UK Fashion Industry

M A N S O O R A K R A M

D E N ı Z K U R U G O L L US U N D E E P R A ı

J A S O N N E U M A NV L A D ı M ı R G E O R G ı E V

I . D E F I N E T H E I N D U S T R Y S E C T O R

I I . S E C T O R S I Z E A N D C O N C E N T R A T I O N

I I I . K E Y T R E N D S I N T H E B U S I N E S S

E N V I R O N M E N T

I V . G R O W T H R A T E A N D S E C T O R S I Z E

P R O J E C T I O N S

V . W H I C H A R E T H E K E Y F I R M S I N T H E

S E C T O R ?

Agenda

I. Industry Sector

Fashion

Retail and manufacturing

Boundaries

Industry Sector Cntd…

Standard Industry Classification (SIC)

52.41 Retail sale of clothing52.42 Retail sale of adults' fur and leather clothing52.42/1 Retail sale of children's and infants' clothing52.42/2 Retail sale of other women's clothing52.42/3 Retail sale of other men's clothing 52.43/2 Retail sale of leather goods

II. Sector Size and Concentration

Source: © 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

Year 2009 2010 2011 2012 2013

UK resident

population (000)61,858 62,309 62,761 † 63,209 63,650

Gross domestic

product growth (%)-3.9 0.2 1.9 2.4 2.6

Inflation (%) -1.3 1.7 2.3 2.9 2.5

Forecasts for the UK Economy (000, % and million), 2009-2013

Year 2009 2010 2011 2012 2013% Change

2009-2013

Women’s

garments 19,216 19,312 19,602 20,092 20,896 8.7

Men’s garments 10,992 10,970 11,079 11,412 11,787 7.2

Children’s

garments 6,996 6,926 6,995 7,086 7,298 4.3

Clothing

accessories 2,080 2,122 2,186 2,252 2,326 11.8

Total 39,284 39,330 39,862 40,842 42,307 7.7

% change year-

on-year 0.1 0.1 1.4 2.5 3.6

The Forecast Total UK Clothing Retailing Market by Sector by Value at Current Prices (£m at rsp), 2009-2013

Source: © Mintel 2010

IV. Growth Rate and Sector Size Projections

Recession

Olympics

Material Prices

Source: © British Fashion Council 2008

V. Key Firms in the Sector

Stores Openings

International Expansion

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

2005 2006 2007 2008 2009

%

Market ShareMarks & Spencer

Next UK

Arcadia Group

Primark Stores

New Look

Source:Mintel Clothing Retailing 2010-2006

2. Next PLC

Shareholders

V. Key Firms in the Sector

1. Marks & SpenserPLC

Shareholders

3. Arcadia Group

Taveta Investments Ltd (100%)

Sir Philip Green

4. Primark

Associated British Foods PLC (100%)

Wittington Investments (50+%)

The Garfield Weston Foundation (79%)

Garfield Family

5. New Look

Apax Funds & PermiraFunds 55.4%, Founder 22%, Board Directors

Adapted from Van Frederikslust R. A. I., James S. (2008)

V. Key Firms in the Sector

Strengths

Variety of UK high street

Primark in the new sector of

disposable fashion

Weaknesses

Product Positioning

Ultimate ownership

Rivalry of competitors

Q&A