MC Fashion Marketing
description
Transcript of MC Fashion Marketing
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fashion marketing
helen goworek
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the UK fashion market
• the UK retail clothing market was estimated to
be worth ______in 2012 (Mintel, 2012)
• Clothing is the second largest UK retail sector
(Mintel, 2007)
• ______________ is the largest market
segment, accounting for approx. half of UK
clothing sales
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Source: Mintel, 20123
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Major issues in fashion marketing
• The marketing mix differs from other sectors –
high emphasis on product and an unusual
promotional mix
• Reliance on catwalk fashion and celebrities to
set trends
• Globalisation of manufacturing has affected
clothing prices
• Conflict between ‘fast fashion’ and
sustainability of clothing4
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• large shops and chains = around 75% of the UK fashion market
• The top 12 retailers accounted for 57% of the UK fashion market in 2008 (M&S holding 12%)
• the volume of the UK clothing market is increasing, while prices are decreasing
• in 2000, 73.6% of clothing sold in the UK was
imported, in 2005 this rose to 95%
• between 2001 and 2005, average clothing and footwear prices fell by 14.4% (Key Note 2006)
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• between 2001 and 2005 21% more was spent
on women’s, girls’ and infants’ clothing (Key
Note 2006)
• in recent years sales have moved towards
value and luxury brands at the expense of the
middle sector of the mass market
• supermarkets have increasingly gained market
share
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The Marketing Mix:
the four P’s
product price promotion place
CUSTOMERS7
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the structure of the fashion and textiles
industry
fashion promotion:
trade press and
trade fairs
mass media
textiles manufacturers
clothing manufacturers
retailers
CUSTOMERS
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product
• What makes a product successful?
• UNIQUE SELLING PROPOSITION
• USP
• Well-defined product concept prior to development
• Analysis of target market’s requirements
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When purchasing a fashion product what is the
consumer actually buying?
• the tangible product and intangible ‘bundles of benefits’ e.g.
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Who participates in fashion product
development?
designers
technologistsbuyers
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Fashion design and buying involve developing
commercially acceptable fashion products
within the following parameters :
• price
• appeal to the target customer
• technology
• timescale
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Jean-Paul Gaultier
Prada
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Product life cycle
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Focus groups
• Can be organised by agencies or internally
• e.g. Group of mums and dads for childrenswear:
Opinion on range
Opinion on competition
• Understand your customers’ way of thinking in
relation to your product range
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price within the fashion marketing mix
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fashion market levels
UPMARKET ‘designer level’Haute coutureReady-to-wear- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -MIDDLE MARKET ‘branded’Designer diffusion rangesBranded merchandise- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -MASS MARKET ‘High St’UpperMiddleLower
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‘Designer’ level
• upmarket, expensive
price bracket
• ‘one-off’ creations
(couture fashion) or
ready-to-wear fashion
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•Prada – Miu Miu, Jil Sander, Helmut Lang•LVMH – Marc Jacobs, Pucci, Celine•Gucci –YSL, Alexander McQueen, Stella McCartney, Balenciaga•PPR (Pinault Printemps Redoute)•PVH (Philips van Heusen) – Calvin Klein, Michael Kors
parent companies
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Middle market
• Designer diffusion collections and fashionable brands
e.g.
Mass market
• High street stores and mail order
1.
2.
3.
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• retail prices have to achieve certain profit
margins e.g. 3 x cost price
• value retailers have much lower margins due
to fast sales turnover and supermarket pricing
principles e.g. George, Matalan, Primark
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Hourly labour costs US$ 2002
• Germany $28
• Japan $20
• US $18
• UK $16
• Portugal $5
• China $2
• India/Indonesia $0.75
(Lasserre, 2006)
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• Most people perceive a
relationship between
brand image and quality
• The price charged for a
company’s merchandise
will reflect the status of
that company’s brand
image
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Shoppers in Britain are getting the best bargains since Margaret Thatcher was prime minister. Official figures show many common items cost less now than in 1987, even though wages have
risen substantially…women’s clothing is nearly 25% cheaper now than in 1987.
(Grimston & Smith, 2003)
Deflation has occurred in the fashion market due to
mass market stores trying to keep pace with the value
sector.
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retail price setting
• retail prices are balanced between:
a) customer perceptions
b) manufacturers’ costings
c) retailers’ required profit margins
• own label retailers typically sell at 3 x cost price
• branded merchandise is typically sold at 2 or 2.5 x cost price
• selling prices are set by merchandisers and buyersin mass market retailers
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Merchandise (stock
controllers/allocators/optimisers)
� planning budgets
� deciding the number of lines
within the range
� selection meetings
� placing orders
� markdowns and repeat orders
� progress meetings
� reviewing sales figures
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price architecture
• key entry prices/basics
• mid range
• premium lines
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GOOD
BETTER
BEST
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Paul Smith
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mainlinemenswear
mainlinewomenswear
PS
jeans
accessories
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• major differences in retail prices are caused by
quantities, i.e. economies of scale
• at designer level the customer is paying for
exclusivity
• fashion promotion is a proportionately high cost for
designer merchandise
• the promotion entices the customer with its brand
image, for which the customer pays a premium
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Price can be used as a promotional aspect:
• Discounts – loyalty card holders/magazine readers
• Three for two
• Buy one get one half price
• BOGOF
• Blue cross sale
THE COSTS INCURRED IN FASHION PROMOTION CAN HAVE A HUGE IMPACT ON RETAIL SELLING PRICES
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promotion
• Advertising
• Heavy reliance on
fashion photography and
selection of model
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Fashion companies rely mainly on ‘below-
the-line’ methods of promotion
• fashion shows
• PR agencies
• editorial
• advertorials
• press offers and discounts
• press launches
• point-of-purchase (POP)
• packaging32
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• sponsorship
• personal selling
• internet (non-transactional websites)
• special offers
• competitions
• viral marketing (networks, word-of-mouth, can be internet-based e.g. blogs)
• guerilla marketing (non-traditional methods of promotion)
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place (distribution)
• methods of distribution:
• retail (bricks and mortar) e.g.
– independents
– dept. stores
– fashion multiples
– variety chains
– concessions
– franchises
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• visual
merchandising
(VM)
• mail order
• internet (has
overtaken
catalogue
shopping in sales
turnover)
• multi-channel
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• location
– global markets
– location of retail branches
– store interiors (store design)
– location of product within store (VM)
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Contemporary fashion marketing
issues• The sustainability impacts of clothing
• Challenging and competitive retail environment due
to current financial situation (e.g. Dolcis, Bay Trading,
Shoezone, Peacocks, La Senza, Blacks)
• The trend away from bricks and mortar retailing
towards online retailing
• Read Drapers, Retail Week, Mintel reports and the
Journal of Fashion Marketing and Management if you
are interested in this sector
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summary• The UK retail clothing market was estimated to be
worth
• Product– designers, technical staff and buyers develop fashion
products
• Price– relates to manufacturing costs, promotion and customer
perceptions of brand image
– price deflation relates to import saturation
• Promotion– advertising photographers and models
– heavy reliance on below-the-line promotion
• Place– VM and store design are significant in the fashion market
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bibliography and further reading
Easey, M. (2002) Fashion Marketing: 2nd edition Blackwell
Science: Oxford
Goworek, H. (2006) Careers in Fashion and Textiles
Oxford: Blackwell Publishing
Goworek, H. (2007) Fashion Buying second edition
Oxford: Blackwell Publishing
Grimston, J. and Smith, D. (2003) Prices in Britain
lowest for 15 years Sunday Times July 20th 2003
Hines, T. and Bruce, M. (2006) Fashion Marketing:
Contemporary Issues 2nd edition London:
Butterworth Heinemann39
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bibliography
Jackson, T. And Shaw, D. (2009) Mastering Fashion Marketing London: Palgrave Macmillan
Kierstan, A. (2004) Tesco will slash prices for summerDrapers 24/4/04
Kotler, P., Armstrong,G., Saunders, J. and Wong, V. (2004) Principles of Marketing: The European EditionPrentice Hall Europe
Mintel (2010) Clothing Retailing Report
Tungate, M. (2008) Fashion Brands: Branding Style from Armani to Zara 2nd edition London: Kogan Page
Varley, R. (2006) Retail product management – buying and merchandising 2nd edition London: Routledge
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bibliography
Vogue October 2006
Vogue October 2007
www.lvmh.com
www.philippelasserre.net
www.retailmap.co.uk
www.vogue.co.uk
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websites• Online journals Journal of Fashion Marketing and Management (available at NTU) • Global Journal of Fashion Marketing• Fashion Practice
• online databases (e-search in NTU library)• Key Note (2008) Clothing and Footwear Industry• Key Note (2006) Clothing and Footwear Industry• Mintel (2002) Retail Intelligence – Clothing Retailing• Mintel (2009) Retail Intelligence – Clothing Retailing• Mintel (2009) Retail Intelligence – Value Clothing Retailing• Mintel (2010) Retail Intelligence – Clothing Retailing• Mintel (2012) Clothing Retailing UK
• www.drapersonline.com • www.ftv.com (fashion TV)• www.fuk.co.uk (fashion UK)
• Find fashion jobs in Drapers and www.retailchoice.com
• arcadiagroup.co.uk• style.com• usc.co.uk• vogue.co.uk