1. UK Fashion Industry
MANSOOR AKRAM
DENıZ KURUGOLLU
SUNDEEP RAı
JASON NEUMAN
VLADıMıR GEORGıEV

2. Agenda
I. DEFINE THE INDUSTRY SECTOR
II. SECTOR SIZE AND CONCENTRATION
III. KEY TRENDS IN THE BUSINESS
ENVIRONMENT
IV. GROWTH RATE AND SECTOR SIZE
PROJECTIONS
V. WHICH ARE THE KEY FIRMS IN THE
SECTOR?

3. I. Industry Sector
 Fashion
 Retail and manufacturing
 Boundaries

4. Industry Sector Cntd…
 Standard Industry Classification (SIC)
52.41 Retail sale of clothing
52.42 Retail sale of adults' fur and leather clothing
52.42/1 Retail sale of children's and infants' clothing
52.42/2 Retail sale of other women's clothing
52.42/3 Retail sale of other men's clothing
52.43/2 Retail sale of leather goods

5. II. Sector Size and Concentration
Source: © British Fashion Council 2008

6. II. Sector Size and Concentration
Impact of the Industry

7. Key Trends in Business Environment
 Exchange rate
 Recession
 Eco-Fashion
 Aging Population
 Male attitudes towards Fashion
 Online retail

8. IV. Growth Rate and Sector Size Projections
•VAT
•Workers Spending
•Income Tax
Source: © British Fashion Council 2008

9. IV. Growth Rate and Sector Size Projections
Forecasts for the UK Economy (000, % and million), 2009-2013
Year 2009 2010 2011 2012 2013
UK resident †
61,858 62,309 62,761 63,209 63,650
population (000)
Gross domestic
-3.9 0.2 1.9 2.4 2.6
product growth (%)
Inflation (%) -1.3 1.7 2.3 2.9 2.5
The Forecast Total UK Clothing Retailing Market by Sector by Value at Current Prices (£m at rsp),
2009-2013
% Change
Year 2009 2010 2011 2012 2013
2009-2013
Women’s
19,216 19,312 19,602 20,092 20,896 8.7
garments
Men’s garments 10,992 10,970 11,079 11,412 11,787 7.2
Children’s
6,996 6,926 6,995 7,086 7,298 4.3
garments
Clothing
2,080 2,122 2,186 2,252 2,326 11.8
accessories
Total 39,284 39,330 39,862 40,842 42,307 7.7
% change year-
0.1 0.1 1.4 2.5 3.6
on-year
Source: © Mintel 2010

10. IV. Growth Rate and Sector Size Projections
 Recession
 Olympics
 Material Prices
Source: © British Fashion Council 2008

11. V. Key Firms in the Sector
18,0%
Market Share
Marks & Spencer 16,0%
14,0%
Next UK 12,0%
10,0%
Arcadia Group %
8,0%
Primark Stores 6,0%
4,0%
New Look 2,0%
0,0%
2005 2006 2007 2008 2009
Source: Mintel Clothing Retailing 2010-2006
 Stores Openings
 International Expansion

12. V. Key Firms in the Sector
1. Marks & 3. Arcadia Group
SpenserPLC 2. Next PLC
Taveta Investments
Ltd (100%)
Shareholders Shareholders
Sir Philip Green
4. Primark
5. New Look
Associated British Foods
PLC (100%)
Wittington Investments
(50+%) Apax Funds & Permira
Funds 55.4%, Founder
The Garfield Weston 22%, Board Directors
Foundation (79%)
Garfield Family
Adapted from Van Frederikslust R. A. I., James S. (2008)

13. V. Key Firms in the Sector
 Strengths  Weaknesses
 Variety of UK high street  Product Positioning
 Primark in the new sector of  Ultimate ownership
disposable fashion  Rivalry of competitors

14. Q&A