Post on 08-Feb-2017
NICHE MARKET REPORT
CHILDRENSWEARMARY LAWTON
Fig 26
CONTENTS
1 - Executive Summary2 - Inroduction
3 - The Market Sector4-6 Current Market Analysis
7-10 - Current Trends11 - External Influences
12-13 - Brand Introduction14-16 - Brand Values and identity
17-18 - Products and Stores19 - Financial Perfromance
20 - Channels of Distribution.21 - Ansoff Matrix
22 - SWOT Analysis23 - Conclusion.
Fig 1
EXECUTIVE SUMMARY
The purpose of this report is to take a look at the childswear sector of the fashion market, the competition within the sector, curent trends and potential macro-environmental factors that affect the sectors performance.The report will research into a particluar brand within the sector and also look at financial performance, products, stores, brand identity and conduct a SWOT analysis of the brand.
Fig2Page 1
This report will look at the childrenswear market and how a variety of external factors affect this particular sector of the fashion market place.
The research in this report will demonstrate the size, performance and growth of the market.
Obvious limitations in my research will be the inability to experience the design, development and manufacturing processes of the products, but I will gain as much understanding as I can about of the marketing and retail stages of this market.
I will also be exploring the ins and outs of the brand ‘Baby Dior’ and hopefully gain some insight into how this particular brand is making their mark within the industry.
INTRODUCTION
Fig 3Page 2
THE MARKET SECTOR
The exclusivity of the brand indicates that it is more designer than it is a high street brand.
The price range for these products can cost up to £2,000. Therefore, only a handful of society’s elite would splash out on luxury, designer clothes for children. This point is justified by Mintel’s research into consumer spending.
“Over three fifths of parents agree that children grow so fast it is not worth spending a lot of money on clothes.”(Mintel, 2013)
Although the majority of kids clothing is found on the high street, reports show that a high percentage of mothers shop for their childeren’s clothes in supermarkets or online.
“Supermarkets remain the most popular places to buy baby’s and children’s clothes, with just under three in ten purchasing from George at Asda and almost a quarter from Tesco.Almost seven in ten consumers agree that supermarkets are the most affordable places to buy childrenswear.”(Mintel, 2013)
There are also various outlets (e.g T.K MAXX) and online discount websites on which to buy children’s clothes which are also very popular. So the kidswear market seems to cover the majority of sales platforms which says a lot for the size and progress of the market.
Fig 4Page 3
HAUTE COTURE
READY-TO-WEAR DESIGNER
VALUE/ DISCOUNT RETAILERS
HIGH STREET STORES
“UK sales of childrenswear grew by
3.8% in 2013 to £6.5 billion, but underperformed the overall clothing
market.”(Mintel,2013)“The
childrenswear market in the UK is heavily influenced
by promotions, with a quarter of consumers looking for clothing which
is discounted.”(Mintel, 2013)
CURRENT MARKET ANALYSIS
“Infantswear is the best performing sector
and has grown by 23% between 2008 and 2013.”(Mintel,2013
“Boyswear has seen the slowest
growth and the sector has struggled in the last year.”(Mintel, 2013)
“Babywear has lent the market some
resilience and as well as benefiting from the recent baby boom, it has been
more protected from the economic downturn due to the strong gifting
market.”(Mintel. 2013)
Fig 5Page 4
CHILDRENSWEAR:VALUE RETAILERS VS MULTIPLE STORES
“The supermarket chains dominate the market and have become even stronger. Grocery chains have thrived on demand for low prices for children’s clothing, combined with the convenience they offer to the customer and have driven down the prices of children’s clothing and schoolwear. “(Mintel, 2013)
“While consumers who prioritise low price are most likely to buy childrenswear from supermarkets, those who place more importance than average on
fashionable clothing also buy from grocery chains, highlighting how supermarkets have upped their game and how their own-brand childrenswear has the potential to become a fashion brand rather than just a supermarket brand.”(Mintel, 2013)
Fig 6Page 5
“The changes to Child Benefits
in the UK have meant that many parents have less disposable income to
spend on items such as childrenswear, fuelling the popularity of supermarkets and value
retailers.” (Mintel,2013)
“Supermarkets remain the most popular
places to buy baby’s and children’s clothes, with just under three in ten purchasing from George at Asda and
almost a quarter from Tesco.” (Mintel,2013)
“Almost seven in ten parents agree
that hand-me-downs or second-hand clothes are a great way of spending
less.”(Mintel, 2013)
“There has also been a growing
trend for buying pre-owned items instead of new ones, driven by the popularity of online sites
like eBay.” (Mintel,2013)
Fig 7Page 6
CURRENT TRENDS IN KIDSWEAR
Fig 8Page 7
Fig 9Page 8
CURRENT TRENDS IN KIDSWEAR
Fig 10Page 9
Fig 11Page 10
KEY EXTERNAL INFLUENCES
There are many aspects fo modern day life which make doing everday things a lot easier, but is there a point at which children should or should not be exposed to these advances in technology? This also forces us to
question what our children are exposed to while online.
“A quarter of children aged 10-14 search online for ideas on what clothes to buy, rising to over a third of 14-year-olds and girls. One in six children aged 14 using a smartphone or tablet to look for clothes online.”(Mintel, 2013)
Fig 12
In modern society there
is definitely an issue of marketing childrens products and clothing in a way that is making children want to look and
act much older than they are.The
subject of over-sexualisation of children can be seen as both a social
and a cultural issue. What we see as socially acceptable in british society is completely different
to the acceptable childrens fashion in other locations such as Asia and Africa.
In America the pagenting of children sparks
a lot of controversy and the fact it is broadcasted on british TV will affect the way our children view
themselves.
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THE BRAND
1947 - Dior launches his first spring summer haute Coture
collection.
1955 - Yves Saint Laurent is Dior’s first and only assistant at 19 .
1957 - Dior is first coturier to appear on cover of Time magazine.YSL becomes artistic director for 6 collections.
1960 - Marc Bohan takes over when YSL starts independent fashion house.
1967 - First Baby Dior boutique is opened.
1984 - Group of investors led by Bernard Arnault takes over Willot group of which Dior belongs to.
1996 - John Galliano becames creative director of Christian dior Coture.
1999 - Popular perfume J’adore is launched.
2012 - Raf Simons is appointed artistic director of haute coture, ready-to-wear and womens accessory collectons.
Fig 14
1905 - Christian Dior was born in Normandy, France.
1928 - Mr Dior opens art gallery in paris.
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“True Luxury requires genuine materials and the craftman’s sincerity. It is only meaningful
when it respects tradition“. Christian Dior.
Fig 15Page 13
Dior -Values.
“-Be creative and innovate.- Aim for product excellence.
- Bolster the image of our brands with passionate determination.- Act as entrepreneurs.
- Strive to be the best in all we do.” (Bernard Arnault.)
Dior fashion brand is now a
part of the LVMH group owned by Bernard Arnault.
He has compiled a mission statemnt about the groups values, products and
services.
“The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance
and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream
and fantasy.”
Fig 16Page 14
Dior - Brand Identity
Fig 17Page 15
-Classic
-Elegant
-Pastel Colours
-Silk & Organza
-Perfect
-Clean
-Traditional
-Formalwear
-Pinks, Creams
- Quality
- Exclusive
- Feminine
- Designer
-Luxury
-Lifestyle
-Successful
-Unique
- -Glamorous
Fig 18Page 16
Baby Dior - The Products.
Page 17 Fig 19
Baby Dior - The Boutiques
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Dior- Financial Peformance
“Latest year-end June 2014.Sales - €1,469 million (year to April 2013: €1,289m)”(Mintel, 2014)
“Although results have not yet been published for the full year to 30th June 2014, quarterly announcements have pointed to good growth in the group’s Couture division.
Sales were reported to have been boosted by its owned boutique network and good momentum in leather goods, men’s and women’s ready-to-wear, and accessories. In the six months to December 2013, profit from recurring operations rose 31% to €108 million.” (Mintel, 2014)
“There is potential for specialist childrenswear retailers with a unique selling point (USP) to stand out in the market, but in the current economic climate and amid competition from multiples, these stores need to excel and have a strong brand identity. “ (Mintel,2013)
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COMPETITORS Baby Dior being a sub-
brand it has slightly different competitors to
Dior but these compeitors are still within the luxury market sector and include other sub-brands such as Burberry kids, Gucci kids,
Stella McCartney kids and Kenzo kids.
Fig 21
Baby Dior - Channels of Distribution
PRODUCER (BABY DIOR)
E-commerce
Boutiques
CONSUMER
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Ansoff Matrix
The launching of Baby Dior in 1967introduced a brand new product (Childrenswear) into a brand new market (Children/Mothers).This comes under the Diversification Strategy
part of the Ansoff Matrix.This strategy can be majorly beneficial to the company as it widens their horizons with regards to new customers.
It can also be a very
risky move as it requires experience and knowledge of the new market in order for it to be successful.The new venture could also require a new work force and possibly more investment.
Page 21 Fig 23
Fig 27
SWOT Analysis
STRENGTHS• Strong brand name and good
reputation as a designer brand.• Excellent quality of advertising e.g beautiful websites/
videos/TV ads.• Carries a continuous theme/identity through the collections
(consistent).• Has not damaged the womenswear and menswear
brands in the process of developing the childrenswear.
WEAKNESSES• Exchange rates can cause loss in
revenue.• Not making enough money through E-commerce channel.
• Limited market share growth due to competition.
OPPORTUNITIES• Online retailing.
• “Green initiatives” opportunity to look into eco-friendly manufacturing and fabrics etc.
• Look into expending markets e.g Brazil or India where demand for more luxury is high.
THREATS• Extremely tough competition from
much cheaper brands.• Luxury brands suffering due to cheaper but similar products
and services.
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CONCLUSION
The report has show that the kidswear market is strong but mainly within the value/ supermaket sector. Luxury kidswear is seen as innaffordable and unnessecary by the majority of mothers. Despite this there is still a market for luxury kidswear brands such as Baby Dior which is seen in the success and devolopement of the sub-brand. The brand would be wise to develop its online busniess and venture into some other emerging market areas such as Brazil. Russia, and India.
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BIBLIOGRAPHY
Insights/Issues overview – (Market Sector) http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1
(Market Analysis) http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1
(Value vs High street)http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1
Key External Influences (Macro-environmental factors)-http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1
Timeline Dior – http://www.dior-finance.com/en-US/ProfilDuGroupe/Historique.aspx
Mission Statement (True Luxury …) https://www.facebook.com/Dior/info
LVMH values and productshttp://www.lvmh.com/the-group/lvmh-group/group-mission-and-values
Dior Performance – http://academic.mintel.com.ucreative.idm.oclc.org/display/712905/?highlight#hit1
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APPENDICES
Current Trends in Kidswear- (Fig 8, 9, 10,11)http://www.wgsn.com.ucreative.idm.oclc.org/content/reports/#/Kidswear
Ansoff matrix (Fig 27)– Google Images
Baby Dior images (Fig 26, 1,2,3,4,5,6,7,12,14,15,16,17,18,21,22,23,24,25,28,29)-Google images: search “Baby Dior”
Boutiques & Products (Fig 19,20) – Google images
PESTEL Boards-Google images
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