CBI Product Fact Sheet Fast Fashion in the United Kingdom · 2014-06-26 · CBI Product Fact Sheet...

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Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] www.cbi.eu/disclaimer CBI Product Fact Sheet Fast Fashion in the United Kingdom ‘Practical Market Insights for Your Product’ This product fact sheet provides you with information that is relevant if you want to enter the fast fashion market in the United Kingdom. Fast fashion production requires suppliers to maintain good contact with the retailers, to possess a thorough understanding of the latest fashion trends, and to have an efficient supply chain. In the UK, the weak economy is creating a consumer demand for cheap clothing. Short fashion lifecycles drive the demand for new collections. Sustainable fast fashion niche markets offer opportunities in a growth environment, but require DC exporters to be knowledgeable of sustainable manufacturing processes. Product Definition Fast fashion is a term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time to capture current trends in the market. Clothing based on these trends is designed and manufactured quickly and relatively cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price. Three crucial factors exist within fast fashion consumption: market timing, cost, and the buying cycle. Efficient supply chains are central to the creation of fast fashion. Retailers respond to shifts in the market within just a few weeks, versus an industry average of six months. Fast fashion retailers produce around 10 collections every season. For fast fashion, the apparel lifecycle (pictured in figure 1 below), is shorter than normally.

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CBI Product Fact Sheet Fast Fashion in the United Kingdom

‘Practical Market Insights for Your Product’

This product fact sheet provides you with information that is

relevant if you want to enter the fast fashion market in the

United Kingdom.

Fast fashion production requires suppliers to maintain good

contact with the retailers, to possess a thorough understanding

of the latest fashion trends, and to have an efficient supply

chain. In the UK, the weak economy is creating a consumer

demand for cheap clothing. Short fashion lifecycles drive the

demand for new collections. Sustainable fast fashion niche

markets offer opportunities in a growth environment, but

require DC exporters to be knowledgeable of sustainable

manufacturing processes.

Product Definition

Fast fashion is a term used by fashion retailers to acknowledge that designs

move from catwalk to store in the fastest time to capture current trends in the

market. Clothing based on these trends is designed and manufactured quickly

and relatively cheaply to allow the mainstream consumer to take advantage of

current clothing styles at a lower price. Three crucial factors exist within fast

fashion consumption: market timing, cost, and the buying cycle. Efficient supply

chains are central to the creation of fast fashion. Retailers respond to shifts in

the market within just a few weeks, versus an industry average of six months.

Fast fashion retailers produce around 10 collections every season. For fast

fashion, the apparel lifecycle (pictured in figure 1 below), is shorter than

normally.

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Figure 1: The apparel lifecycle

Source: Robin Anson- CEO Textile Intelligence.com

Fast fashion consists of women’s wear, men’s wear, and children’s wear.

Children’s clothes are embedded in the adult’s product groups. These consist of

the following categories:

Knitted and woven clothing (HS codes: 6101 – 6106; 6110; 6201-

6206)

Product groups:

1. Trousers and shorts

2. T-shirts

3. Shirts and blouses

4. Jerseys and cardigans

5. Dresses and skirts

6. Jackets and coats

7. Suits and ensembles

Body wear (HS codes: 6107; 6108;6115; 6207-6208; 6212)

Product groups:

1. Underwear

2. Night and indoor wear (pyjamas, nightshirts, bathrobes)

3. Hosiery (socks, tights)

Fashion accessories (HS codes: 6116;6117; 6213-6217)

Product groups

1. Gloves, mittens & mitts

2. Neckwear (shawls, scarves)

3. Carrying products (handbags, shoulder bags, wallets, purses)

4. Other fashion accessories (handkerchiefs, belts, hats, and

caps)

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Product Specifications

Quality

Fast fashion with quick manufacturing is typically a low-cost concept. Costs can

be kept low by using lower-cost raw materials in the manufacturing process.

This can mean lower product quality compared to slower fashion segments. A

number of factors contribute to the quality of the apparel: performance,

reliability, durability, visual, and perceived quality of the apparel product.

Quality is calculated in terms of quality and standard of fibres, yarns, fabric

construction, colourfastness, surface designs, and the final finish. It is important

that the quality of a shipped batch is even and that the quality fulfils agreed

specifications.

Fast fashion is also moving towards more sustainable production processes and

materials, though the frequency of collection change per-se makes fast fashion a

less sustainable segment. The final level of quality will depend on which

segment in the UK market the clothes will be sold in. Products for higher-end

markets are expected to be of a better quality than products for lower-end

markets.

Labelling

The following information will generally be found on the label in clothes:

Care symbols

Composition (Fibre content (percentages of fibres used))

Size

Country of origin (Made in)

Further information, such as eco-labels, labels for sustainable

cotton (see examples on the right), etc.

The product information on the label must be in English. The fibre-

content labelling of clothing is mandatory in the UK, as laid down in the

2012 Textile Products (Labelling and Fibre Composition) Regulations. The

basis of these regulations is that the label must include information on

the main types of fibre used and their percentages. Washing instructions,

size of garment, and country of origin are recommended.

Care labels:

Most European countries, including the UK, use the international care

labelling code GINETEX. The European trademark GINETEX care labelling

system is a voluntary service offered to the consumers by the textile and

apparel industry.

To control the correct application, the care labelling code is protected by an

international trademark. The ownership of this international trademark belongs

to GINETEX.

According to GINETEX standards, labels should include:

general care and warnings

washing

drying

ironing

professional textile care (dry-cleaning)

Eco-labelling is largely unregulated for the c lothing industry. There are several

private labels that have their own defined set of standards, which producers can

volunteer to follow. Producers of sustainable design goods should label this

clearly on the products with at least one of the available label schemes being

either the EU eco-label or one of the private ones, as this will lend credibility to

the sustainability claims of the product.

Photo example: Labelling

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Materials

Fibres are used as a raw material to create yarn, which is then woven, knitted,

matted or bonded into fabric. Fabrics can be made of natural or man-made

sources, or a blend of the two. Most common fibre compositions used in textiles

are:

Natural fibres

Natural fibres are found in nature and are not petroleum-based. Natural fibres

can be categorized into two main groups, cellulose or plant fibre and protein or

animal fibre. Most common plant fibres are cotton and flax (linen). Other plant

fibres are jute, flax, hemp, ramie, abaca, bamboo (used for viscose), soy, corn,

banana, pineapple, and beechwood (used for rayon). The most common animal

fibres are wool and silk. Other animal fibres include angora, camel, alpaca,

llama, vicuna, cashmere, and mohair.

Synthetic fibres

The artificially produced fibres are usually synthetically produced from chemical

elements or compounds developed by the petrochemical industry. Viscose,

acrylic, nylon, and polyester are common synthetic fibres.

Recycled fibres or materials

Recycled or reclaimed fibres are made from scraps of fabrics collected from

clothing factories, which are processed back into short fibres for spinning into a

new yarn. There are only a few facilities globally that are able to process the

clippings.

Fast fashion fabric can also be made up of a mix of fibres. Fabrics can be

combined with other materials such as leather, fur, faux-fur, metal, glass,

plastics, and other. If targeting the growing niche market of sustainable fashion,

materials with low environmental impact should be favoured.

Due to the fast lead times, it is important to maintain flexibility and

responsiveness in the manufacturing process. This should be considered when

choosing materials for fast fashion apparel. Fabric can be held in stock and then

cut and dyed at the last minute to suit a fresh design. Apparel quality and cost

are primary factors in the consumer’s buying decisions and it is important to

have products of quality matching end-user needs.

Colours and Design

Fast fashion is about bringing the latest fashion trends to the market in a short

time. Colours should be attuned to the target segment or demographic. The

design should reflect the absolute latest fashion trends in the target market

segment. The Fast Fashion model emphasises the rapid release of mini-

collections and can only work when superlative efficiency is achieved at each

stage of the product development process.

Fabric, colour, trim, and silhouette trends exist in harmony and should represent

a strong cohesive brand identity. This unity facilitates the fast fashion process.

Packaging

Packaging needs to meet all EU requirements. These requirements aim to

prevent the production of packaging waste, to promote the reuse of packaging,

and as such to reduce the final disposal of such waste. Retailers are mostly

responsible for the way in which the products are packed for sale in shops and

can ask suppliers to do this for them.

Each individual garment is wrapped in plastic with a sticker providing

information on brand, size, and kind of garment. Similar items could be packed

in boxes.

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Images

Legislative requirements

When exporting to the EU, you need to take into account various requirements

regarding labelling, dangerous substances, product safety and liability. Products

that fail to meet the legal requirements are not allowed on the EU market.

Labelling

In order to ensure that consumers are given accurate

information on the fibre composition of the products

they are buying, the EU has harmonised legislation

regarding the names, composition, and labelling of

textile products.

Dangerous substances

The EU has restricted the use of several chemicals in

textile products because they pose a health risk for

consumers. Examples of restricted substances are:

TRIS, TEPA and PBB (flame retardants), Azo dyes,

Nonyl Phenol Ethoxylates, Dioctyltin (DOT)

compounds, and nickel (e.g. in zippers and buttons).

In addition to the harmonised EU legislation,

Germany has set additional requirements regarding:

Chromium VI, formaldehyde, and disperse dyes.

Product safety and liability

Products placed on the EU market should be safe

when used as intended. The EU has regulated

product safety in the General Product Safety

Directive (GSPD), which applies to all consumer

products marketed in the EU.

The Directive on liability for defective products

provides that companies placing products on the EU

market can be held responsible for damage caused

by defective products.

In principle, your EU buyer can be held responsible

for damage caused by defects to your products.

However, possible claims may be passed on to

suppliers.

Considerations for action

Make sure that your products comply

with the labelling requirements,

implying that you need to indicate the

fibre content using prescribed fibre

names.

Refer to the document EU Legislation:

Labelling of Textile Products (Including

Garments) on the CBI website for more

information on the labelling

requirements.

To avoid the risk of using restricted

substances, it is advised to keep an up-

to-date inventory of the chemicals used

in your products.

For more information on the prohibited

substances, their uses, and possible

alternatives, refer to the following

documents:

EU legislation: Azo dyes in

textiles and leather products.

EU legislation: Flame

retardants in textiles.

EU legislation: Nonyl phenols

and ethoxylates.

EU legislation: Nickel in

clothing, jewellery, and

accessories.

EU legislation: Organotin

compounds

See the documents EU legislation:

Liability for defective products and EU

legislation: Product safety (consumer

products) for more information on these

requirements.

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Non-legislative requirements

Sizing

The sizing of clothes sold on the EU market tends to

vary from country to country and even from store to

store. This can be very confusing and therefore the

textile industry in the EU is urging the EU to lay

down legislation on standard sizing. At the moment,

the situation is precarious and it is not sure whether

the EC will start discussions on the matter.

Sustainability on the rise

Consumers are increasingly aware of the social and

environmental circumstances during production.

Consequently, requirements regarding sustainability

and certification are increasingly important to buyers.

In particular, social aspects like basic labour rights

are major issues in the garments industry.

Implementing a management system (e.g. ISO

14000 on environmental aspects, SA 8000 on social

conditions or OHSAS 18001 on occupational health

and safety) or using sustainably produced (e.g.

organic) materials is often required or may otherwise

be a competitive advantage.

Codes of conduct

EU buyers may expect you to comply with their

supplier codes of conduct. This can be the importer’s

own code of conduct or a code of conduct as a part of

an initiative in which the importer is participating

(e.g. BSCI, Fairwear, and the Clean Clothes

Campaign).

Consumer labels

Consumer labels are labels used on the final product

to show consumers that the product they are buying

is produced in a socially responsible or

environmentally friendly way. To be allowed to carry

the label, producers must meet certain standards

and are often audited by independent auditors.

Consumer labels can focus on one issue (e.g.

FairTrade for social conditions or the EU Ecolabel on

environmental issues or on social and environmental

issues, such as MADE-BY.)

Examples of consumer labels that could be relevant

are:

Fair Trade, EU Ecolabel or the German eco-label Der

Blaue Engel, GOTS, and Naturland for organic textile

or Naturleder for leather products.

Another important label is OEKO-TEX. The OEKO-TEX

Standard consists of three types of certification for

textiles. These address the effects of textile

production processes on humans and the

environment, and the effects of the textiles

themselves, including the chemicals, on the health

and well-being of the consumers.

Considerations for action

As long there is no legislation on sizing,

it is recommended to use a recognised

standard on clothes sizing

Depending on your target market (segment)

certification or otherwise participating in an

initiative addressing sustainability issues can

give you a competitive advantage. Assess

what is actually interesting and feasible by

asking yourself the following questions:

What is my main market and who are

my main clients?

What is their demand with regard to my

sustainability performance and how may

this demand change in the future?

What sustainability initiative is

potentially the most suitable for me?

What do I need to invest to become

certified and what revenues can I expect

in return?

What support can I get to become

certified (e.g. training)?

In case participating in a specific initiative is

not desirable and/or feasible for your

business, assess whether you can still

benefit from the general trend towards

sustainability. You may consider the

following step:

Implement practical measures aiming to

avoid or minimize negative sustainability

impacts of your operations. Use the

criteria of certification systems and

codes of conduct of your clients as a

source of information and inspiration.

Refer to the documents Labels and

Standards: Sustainability for Apparel

and Management systems supporting

sustainable development, for more

information on relevant standards,

labels, and other initiatives.

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Countries

GDP in PPP (€, bln)

GDP per capita in

PPP (€)

Inflation rate (%)

Inflation rate

forecast* 2013-2015

(%)

GDP growth (%)

GDP forecast

2013-2018 (%)

UK 1 818 28 744 2.8 2.5 0.2 2.6

European Union 12 521 24 916 2.6 1.8 -0.3 2.7

Trade and macro-economic statistics

*Please note, no specific import, export, production, and consumption data is

available for Fast Fashion UK. However, overall apparel figures for the UK are

presented to help the reader better understand the market.

The UK economy is the seventh-largest national economy in the world measured

by nominal GDP (according to the World Bank) and the third largest in Europe

(after Germany and France). UK has enjoyed a period of uninterrupted economic

growth combined with low inflation. It has the most stable macroeconomic

environment among the leading G7 economies.

Earlier in 2012, the British Chambers of Commerce upgraded its growth

forecasts for the next three years. Nevertheless, while the upgraded figures are

encouraging, growth is still too weak and the economy is facing many

challenges, both domestically and internationally. Household consumption is

expected to grow by 1.3% in 2013, 2.0% in 2014, and 2.4% in 2015.

Table 1: Macro-economic indicators, UK, 2012

* average inflation

Source: IMF; EIU; World Bank; July 2013

Export and import graphics

UK exports of clothing have been increasing steadily since 2009 by a CAGR of

6.8%, reaching a total of € 8.39 billion in 2011. Imports have also recovered

following the recession and are growing by a CAGR of 3.5% to reach € 23.07

billion in 2011.

Largest importers of clothing to the UK are China, Bangladesh, Turkey, India,

and Italy. Clothes are exported mainly within EU to Ireland, Germany, France,

and Italy.

Figure 3: UK exports of clothing by main origin, € million, 2008 – 2012*

Source: Eurostat

0

2 000

4 000

6 000

2007 2008 2009 2010 2011 2012

mln

EU-Extra EU-Intra

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Figure 3: UK imports of clothing by main origin, € million, 2008 – 2012*

*including clothing and accessories in product groups G.G 61-G.G 65

Source: Eurostat

The United Kingdom accounts for 13.8% of the European apparel retail industry

value.

Table 2: Apparel retail market geography segmentation: € billion, 2012

Geography 2012 %

Germany 56.8 18.4

Italy 47.5 15.4

United Kingdom 42.6 13.8

France 35.9 11.6

Spain 14.6 4.7

Rest of Europe 111.3 39.1

Total 308.6 100%

Source: MarketLine, February 2013

The UK apparel retail industry has experienced fluctuating levels of growth of

2.3% from 2008 to 2012. Total revenues generated by the UK apparel retail

industry were €42.6 billion in 2012.

The women’s wear segment has been the industry’s most lucrative segment in

2012, with total revenues of €24.5 billion, and accounts for 57.6% of the

industry's overall value. The men’s wear segment contributed revenues of €

11.2 billion in 2012, 26.4% of the industry's aggregate value. The share of

children’s wear was 16.1% (€6.8 billion).

Figure 2: UK apparel retail segmentation by demographic, % share, by value, 2012

Source: MarketLine, February 2013

0

5 000

10 000

15 000

20 000

25 000

2007 2008 2009 2010 2011 2012

mln

EU-Extra EU-Intra

57,6% 26,4%

16,1%

Women's wear

Men's wear

Children's wear

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The apparel retail industry in the UK is expected to accelerate and is forecast to

have a value of € 53.3 billion, an increase of 15.7% since 2012. The compound

annual growth rate (CAGR) of the industry in the five-year period 2012–2017 is

predicted to be 3%, which is expected to drive the industry to a value of €49.3

billion by the end of 2017.

Figure 3; Apparel retail market United Kingdom retail industry value: € million,

2008–2017 *

Source: MarketLine, February 2013; * Forecast

Market trends

Most important developments Considerations for action

The UK fashion industry is characterised by a

dynamic demand cycle, with designer fashion

driving industry-wide activity, in particular the

vibrant retail sector. The variety of the UK high

street is often referred to as being unparalleled

internationally.

Drivers of fast fashion in the UK market:

o Economy

o Consumer demand/fashion

trends

o Changing retail environment

Economy

European recession is driving the fast

fashion market in the UK. Strong

polarization is seen across all categories of

apparel, with consumers opting for

economy as it offers fast-fashion of decent

quality, at budget prices.

Fast fashion products are much cheaper

than the luxury brands (usually around

10% of the price charged by luxury fashion

brands). As the online presence of fast

fashion retailers is increasing in the UK,

consumers increasingly look for bargains

online which puts pressure on pricing in this

In order to enter this market, DC exporters

need to be very innovative and provide a

product that is highly distinguishable from

others.

0

10

20

30

40

50

60

2008 2009 2010 2011 2012* 2013* 2014* 2015* 2016* 2017*

€ B

illio

n

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market.

Consumer demand/fashion trends

Globalisation and connectivity are driving

fast fashion demand. In the UK, where

technology is widespread and consumers

spend a lot of time online, fashion trends

spread rapidly. Fast consumption of fashion

shortens the lifecycle of fashion.

New catwalk trends and street trends are

the cornerstone of fashion. For suppliers,

fast fashion trends can evolve in a cyclical

way. Retailers monitor catwalk shows and

mimic these trends creating and selling

small collections. Consumers in turn

monitor what is available in the stores and

make selected purchases. Retailers use

store data in addition to monitoring which

collections are being taken up by the

consumers.

In fast fashion, blogs have gained an

important status in spreading new trends.

From the retailer’s perspective, it is a

bottom-up approach where innovators

(bloggers) pick up new trends and mass-

consumption follows. Some blogs are

created around street-styles, where new

looks come directly from the streets instead

of from the traditional designers.

Changing retail environment and the

production process

Fashion retailers take the speed-to-market

approach to capitalize on fashion that is not

in the stores of their competitors. Essential

in this process is the rapid incorporation of

consumer preferences into the design

process, which will increase the profit

margins for retailers. Retailers can correct

their merchandise outlook still within the

same season, so that they do not miss out

on the “hottest Item, print or colour”.

Most of the budgets for fast fashion are

OTB: Open-to-buy budgets, meaning this is

stock return money of the current season

that will be freed up to buy the latest fast

fashion updates. The idea behind this is

that the “hot & hip items” will easily find

their way to the end consumer, so stock

turnover goes up and returns are generated

instantly.

Companies in the fast fashion market utilize

a range of relationships with the suppliers.

Large fast fashion retailers can keep

production in-house in order to shorten lead

times. Fabric can be held in stock and then

cut and dyed at the last minute to suit a

fresh design. Suppliers close to the market

are used for products that are produced in

the middle of a season, meaning trendy,

Consumers demand fashion in quickly

changing collections that DC exporters need

to respond to. Design clothes with focus on

latest or upcoming trends.

Monitor latest fashion trends, not just in the

UK but also globally. High-end fashion trends

from catwalks are used as inspiration in fast

fashion design. Also monitor leading fashion

blogs and publications. Differentiate between

innovators and majority. Predict upcoming

trends to keep designs in production current.

Changing retail environment poses strict

requirements on DC producers. The

extremely short buying cycles and lead times

require that DC exporters maintain close

relationships to their customers.

Responsiveness is very important.

Consider focusing on ‘core’ items in fashion

collections that are used in collections every

season. These items can be easier to project.

Needed competences for DC exporters for fast

fashion are:

Be able to source raw materials by for

example integrate vertically

Being able to make proposals for fashion

collections

Master trimmings

Master finance: LC at sight

Be present at relevant trade shows including

sourcing pavilions

Standardize packaging

Maintain an efficient supply chain to keep

costs low

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"fashion" items. In comparison, long-

distance suppliers are utilized for cheap,

"core" items that are used in collections

every season and have a stable forecast.

Other market drivers

Niche markets within the fast fashion

segment are sustainable fast fashion and

teenage fast fashion.

Consumers are increasingly aware of

environmental and sustainability issues

and are seeking alternative brands with

excellent credentials.

Fast fashion brands such as H&M offer

more and more clothes made of

biological cotton. Organic cotton has a

higher quality than conventional cotton

and is better for the environment,

therefore more appealing for the

growing number of responsible

consumers.

The children’s or teenage segment

within fast fashion is exposed to the

latest fashion fads even more than for

adults. This makes the niche a

continuously strong market within the

fast fashion segment.

Consider targeting a niche market of fast

fashion: children’s or sustainable fast fashion.

For the sustainable niche, see the CBI Buyer

Requirements database for more information

on labels and standards: Labels and

Standards: Sustainability for Apparel..

For more information regarding the general trends within the apparel sector,

please see CBI’s Trend Mapping – Apparel.

Market Channels and Segments

Most important developments Considerations for action

Fast fashion retailers in the UK are gaining

market share at the expense of

independent fashion retailers. The large

international players with their fast fashion

chains dominate the middle-priced segment

of the UK clothing market.

Fast fashion apparel is mainly sold via the

physical shops of retailers. Clothes are

available at all retailers such as designer

shops, department stores, and clothing

chains. Demand for low-priced, value-for-

money clothing is driving smaller channels.

Online retailing for fast fashion is

increasing quickly among consumers due

to improved technologies and better

access to the online environment. Online

retailing is projected to continue

increasing strongly, even though the

market share is still small. Traditional

store-based fast fashion retailers as well

as department stores are increasing their

online activities.

Develop a clear market positioning before

setting up distribution channels for the

market. Target the low- or middle-end

segments.

Conceptualisations of the final product can be

a competitive advantage, especially when

targeting smaller chains and independent

importers. Large fast fashion chains in the UK

focus on fast changes of the most fashionable

collections and typically cooperate with

famous designers. Smaller retailers are more

interested in niche markets. This helps them

to avoid the margin pressures. Due to the

above market characteristics, when entering

the Dutch fast fashion market, it might be

easier to collaborate with smaller or medium-

size retailers.

Minimum delivery volumes and terms of

payment vary greatly and will need to be

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C BI Product Fact Sheet Fast Fashion in UK

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

There is also an increase in the

supermarket segment. This trend is set to

continue due to an uncertain

macroeconomic future.

Fast fashion products can be positioned in

the low to medium-high segment. H&M,

Zara, Next, Gap, American Apparel,

Primark, Topshop, River Island, Mango, and

New Look are among the leading apparel

retailers in the UK.

UK department stores with fast fashion

items: Marks & Spencers (M&S),

Debenhams, and Selfridges, and

supermarkets: Tesco, Asda, and Sainsbury.

Teens segment retailers in the UK are:

H&M, Topshop, River Island, Next New

Look, Tammy, Boohoo Sister, and Punky

Fish

requested on an individual basis. For more

information, see CBI Market Channels and

Segments for Apparel.

Disclaimer: Company and brand names have been included as examples only and do not necessarily give a

complete overview.

Market competitiveness

Figure 6: Competitive forces in the UK clothing industry

The UK apparel retail industry is rather fragmented and this, combined with

moderate growth in recent years, has resulted in an increased level of rivalry.

Most important developments Considerations for action

Degree of rivalry

Medium-high competitive rivalry between a

large number of companies in the UK clothing

retail market

The market is growing which enables

companies to improve revenues. This provides

European small and medium enterprises

(SMEs) present better opportunities as

potential customers for DC exporters. Actively

contact SMEs in the UK and participate in

trade shows to introduce larger market

Buyer power

Degree of rivalry

New entrantsSubstitutes

Supplier power

UK clothing industry

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C BI Product Fact Sheet Fast Fashion in UK

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

opportunities for DC suppliers looking to enter

the market.

High product differentiation has a dampening

effect on the degree of rivalry.

Vertical backwards integration is a serious

threat in the fast fashion segment among large

retailers. Companies can improve speed to

market by producing materials in-house.

Supplier power

Many independent retailers would argue that

some of the brands supplying them are also

their competitors.

High levels of competition among suppliers act

to reduce prices to producers. This can be a

negative from the DC supplier perspective.

Multiple distribution channels result in less

bargaining power for individual distributors.

Consciously specialized suppliers are fewer

than in the general apparel market.

Buyer power

Several buyers with no significant

concentrations and low switching costs leave

buyer power at medium.

Buyers purchase a significant proportion of

output – distribution of purchases or if the

product is standardized.

New entrants

Several retailers and clothing manufacturers

have launched new clothing products. Many

are existing retailers or manufacturers that are

launching conscious collections on the side of

their regular ones, but new players are also

entering the market, e.g. H&M has launched

its Conscious Collection.

Strong brand names are important and new

competitors need to establish brand

recognition in the market.

Low barriers to market entry.

Substitutes

The threat of substitutes is high as there is a

low threshold for consumers to shop around.

Brand loyalty could be high in some conscious

design segments since the products can be

assumed to have a ‘story’ behind them that

increases brand loyalty.

players to your product offering.

In order to increase the competitive

advantage of your product offering as

compared to the leading sustainable clothing

brands, certify your product with a

sustainable/eco-label, which will lend

credibility to your products’ sustainability

claims.

Consider joining UK market clothing

cooperatives/initiatives (retail) for improved

market visibility and access to new channels.

Top-end partners are needed: Create the right

network that appeals to aspirational

consumers. Join a buying hub (services) so

you can connect.

For DC exporters, low barriers to market entry

mean importers and wholesalers are the best

way for small- to medium-size enterprises to

bring products into the country. These will be

contacted directly via the representative and

terms will be negotiated.

Private label manufacturers selling to the

department stores might be interesting to

target.

Create clothes that flatter while remaining

stylish and trendy with a good cut and of good

quality. Focus on appealing/trendy design in

respect of style, in all

segments/demographics.

Useful sources

• ASBCI (Association of Suppliers to British Clothing Industry),

http://www.asbci.co.uk/

• British chambers of commerce, http://www.britishchambers.org.uk/

• International Chamber of Commerce UK, http://www.international-

chamber.co.uk/

• UK Fashion & Textile Association, http://www.ukft.org/

Page 14: CBI Product Fact Sheet Fast Fashion in the United Kingdom · 2014-06-26 · CBI Product Fact Sheet Fast Fashion in the ... Fast fashion consists of women’s wear, men’s wear, and

C BI Product Fact Sheet Fast Fashion in UK

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

International Textile and Apparel Association, http://www.itaaonline.org

Market Access Database, http://madb.europa.eu/madb/indexPubli.htm

Textile Exchange, http://textileexchange.org

Ethical Fashion Forum, www.ethicalfashionforum.com

British Fashion Council, http://www.britishfashioncouncil.com/

British Retail Consortium, http://www.brc.org.uk

Centre for Sustainable Fashion, http://www.sustainable-fashion.com

Trade fairs

Collections: Fast fashion in Lille,

http://www.collectionsfastfashionlille.com/ Fashion sourcing SVP, http://www.fashionsvp.com/

This survey was compiled for CBI by GIA

in collaboration with CBI sector expert Dhyana van der Pols.

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer