Introduction
Definition
Abbreviations
Executive Summary
The market
Figure 1: Best and worst case forecasts of UK online sales of clothing and footwear,
2006-16
Market factors
Ageing population presents a challenge
Broadband penetration begins to plateau
Figure 2: Broadband penetration, by age group, 2005-11
The popularity of ecommerce particularly for fashion
gathers pace
Boom in smartphone ownership
The rise and rise of social media
Companies, brands and innovation
Figure 3: Estimated market share of online fashion market, by channel, 2011
(est)
Multichannel retailers dominate
Adspend falls
Figure 4: Main monitored media advertising spend on online fashion, 2007-11
The consumer
Online is gaining ground on in-store shopping
Figure 5: Attitudes towards shopping and browsing for clothes online, February
2010, January 2011 and January 2012
M&S inches ahead of Next
Figure 6: Retailers from where clothes are bought online, January 2012
Auction sites lead the pureplay operators
Figure 7: Websites used to buy clothes, by gender, January 2012
Figure 8: Attitudes towards shopping and browsing for clothes online, January
2012
The internet cuts time spent in stores
Trust is vital
Difficulty in getting the right fit is a barrier
Online shopping is a form of entertainment
Figure 9: Attitudes towards shopping and browsing for clothes online, by gender,
January 2012
Speed, convenience, choice and price are the top attractions
Online and in-store shopping is merging
M-commerce is popular among youths
What we think
Issues in the Market
Is online shopping damaging the high street?
How can retailers solve the problem of not being able to try clothes on before
purchasing online?
What impact is m-commerce having on the fashion industry?
What impact is social media having on ecommerce?
How can online retailers enhance the entertainment factor?
Why do people shop online?
Future Opportunities
Trend: Collective Intelligence
Trend: Evolving Media
Internal Market Environment
Key points
Seven in ten have access to broadband
Figure 10: Broadband penetration, by age group, 2005-11
Figure 11: Broadband penetration, by socio-economic group, 2005-11
Frequency of online shopping climbs
Figure 12: Frequency of purchasing online, 2011
Figure 13: Change in frequency of purchasing online, 2007-12
Fashion becomes the number one internet purchase
Figure 14: Top 15 types of products purchased online regularly, 2012
Figure 15: Consumers who have bought clothing and footwear from the internet
in the last 12 months, by demographics, January 2012
Smartphones go mainstream
Figure 16: Consumers who have accessed the internet through a mobile phone,
by gender, age and socio-economic group, 2012
Facebook takes the top spot in social networking
Figure 17: Unique internet visitors to selected social-networking sites, February
2012
Broader Market Environment
Key points
Ageing population poses a challenge
Figure 18: Trends and projections in the age structure of the UK adult population,
2006-16
ABs present an opportunity for premiumisation
Figure 19: Forecast growth of the UK population, by socio-economic group, 2006-11
and 2011-16
Consumer incomes remain under pressure
Figure 20: Year-on-year percentage change in average weekly earnings compared
to inflation in the UK, January 2008-January 2012
Consumer confidence stabilises at -29
Figure 21: Trends in consumer confidence, January 2008-February 2012
The end of price deflation
Figure 22: Inflation in clothing and footwear, January 2008-January 2012
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Who s Innovating?
Key points
Innovating technology tackling the problem of fit
Bargain sites
Retailers tap into social media
Fashion going mobile
Multichannel advancements
New standards of service
Competitive Context
Key points
Online accounts for 12% of total spend on clothing and fashion
Figure 23: Online sales of clothing and footwear as % of total clothing and
footwear sales, at current prices, 2006-11
Market Size and Forecast
Key points
Figure 24: Online sales of clothing and footwear, at current and constant prices,
2006-16
The future
Figure 25: Best and worst case forecasts of UK online sales of clothing and
footwear, 2006-16
Factors used in the forecast
Market Share
Key points
Figure 26: Estimated market share of online fashion market, by channel, 2011
Figure 27: Estimated market share of online fashion market, by channel and retailer,
2009-11
Multichannel retailers dominate the market
Pureplayers continue to steal share
Catalogue retailers shares dip
Companies and Products
Asos
Boden
Browns Fashion
eBay Fashion Outlet
Figleaves
Freemans Grattan Holdings
N Brown
Net-a-Porter
Next
Shop Direct Group
Brand Communication and Promotion
Key points
Adspend slumps
Figure 28: Main monitored media advertising spend on online fashion, 2007-11
Boohoo leads in adspend
Figure 29: Main monitored media advertising spend on fashion online, by top
10 companies, by media type, 2007-11
Press advertising dominates
Figure 30: Main monitored media advertising spend on online fashion, 2007-11
Figure 31: Main monitored media advertising spend on online fashion, % share,
2007-11
Internet browsing habits
Figure 32: Visitors to apparel websites, March 2012
Brand Research
Brand map
Figure 33: Attitudes towards and usage of brands in the online fashion sector,
December 2011
Correspondence analysis
Brand attitudes
Figure 34: Attitudes by online fashion brand, December 2011
Brand personality
Figure 35: Online fashion brand personality macro image,
December 2011
Figure 36: Online fashion brand personality micro image,
December 2011
Brand experience
Figure 37: Online fashion brand usage, December 2011
Figure 38: Satisfaction with various online fashion brands, December 2011
Figure 39: Consideration of online fashion brands, December 2011
Figure 40: Consumer perceptions of current online fashion brand performance,
December 2011
Figure 41: Online fashion brand recommendation Net Promoter
Score, December 2011
Brand index
Figure 42: Online fashion brand index, December 2011
Figure 43: Online fashion brand index vs. recommendation, December 2011
Target group analysis
Figure 44: Target groups, December 2011
Figure 45: Online fashion brand usage, by target groups, December 2011
Group One Conformists
Group Two Simply the Best
Group Three Shelf Stalkers
Group Four Habitual Shoppers
Group Five Individualists
The Consumer Who Buys Fashion Online?
Key points
Figure 46: Attitudes towards shopping and browsing for clothes online, January
2012
Figure 47: Attitudes towards shopping and browsing for clothes online, January
2012
Figure 48: Attitudes towards shopping and browsing for clothes online, February
2010, January 2011 and January 2012
In-store shopping is still favoured
Figure 49: Attitudes towards shopping and browsing for clothes online, by demographics,
January 2012
Rise in shoppers buying more online
Browsing declines
Older men are less likely to browse for clothing online
Figure 50: Consumers who have never browsed for clothes online, by demographics,
January 2012
The Consumer Where They Buy Clothing
Key points
Figure 51: Retailers from where clothes are bought, January 2012
M&S takes the top spot from Next
Under-25s shop online at fashion stores
Department stores
Men buy online from sports stores
Supermarkets and value retailers lag behind
Online players
Figure 52: Websites used to buy clothes, January 2012
Auction sites lead among online specialists
Asos draws a young fashionable crowd
Figure 53: Consumers who have bought clothing from Asos in the last 12 months,
by demographics, January 2012
Etailers offer greater range of sizes
The Consumer Attitudes Towards Buying Clothing Online
Key points
Figure 54: Attitudes towards shopping and browsing for clothes online, January
2012
Figure 55: Attitudes towards shopping and browsing for clothes online, January
2012
Streamlining the shopping process
Trust is key
Shopping for fun vs with a purpose
Figure 56: Attitudes towards shopping and browsing for clothes online, by demographics,
January 2012
Size inconsistencies pose problems
The Consumer Further Attitudes Towards Buying Clothing
Online
Key points
Figure 57: Attitudes towards shopping and browsing for clothes online, by gender,
January 2012
Speed, convenience and choice
Under-35s are the biggest bargain hunters
Mixing online and in-store
Disappointment has affected one in four
Women are twice as likely to return items
M-commerce is driven by youths
Figure 58: Consumers who often use mobile devices or PC tablet to browse or
buy clothes online and consumers who have used social media to find out about
or purchase from fashion brands or retailers, by gender, January 2012
Appendix Internal Market Environment
Figure 59: Frequency of using internet in the last 12 months, 2006-08
Figure 60: Frequency of using internet in the last 12 months, 2009-11
Figure 61: Products bought online, 2007-11
Figure 62: Accessing the internet through a mobile phone, by demographics, 2011
Figure 63: Internet usage in the last 12 months, by demographics, 2011
Figure 64: Frequency of using internet in the last 12 months, by demographics,
2011
Figure 65: Time spent on the internet in the last week, by demographics, 2011
Figure 66: Frequency of purchasing online, by demographics, 2011
Figure 67: Products bought online, by demographics, 2011
Figure 68: Products bought through online, by demographics, 2011
Figure 69: Products bought through online, by demographics, 2011
Figure 70: Products bought through online, by demographics, 2011
Appendix Brand Communication and Promotion
Figure 71: Main monitored media advertising spend on fashion online, by top
10 companies, by media type, 2007-11
Appendix Brand Research
Figure 72: Brand usage, December 2011
Figure 73: Brand commitment, December 2011
Figure 74: Brand momentum, December 2011
Figure 75: Brand diversity, December 2011
Figure 76: Brand satisfaction, December 2011
Figure 77: Brand recommendation, December 2011
Figure 78: Brand attitude, December 2011
Figure 79: Brand image macro image, December 2011
Figure 80: Brand image micro image, December 2011
Figure 81: Profile of target groups by demographic, December 2011
Figure 82: Psychographic segmentation by target group, December 2011
Figure 83: Brand usage, by target groups, December 2011
Brand index
Figure 84: Brand index, December 2011
Appendix The Consumer Who Buys Fashion
Online?
Figure 85: Attitudes towards shopping and browsing for clothes online, by detailed
demographics, January 2012
Figure 86: Attitudes towards shopping and browsing for clothes online, by attitudes
towards shopping and browsing for clothes online, January 2012
Appendix The Consumer Where They Buy
Clothing
Figure 87: Most popular in store or online retailers from where clothes are
bought, by detailed demographics, January 2012
Figure 88: Next most popular in store or online retailers from where clothes
are bought, by detailed demographics, January 2012
Figure 89: Other in store or online retailers from where clothes are bought,
by detailed demographics, January 2012
Figure 90: Least popular in store or online retailers from where clothes are
bought, by detailed demographics, January 2012
Figure 91: Most popular in store retailers from where clothes are bought, by
detailed demographics, January 2012
Figure 92: Next most popular in store retailers from where clothes are bought,
by detailed demographics, January 2012
Figure 93: Other in store retailers from where clothes are bought, by detailed
demographics, January 2012
Figure 94: Least popular in store retailers from where clothes are bought, by
detailed demographics, January 2012
Figure 95: Most popular online retailers from where clothes are bought, by detailed
demographics, January 2012
Figure 96: Next most popular online retailers from where clothes are bought,
by detailed demographics, January 2012
Figure 97: Other online retailers from where clothes are bought, by detailed
demographics, January 2012
Figure 98: Most popular online retailers from where clothes are bought, by detailed
demographics, January 2012
Figure 99: Next most popular online retailers from where clothes are bought,
by detailed demographics, January 2012
Appendix The Consumer Attitudes Towards
Buying Clothing Online
Figure 100: Agreement with the statements Shopping online
helps in avoiding the crowds in the shops and Browsing online
reduces the time spent in stores , by detailed demographics, January 2012
Figure 101: Agreement with the statements I tend to buy from
a small number of websites that I trust and When I set out
to shop online I usually have a clear idea of what I want , by detailed demographics,
January 2012
Figure 102: Agreement with the statements Differences in
sizes between stores can make shopping for clothing online difficult and If
I am unsure about a website, I tend to look for customer feedback/reviews ,
by detailed demographics, January 2012
Figure 103: Agreement with the statements Online shopping
is a form of entertainment and Shopping online has not reduced
the amount of time I spend shopping in store , by detailed demographics, January
2012
Figure 104: Agreement with the statements I am happy to shop
online but only for less expensive items and I like to leave
feedback/share opinions online about sites I have used , by detailed demographics,
January 2012
Figure 105: Agreement with the statement Shopping online
doesn t really feel like spending money, so I tend to spend a lot more than
I would in an actual shop , by detailed demographics, January 2012
Appendix The Consumer Further Attitudes
Towards Buying Clothing Online
Figure 106: Most popular attitudes towards shopping and browsing for clothes
online, by detailed demographics, January 2012
Figure 107: Nest most popular attitudes towards shopping and browsing for clothes
online, by detailed demographics, January 2012
Figure 108: Other attitudes towards shopping and browsing for clothes online,
by detailed demographics, January 2012
Figure 109: Least popular attitudes towards shopping and browsing for clothes
online, by detailed demographics, January 2012