-08
- Brands/retail offering
- N Brown
- Market positioning
- Figure 46: N Brown group, turnover, operating profits and margin, 2003-08
- Brands/retail offering
- Next
- Market positioning
- Figure 47: Next, turnover, operating profits and margin, 2003-08
- Brands/retail offering
- Otto UK
- Market positioning
- Figure 48: Freemans, turnover, operating and pre-tax profits and margin, 2002-07
- Figure 49: Grattan, turnover, operating and pre-tax profits and margin, 2002-07
- Brands/retail offering
- Appendix
- Abbreviations & Definitions
- Appendix: Where Do They Buy Clothing Online
- Figure 50: Where they bought clothing online, by region, daily newspapers, internet usage and supermarket used, May 2008
- Figure 51: Where they bought clothing online, by region, daily newspapers, internet usage and supermarket used, May 2008
- Figure 52: Where they bought clothing online, by region, daily newspapers, internet usage and supermarket used, May 2008
- Figure 53: Where they bought clothing online, by region, daily newspapers, internet usage and supermarket used, May 2008
- Figure 54: Where they bought clothingonline, by region, daily newspapers, internet usage and supermarket used, May 2008
- Figure 55: Where they bought clothing online, by region, daily newspapers, internet usage and supermarket used, May 2008
