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THE INDEX IN PARTNERSHIP WITH Part 1 The ectors, The Channels, The Formats and The Behaviours Tracking the current behaviours and the future intentions of the British fashion shopper

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Page 1: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

THE

INDEXI N PA R T N E R S H I P W I T H

Part 1

The ectors, The Channels,The Formats and The Behaviours

Tracking the current behaviours and the future intentions of the British fashion shopper

Page 2: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 4

The Introduction

Every month, with the help of respected consumer research

experts at Savanta, we speak to a nationally representative

sample of 2,000 shoppers and interrogate them on their current

and intended fashion spending behaviour.

As each month passes we will be able to show the trends in real

time from the migration to mobile to the surge in sportswear

down the performance of individual brands. This market

intelligence is designed to be accessible, easy to digest and to

help you and your business navigate safely and successfully

through the industry at a time of rapid change.

For launch we have chosen 100 brands to track from pureplay

etailers to high street stalwarts, iconic luxury players to sports

and value specialists. Whether your own brand is tracked or

not (and we will update the list every quarter to reflect market

changes), you will gain a unique insight into how the industry’s

leading players are performing relative to each other.

We’ve also asked consumers to feedback on every brand listed

on their positive and negative sentiments, which has led to each

brand being attributed a “Buzz Score”. These unique scores will

enable brands and retailers to analyse whether positive marketing

messages or PR disasters are penetrating into the minds of the

consumer, and crucially, whether it affects the performance of

the brand.

Part 1 of The Index covers The Sectors, The Channels,

The Formats and The Behaviours while Part 2 will cover

The Brands and The Buzz Scores.

Welcome to first edition of The Index in partnership with Klarna. This brand-new monthly service will track the behaviour of the British fashion shopper, giving you a unique and unbiased insight of the industry’s key sectors, channels, formats and brands and how they are performing.

Page 3: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 5

The Sectors

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GENDER AGE REGIONS SEG

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39% 36%41%

48% 47% 45%40%

32%27%

42%40%39%37%44%

34%

We’ve broken the data down by gender, age, region and socio economic group to enable

readers to analyse where their particular target group is shopping.

As might be expected, the value players and the high street mainstream brands are attracting

the most shoppers overall but sportswear, particularly among the younger consumer, is catching

up and becoming almost as popular. Interesting to note, sportswear is attracting more young

shoppers, particularly young men, than pureplay etail (though the latter is favoured by young

women – and not surprising given the vast choice). This dynamic will be one to track as the

month-on-month comparisons roll in.

From pureplay etailers to sports specialists, these are the sectors attracting fashion shoppers. Each survey respondent is asked to indicate which type of retailer/brand they have shopped for fashion and accessories in the prior three months.

Online-only retailer e.g. ASOS, Amazon, Boohoo

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GENDER AGE REGIONS SEG

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60% 56% 65% 60% 66%57% 56% 56%

65% 64%62%59% 59% 67%54%

High street/mainstream fashion retailer (either online or in-store) e.g. Topshop, Marks & Spencer, Next

Page 4: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 6

The Sectors continued

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GENDER AGE REGIONS SEG

16-2

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59%51%

66%

51%61% 62% 61% 61%

55% 51%55%59%65%

55%62%

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GENDER AGE REGIONS SEG

16-2

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40%46%

35%

52% 53% 54%

45%

32%

18%

50%

37%42%

38%45%

36%

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GENDER AGE REGIONS SEG

16-2

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20% 22%18%

26%30%

21%19%

15%13%

34%

19%17% 18%

20%

12%

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GENDER AGE REGIONS SEG

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11% 12% 11%

21% 20%

14%

10%

4% 5%

23%

10%10% 9%

17%

6%

Value store/supermarket (either online or in-store) e.g. George at Asda, Matalan, Primark

Premium fashion retailer (either online or in-store) e.g. Jigsaw, John Lewis, Ted Baker

Sports/active retailer (either online or in-store) e.g. JD Sports, Sports Direct, Nike

Luxury retailer (either online or in-store) e.g. Net-A-Porter, Harvey Nichols, Selfridges

Page 5: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The sectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 7

The Channels

These figures show just how multichannel the shopper is – across all age groups – and also the importance of the integration of the physical and digital.

14%

29%57% 14%

29%

57%

18%

31%

51%

11%

27%

62%

16%

20%

64%

15%

18%

67%

14%

21%

64%

16%

26%

58%

13%

38%

50%

13%

43%

44%

14%

31%

55%

14%

32%

54%

17%

25%

58%

13%

22%

65%

14%

23%

63%

15%

35%

51%

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When shopping for fashion in the past 3 months did you…

Some 57% of shoppers overall bought fashion in both physical and online stores in the past

three months with the highest enthusiasm for multi-channel shopping coming from the

under-45 consumer.

Even with the 65-plus consumer, shopping in-store only accounts for well under half (43%)

of shoppers. Interesting online-only shoppers sit at around 13%-16% across all age groups.

Buy online only

Buy in-store only

Buy both online and in-store

KEY

Page 6: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 8

The Channels continued

57%

18%

5%

4%

8%

6%2%

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18%

57% 56% 57%

41%

53%

48%

52%

67%71%

57%

58%

58%52% 52%

61%

21%18% 16%

23%

14%17%

16%

18%

21%

18% 19% 18%

17% 19%

17%

5% 4%6%

7%7% 6%

5%

4%

6% 5% 4%

6% 5%

5%4% 4%

3%4% 5% 5%

3%

4% 4%3%

4% 5%

8% 6% 10%

10%13% 10%

12%

4%

7% 9% 9%9% 9%

7%

6% 6% 6%12%

8% 10% 7% 6% 4% 7% 11% 9%3%

4%

3%

When shopping for fashion, which is your PREFERRED method?

While only 29% of our fashion shoppers bought in-store only

over the past three months, more than double that (57%) say

that shopping in-store is their PREFERRED method of buying

fashion. This figure leaps to 71% of over-65s and drops to

41% of under-25s.

Just over half of online shoppers prefer to shop on mobile in its

various forms versus those shopping on desktop. With many

brands considering apps, it’s clear these are particularly worth

investing in for the Gen-Z shopper with 10% of this group saying

shopping via smartphone via app is their preferred way to buy

clothes. There is reasonable engagement with smartphone apps

up to the age of 54.

Buying in-store

Buying online via desktop/laptop

Buying online via a tablet using a web browser

Buying online via a tablet using an app

Buying online via a smartphone using a web browser

Buying online via a smartphone using an app

Don’t know

KEY

Page 7: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 9

The Formats

According to various footfall studies the high street is bearing the brunt of the decline in consumer confidence at presence. From our respondents, some 41% of shoppers still prefer to shop the high street more than any other format, but shopping malls at 37% are not far behind. As time progresses this will be a crucial metric to track. Gen Z are already showing a clear preference for malls with 55% preferring to shop them.

41%

37%

22%

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41% 38% 43%34%

43%36%

44% 45% 41% 40% 41% 45%36% 38%

43%

37% 38%36% 55% 40%

40%32% 31%

32% 37% 30%34% 56%

41% 32%

22% 24% 21%11%

17%24% 25% 24% 27% 24% 28%

21%8%

21% 24%

If you shop for fashion in a physical store, which location is your most preferred?

A chain store

A store

supermarket

An independent store

KEY

Page 8: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 10

The Channels continued

35%

32%

17%

16%O

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GENDER AGE REGIONS SEG

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35% 31%39% 40% 36% 37% 37%

32% 31% 33% 35% 40%32% 35% 35%

32% 35%28% 26% 29% 29% 29% 35% 37% 32% 29%

29%39% 33% 30%

17% 16% 18%14% 17% 15%

19% 17% 19%18% 18%

17% 13% 14% 20%

16% 18% 15%20% 17% 19% 14% 16% 13% 17% 17% 14% 17% 18% 15%

Which type of fashion retailer, do you MOST prefer to shop at IN-STORE?

When it comes to the type of store, a high street chain remains

the most popular option, but given the recent travails in the

department store space (with Debenhams and House of Fraser

taken to the brink), there is still much enthusiasm for this type of

store and, in particular, among the older consumer

Independents are cited by 18% overall as their preferred store

type and, encouragingly for this sector, some 20% of Gen Z

consumers say they prefer to shop independents, which is the

highest score among the age groups.

A chain store

A department store

A supermarket

An independent store

KEY

Page 9: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 11

The Channels continued

In the field of online, shoppers clearly gravitate towards the experts with 38% overall

saying they prefer to shop pure players online (presumably trust, choice, delivery options

all come into play), versus the next most popular option of the website of a chain store at

22%. The preference for pureplay online is true of all age groups.

22%

19%

9%12%

38%

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22% 19%24%

18% 21% 24% 19%29%

20% 21% 21% 23% 23% 21% 23%

19%19%

20%

18%20% 19%

16%

16%26% 19% 19% 19% 21% 21% 18%

9%10%

8%

8%

11% 11%

8%

7% 9%9% 9%

11% 8%7% 11%

12%12%

13%17%

15% 11%

10%

11%12%

15% 13%10% 9% 13% 12%

38% 40% 35% 40%33% 35%

47%38% 34% 37% 38% 37% 39% 38% 37%

Which type of fashion retailer do you MOST prefer to shop at ONLINE?

A chain store

A department store

A supermarket

An independent store

An online-only brand retailer

KEY

Page 10: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 12

The Behaviours

Some 65% of Gen Z consumers are buying fashion one a month or more, making it

completely understandable why brands are falling over themselves to attract this new group.

Well over half of Millennials and Gen X are buying clothes once a month or more as well.

With fashion having to compete with entertainment, wellness, technology and other attractions for consumers’ disposable income, it is still popular. Some 13% of shoppers are buying clothes at least once a week with a further 34% buying one a month or more. In fact buying clothes once a month or more is the most popular response.

13%

34%

25%

17%

8%

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13% 11% 15%

31%22%

14% 10% 7% 4%12% 10% 10%

28%18%

9%

34%32%

37%

34%41%

39% 41%

29%24%

34% 34% 36%

34%

38%

31%

25%26%

25%

25%22%

26% 24%

26%

29%

27% 26% 26%

20% 25%

26%

17% 19%15%

6%8%

16%16%

25%25%

17% 18% 20%9% 12%

21%

8% 9% 8% 5% 6% 7%10% 15%

9% 10% 5% 7% 5%11%

How often, typically, do you shop for fashion at the moment?

Once a week

One a month or more

Once every two months or more

Once every three months or more

Once every six months or more

Once a year or more

KEY

Page 11: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 13

The Behaviours continued

Of course other forms of entertainment and other non-fashion consumer goods are the

only challenges retailers have to over-come but also sustainable movements and campaigns

encouraging consumers not buy clothes. However, despite this well over half of consumers

say they intend to BUY MORE fashion items over the coming 12 months. It’s not all good

news, however since less than 50% say they will actual SPEND more on fashion in the coming

12 months, which suggests some consumers are expecting to get more for less.

56%

44%

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GENDER AGE REGIONS SEG

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56% 57% 54%

75% 77%67%

55%

42%31%

53% 54% 53%

71%64%

47%

44% 43% 46%

25% 23%33%

45%

58%69%

47% 46% 47%

29%36%

53%

Looking ahead at potential future fashion purchases in the coming six months, which best describes your intentions when it comes to the volume of the clothes you might purchase?

Intend to buy more fashion items

Intend to buy fewer fashion items

KEY

Page 12: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 14

The Behaviours continued

48%52%

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48% 52%44%

64% 67%57%

47%36%

26%

46% 46% 44%

63%57%

39%

52% 48%56%

36% 33%43%

53%64%

74%

54% 54% 56%

37%43%

61%

Looking ahead at potential future fashion purchases in the coming six months, which best describes your intentions when it comes to the cost of the clothes you might purchase?

I Intend to spend more I ntend to spend less

KEY

Page 13: THE INDEX REPORT PT 1 · the most shoppers overall but sportswear, particularly among the younger consumer, is catching up and becoming almost as popular. Interesting to note, sportswear

TheIndustry.fashion The ectors, The Channels, The Formats and The Behaviours | Tracking the current behaviours and the future intentions of the British fashion shopper | 15

The Information

On behalf of TheIndustry.fashion, Savanta surveyed 2,000 UK consumers during September

2019, all of whom had shopped for fashion in the previous three months. 49% of respondents

were male, 51% female. 16-29 year olds – 20%; 30-44 year olds – 24%; 45-59 year-olds – 27%;

59+ - 29%. Respondents were equally drawn from key regions and professional backgrounds.

In Part 2 of The Index we will look at our 100 tracked brands and find out who’s shopping

them and how, plus we will be revealing the first of our all-important Buzz Scores.

If you would like to interrogate our data further or discuss

bespoke research opportunities, please contact:

Antony Hawman

Chief Partnerships Officer

TheIndustry.fashion

[email protected]

020 3912 0002

For more information on Klarna, please visit:

www.klarna.com