Drapers 2012 Retail Forecast Report Summarised

3703 words - 15 pages

The UK Fashion Market: Present The Drapers 2012 Retail Forecast

Sarah Curran, founder of etailer My-Wardrobe and Meg Lustman, managing director of womenswear chain Warehouse both state how consumers will become cautious in their purchasing habits therefore retailers must provide the right product. This is proven to be true, as consumers are looking to buy essential products that are long lasting with quality being the key incentive to purchase. Furthermore, they stated that providing exceptional customer service and enticing the customer with extra services and excitement is a must for 2012. This has been demonstrated with John Lewis sitting amongst the most admired retailers of 2012 ...view middle of the document...

Throughout 2012 retailers have become aware of this and with the launch of the new iPhone 5, many more consumers now have a smart phone meaning mobile and online retailing has increased. In terms of trends of 2012, colour and fabric have made a huge impact on the high street with a lot of bright bold colours and a mix in fabrics. Donna Ida, founder of four-store women’s denim indie Donna Ida predicted exactly this, stating how newness will be introduces through improved fabrics technology, finishes and prints in addition to how ‘colour was big in 2011 but in 2012 it’s going to be humungous’. Some predicted the events of 2012 to help retailers to sell, however the Olympics and the Jubilee did not make such a huge impact. During the Olympics, ‘central London saw a large drop in visitors during the Olympic Games’ (BBC). The public were encouraged to avoid central London during the Olympics and the focus was on socialising during the summer throughout the games and the Jubilee that did not help retailers as they had imagined.

The Drapers Market Report 2012

1.0 Introduction Investigate different areas within the current diverse fashion industry What is currently driving businesses and what will retailers execute in the future in order to progress the business and provide for their specific consumer market

Resulted through Drapers Survey - Responses from 329 retailers - Independent retailers: 197, multiple retailers: 75, etailers: 57 - Indie Retailer: Independent, does not receive venture capital or other corporately backed funding. Start up funds come from the owner – sole trader or LLC. New season funded by last seasons revenues - E.g - Multiple retailers: ‘multi-channelling’ Offer products through multiple retail channels. Three basic: brick-and-mortar stores (retail stores), online (available 24 hours), catalogues - Etailers: Online retailer, e.g ASOS - Survey question 1: ‘What sectors of the market do our retailers cover?” Value 4.6% Mid-Market 49.2% Premium 39.2% Luxury 7% - Survey question 2: ‘How many brick-and-mortar stores do our retailers have?’ None 23.1% 1 40.8% 2-10 21.9% 11-50 7.3% 51-100 3% 101-200 0.9% 201-500 2.1% 500+ 0.9% - Evaluate these results to understand how challenges and trading differ across the market - Shown through an overview of key findings that will be interpreted - What these findings mean for the future of each market sector 2.0 The Current Picture ‘The State of Play – a trading overview’ Global financial meltdown Difficulties in trading However, many businesses interviewed do not seem to be affected badly Last Years Turnover and Profits Turnover 2011, compared with 2010: up by over half (of surveyed retailers) 55.6% Many said 10% turnover and 30% year on year

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Multiple retailers: 64% turnover growth (2010-2011) Independent retailers: 51.3% turnover growth (2010-2011) Online sales were not affected as brutally as multiple and independent retailers during the recession Profit – up less than half...

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