Final Thesis

An investigation into the UK clothing sector

for men’s knitwear

This dissertation is submitted in the partial fulfilment of the

requirement of the MA Fashion Marketing and Communication programme 2008-2009

By

Mr. Ojas D. Mogrey

N0195481

Under the supervision of

Dr. Alistair Knox

School of Art & Design

Nottingham Trent University

COPYRIGHT AND ACCESS DECLARATION

I certify that this thesis does not, to the best of my knowledge and belief:

(i) Incorporate without acknowledgement any material previously submitted for a

degree or diploma in any institution of higher education;

(ii) Contain any material previously published or written by another person except

where due reference is made in the text; or

(iii) Contain any defamatory material.

Signed……………………………………..

Date…………………………………

i

Acknowledgement

I avail this opportunity to express my deep and sincere gratitude to my

supervisor Dr. Alistair Knox, firstly for giving me the opportunity to work

under his guidance. Secondly he has been supportive since the day I started

the project work. He gave me the freedom I needed to progress and finally

for showing me different ways to approach a research problem and

accomplish my goal, and encouraging me during the most difficult times

while writing the dissertation.

Learning is an infinite aspect of knowledge. This journey of learning

becomes more valuable with experienced travellers of the knowledge world;

their motivation and guidance leads us to our destination.

I am extremely honoured for the opportunity bestowed upon me to work

under the guidance of Ms. Yvonne Trew who’s inspiring, scholastic

guidance, helpful criticism and abiding interest has helped me a lot. I

express my sincere gratitude to all those who has participated in primary

research and have given their genuine feedback. I sincerely appreciate Miss.

Roohi and Miss. Milisha for their constant moral support during my stay in

the UK.

Last but not at the least I would like to thank my parents for their constant

encouragement and full support.

Ojas D. Mogrey

Fashion Marketing & Communication

ii

Abstract

This research report particularly focuses on the men’s knitwear market

in the UK clothing sector. It gives an overview of the market and

elaborates whether it is a growing or a declining segment.

The real inspiration came from the geographical location of

‘Nottingham’ on the UK map. Not only general clothing production was

dominant occupation in this part of UK but especially people here were

engaged in ‘knitwear’ business. The thought process and curiosity was

coupled with my past work experience in menswear export company, this instigated me to follow a line of investigation on this clothing

sector of men's knitwear.

After substantial background reading on the topic, this project was broadly researched from four different angles i.e. technological

improvement in production, suppliers/manufacturer’s view (Domestic

and International), retailers perception and consumer behaviour. Data

was gathered from observation and interviews as tools of primary research. Visits to few knitwear production houses in England have

also given a good insight on existing production practices.

Based on primary research, it reflects that market is not growing much

because of the current economic downturn but certainly has good scope in the future, as male consumers are willing to spend on good

quality knitwear. Secondary data also explains that market for men’s

knitwear in terms of production and retail is going down.

There is still further scope in this research process with specific set of

objectives which may lead to a concrete conclusion.

iii

Contents

Chapter one – Introduction

Background (02)

Project Aim and purpose of study (04)

Beneficiaries (04)

Research Objectives and (05)

Related Research Questions

Chapter two – Research methodology

Research Validity and Strategy (07)

Literature Review (09)

Interviews (11)

Observational Research (13)

Technical Visits (14)

Challenges in Conducting Primary Research (15)

Chapter three – Knitwear market analysis in UK

Overview of Menswear Market in the UK (17)

Overview of Knitwear Market within Menswear (21)

Key Findings of the Market (23)

Newsroom (24)

Chapter four – Technology and manufacturing

Latest Improvements in Industrial Knitting (26)

Process of Manufacturing Knitwear in UK (31)

Newsroom (35)

iv

Chapter five – The Consumer

Consumer market segmentation (37)

Male Buying Behaviour (42)

Loyalty Drivers (44)

Newsroom (46)

Chapter six – Retailer and Supplier brands

High Street Fashion Multiples (49)

v/s Independent Brands

Issues for Fashion Multiples and Independents (53)

Newsroom (57)

Chapter seven – Supply chain in knitwear industry

Overseas Knitwear Supply to the UK Market – (59)

Process in Brief

Conclusion (63)

References (66)

Bibliography (70)

Appendices A (73)

Appendices B (76)

Appendices C (79)

Appendices D (81)

v

List of figures & Images

Figures

Chapter two

Figure: 1 – Research objectives – strategy (07)

Figure: 2 – Primary research strategy on manufacturing front (12)

Figure: 3 – Primary research strategy on retailing front (12)

Chapter three

Figure: 4 – Trends in menswear sales (17)

Figure: 5 – Menswear market positioning in the UK clothing retail (18)

Figure: 6 – Trends in the UK’s clothing production (19)

Figure: 7 – Structure of men’s knitwear market (22)

Figure: 8 – Stages in knitwear production (31)

Figure: 9 – Age wise male population in the UK (38)

Figure: 10 – Age wise earnings in the UK (39)

Figure: 11 – Distribution of regional earnings (41)

Chapter six

Figure: 12 – Issues for fashion multiple (53)

Chapter seven

Figure: 13 – Process of overseas supply chain (60)

vi

Images

Chapter four

Image: 1 – Garment panels for seamless knitwear (27)

Image: 2 – Example of seamless technology (28)

Image: 3 – Whole garment knitting (29)

List of Tables

Chapter Six

Table: 1 - Price comparison between M&S and Independents (50)

Table: 2 – Price comparison between (50)

Jack Wills and Independents

Table: 3 - Price comparison between (51)

Austin Reed and Independents


Ted Baker and Independents


French Connection and Independents

Table: 6 – UK retailer’s product (men’s knitwear) analysis (55)

Table: 7 – Top knit apparel exporting countries in the world (61)

Table: 8 – Top knit apparel importing countries in the world (62)

Chapter One

Introduction

Chapter one - Introduction

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Background

England is considered to be the mother land of knitting and has a solid history which dates back to four centuries. Initially, the land was being

used for growing corn and also to provide grazing for sheep. The East

midland was the main region where this activity took pace in counties

like Nottinghamshire; Leicestershire attracted the importance because of its availability in superior quality of fleeces (Mason, S. 2000 p.20-

35).

In the late 18th century, framework knitting had started gaining

importance amongst the peasants staying in these areas. This was mainly because of the advantage in production over hand knitting.

These changes led to a shift in the entire industry and transitioned

house-hold knitting to factory production. During this period, circular

knitting machines first got introduced in England and threatened the hand frame knitting production systems. Though many companies had

significant capital invested in the frames, household knitting was still

in existence (Knitting Together, 2002).

At the end of 19th century, UK had also witnessed a good increase in

selling their technology worldwide. The entire world was a huge

market for British textile technology. Those countries who were not

manufacturing knitting machines, needles etc used to buy them from

UK and try to develop similar products for their domestic usage. The sector also employed more than 9000 people just across East

midlands. Later this region automatically became the obvious choice

for foreign investors as well. Overseas competition forced the UK

knitwear industry to adopt large diameter circular frame knitting machines to manufacture cut-and-sew garments. The main focus was

on producing Cardigans and Jumpers during this period (Knitting

Together, 2002).

With growing and better transportation facilities, manufacturers were

able to reach a larger consumer base throughout the country.

Manufacturers started giving names to their products and thus a new

tool of advertising emerged with a concept called as “Brand” / Brand management. Slowly UK businesses started growing but at the same

time imports were also increasing from low cost countries like India &

Bangladesh. There were strong efforts made by the UK government to

protect the market but due to high labour costs and policy of procuring

goods by retailers like Marks & Spencer directly from these low cost producers, which led to a big decline in the textile industry in UK the

21st century (Knitting Together, 2002).


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However, still knitwear has been very important product for people &

for the retailers.

This report focuses on one of the most important yet neglected aspect

(in terms of academic research) of UK’s clothing sector i.e. Men’s

knitwear. The total menswear market has reached £9,135 million in

terms of spending in the year 2008. Based on UK Apparel and Textile Confederation data (2006) and Key Note (2008) report, total market

for men’s knitwear could be around £116 million in 2008 as per the

trend of a 20% fall in production every year since 2006. Within the

scope of this dissertation, the focus will be to concentrate and understand UK’s knitwear industry from the perspective of retailers as

well as the manufactures. It finally aims to understand the growth or

decline of an industry as a whole with the support with theoretical

information and collection of factual primary data.


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Project Aim and purpose of study

The primary aim of this project is to understand whether the men’s knitwear market is growing or declining in UK.

Since the past decade the UK clothing sector has always remained

under tremendous pressure from importers of low cost clothing from developing countries. The total UK clothing sector will continue to

expand but the sales of UK producer’s are forecasted to continue

falling because the growing demands are met by low cost importers

(Key Note, 2007).

The real purpose is to understand the reasons for growth or decline in

the men’s knitwear market based on stated objectives. This project

brief will also suggest some solutions at the end to improve the

unfavourable conditions of market.

Beneficiaries

The beneficiaries of this research project could be new knitwear brands

who want to enter in the UK market. They can predict their sales volumes and formulate strategies by picking up some of the key

findings of this project. Further to this, apparel exporting countries will

get an overview of the market if they would like to fine-tune their

exporting activities to UK. There are latest technological improvements in knitting/processing of knitted fabrics and garment production

mentioned in this report. This information might be useful for a layman

consumer to understand the reason of higher valuation/price of a

knitted product. Finally, overseas suppliers could benefit from this report as they can actually understand the potential of the market for

their export penetration. It is very important for the overseas supplier

to understand saleable qualities, sizes, shades as to keep and maintain

raw material stock for the coming season. The overseas supply chain

which is mentioned in the last chapter (refer chapter seven) can help a UK retailing company to understand and actually plan their inventory

levels, warehouse as well as at the store location. This project report

can also be used as a platform and a launch pad to carry out further

critical and a more robust research. It will be very useful also for those who would like to take this research forward.


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Research Objectives and related questions

After substantial secondary research and primary research, the following are the objectives drawn to achieve an overall aim. This

project has been looked at from four different objectives which are

important because it forms a basic structure of a niche segment of

clothing sector.

To investigate technological improvements that affect men’s

knitwear production & quality of fabrics in the UK & Overseas

markets.

o What are the latest improvements in knitting, fabric

processing and its impact on knitwear sales?

o What is the process of manufacturing knitwear in UK?

To understand male consumer behaviour.

o What are the broad segments of male consumers in the

UK? o How UK men shop in the stores? What are the factors they

consider while buying clothes?

o Which are the important loyalty drivers for men?

To give an overview of leading high street fashion multiples and supplier brands of men’s knitwear in the UK.

o Which & what product and price ranges do high street

retailers offer? o Which & what product and ranges do independent branded

stores offer?

o What are the key market issues for fashion multiples and

independents?

To understand the supply chain operations in importing knitwear.

o How the product reaches from the manufacturer to the store?

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Chapter Two

Research Methodology

Chapter two – Research Methodology

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Research validity & strategy

This research aims to explore current retail and production business practices of UK in men‟s knitwear segment. The structure of looking at

the broad perspectives into this niche segment of the UK clothing sector

is self developed and is also based on all the previous investigation into

the whole menswear category.

The strategy formulation began with the careful reading around the

topic. Keeping in mind the overall aim, a critical literature review had

been carried out from various sources like Journals, Magazines, Books,

Research papers etc. This had given a much clearer picture of the whole market segment. Based on this overview of the market, research was

subdivided into 4 focussed objectives.

Figure 1: Research objectives – strategy

There are other research questions attached to this which have already

been mentioned in the previous chapter. Secondary research was focused on these objectives. It was very important to get the

data/feedback from the market and people who are actually working in

the knitwear industry. Qualitative primary research techniques were

applied to gain first hand information.

Knitwear

market

analysis in

UK

Consumer

Behaviour

Retail & Supplier Brands

Supply chain /

Overseas Supply

Technology & Manufacturing


- 8 -

There are several knitwear manufacturers still into existence in different

parts of England. Initially the process asking for an appointment was to

contact them by telephone or email. A questionnaire was created in consultation with the supervisor to get maximum output from those

meetings. In this current economic downturn and high labour cost,

knitwear production in UK seems to be going down. For this reason, it

was necessary to get feedback from a small-medium level of producers who has been in the market for many years but has a very small set-up

and also from the producer-come- supplier of a much larger turnover.

Similarly on the knitwear retailer‟s front, semi-structured interviews were carried out with three companies who have their own brand being

marketed and sold in their own stores. Two companies are selected

from an up-market level and one from budget market level. The

purpose of selecting these two different levels of companies was to understand how they perform in attracting male consumers. Another

reason was understand whether it‟s only the brand name that speaks or

actual quality/speciality of the product which generates the sales.

Some of the key issues like general product choice in different age brackets, price v/s quality factor, and choice of retailer by particular

group of men on the high street are addressed by a non-participant

observation technique. As Judith Bell (2005:184) pointed out,

observation can reveal characteristics of certain group of people.

It was also worthwhile contacting ex-colleagues who were managing

knitwear export business from supplying countries like India &

Bangladesh. Taking valuable inputs from them on the process of importing knitwear by UK buyers was indeed proved useful. According

to TNS Global report (April, 2008), there was steep increase in the

trend of men‟s knitwear sales with 42% volume growth in the year

2007 compared to the previous year. This growth was mainly due to

sales increase in Cardigans (type of knitwear product). On top of this the report also revealed that 3.5 million men‟s cardigans were bought in

the year 2007. The point of research on this issue was, whether it was

all manufactured in the UK or which were the top countries supplying

these products to UK retail stores.

There were two technical visits arranged with medium level (those with

less than 20 flat bed knitting machines or 5 circular machines)

manufacturers including one Leicester based apparel manufacturer in order to understand the existence of traditional or modern production

practices in UK‟s knitting industry.


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Literature review

The initial phase of reviewing literature was started with general reading around the topic through various Journals, Research papers &

menswear magazines. Market reports from companies like Mintel, Key

Note & Verdict were very useful in providing insight into the UK clothing

industry. UK newspapers e.g. Guardian, The Times & Financial Express was also valuable indeed in giving the latest updates/changes in the

market. This research report discuses mainly the recent literature in

respective context.

The key information derived from below mentioned resources for putting it into the related subject context.

Market analysis & trends

I. Market research firms (Online database) – Key Note Ltd., Verdict

Research, Mintel Intelligence

II. Academic research papers – University of Manchester,

Bournemouth University III. UK National statistics

IV. Web sites www.scotland.gov.uk; www.printwearpromotion.co.uk;

www.sdi.co.uk

Technology and manufacturing

I. Knitting International (Magazine) – Article.

II. Textile Intelligence Magazine – Article.

III. Journal of Textile and Apparel, Technology and Management. IV. TTIS Textile Digest – Article.

V. David Rigby Associates Management Consultants – Research

paper.

VI. Web sites – www.techexchange.com; www.knittingtogether.com; www.mayercie.de;www.snatoni.com;www.stoll.com;www.emarldi

nsight.com; www.fabriclink.com; www.euromonitor.com

The consumer

I. Office for National Statistics

II. Academic research papers – Department of marketing, Loyola

University, Manchester Metropolitan University

III. Textbooks on consumer behaviour in fashion IV. Market research firms (Online database)

V. Web sites – www.brc.org.uk; www.euromonitor.com


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Retail and Supplier brands

I. Market research firms (Online database) – Key Note Ltd., Verdict Research, Mintel Intelligence

II. Textbooks on retail management, clothing retailing

Supply chain

I. Textbooks of supply chain management and Fashion marketing

II. Academic research papers


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Interviews

Interviews are particularly useful for getting the story behind a

participant‟s experiences. The interviewer can pursue in-depth

information around the topic. Interviews may be useful as follow-up to certain respondents to questionnaires, e.g., to further investigate their

responses (McBurney, D. 2007).

Justification

During this research, there were five semi-structured interviews

conducted along with one general interview with the professor at

Nottingham Trent University. The purpose of focussing on this

qualitative research method is to get first hand information from the various levels of professionals working in knitwear industry of the UK.

An interview was another effective way to meet my objectives like

manufacturers perception of the recent knitwear market, how different

levels of individual knitwear brands adopt their business strategy and sense the future of this industry. Further, this method could help to

understand the increased importance of overseas imports by leading UK

high street retailers e.g. NEXT Plc, Marks & Spencer and reluctance of

their domestic buying. To do further justice to the research and to

substantiate the research findings it is pivotal to include a set of primary research method and compare it with a set of secondary data.

This comparative process will help iron out any flaws in the primary

researched data set and plug potential error arise during analysis of

such a data set. The target of selecting professionals was also to ensure that they give genuine information having spent at least a decade

working into the UK knitwear industry. They could talk about business

trend and could predict the market with their vast experience. It would

have been difficult through other primary research methods to understand the working environment in the different activities of an

industry. Aspects such as office/plant location cost and availability of

labour/staff in that region was also worthwhile understanding for an

international student like us.

Strategy

After careful reading on some company profiles in the knitwear

industry, following strategy had been adopted to give fair coverage to broad levels in the market through this primary research. It was also

planned in such a way that it will cover different traditional textile

pockets of UK.


- 12 -

Figure 2: Primary research strategy on manufacturing front

Figure 3: Primary research strategy on retailing front

In-depth company wise coverage of this method is written at the end of

this report i.e. in Appendices section. The objective based on consumer behaviour has been tried to understand through observational research

method.

Manufacturer/Suppliers of knitwear

in the UK

Value-Middle market level

Upmarket level

Crystal Knitwear (Mansfield, Notts)

Crystal Martin (Knitwear) Ltd. (Ashfield, Notts)

Individual knitwear brands in the

UK

Value–Middle

market level Upmarket

Level

Peter Gribby Ltd. (Bottesford, Notts)

Alan Paine Knitwear (Godalming, Surrey)


- 13 -

Observational Research

Observational research is closely related to tracking and is used in qualitative research projects. A researcher will observe consumers while

they carry out regular activities in a setting that they feel comfortable in

(Angrosino, M. 2007)

Justification

During this research, almost all the high street fashion multiples were

visited in different parts of the UK at different intervals. Along with this,

stores owned by individual knitwear brands were also covered under this qualitative research method. The basic aim to adopt this approach

was to understand how the UK male consumer behaves when he shops

in the high street fashion multiples as well as for an individual knitwear

brand. Non-participant technique was adopted to catch natural reaction/behaviour of consumer. This was helpful to support secondary

research findings on clothing purchased by men at different retail

stores. Further, it was also possible to compare men‟s knitwear

collection at high street fashion multiple v/s independent knitwear brands in terms of product, quality, price and source of supply. Source

of supply could be found out from wash care label or the size label

where it is mandatory to mention country of manufacture. Aspects like

judging the product quality by touching fabric, influencing factors for

men to buy particular clothing product and choice of stores as per their age could be studied in a better manner by doing observation.

Many premium knitwear brands are trying to sell their product by

mentioning special process name or fabric/yarn quality on swing tag. Being a silent observer was very helpful in judging the effectiveness of

these marketing tactics in men‟s shopping decision. All these above

mentioned learning objectives wouldn‟t have been well directed with

quantitative approaches like market survey or questionnaires.

Strategy

At all the time, it was pretended to be one of the potential shoppers in the stores. The activity was carried throughout one month by initially

visiting high street stores in Nottingham and later extending it during

visit to the London & Manchester. Visits were made at different time on

the day, week to observe men in a better way while they shop. Product

quality v/s Price compared at the same market level of knitwear brands to have clarity on retailers consumer focus.


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Technical Visits

There were two technical visits made to the knitwear production units based in Leicester. The purpose of these visits was to understand and

practically see how the garments are being manufactured in the UK

factories. This was also to understand how the production units are

geared up on technological front and avoids or supports labour intensive practices. Having worked closely with the clothing factories in India, it

was possible to make comparison of production processes between

companies of similar scale and nature.

The first factory which visited in Leicester was Esprio Knitting Co.

Address – 34, Syston Street East, Leicestershire, LE1 2JW

Owner – Mr. Chales Middleton

Activity – Knitwear manufactures and wholesalers Year of establishment –1992

No. of people working – 16

No. of sewing machines – 20

In-house fabric production or Outsourcing – Outsourcing Supply to – Local sports clubs and school uniforms

Growth in the profits? – Very stagnant since past 3 years

The second factory which visited in Leicester was GB Fashions Ltd.

Address – 117 Doncaster Rd, Leicester

Owner – Mr. JPS Ghuman

Activity – Knitwear manufacturing Year of establishment – 1979

No. of people working – 14

No. of sewing machines – 09

In-house fabric production or Outsourcing – Outsourcing Supply to – Small boutiques in London & Manchester

Growth in the profits? - Very slow since last 2 years


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Challenges in conducting Primary Research

The year long journey of primary research so far was very interesting

and well-informed but at the same time had to tackle few hurdles as well. Following are some of the best examples of it with the detailed

explanation.

o There are several Textile pockets (areas) of knitwear production in the UK. Most of them have a long history in terms of

occupation of the people living in that area. Locating those

pockets and identifying their importance related to the project

was a bit tricky thing. Even though you can „Google‟ (search online) these areas, it is a major task of actually finding and

locating the companies which can contribute to your research. For

example, there are many clothing factories situated in east

midlands but there was no point in approaching to the companies

whose focus is not to produce knitwear. This issue was solved initially by consulting professionals from home country who had

visited UK earlier and traded with UK based companies. Local city

council offices and friends were also very helpful.

o After locating the area and appropriate company details, the next difficulty was to select right person (participant in this context)

who could give correct feedback. For this reason, all

correspondence initiated towards highest authority of the

organisation in consideration of the fact that he/she had spend considerable time period in an industry.

o Company profiles of similar nature and size were compared

through their respective web sites to save time & cost factor. As a

student it was not possible to travel long distance and spend huge sum just to take one interview. For example, in the premium

knitwear category “Alan Paine Ltd.” (Surrey based) was chosen

over “Hawick Knitwear” to avoid travel till Scotland.

o Consumer behaviour observation is real time consuming at the

same time patience testing task. There were many new things to observe each time when visit was conducted to the market. To

avoid these vague results, specific agenda of observation were set

related to the objective. This narrowing down approach actually

brought back focus of chosen primary research method. o Limited contacts in an industry were not giving access to many

knitwear factories. Persistent follow-ups and contacts of fellow

student given me an opportunity to visit above mentioned

factories.

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Chapter Three

Knitwear market analysis in UK

Chapter three – Knitwear Market Analysis in UK

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Overview of Menswear market in the UK

The menswear market includes all garments made for men and boys. It includes both outer and under garments, but excludes infants wear,

which is defined as clothing for children under two years of age (Verdict

research, 2008).

On the retail front

Menswear market in the UK constituted for 25.7% of overall clothing

market with a total retail sales of £9,135 million at the end of the year

2008. This is a slight growth in the market as compared to the sales of £9000 million in the year 2007. The reason for this slow growth is

„recession‟ in the market. In spite of this fact, menswear market has

observed a constant growth since last five years (Verdict research,

2008).

8399

8533

8712

9000

9135

8000

8200

8400

8600

8800

9000

9200

Value

2004 2005 2006 2007 e2008

Year

Figure 4: Trends in Menswear sales (value in £m)

Source: Verdict Research

The above figure clearly indicates an increase in the menswear sales

particularly in the period between the years 2005-2007 and later a bit

slow. The above sales value is inclusive of all retail distributors like clothing specialists, grocers, departmental stores etc. According to

Verdict Research, there is a maximum share of clothing specialists into

the market with Primark leading the way in this category. However this

report also indicates that River Island is leading in terms profitability. Based on personal observation, high street retailers are trying to add

„value‟ to the product by improving fabric quality, usage eco-friendly

yarns, packing with accessory (e.g. shirt with a tie or jeans with a jute

belt). Retailers are also improvising on the visual merchandising part to


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attract more number of people to visit their stores. Retailers like Gap;

Next & H&M displays „how‟ to wear a garment on mannequins. Some

retailers are trying to stretch their product prices upwards to differentiate themselves from middle & value market players.

There is a typical broader segmentation into the menswear market

which is explained along with the names of retailers as mentioned below. Positioning of particular set of retailers has been evaluated

based on industry reports (Verdict research, 2008) and personal

observation on price points of the products offered in their stores.

Figure 5: Menswear market positioning in UK clothing retail

Competition amongst all menswear retailers has been observed phenomenal but as far as the market share is concerned, Primark has

the maximum share followed by TK Maxx & George (ASDA) by year

ending 2008. This is the clear impact of economic downturn all over the

UK as large number of customers prefers to buy their clothes from

value retailers over upmarket stores. On top of this lack of regular new trends as compared to womenswear market, makes it difficult for

retailers to persuade men to upgrade their wardrobe on regular basis

(Verdict research, 2008).

On the other hand, menswear production in the UK is another and

important aspect of the market in view of whole clothing market. Many

facts and figures have been extracted from secondary research

resources and personal meetings with the professionals in an industry.

Positioning of

Menswear market

in the UK

Upmarket/Hi value retailers

Mid-market retailers Value/Budget retailers

Jack Wills John Lewis Austin Reed

Ted Baker etc.

H&M River Island

TopMan T.K.Maxx etc.

Primark George

Officer‟s club Tesco etc.


- 19 -

On the production front

The clothing production industry has changed in the UK, with a global sourcing from low wage countries reducing domestic cost of production

(Key note, 2009).

The textile industry in the UK and comparable high cost economies has been in the long term decline for many

years now (Bergvall-Forsberg, 2007).

Clothing manufacturing is scattered all across UK but focussed mainly into regions like East Midlands, Scotland (for knitwear) and Northern

Ireland. This also implies to Menswear manufacturing as it is a major

big sector into UK clothing retail. Following are the main categories for

menswear.

o Knitwear

o Shirts

o Tailored outerwear

o Hosiery o Underwear

The below mentioned figure explains an estimated trend in UK‟s clothing

manufacture till end of the year 2007. This includes menswear as well as womenswear. Values are taken at manufacturers selling prices.

0

500

1000

1500

2000

2500

Value

2003 2004 2005 2006 e2007

Year

Knitwear

Outerwear

Workwear

Hosiery

Underwear

Figure 6: Trends in UK’s Clothing production (value in £m)

Source: Key Note Ltd.


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As we can observe there is a clear decline in the clothing production

over the five years till end of 2007. The import penetration in the

market is accounted for almost more than 90% resulting domestic production valued at merely around £900 million in the year end 2007

for menswear. There are many countries who has been benefited from

this rising imports of the UK depending on the type of garment. China

has a maximum share of exporting all the types of menswear in the UK followed by Bangladesh for shirts, Turkey & India of underwear and

knitwear and Italy for formal wear (Key Note, 2008).


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Overview of knitwear market within menswear

„Knitwear‟ refers to any fabric which knitted (as opposed to woven) with particular thickness of the yarn and being converted into garment

(McDonnell, S. 2008).

Market in brief

As per the latest data available, the total (including men‟s & women‟s)

UK market for knitwear accounted for £290 million at the end of year

2007. According to National Statistics, the women‟s clothing share in

the market by market value is more than 52.1%. Considering this fact, the men‟s knitwear market could be around £145 million at the end of

year 2007. This is further decline as compared to year 2006 where the

UK market accounted for £181 million (Key Note, 2009).

Knitwear manufacturing was supported by domestic retail giants like

Marks & Spencer Plc and Debenhams but inexorable rise of import

penetration and very high domestic production cost attracted these

retailers to source from other countries. On the other side of high street retailers there are some UK based independent knitwear brands who

are trying to remain in the market with their own production house and

stores. In this market segment, there are two broad categories. One is

upmarket level brands and other one is mid/budget market level

brands. These two categories have been differentiated as per well informed personal observation of their brand image and product price

range.

Male consumers in UK feel their loyalty driver lies in their first experience of wearing/trying particular quality of product. Premium

quality jumpers, cardigans are generally purchased by 45+ age group

people who have got higher income level and also young men who have

got „classic‟ (mature) taste of knitwear fashion.

The personal observation shows that, young men prefer to buy

garments from fast fashion and value fashion multiples like Primark,

H&M etc. whereas older men prefers to stick with higher end of the market such as Marks & Spencer, Ted Baker and similar level of

retailers. Similar buying habits also apply to premium individual

knitwear brands in the UK such as Pringle of Scotland, Lyle & Scott,

Fred Perry. These individual knitwear brands are directly competing

with the high street retail brands at different levels in the market. After taking interviews with the knitwear producers in the industry, their

general opinion about the UK market is not very encouraging for them.


- 22 -

Manufacturers are finding it difficult to match the prices offered to the

retail sector by developing countries in current situation. They do have

export market open for them but again there, they fail to produce required volumes as compared to developing nations where garments

are being manufactured on a very large scale (Key Note, 2008).

Basic structure of men’s knitwear retail Industry

Figure 7: Structure of UK’s men’s knitwear market

Apart from above mentioned knitwear brands, there are many domestic

brands that were or still having their own production set-up here in the

UK. There is a good quality of knitwear also being produced in the borders of Scotland.

Knitwear is part of Scotland‟s heritage, and two centuries

of tradition have been combined with state of the art manufacturing facilities to ensure that constant

innovation is a byword of the Scottish Textiles knitwear industry (Scottish development international, 2008).

UK Retail Market for

Men‟s Knitwear

High Street Fashion Multiple

Retailers

Independent Retailers

Upmarket level stores

Mid-Budget market level

stores

Upmarket level stores

Mid-Budget market level

stores

Primark, H&M,

George (ASDA)

etc.

Pringle, Lyle & Scott,

Glenmuir, John

Smedley etc.

Peter Gribby, Winter Beck, Rowlinson

etc.

Marks & Spencer,

Arcadia etc.


- 23 -

The industry is scattered all over Scotland covering many small/big

production units in north & south highlands, Tayside, northern isles & borders. The big players in this region are Hawick Cashmere, Begg of

Scotland, Lyle & Scott, Harley of Scotland.

Key findings of the market

It is observed from above mentioned data and information that

knitwear is an important part of menswear clothing sector. There is clear indication of growth into menswear retail but market for knitwear

is going down. The growth in menswear is at slow pace since past two

to three years because of the economic downturn in the UK. On the

other hand, production sector is witnessing a clear decline. Production is becoming unaffordable for UK manufacturers because of high labour

cost and direct competition from low cost countries. Premium knitwear

brands are still trying to remain focussed with their target customers

with few of them still are manufacturing within UK. Most of these premium brands have been originated from Scotland. Independent

retailers are competing with big fashion multiples all over the UK at

different levels of the market.

This increased competition extends to have product uniqueness over

the competitor in the market. At the same time it also benefits

consumer to try or buy better quality product with a „feel good‟ factor. Improvements in technology and manufacturing could give a different

image or outlook for a clothing product. Researcher has tried to further

investigate into this area of clothing production in the next chapter.


- 24 -

Newsroom

UK Fashion Exports winners announced

Knitwear brand John Smedley took the Gold Award at the UK Fashion Exports Awards, which celebrated excellence in selling

overseas, yesterday. John Smedley, which was founded 225 years ago, also picked up the Heritage brand award from presenter

Joanna Lumley and HRH the Princess Royal. John Smedley

managing director Andrew Caughey said: “We all recognize the

challenges of the current global economy so to win the Gold Export Award during this year is a tremendous acknowledgment

of the John Smedley sales team and our offshore agents and

distributors. Their focused sales approach over recent years has

helped strengthen the positioning of the John Smedley brand

internationally and achieve growth in new markets which is

helping us through these uncertain times” (Drapers, 2009).

- 25 -

Chapter Four

Technology and Manufacturing

Chapter four – Technology and Manufacturing

- 26 -

Latest improvements in Industrial Knitting

There has been a great change in knitting technology over the years all

over the world including UK. Improvement in communication along with usage of computers has enabled to exchange the knowledge in

technology. United Kingdom had begun to witness it’s improvement in

technology after the war years (1914-1918). The 50’s & 60’s were very

much about technological developments in knitting (Power, J. 2007). In the 1970’s, UK saw the introduction of computer-aided design (CAD)

and computer-aided manufacturing (CAM). This made easier for

manufacturers just to create product design on computer and transfer it

on to machines. During the 1990’s and later, majority of the production had moved outside UK and low cost producing countries gained a

momentum of entering into mass market production resulting further

advancement of technology in those countries. It would be interesting

to understand the latest developments in knitting technology impacting

on to the UK clothing sector men’s knitwear.

Circular knitting

A circular knitting machine has a rotatable needle cylinder, a supporting plate rotating synchronously with the needle cylinder, and a product

drawing off and winding device (Striker et al, 2008).

The search for eliminating the side crease on the tubular knitted fabric started almost ten years ago. There was an introduction of synthetic

man-made yarns into the large diameter circular knitting machine

sector eventually brought about the development of open width knitting

machines.

The world leaders in circular knitting machines Mayer & Cie (Germany),

have introduced high speed open-width knitting machine. The main

feature of this machine is their frame capable of speeds of 40 rpm

(revolutions per minute) in continues operation in comparison with the conventional speed of 32 rpm of other existing branded machines. This

innovation allows increasing almost 25% of the production. Further, it

gives a fabric take-down in an open width form which avoids crease

marks in tubular way of take-down of the knitted fabric (Anon, 2009).

The total number of circular knitting machines imported by the UK was

54,999 units in the year 2007 including imports (1,104 units) from

European Union member countries. On the other side total export by the UK was mere 507 units (Office for National statistics, 2007). This

import-export situation clearly shows that there is hardly any


- 27 -

manufacturing take place for knitting machines in the UK and EU as

compared to rest of the world.

Flat knitting

Gauge refers to number of stitches per inch (Smith, M. 2001). Fabric

utilised for sweaters and jumpers are knitted on lower gauge flat knitting machines. Japanese based Shima Seiki Mfg.,Ltd. have recently

invented SSG series knitting machine with a ‘Digital Stitch Device’. This

unique feature has Digital Stitch Control System and can be

programmed with the desired loop length after which it automatically monitors the yarn consumption while knitting the fabric. This new

feature provides a quality control which is essential of shaping and

production of the knitwear (Anon, 2009).

Seamless technology

This is probably the finest example of improvement in knit garment

production technology. This technology actually reduces cut and sew

procedure of making seams in the garment production. There are machines (produced by Shima Seiki and Santoni), where it produces

shaped panels of sleeve, back and front body which then can be sewn

together along with the collar or pocket to produce a whole garment

(Anderson, K. 2008).

Image 1: Garment panels for seamless knitwear

Source: Shima Seiki Ltd.

In the UK, premium knitwear brands like John Smedley, Glenbrae of

Derbyshire, and Britannia Knitwear of Manchester are using this technology to manufacture such garments.


- 28 -

Further, some of the UK Fashion designers like Alexander McQueen,

Vivienne Westwood have also adopted this technology to create their

knitwear collection (Black, S. 2007).

Image 2: The above image is an example of a garment produced on seamless

technology.

Source: LONATI group


- 29 -

Whole garment knitting

This is the latest and most sophisticated technology in today’s knitting industry. This technology has been developed by Shima Seiki, Japan.

The whole garment is being produced directly in the knitting machine.

This technology completely eliminates the cutting & sewing process. The

Computer Aided Design (CAD) is utilised to create garment patterns and the same information is passed on electronically into the machine

(Anderson, K. 2008).

Image 3: Whole garment knitting Source: Shima Seiki

To knit a sweater, three shaped tubes are knit simultaneously.

A front and a back needle bed are utilized to knit the tubes.

Loops are knit and transferred between the front and back beds

to create shape. Three yarn carriers are used—one to knit the right sleeve, the second to knit the body and the third to

knit the left sleeve. Once knitting reaches the under arm area,

the tubes are combined. The two carriers knitting the sleeves

are taken out of the knitting zone. The carrier knitting the body begins to knit one tube—combining the three tubes.

Garment details can be added during the knitting process.

(Anderson, K. 2008)

The above paragraph by Anderson, K. explains the process of whole garment knitting.


- 30 -

Knitted fabric finishes

Enormous technological changes have been taking place in knitted fabric finishes. These changes not only add value to the garment but

give more flexibility and comfort to the wearer.

AEGIS Microbe Shield has invented moisture management system & antimicrobial technology in the knitted fabric. The moisture

management fabric improves the wicking property of the fabric and

improves the drying time. It quickly wicks in all direction providing

greater surface area for rapid evaporation. Antimicrobial technology fabric reduces odour and microbial contamination in the fabric. This

technology saves frequent laundering of the garment with less

requirement of detergent while washing hence reducing overall garment

care cost (Anon, 2009)

There are such several fabric finishes which have new functional

characteristics as well as aesthetic. This has been introduced by many

big companies like DuPont, Nano-Tex etc.

How these technological improvements have been impacted on

the UK knitwear retailing and consumers?

United Kingdom has 99.8% adult literacy (Euromonitor, 2008) as per the current available data. Even if a common man does not understand

the textile terminology but can surely read and understands what has

been printed in a simple language on the swing tags while purchasing a

garment. Following findings has been drawn after personal observation and speaking with some male consumers in England in the high-street

stores. o Manufacturing productivity has gone up resulting fast turnaround

of the garment styles/lines. Retailers can meet fast fashion

knitwear product demands. o New fabric finishes create curiosity amongst the customers to try

new product even if it is little expensive. Creates sales volume for

retailers.

o There is an increased awareness in individual sizing and fitting of the garment amongst consumers. According to Otnes, C. (2000),

patterning and colouration of the garment are also important

factor. These factors become drivers of brand loyalty for the

retailer. o Adoption and display of these new technology garments gives

distinctive characteristic to every brand in the market as well as

in the consumers mind.


- 31 -

Process of manufacturing knitwear in UK

After discussing and understanding the latest improvements in knitting

industry, the focus was to understand the practical step-by-step processes in manufacturing knitwear in the UK. This understanding was

backed by special technical visits to the garment supplying factories and

also during research interview visits. The basic knitwear production

procedure remains the same but may change upon operational scale of the company and volume of production. Change in the below mentioned

cycle is also depends on monitory investment by the company on men

and machine factors.

Companies which are vertically integrated

Vertically integrated companies are the companies which are having

their own set-up right from spinning the fiber to sewing apparels.

Figure 8: Stages in knitwear production

STAGE 7 Packing & Delivery

STAGE 6 Sewing & garment finishing

STAGE 5 Dyeing & fabric

finishing

STAGE 4

Knitting of fabric

STAGE 3

Spinning of Yarn

STAGE 2 Fibre processing

STAGE 1 Choosing the

Fibre e.g. Wool/

Cotton

KNITWEAR PRODUCTION

PROCESS


- 32 -

STAGE 1 – Choosing the fibre

It is the first and foremost step in knitwear production process. Normally, company does a research for the demand of a particular

variety of knitwear in the market (Jones, A. 2009). Every target season

and every market region has their own particular demands. Further,

fibre availability has also been looked after either in the domestic market or overseas imports. For example, sometimes fibres like

cashmere are not available easily by domestic sources or they are very

expensive as compared to other countries. These types of decisions are

being taken by the production department while choosing the core fibre for manufacturing final product.

STAGE 2 – Fibre processing

Before any fibre goes into spinning for the yarn, it goes through this

process. At this stage, fibre cleaning takes place. It also prepares to

ensure highest quality and consistency of the fibres before turning it

into the yarn. Only ‘acceptable quality level’ (AQL) fibres are being

separated by combing from the entire bale.

STAGE 3 – Spinning of yarn

After fibre processing, the clean and good quality fibres are then spun into yarn. It is possible to give range of blends to the yarn to change

the value or quality. Generally there are two types of techniques being

used, woollen and worsted. At every sub-stage yarn quality is being

checked before it goes on to the next process which is called as knitting.

STAGE 4 – Knitting

Grey or dyed yarn is being used from the previous process and fed into the knitting machines. The conventional way of processing is producing

front and back body panels and sleeves separately which are then sewn

together to produce a whole garment. Recently, some companies in UK

(as mentioned before in this report) have adopted seamless technology which produces the whole garment in one piece, three dimensionally on

the knitting machine itself.


- 33 -

STAGE 5 – Dyeing and fabric finishing

Grey fabric is taken from the previous department and dyed into the dyeing vessels according to the requirement of shades. Normally, there

are different sizes of vessels available to adjust the shade lot. For

example, for making sample set of garments there is no need to dye

the fabric in bigger vessels, small dyeing vessels of 5kg or 10 kg are also kept to meet that amount of requirement. Later, finishing is done

to the fabric to give required hand-feel, performance characteristics. It

is also very crucial process as end customer can feel it directly and

make his buying decision.

STAGE 6 – Sewing & garment finishing

Processed knitted fabric gets enter into this stage and panels are being sewn together as per the size specification. Every company has

different system of assembling a product. For example, there is single-

hand system where one operator is responsible for sewing an entire

garment but on the other hand there is progressive bungle system one

operator is responsible for either one or two construction steps on each garment in the bundle (e.g. couple of dozen garments). After this step,

required accessories like wash care label, swing tickets, hang tags etc.

are being attached to the garment. Following step is ironing of the

garments.

STAGE 7 – Packing and delivery

This is probably the last stage in vertically integrated knitwear production unit. All the garments which are being kept ready after

ironing, straight away goes for final packing as per size, shade, quality

or done assorted as per the requirement of the store/client. Finally,

goods are being delivered to their own chain of stores or to the

customer who has given contract of that garment order.

Companies which are not vertically integrated

Those companies which do not have their own spinning, knitting and dyeing units, together along with CMT (cut, make & trim) activity are

considered as non vertical integrated units. Most of the production

companies in UK imports yarn or fabric from overseas to produce

garments. Small scale producers procure it locally through importing agents or domestic stock suppliers.


- 34 -

Once the goods are packed and get delivered into the stores, then

actually it starts the real test of the product in terms of saleability. The

end consumer plays a crucial role in the market place for success or failure of the product. Some products do fail to generate volume sales

into the market in spite of having used latest technology or branding.

Therefore, the next obvious objective comes as to understand ‘The

Consumer’ in the market. In this dissertation, the focus is given only on male consumers and their clothing shopping behaviour.


- 35 -

Newsroom

End of an Era – Pringle set to close Hawick knitwear

factory

Management announced on Monday that it expected to close its

Hawick factory which employs 110 staff, whilst retaining 30 jobs

to staff their head office, finance and customer service departments. Pringle, which has manufactured knitwear in Hawick

for almost 200 years, employed well over 1000 people as recently

as the 1980s when the company knitted around 50,000 pieces of

fully fashioned knitwear per week. Its woollen sweaters favoured by generations of golfers, as well as celebrities are known

throughout the world. The job losses come after Pringle reported

a loss of £9 million last year and the owners, SC Fang & Sons,

embarked on a global restructuring programme. Pringle knitwear

is also manufactured in Northern Italy were costs are said to be up to 30% lower. After a full review by Fang, production is

expected to leave Scotland for Italy. It is thought that part of

reason for ceasing manufacturing in Hawick is the high cost of

running the factory. However, since buying the company for £6 million in 2000, SC Fang has invested £45 million mainly on

rebranding. Traditional knitwear, which is what Pringle is known

for, now accounts for just 15 per cent of Pringle’s sales. Pringle

was an institution in Hawick and at one time nearly every family in the town would have had a family member working in one of

the company’s mills. Even today many Hawick individuals still

working in Scottish knitwear firms and indeed firms around the

world have some connection or history of employment with Pringle (Anon, 2008).

- 36 -

Chapter Five

The Consumer


- 37 -

Consumer market segmentation

Consumer segmentation is a process of separating people into

different groups that have some similar features, resulting in the ability to be targeted and studied (Soloman and Rabolt, 2009).

Importance

„Market segmentation‟ is a strategy used by companies to cater

specific demands of a niche market. In this dissertation, the focus is

on United Kingdom as a market and men‟s knitwear as a product. It is obvious to have a vast set of male consumers in the country in

terms of age, socio-economic, psychological factors. Thus, it makes

sense for the company or brand to make segmentation and then

target that audience. The choices or needs of one particular group of

consumer don‟t vary too much in one market segment (Mercer, D. 2005). This helps the company to position their product accordingly.

As per personal research, male consumers in UK change their

shopping preferences and buying patterns over the time. For example, men prefer to buy sweater or jumper with heavier fabric in

autumn-winter season whereas they like to buy little light weight

knitwear in spring-summer season. Normally they would not invest

money in buying classic knitwear in summer rather than to wait for next season‟s fresh collection to be available into the stores.

Segmentation allows companies to understand these changes and

encourages developing their product at different time intervals to

satisfy the need of particular set of consumer.

There are other important factors also such as innovation

stimulation, identification of growth opportunities and rise in

profitability (Blythe, J. 2008).


- 38 -

United Kingdom – Age wise segmentation

3356

4076

6621

3775

3508

0 1000 2000 3000 4000 5000 6000 7000

16-24

25-34

35-44

45-64

65 +

Age

Population ('000)

Figure 9: Age wise male population in the UK Source: Office for National Statistics

The above figures have been taken from an official UK national

statistics website and are estimated figures of mid year 2007. As we

can clearly observe from the data that population amongst age group between 45-65 years old, is the maximum.

This largest group of population gives the greatest contribution to

transactions in the UK‟s clothing retail. The consumers who belongs

to this age bracket are likely to have good disposable income and likely to be loyal to the brand (WGSN, 2008).

The second largest age bracket is men between 35-44 years. Men in

this age bracket are generally price conscious but shopping experience along with family is the key factor which can be observed

quite often (WGSN, 200).


- 39 -

The least populated age bracket is 16-25 years old men. This is the

most favourable consumers for retailers in the UK as „price‟

importance is very low for this group. Visual impact of the store and fast fashion products attracts them the most (WGSN, 2008).

United Kingdom – Age wise earning segmentation

As per the gender focus data of UK National Statistics, median

income of men was higher than the women in the year 2008.

Men average earnings were £484.0 per week as compared to women‟s earning of £299.0 per week. The average earnings per hour

for men were £12.50 as compared with women‟s earning of £10.92

per hour (National statistics, 2008).

It is very important for any knitwear retailer or the manufacturing

company to decide and target general age bracket of male

consumers (Jones, A. 2009). The designs, fabric and the fit is been

created according to an average taste of that particular age group

consumers. An important factor of „price‟ has also being quoted for the product keeping in mind of their earnings capacity perception.

Therefore, it could be interesting to understand per week earnings of

men in the UK from various age categories.

462.1

563.7

598

565.7

416.4

280.1

0 100 200 300 400 500 600 700

60+

50-59

40-49

30-39

22-29

18-21

Age

£ per week

Figure 10: Age wise per week earnings in the UK

Source: Office for National Statistics


- 40 -

The above data (Figure 10) clearly indicates that men between the

age brackets of 40 to 49 are the highest per week earners in the UK.

Majority of the premium men‟s knitwear brands in UK have this age bracket as their target audience as they seem to afford exclusive

knitwear range, e.g. pure cashmere jumper. This finding on the

market is also backed by the primary research (Interview) activity

with the retailers and manufacturers. Alan Paine knitwear Ltd. of surrey is a premium men‟s knitwear brand in the UK. ‘We have a

main target age bracket of men in between 45-65 years old (Beattie,

C. 2009)’. This interviewer was also emphasising on targeting this

age bracket for men‟s knitwear products because of the fact of their earning potential. Peter Gribby Ltd. is a Nottingham based budget

level knitwear brand in the UK. The meeting was arranged with the

managing director of the company to get their and an overall

feedback about the current market in the UK. The interviewer had expressed that, ‘our both the labels are targeted towards 45+ age

bracket (Gribby, D. 2009). Medium level manufacturer like Crystal

Knitwear from Mansfield – Nottingham also manages to produce

classic knitwear for men above 40 years old.

United Kingdom – Region wise earnings segmentation

It could also be interesting to explain region wise segmentation of men‟s earnings (per week) those are into full time employment in

the UK. There is a direct relationship of earnings to actual buying of

a garment. Companies also do this kind of segmentation to

understand and spread their stores network accordingly. As clearly seen (figure 11), men from London earns maximum amount per

week. This region is likely to attract many retailers to open or

expand their certain number of stores.

This (segmentation) marketing effort is usually an on-going process. Apart from this, any retailer or manufacturer has to understand

consumers well. Their need, choice and loyalty factors are also

essential which is normally be expected to learn through a thorough

study of consumer behaviour.


- 41 -

438.8

504.6

464.9

488.4

555.8

676.7

513.8

488.7

488.7

485.3

489.3

464.1

0 100 200 300 400 500 600 700 800

Northern Ireland

Scotland

Wales

South west

South east

London

East

West midlands

East midlands

Yorkshire

North west

North east

Region

£ per week

Figure 11: Distribution of regional earnings Source: Office for National Statistics


- 42 -

Male buying behaviour

‘It is the study of the process involved when individuals or groups

select, purchase, use, or dispose, services, ideas, or experiences and satisfy needs and desires‟ (Soloman and Rabolt, 2009 p.26).

Role of women/female counterpart

Historically clothing purchase is primarily regarded as a feminine

activity. Generally a woman accompanies their male counterpart

while buying clothing items from the stores. Many researchers reveal

that, whenever men go for shopping at the stores or at supermarket they generally bypass the “female” social and communicative aspects

such as getting a news about the „Sale‟ in the market (Otnes and

McGrath, 2001).

Personal observation (non-participant) was carried out of English men over the two months at different high street retailers in

Nottingham as well as in London. It was possible to observe only

thirty men because of the time and cost constraint. It has also

revealed the fact that out for thirty men, twenty seven were accompanied by women throughout their shopping activity. It was

also observed that women were the most influential factor in men‟s

buying decision making. Most of the times, the conversation between

observant couples were about the suitability in shade and fitting of the selected garments. Particularly older men (45+) were very

conscious about the fabric quality and the shade. Price was seemed

to be the secondary factor. In few cases it was also observed that

men were least interested in shopping and were managed to quickly say „Yes‟ to whatever garment has been selected by their female

counterpart. Lacoste and French Connection (FCUK) in Nottingham

have only females on the floor to assist and if required suggest

(particularly on size issue) customers. This could be a marketing

strategy by the retailer of attracting male consumers to buy a garment.

There are many other factors which are important as men in their

buying decision. 1) Successful man who has “made it” in the big working world and would like to show the status symbol to prove it.

2) Quiet self reliant man who has succeeded where others have

failed in performing particular task. 3) Something which endorses

with the “macho man” look (Otnes and McGrath, 2001).


- 43 -

Decision making styles

The purpose of this study is also to understand „decision making‟ patterns of male consumers in the UK. It could be advantageous for

knitwear companies/brands to segment their market according to

particular type of male consumers.

Price and value consciousness is about being conscious of the

garment selling price and attempts to get the best value for his

money. Men go out for shopping with an intension to get something

extra for what they are paying. UK men are generally concerned about the quality. They are of the nature of perfectionism where they

will not compromise on the quality of the product. There is a set of

consumers who believes and relates price and quality of the product

directly proportionate to each other. This thinking normally applies to the brand conscious people (Bakewell and Mitchell, 2004).

Particularly, young men are more fashion conscious consumers and

are always ready to try something new which is available in the

stores. On the other hand, you may find brand loyal and habitual customers who don‟t change the brand in spite of availability of fast

fashion garments in other branded stores. Some male consumers are

just recreational shopping conscious people. They just feel good at

looking for the product rather than actually buying it. There is another interesting category of consumers who does careless

shopping with having no plans in mind. Normally consumers in this

category regret about their decision later. These days, all the

retailers offer as much as possible product choices for the consumer to select. Too much of choice may confuse the consumer buying

decision (Bakewell and Mitchell, 2004).

The above explained consumer decision making styles could help

retailers and manufactures to market their product in a better manner. They also have to think how better they can perform by

attracting consumer again and again. The factors which keep the

consumer regularly visit and buy from the store are the loyalty

drivers of the product as well as the company.


- 44 -

Loyalty drivers

The consumer loyalty is a „relative‟ term in practice and it is difficult to measure it precisely. Therefore in general, consumer loyalty refers

to the consumer‟s inclination to patronise a given brand/store or

chain of stores over time. Researchers have been using different

measures like budget measures, switching (of retailers) measures to understand and assess consumer loyalty (Knox and Denison, 2000).

These consumer loyalty drivers have been revised with the change in

the UK clothing retail in view of its size and structure. No retailer

would like to compromise on their market share due to any factor to

its competitor.

In this dissertation, emphasis has been given on key consumer

(male) loyalty factors based on secondary and very limited primary

research.

Identifying loyalty drivers

In the current UK clothing retail, product ranges offered by stores or high street retailers will always remain the most important loyalty

driver amongst male consumers. This may not be in case of value

retailers or brands but positively amongst fashion multiple retailers.

This applies to consumers of almost all age brackets. This factor

followed by price of the garment. In the current recession scenario, price will remain the priority driver amongst men at least till UK‟s

economy comes back to the normal state. Male consumer may opt

for low quality goods over the price factor and save some penny on

clothing purchase. These days, quality comes in the place after Range & Price. Many high street retailers like Primark, Matalan are

concentrating on fast fashion products that are actually targeting the

15-24 age brackets where price matters over quality. On the other

front, brands like Fred Perry, Lacoste, Lyle & Scott etc. are genuinely targeting the quality conscious market and offers really good quality

fabric & fit. Even they are forced to reduce prices at intervals by

promoting „sale‟ activity (Verdict research, 2008).

It is very essential to provide easy access and convenience of

shopping. Today‟s retailers are trying to satisfy diverse demands by

tailoring their store space. Thus, store convenience for consumers

falls next in loyalty drivers after quality of the product. Due

importance has been given for in store services like product assistance, customer friendly approach on the tills, self kiosk‟s.

Consumers expect a different shopping experience every time when


- 45 -

they visit stores. Layout of the stores also plays an important role in

attracting consumers. It provides comfort, space and better

movement area for the consumers. For example, changing rooms in the store should be located in quieter areas so that consumers using

those do not feel that they are changing on a motorway. The last but

not the least driver is store facilities. Good facilities like

return/exchange of goods, catering to disables and having good cafeteria or restaurant brings back the consumer to shop once again

(Key note, 2008).

Key findings

A woman is an active participant in buying men‟s clothing products.

There are various types of male consumers in the market depending

upon their age, earning capacity and nature of buying clothes. Retailers in the UK are trying to hold the consumer by focusing on

various consumer loyalty drivers.

Every brand/retailer has different strategy of marketing their

product. There are specialist brands for men‟s knitwear in the UK such as Wool over, Harley of Scotland. Some of them are also

supplying to the high street fashion multiples in the UK. This report

further focuses on the comparison between fashion multiples and

individual brands in terms of price, target audience.


- 46 -

Newsroom

„Today‟s a loud day‟

In pictures: Ten men wearing colourful clothes

Photograph: Asadour Guzelian/Sarah Lee

A quiet fashion revolution has been occurring among our men. Take a look around, and you‟ll notice that among the grey

suits, khaki trousers and blue jeans, something livelier is

lurking. Once, the preserve of rotund golfers and pink-faced

television presenters, colourful menswear is suddenly everywhere. And what‟s more, UK men are actually embracing

it. From pastel knitwear to neon trainers, men at last seem to

be discovering that colour needn‟t make you look stupid. In

fact, done well it‟s actually rather stylish. “It‟s a look that has

come directly from the high street. It‟s a really democratic trend,” says Jeremy Langmead, editor of Esquire. “Uniqlo is a

big instigator, with pastel pink trousers, pastel blazers, bright

polo shirts, and bright accessories. Topshop has got bright

neon ties, Asos has also really gone for colour.” In fact, the neon polo shirt as sported by 16-year-old Vincent Mann is on

the cusp of becoming ubiquitous, thanks to Japanese retailer

Uniqlo flogging highly wearable versions for £12.99. High-end

labels are also producing some beautiful, bright, colourful menswear. Calvin Klein recently did neon green and orange

http://www.guardian.co.uk/lifeandstyle/gallery/2009/jun/08/colourful-clothes-men?picture=348466776


- 47 -

suits, Gucci, Lanvin and Bottega Veneta all had cobalt blue in

their spring/summer menswear shows, and even Giorgio

Armani (who notoriously lives in navy T-shirts and perpetuates beige suits) has branched out into purples and pinks. What can

it all mean? “There is definitely a feeling that colour is more

acceptable, and attitudes are beginning to change; it‟s no

longer confined to the barbecue Hawaiian shirt, thank goodness, instead it can be worn every day, at work and at the

weekend,” says Nick Thomas, menswear designer at classic UK

label John Smedley. “Colour can be quite medicinal, I think.

Even if the weather is dark and gloomy, wearing colour rather than blending in with the clouds is much better – escapism

even. A great colour can help lift your mood” (Pool, H. 2009)

- 48 -

Chapter Six

Retailer and Supplier Brands

Chapter six – Retailer and Supplier Brands

- 49 -

High street fashion multiples v/s Independent brands

As explained in the third chapter, there are two broad categories of

the UK market for men‟s knitwear. One is high street fashion multiples and the other one is independent retailers. Both the

segments of the market operate under different product and price

ranges. There are very few independent clothing retailers left but

they do continue to play important role in niche sectors such as knitwear (Key Note, 2007).

Comparison overview

In the current UK clothing sector, larger businesses driving the sales

recovery and the smaller players (independent retailers) continue to

see sales decline. Almost all the major players in the UK clothing

market are being impacted by the economic downturn. The top 25

clothing multiples have a share of more than 50% of the market. The rest remain a large number of small chains and independent stores.

However the long term trend is for these small businesses to be

losing its share in the market (Mintel, 2008).

The fashion multiples has strong buying power and economies of

scale. Powerful retailer also has advantages of recruiting staff, in

acquisitions and in the services it buys from outside suppliers, such

as accountants and legal staff. The supply chain is another area where large multiples have an advantage over independents of

sourcing the products in bulk at very competitive price. This cheap

sourcing enables these retailers to earn more margins and offer the

products at very competitive rates as compared to the less powerful independents. A weak buying position and absence of economies of

scale, it becomes very difficult to earn enough margins to the

independents. This makes necessary to raise the price of the product

and further leads to weakening of the company‟s position. Although,

some problems or bad performance may provide opportunities for independents but at the end well-focused multiples are the main

beneficiaries (McGoldrick, P. 2005).

Product and price ranges comparison

There was a focus to understand the differentiation between men‟s

knitwear products and its prices at fashion multiple stores as well as

at the independents. Thorough price comparative observation was conducted over one month by visiting five upmarket multiples and

independents to highlight this differentiation.


- 50 -

An important „price‟ factor has been compared between fashion

multiples and independents with the same quality and type of the

product. Every selected fashion multiple has been compared with every selected independent retailers by men‟s knitwear products.

The selected upmarket fashion multiple includes Marks & Spencer,

Jack Wills, Ted Baker, Austin Reed and French Connection. At the

same time selected independent retailers includes Lyle & Scott, Pringle, Glenbrae, John smedley and Glenmuir.

Marks & Spencer and Independents

Product Price of the product

M&S Llyle & Scott Pringle Glenbrae John Smedley Glenmuir

Lambs wool

Jumper £40 £75 £110 £65 £120 £85 Cashmere Cardigan £70 £110 £175 £140 £160 £130

Pique Polo Shirt £25 £45 £55 £40 £60 £35 Merino Wool Slipover £30 £80 £80 £60 £90 £50

Pullovers/Sweaters £25 £75 £90 £60 £100 £60

Table 1: Price comparison between M&S and Independents

Jack Wills and Independents


Jack Wills

Llyle & Scott Pringle Glenbrae

John Smedley Glenmuir

Lambs wool Jumper £70 £75 £110 £65 £120 £85 Cashmere Cardigan £90 £110 £175 £140 £160 £130



Table 2: Price comparison between Jack Wills and Independents


- 51 -

Austin Reed and Independents


Austin Reed Llyle & Scott Pringle Glenbrae


Lambswool Jumper £40 £75 £110 £65 £120 £85 Cashmere Cardigan £60 £110 £175 £140 £160 £130



Table 3: Price comparison between Austin Reed and Independents

Ted Baker and Independents


Ted Baker

Llyle & Scott Pringle Glenbrae





Table 4: Price comparison between Ted Baker and Independents

French Connection and Independents


FCUK Llyle & Scott Pringle Glenbrae John Smedley Glenmuir




Table 5: Price comparison between French Connection and Independents


- 52 -

There is a clear indication that price for the same type of product

from fashion multiple is lesser as compared to independent retailers in the UK‟s men‟s knitwear market. There is a price difference of

£30-£40 or more between these two types of retailers. Certainly with

the demand for more premium products growing, albeit still at good

prices, more and more retailers would like to invest in developing this premium knitwear ranges.


- 53 -

Issues for fashion multiples and independents The current downturn in clothing market growth has forced many

retailers to change their strategic decisions. The priority of

investment to shift towards refurbishment and development of new

back office systems that enables full price sales to be exploited and margins to be preserved. It is important to raise sales densities on

the shop floor for independents as well as for multiples to improve

profitability (Verdict research, 2008).

Figure 12: Issues for fashion multiples Source: Verdict research

Overseas

expansion

Location

strategy

Demographic

trends

Advertising shift

Declining densities

Stagnant market

Sourcing cost

Issues for

Fashion Multiples

and Independent


- 54 -

Retailers have adopted a new ways of promoting their products to reach

target audience. For example, instead of spending heavy amount on TV

and print advertisements they have started promoting it on the

internet. It is economical for independents to create an online store on their respective web sites where consumers can view and buy the

product without visiting the store in person (Verdict research, 2008).

Researcher has observed the fact during an interview with Mr. Colin

Beattie of Alan Paine knitwear that a customer online database was created with their personal details while every time they shop at their

store or through web site. This information was used later to maintain

better relationship with the customer. For example, this kind of

software sends an automated email on customer‟s anniversary or birthday‟s. This kind of efforts used by independents and fashion

multiples to increase consumer loyalty as well.

An overall household disposable income growth has slowed down in the

UK since year 2005. It was 2.9% in the year 2005 and then has slashed down to 1% in 2007. This year on year change in the disposable income

has created impact on the consumer to spend less on clothing along

with items such as food and utility bills. Thus retailers have also got

affected due to less growth in their sales. Retailers are implementing different strategies to survive in the low growth environment. The best

example of this would be to diversify the product ranges into the store

like knitted scarf and accessories. This product diversification could

prove as a potential for a long term growth in the market (Verdict research, 2008).

Deflation in selling prices of goods has been a fundamental aspect of

the UK clothing market form past 10 years. This trend has been made

possible by the increasing proportion of product that most fashion multiples have imported goods from many low cost countries such as

Bangladesh and China. Especially retailers like River Island or Monsoon

whose focus is mass middle market consumers, source large proportion

of their knitwear from low cost Asian countries. This international sourcing has allowed fashion multiples to keep their enough margin on

the product and also allows them to lower in general price of the

product. This stimulates consumers to buy more and more number of

garments from the fashion multiples when they go out for shopping. Every retailer has a target audience by their age brackets. Generally

there is emphasis given on twenty five year old and above men for

knitwear product in the UK clothing retail sector. There is a normal

perception amongst consumer that specific retailer or a brand offers


- 55 -

specific (high or low) quality garments and also maintains the standard

product ranges which is appropriate for the consumers of targeted age

bracket (Verdict research, 2008).

Retailer Target

consumer(male)

age bracket

Type of target

consumer (male)

% space

allocation

for knitwear in

the store’s

menswear

section

Burton 25-40 Working/professionals 7.1

TopMan 15-25 Students and fashion

conscious youth

6.4

Debenhams 35-55 Working/professional 3.3

George

(ASDA)

25-35 Grocery shoppers 4.4

Marks & Spencer

40-55 Business/corporate 5.0

Matalan 35-55 Family shoppers 5.1

Moss Bros 25-45 Trend conscious

professionals

4.7

Next 25-45 Wardrobe staples and workwear

8.2

Primark 15-35 Low price fast fashion

conscious

5.2

River Island 15-25 Young fashion

conscious

8.0

Table 6: UK retailer’s product (men’s knitwear) analysis

Source: Verdict research, 2008

It is clear from the above chart that most of the retailers are targeting

twenty five and above men for knitwear products. It might be different

types of consumers shopping at different stores but their target

audience is inclined more towards mature men.

During the year 2004-2005, there was a strategy of opening large

number of stores across the country to maximise sales volume but

recently since the year 2007 average sales densities have gone down. This change has made retailers to improve of productivity of existing

floor space. Retailers like Ted Baker and French connection have scaled

back their rate of new store opening but retailers like Primark is

continuing with ambitious new store openings at prime locations of the


- 56 -

cities. Generally all high street fashion multiples has located around the

city centre. Very few have out-of-town presence. On the other side,

most of the independents including premium brands like Pringle and Harley are located in outside the town or in the less frenetic area.

Researchers also feel that there is going to be greater development of

such independent stores in the rich residential areas as consumers are

trying to avoid trips to big shopping malls where usually there is a problem of car parking and long queues at the till. There is also an

emerging opportunity for upmarket knitwear brands to open and

establish good sales volumes at the Heathrow airport terminal 5 where

there is a big shopping arcade for passengers (Verdict research, 2008).

In the current economic downturn, UK‟s fashion multiples are looking

for international expansion where there is an untapped market for

quality knitwear. Franchising remains the most preferred model for most of the UK retailers in the international markets. For example, Ted

Baker has opened own stores and few franchises in United States,

Australia and Middle East. It is yet to prove the profitability factor for

many UK fashion multiples in the international expansion. For instance,

in the year 2007 Ted Baker‟s international turnover was accounted for £11.4 million but the profits were only £143,000 with an operating

margin of 1.3% (Mintel, 2008).

Key findings

Fashion multiples are having the capacity to source garments from low

cost countries at cheaper rate as compared to the independents. This cheap sourcing makes possible for them to offer low price products with

the same quality to consumers as compared to the independents.

Fashion multiples and independents are implementing new and

improved methods to maintain the consumer loyalty though future of

independent knitwear brands does not look promising in terms of growth into the market share.


- 57 -

Newsroom

Knitwear firm confirms fresh cuts

A knitwear company in the Borders has confirmed plans for a

second round of job cuts in a matter of months. Hawick Knitwear

announced 36 redundancies in November and now plans to shed a further 32 posts. A statement blamed the move on a slowdown in

consumer spending which had reduced the size of the company‟s

forward order book. Tory MSP John Lamont described it as

“terrible news” for the workers in Hawick and their families. The proposal will reduce the company‟s capacity by 20% but will still

allow them to manufacture around 7,000 garments per week. It

has also entered separate discussions over proposals to make a

number of changes to the terms and conditions of all employees within the business. Managing Director Benny Hartop said the

latest cuts could not be avoided (BBC News, 2009).

- 58 -

Chapter Seven

Supply Chain in Knitwear Industry

Chapter seven – Supply Chain

- 59 -

Knitwear supply from overseas to the UK market

– Process in brief

The supply chain encompasses all activities associated with the

flow of transformation of goods (products and services) from

initial design stage through the early raw material stage, and on

to the end user. Additionally, associated information and cash flows form part of supply chain activities (Hines 2003 p.1-30).

Offshore sourcing by many clothing multiples in the UK has increased

over the past 15 years as a way to lower costs. China, Hong Kong and Turkey are the top three countries who have got the maximum share of

imports into the UK’s clothing industry. Different retailers have different

strategies of sourcing the products from different countries (Hines, T.

2007). Fast fashion retailers like Primark and Zara has forced overseas

suppliers to manufacture less number of garments with higher designs and fashion content. There are basically two ends of the market, one is

the price-sensitive volume market and the other one is quality end

market. The former market is been catered by the UK clothing retailers

from low wage economies and the later from European countries. Especially knitwear products like cashmere and silk are sourced from

China (Easey, M. 2008 p.20).

There is a extensive process involved in clothing supply chain starting from marketing research till the shipment of goods. Overseas supplier

along with the retailer (from UK in this context) has to plan the process

from the time getting a brief or the idea and product development to

the delivery deadline. Usually in the overseas production, new concepts in designs are originated from retailers sales and marketing and

designing team. Ultimately an overall performance of the supplier

determines the success of ongoing business. Therefore it could be

worthwhile to understand the basic process from concept development

to the store.


- 60 -

Concept System level Detail design Testing & Development Design Refinement, Production ramp-up

Figure 13: Process of overseas supply chain

Source: Clothing and Textile Research Journal

1) Marketing

Research

Customers, Merchandisers

,Designers, Sales dev

Concepts

Focus on end consumer’s

need

2) Design with cost

estimation

Technical designers

specify and

make samples

Pre costing

3) Present CAD print-

out to team

Reject Accept

Discard/remake 4) Sample making Check sizing

measurement

Reject

Becomes an order

Production costing

Final approval

5) Production line

o Yarn order

o Knitting o Laundry

o Cut and sew

o Assembly

line

Designer and sales

reps present

samples

Accept

Packaging and shipping to the port of

destination


- 61 -

There are basic five important steps in an overseas knitwear supply

chain which starts from the retailers end. The team from retailer’s head

office does the marketing research keeping the end consumer in mind. Designing team develops a product according to the cost estimation.

Designers develops sample accordingly. Sketches are shown on to the

computer (CAD) with precise detailing. These designs are then

discussed in the team for its approval. If the design is rejected then it is discarded and remade. If it is approved then supplier is asked to make

samples. Yarn is ordered then to knit the fabric and prepare a garment.

In this sampling stage, all the required size set is being prepared to

take the fit approval. In the next stage supplier sends his samples for the approval of designers and sales representatives. If the sample gets

approved then retailer places the bulk garment order with the supplier.

Production cost is done by the supplier and given it for the approval of

the buyer. Once it is approved then supplier takes the order for production and keeps the gods ready in stipulated time period given by

the retailer/buyer. This whole supply chain process takes approximately

6-8 months depending upon the volume and transportation time

(Pitimaneeyakul et al., 2004 p.119).

Following were the top knit apparel exporting countries of the world in

the year 2005-2006. This was the latest comparative data available of

major clothing supplying countries especially for knitwear products.

Table 7: Top knit apparel exporting countries in the world

Source: Apparel Export Promotion Council, India

ExportersValues exported

in 2004 (US$ bn)

Values exported

in 2005 (US$ bn)

Annual growth in

2004 - 05 (%)

Share in World

exports (%)

World 117.36 124.79 6.33 100.00

China 25.80 30.87 19.65 24.74

Hong Kong 12.20 13.32 9.18 10.67

Italy 6.83 6.71 -1.76 5.38

Turkey 6.26 6.35 1.44 5.09

Germany 4.44 4.44 0.00 3.56

Bangladesh 2.39 3.48 45.61 2.79

India 2.47 3.20 29.55 2.56

France 3.03 3.19 5.28 2.56

Belgium 2.39 2.69 12.55 2.16

USA 2.70 2.58 -4.44 2.07

Top 10 Total 68.51 76.83 12.14 61.57

Top Knit Apparel Exporting Countries of the World in the year 2005 - 06


- 62 -

Following were the top knit apparel importing countries of the world in

the year 2005-2006.

Table 8: Top knit apparel importing countries in the world

As we can observe from the above mentioned tables China was leading

the chart in exporting highest volume of knitwear products to the entire

world. As per the latest data mentioned in the first paragraph of this

chapter, China still leads the position of top exporting nation to the UK for knitwear. On the other hand USA tops the chart of importing the

highest volume of knitwear products in the world followed by Germany.

United Kingdom was the fourth largest knitwear importer in the world

with total share of 7.45% (AEPC, 2007).

Source: Apparel Export Promotion Council, India

ImportersValues imported

in 2004 (US$ bn)

Values imported

in 2005 (US$ bn)

Annual growth in

2004 - 05 (%)

Share in World

Imports (%)

World 120.14 124.22 3.40 100.00

USA 33.04 33.29 0.76 26.80

Germany 10.68 10.40 -2.62 8.37

Japan 9.19 9.79 6.53 7.88

UK 8.83 9.26 4.87 7.45

Hong Kong 8.81 9.24 4.88 7.44

France 7.11 7.59 6.75 6.11

Italy 4.79 5.15 7.52 4.15

Belgium 2.99 3.26 9.03 2.62

Spain 3.58 2.76 -22.91 2.22

Netherlands 2.69 2.50 -7.06 2.01

Top 10 Total 91.71 93.24 1.67 75.06

Top Knit Apparel Importing Countries of the World in the year 2005 - 06

Conclusions

- 63 -

Conclusion

Investigation and understanding the UK’s clothing sector for men’s

knitwear has been thoroughly analysed through this thesis. The chapter on knitwear market analysis explains that there is a growth in

the menswear market since past four years but albeit at a slow pace.

Thus UK’s menswear as a whole and the knitwear segment have been

analysed and researched in this thesis. An industry data for men’s knitwear shows a decline in this market. Secondary data reveals that

an economic downturn is the main cause of this observed slow growth.

UK clothing retail market for men’s knitwear is divided into two broad

segments i.e. fashion multiples and independents. However, fashion multiples have dominant share of the market as compared to the

independents. Especially value retailers e.g. Primark is a leading player

in the fashion multiples market share. There seems to be a clear

decline in the clothing manufacturing sector of UK. Apparel sourcing by

UK retailers from low wage countries and high labour cost in domestic clothing production are the main important reasons for this decline.

New technology (refer chapter four) in knitting has improved the

productivity in manufacturing processes of knitted apparel. It has also supported the economies of scale in producing high volume of

garments. Seamless and whole garment technology in knitting reduces

the stages in cut-n-sew garment production which are suitable for UK

where labour cost is higher. It is been discovered that vertically integrated units in UK follow similar knitwear production stages to

knitwear suppliers from India. Primary research made it possible to

understand the exact production stages that are followed in the UK.

The comparison of production stages between India and UK was done on the basis of researchers own work experience in India. However,

other technical visits and interviews with the manufacturers indicate

the fact that there is not much production activity left in UK. There is

hardly anyone who would like to invest on latest machinery.

Market segmentation (refer chapter five) allows retailers to target their

audience in a better way and able to offer better products/services.

The highest male population bracket is 45-65, who seem to have good

buying power and are inclined towards quality shopping. However in the current economic downturn, these customers are also taking a

step back while buying high priced apparel. On the other side young

male in UK is likely to get attracted towards value retailers or fast

fashion retailers because of their wider product ranges at reasonable prices. Fashion multiples e.g. Primark, Matalan are offering wide

knitwear ranges to the consumer in order to maintain brand loyalty.

Conclusions

- 64 -

Hence it is becoming difficult for independent high value knitwear

retailers to sustain in the market with higher margins.

Small independents are finding it difficult to compete (refer chapter

six) with big fashion multiples in the current economic downturn.

Fashion multiples can negotiate better prices with the overseas

suppliers because of their buying power due economies of scale. It has been discovered by systematic price comparative observation that

prices of same quality knitwear from big fashion multiples are cheaper

as compared to the independents. However it seems that premium

brands with a long history will continue to remain in the market. They may shift their production base to low wage countries. For example,

Pringle of Scotland has shifted their original production base from

Scotland to Italy in July, 2008 as a cost cutting measure (BBC News,

2008).

Even though it takes longer periods to source garments from overseas,

retailers from the UK will continue to import in order to gain maximum

margins. Supplier can get a good business for a long term if they

regularly deliver with quality and on time.

Finally, it has to be highlighted that resources and information

channels needed to analyse such a niche clothing segment were

scattered and remote. However with due diligence and a robust research methodology this project intends to conclude that the men’s

knitwear in the UK’s clothing sector seems to be declining in terms of

production as well as retailing. There are few positive growth factors of

the market explained earlier in chapters four, five and six but overall market seems to be declining for men’s knitwear segment.

Recommendations

Existing knitwear companies in UK should concentrate on investing in latest technology rather than following the traditional ways of

manufacturing knitwear. This will reduce their burden on employing

large number of employees. Retailers should design better knitwear

styles for men which will allow them to change their wardrobe frequently. At the same time independents should try and bring their

price down in order to compete with fashion multiples.

This research could have been more incisive if knitwear as a product would have been categorised specifically as either under textile

product or an apparel product. There is a lot of scope to explore and

investigate new entrants in the UK market for knitwear and explore

Conclusions

- 65 -

their strategies. And also further research can be carried out to find

out reasons for companies who withdraw their existence from the

market.

The men’s knitwear market can be surveyed beyond the set of

objectives which were researched in this dissertation 'An investigation

into the UK clothing sector for men’s knitwear'. Thus, making a point that fashion has no boundaries.

References

- 66 -

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Trade statistics, 2007. Knit apparel trade statistics. Apparel export

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plc. P.- 23-58.

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Verdict Research, 2008. ‘How UK Shops Clothing 2008’. Datamonitor

plc. P.- 21-48.

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Bibliography

Books

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Fairhurst, C. 2008. Advances in apparel production. Cambridge:

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Fisher, C. 2007. Researching and writing a dissertation: a guidebook

for business students. Harlow: Financial Times Prentice hall

Karaminas and Mcneil, 2009. The Men’s Fashion Reader. Oxford: Berg

Londrigan, M. 2008. Menswear: Business to style. New York: Fairchild

Lystrup and Lise-Lotte, 2008. Vintage knitwear for modern knitters. London: Thames and Hudson

Reilly and Cosbey, 2008. Men’s fashion reader. New York: Fairchild

Rudestam and Erik, 2007. Surviving your dissertation :a comprehensive guide to content and process. London: SAGE

Articles

Chapman, S. 2002. ‘Hosiery and Knitwear: Four Centuries of Small-

Scale industry in UK’ Oxford University Press p.112-113

Polkinghorne, D. 2005. ‘Language and Meaning: Data collection in

Qualitative Research’ Journal of counselling Psychology, Vol. 52,

p.137-145

Redfern and Davey, 2003. ‘Supply chain market orientation in new

product development in the UK’ Journal of Fashion Marketing and

Management Vol.7 p.65-77

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Bibliography

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Verdict Research, 2008. ‘Consumer Satisfaction Index 2008 Sector

report: UK clothing’ Datamonitor Plc

Journals

Draper’s record

Fashion Business International Knitting International

Figures and Images

Figure 1: Research objectives – strategy - researchers own image

Figure 2: Primary research strategy on manufacturing front - researchers own image

Figure 3: Primary research strategy on retailing front - researchers

own image

Figure 4: Trends in menswear sales by researchers own image sourced

from Verdict research, Oct.2008.

Figure 5: Menswear market positioning in the UK clothing retail - researchers own image

Figure: 6 – Trends in the UK’s clothing production - researchers own

image sourced from Key Note, 2009.

Figure: 7 – Structure of men’s knitwear market - researchers own

image

Figure: 8 – Stages in knitwear production - researchers own image

Figure: 9 – Age wise male population in the UK - researchers own

image sourced from Office for National Statistics

Figure: 10 – Age wise earnings in the UK - researchers own image

sourced from Office for National Statistics

Figure: 11 – Distribution of regional earnings - researchers own image sourced from Office for National Statistics

Bibliography

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Figure: 12 – Issues for fashion multiple - researchers own image

sourced from Verdict research, 2008.

Figure: 13 – Process of overseas supply chain – researchers own

image sourced from Clothing & Textiles Research Journal

Image: 1 – Garment panels for seamless knitwear – www.shimaseiki.com

Image: 2 – Example of seamless technology – www.shimaseiki.com

Image: 3 – Whole garment knitting - www.lonatigroup.com

Web sites

www.deloitte.com

www.fabriclink.com

www.emaraldinsight.com

www.guardian.co.uk www.just-style.com

www.knittinginternational.com

www.knittingtogether.com

www.mayercie.com www.mintel.com

www.sciencedirect.com

www.telegraph.co.uk

www.wgsn-edu.com

Appendices

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Appendix - A

Interview with the retailer

Name of the Company – Alan Paine Knitwear Ltd

Address – The Cow House, SCATS Countryside Courtyard Brighton Road, Godalming, Surrey GU7 1NS

Web – www.ap-outlet.co.uk

Name & Designation – Mr.Colin Beattie – Director

Date & Time of the Interview – 22nd May, 2009 at 2 pm

Company Introduction –

“Alan Paine” as a brand founded 100 years ago. It has a solid reputation

as a premium knitwear brand in the UK. The Paine family sold their

business in the year 1990 but Mr.James Hilton is the proud owner of this British company and still continuing with the same brand name.

The purpose of this interview was to understand the viewpoint of the

retail side of the men’s knitwear market. Being with the company for

almost over four decades, it was worth attempting to get insight the industry from Mr.Colin Beattie.

1. How did you get into this profession? Professional background?

Mr.Colin is originally from Godalming and lived here for almost

throughout his life. For 2 years he did serviced to the British Army

office in London but decided to quit the job and applied into the Alan

Paine Company which was providing a great employment opportunity

in its Godalming factory. Mr.Colin is serving Alan Paine more than 40 years now is one of the Directors of the company.

2. This store has completed how many years in this region?

The Store which I visited had opened in 1993 when the original

company sold out and taken over by Mr.James.

3. What kind of knitwear products is on offer for male consumers?

The brand offers a classic knitwear range for men. It consists of

100% Cotton Pique Polo shirts, Rugby shirts, Cardigans & Jumpers in

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blend of cotton & cashmere fabrics. There were 14 different types of

products in the men’s knitwear range with almost 10-12 shades in

each range.

4. Which age bracket is your target audience?

The main target age bracket is between 45-65 year old people. Those youngsters has got the classic taste of knitwear, they do come

and visit the stores. Overall store has a fantastic range of products

to offer for men in different varieties and sizes.

5. Do you have your own designing team? How you create it?

The company has their own team of designers who keeps working

and creating designs throughout the season.

6. Price range of different products?

Price range is of all the lines are on the higher side.

Pique polo shirt – 20 – 25 pounds

Cashmere Jumpers – 85-105 pounds

Cotton & Cashmere blended sweaters – 55-75 pounds

Lambswool crew neck – 40-55 pounds

7. From where do you source all these products?

Most of the products are getting sourced from the countries like China & Bangladesh but still small proportion of its production is

done within the UK.

8. Have you observed any sales growth in past 2 years?(Approx %)

Mr.Colin explained that company was making a decent growth of

almost 10% in the year 2006 & 2007. During current year, sales are

low but still they are able to maintain little margin.

9. Who do you think is your direct competitor?

Lyle & Scott, Smedley’s are the main competitors for them. They

don’t see any threat from these players but certainly they have covered a large market share because of their advertising strength.

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10. Do you feel whether brand image attracts men in their buying

decision? Or the quality of the product which speaks?

Company’s policy is to offer best quality garments. Brand image does

give impact on the consumer but ultimately Mr.Colin said it is the

quality which speaks.

11. Do you feel or predict whether men’s knitwear market is growing

in the UK?

Market for men’s knitwear is not very encouraging. He felt, it is very

difficult to survive in this current recession. Mr.Colin showed his

concern in terms of manufacturing as well as retailing point of view.

Appendices

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Appendix – B

Interview with the retailer

Name of the Company – Peter Gribby Ltd

Address – DevonPark, Normanton Lane, Bottesford, Nottingham, NG13 0EL

Web – www.petergribby.co.uk

Name & Designation – Mr. Daniel Gribby – Managing Director

Date & Time of the Interview – 2nd June, 2009 at 11 am

Company Introduction –

After working at various high positions in an industry, Mr.Peter Gribby

started his own company in the year 1985. Currently Mr. Daniel, his son is looking after the family owned business. “Peter Gribby” is basically a

middle market knitwear brand in the UK.

1. How did you get into this profession? What is your professional background?

In the year 1982, Mr.Daniel started his career in the clothing industry. He had started helping his father & mother in their initial

days of setting up this company. Mr.Daniel doesn’t have any formal

education in textile/fashion but now has got rich 25 years of

experience under his belt.

2. Officially, this company has completed how many years?

It has completed 24 years.

3. What is the nature of activity of this company? What is the scale

of this company?

The company sells its goods under two brands. One “Peter Gribby” which comes under mid-market segment & the other one is “Winter

Beck” which comes under value market segment. Besides this,

company also works as a contract supplier for brands like Farah plc,

Toggy and retailers like Next plc, Bhs. However, Mr. Daniel’s own experience dealing with UK retailers was not very good. Company

http://www.petergribby.co.uk/

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has also started selling products on the internet where Mr. Daniel is

quite happy in terms of margins. Company’s annual turnover is

between £1-2 million.

4. What kind of knitwear products is on offer for male consumers?

Men’s polo neck jumper V neck jumper

Tank top

Wool cardigan

Cashmere blended jumper & cardigan Lambswool jumper

Men’s polo shirt

The company has nice range of quality products to offer for male consumers.


As far as brand “Peter Gribby” is concerned, the target consumer age bracket is 45+ generation. The style, cut and colours were apt for

this range of men. “Winter Beck” is targeted for 60+ men. style, cut

and colours were apt for this range of men.

6. Do you source garments from overseas? If yes, where?

95% of the company’s products are getting produced overseas.

Majority of the production takes place in China, India, Bangladesh & Bulgaria. Only 5% of the production takes place in the UK.

7. What is the average price range of knitwear?

The prices of Lambswool, Merino jumpers are in the range of £25 - £30 & products like Cashmere jumpers, cardigan is in the range of

£30 - £50 depends on the blend and quality. In general, none of the

garments priced at more than £50.

8. Have you observed any sales growth in past 2 years? (% growth)

Mr. Daniel said that there is no growth since last 4-5 years. The

business is quite static. In fact he mentioned that this year it is 12-13% down till now.

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9. Are you able to maintain enough margins & sell the product?

Mr. Daniel feels that because of fluctuation in the currency rates, it is very difficult to maintain margins at all the time. Somehow company

is able to maintain 5-10% average margin on the offered products.

10. Who do you think is your direct competitor?

In mid level market of individual retailers, he feels Gabicci

International as their direct competitor in the market. Basically there

are very few individual players left in the UK for classic men’s knitwear segment apart from big retailers.

11. Do you think brand image attracts men in their buying

decisions? Or only the quality of the product that speaks?

As far British 45+ age men is concerned, Mr Daniel feels that the

quality of the product which actually becomes a key driver of brand

loyalty.

12. Do you feel or predict whether men’s knitwear market is

growing in the UK?

Mr. Daniel said as far as manufacturing of knitwear in the UK is concerned the whole activity has taken a big dive. Because of the

high labour cost and other reasons it is very difficult to compete with

production from low cost countries. On the other hand he also said

that Men’s knitwear is one of the important products for retailers.

Appendices

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Appendix – C

Interview with the manufacturer

Name of the Company – Crystal Knitwear

Address – Richmond House, Pelham Street, Mansfield, Nottingham, UK

NG18 2EY. Web – www.crystalknitwear.com

Name & Designation of the interviewee – Mr. Chris Bingley – Managing

partner

Date & Time of the Interview – 19th March, 2009 12.45 PM

1. Can you please elaborate on your professional background & this

company overview? (Type, Size, Turnover)

It is basically a family owned business and Mr. Chris is running this

since 20 years. The company status is small to medium size company.

He hasn’t disclosed about the turnover but mentioned that it’s been a

very tough journey running this business over the years.

2. What type of knitwear products do you manufacture?

Company is engaged in producing Country styles, Classic knitwear. Apart from that, they have specific knitwear orders running throughout

the season from various corporate, schools. They market themselves as

“Specialist manufacturer of quality bespoke knitwear”.

3. What type gauge you normally use for producing fabrics? Make of

the knitting machine?

They own only one unit in which there are 12 Shima Seiki lower Gauge

knitting machines. They produce fabric on 5, 7, 10 & 12 Gg machines. Unit operates in only 1 shift per day and 6 days a week.

4. Is your production unit vertically integrated? (Dyeing + finishing)

Production unit is not fully integrated. Majority of the garments are

made out of 100% Cotton dyed yarn which is sourced from the

domestic agents. It eliminates the process of fabric dyeing. There is a

facility of washing, pressing & packing in the unit.

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5. What is the approx % volume of Men’s knitwear production?

70% of their production is only for Men & rest for kids. The unit is able to produce on an average 30-50 dozen pcs per month.


There is no specific target audience as such because company is

interested in taking orders for any age group but in the classic knitwear

range, company manages to produce garments for 40+ age group.

7. Do you supply & manufacture for any retailers in the UK?

Company does supply to small & independent retailers in the UK. In

general discussion, Mr. Chris confessed that UK apparel suppliers do not have capacity anymore to meet the volumes & requirement of the big

retail giants.

8. Have you observed any kind of growth in your sales since last 2

years? How much? (%)

Mr. Chris was disappointed with the industry performance and felt that

there is very slow growth for them since last 2 years in this business.

He feels that end of year 2009 should bring better prospects to the business. Sales should go up 20%.

9. Do you see further growth in the Men’s knitwear market of the

UK?

This company focuses mainly to the niche market rather than volume

business. But he personally feels that demand in the market is

increasing but it becomes difficult for smaller firms to make large

margins in competition with overseas suppliers.

Appendices

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Appendix – D

Interview with the manufacturer

Name of the Company – Crystal Martin (Knitwear) Ltd

Address – Kirkby Road, Sutton-in-Ashfield, Nottingham NG17 1GZ.

Web – www.crystal-martin.com Name & Designation of the interviewee – Mr. Paul Revill – Commercial

Executive

Date & Time of the Interview – 19th March, 2009 03.45 PM

1. Can you please elaborate on your professional background & this

company overview? (Type, Size, Turnover)

This is multi national company & supplier of all kinds of garments to the

world renowned labels & retailers. Their annual sales are over US$ 800

million. It is a Hong Kong based group having their UK headquarters

along with huge warehouse in Ashfield. They do not manufacture

anything in the UK but does all the sourcing for UK retailers. Mr.Paul has been associated with this company since 5 years.

2. Do you supply & manufacture for any retailers in the UK? If yes,

which one?

This company supply mostly to all major high street retailers in the UK.

They are the exclusive suppliers of Men’s knitwear to Marks & Spencer

and produce all range of products.

3. Then, where do you manufacture the garments?

Majority production takes place in China but there are many other sub-

suppliers from the countries like Bangladesh, Srilanka.

4. What type gauge you normally use for producing fabrics? Make of

the knitting machine?

For the classic Men’s knitwear, 3, 5, 7 & 12 Gauge machines are used.

Maximum fabric is been knitted on Shima Seiki & Santoni knitting

machines. Though company is engaged in producing all types of fabric &

garments.

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5. Do you see any growth in the Men’s knitwear market?

Growth is certainly there in the market in terms of value & volume. Only this year’s position might be break even but it will continue to

keep growing. They have observed a continuous rise in demand since

last 2 years in the UK.

Documents

Final Thesis