The UK Fashion MarKeT opporTUniTyyour independent and authoritative guide to the UK fashion market

compiled by i2i events in collaboration with:

Brought to you by:

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The last five years have without doubt been challenging for the UK economy as they have for every developed economy around the world. Retailing has faced enormous pressures with consumer spending slowing down as households adjust to tighter budgets. This has been further compounded by the arrival of the digital revolution which has led to the rapid expansion of new shopping channels that incorporate the internet, mobile and social media.

The new retail world calls for good retailers to become great retailers

This new retail world calls for good retailers to become great retailers and we are already witnessing this with strong independent retailers emerging as well as resurgent department stores and highly focussed specialists.

UK retailing is fast becoming recognised as one of the most exciting markets in the world for the way that new ideas are emerging and with it some world-class retailers that are becoming true omni-channel businesses.

This special i2i Events Group report on The UK Fashion Market Opportunity brings together some of the best research and insight available to provide a comprehensive overview of retailing and the fashion sector in the UK. It helps to provide a detailed look at the reality of the market place, from both a retailers and a consumer point of view.

The following pages examine how retailing generally and fashion in particular have learned quickly how to adapt to todays new landscape. The retail winners in the UK market are those that are constantly looking for new ideas, new innovations and new, inspirational products. This makes the UK a highly attractive market for any international brand or supplier to consider doing business with and as this report shows, compared to many, its approach to tax and legal frameworks make it one of the easiest countries to work with.

We hope that this report encourages you to look in detail at the UK and our network of international agents and the i2i Events Group team are available at any time to answer any detailed questions you may have.

Pure London occupies an important place within the UK fashion industry.

Held twice a year and each attracting over 12,000 visitors, Pure London provides fashion retailers with unique access to some of the very best brands from around the world that will in turn help attract customers to their stores. It is as simple as that.

However, as everyone in the industry knows, retailing is far more complex, and is never without its challenges. At i2i Events Group, the organisers of Pure London, as well as The Jewellery Show London and the The Jewellery Show at Spring Fair we feel privileged to be part of this exciting and dynamic business sector. We also believe that we can play a role in supporting retailers in their quest to build great businesses. This has never been more important as the sector faces up to the enormous challenges of our Omni channel world. One of the key criteria for success is increasingly in having fantastic brands that can differentiate a retailer and delight their customers.

UK retailers have a strong appetite for new brands and new ranges and at i2i Events Group we believe we can help deliver this by encouraging more international brands and suppliers to consider the UK retail market. Which is why we commissioned this special report on: The UK Fashion Market Opportunity. Its aim is to provide an informed overview of the market to support international brands seriously considering entering the UK or to convince other brands that it is time to take a serious look at the potential.

We believe Pure London provides the perfect first step for any international business wanting to sell to UK retailers. Each year, Pure London attracts over 24,000 visitors and buyers making it one of the most important gatherings of the UK fashion industry. We hope that you find this special report interesting and useful and our highly experienced team in the UK and across the world look forward to talking to you about how this market can deliver exciting opportunities.

At a time when it is global business partnerships and investments that will stimulate world growth; the retail industry is key.

There are huge opportunities for the sector the channels by which we shop ever increasing, and the global consumer ever more accessible.

Britain now has 228,000 retailers that export online more than the rest of Europes e-retailers put together. It means that the UK, as a nation, is at the forefront of a huge global opportunity, with the skills and expertise to lead e-commerce development and a good environment for long-term sustainable investment

The UK has much to offer. It is one of the worlds most influential primary shopping destinations with more global brands listed in London alone than in any other world city.

The UK remains the destination of choice for the worlds leading retail brands to site their European headquarters in, as well as high-value operations such as manufacturing, logistics and high end retail outlets.

British luxury goods are also in demand. It is no surprise that brands such as Burberry, Mulberry and Alexander McQueen are now household names across the globe. Our internationally renowned retailers have a great contribution to make as we build a stronger economy and work to return the UK to balanced, sustainable growth.

And with the UKs dominance in e-commerce, an online presence means that many of our retailers enjoy an ever-increasing number of online-only clients, no matter the size of the company.

The UK also excels in the creation and operation of world class visitor attractions, including museums, galleries and new leisure destinations. It means that British companies are best placed to offer skills, experience and products for the growing international opportunities for large retail and leisure development projects across the world - as well as providing great opportunities for international brands looking to work with UK retailers.

In March 2013, I launched the new International Retail Action Plan. Produced by UK Trade & Investment with industry to complement the BIS retail strategy, it pledges government support for those UK companies starting out internationally and to others who already have a global presence. It also looks to maintain the UKs high levels of inward investment, and attract more.

I urge retailers across the world to work together build on the opportunity and watch this sector flourish.

Vince Cable Secretary of State for Business, Innovation & Skills

retailing occupies a large and vital part of the UK economy, but for the UK consumer, shopping has become a key leisure activity and an important part of peoples lives. More than a third of all UK consumer spending goes through shops. and fashion is one of the key drivers for retail spending.

inTrodUcTion The UKs secreTary oF sTaTe For BUsiness, innovaTion and sKills, Vince cable, seTs oUT how The GovernMenT is sUpporTinG The reTail indUsTry aT hoMe and inTernaTionally

a word FroM The ManaGinG direcTor oF reTail, louise YounG

63 million UK population in 2012

65 million Forecast population in 2017

6th largest economy in the World

THE UK AT A GLANCE

UK retailers embrace the new reality ..................4

a message from the chairman of The British retail consortium ................................5

The tranformation of UK fashion ...........................6

UK Fashion sales leading the way .......................7

Fashion leads the way ...........................................8

UK consumer confidence/online sales ...............9

putting on the style .......................................... 10 -11

independent retailers back on the growth curve ............................................. 12

The UK consumer ................................................. 13

Getting ready to enter the UK retail market .............................................. 14-15

pure london the gateway into UK retailing .............................................. 16-19

conTenTs

Planet Retail forecasts

ONS

4 5

It is my great pleasure, on behalf of the UK retail industry, to contribute to this special report on The UK Retail Market Opportunity.

As Chairman of the British Retail Consortium, I welcome any initiative to promote and support retailing in the UK. The British Retail Consortium is the UKs lead trade association representing all levels of retailing, from the largest multiples and department stores to the smaller independents trading in all retail locations such as town centres, shopping centres, traditional high streets and of course, on-line.

Retailing plays a vital part in the very fabric of our society and in the UK economy accounting for almost one in 10 of all VAT registered businesses. It employs close to three million people, making it the largest employer outside of the public sector and contributes significantly to the training and skills particularly of young people.

The last few years may have been an endurance test for retailers, battling as we have against a low or even no-growth economic environment as well as the changing needs of consumers driven by technology. However, retailers continue to rise to the challenge and respond to market conditions, listening to our customers and finding new, innovative and dynamic solutions.

Representing the British Retail Consortium, I know just how relevant this is for any retailer operating anywhere in the world today. Here in the UK, I think we can rightly and proudly say that we have a growing number of outstanding retailers of all sizes that are adjusting to the market conditions and pointing the way forward.

UK retailers are increasingly looking for new brands and new suppliers with which they can form strong partnerships to give them that winning edge when it comes to product and range. This is one of the critical platforms for successful retailing and I would encourage all manufacturers, designers, brands and suppliers to look seriously at the UK and to our retailers. We look forward to growing together with you at a time of challenges but even more exciting opportunities.

Ian CheshireChairman, British Retail Consortium

welcoMe FroM ThechairMan oF The BriTish reTail consorTiUM

The UK has also become a magnet for a growing number of international retailers and brands, all attracted by a seemingly unstoppable consumer appetite for shopping together with a liberal regulatory approach to retail with fewer controls over opening hours, pricing and foreign investment.

Since 2008 and the global economic crisis, everything has changed, just as it has in so many markets. For UK retailing, much of the growth over the last 25 years was fuelled by consumers using the ease of access to credit and the security of the escalating values of the housing market. With 69% home ownership in the UK, the big increases in property values from the mid-1990s to 2007 were a major impetus behind rising consumer confidence..

The UK has become a magnet for a growing number of international retailers and brands

There is no doubt that with consumers suddenly and dramatically calling a halt to their spending in 2008, retailing has had to face up to a new reality. Unfortunately, a number of businesses, large and small have been lost since the recession hit with the resulting impact on town centres around the country. Philip Clarke, the CEO of Tesco, the UKs biggest retailers, last year called an end to what he called the space race where retail growth was driven solely by how many new shops retailers could open.

The economic downturn is however just half of the picture affecting UK retailing. Consumers in the UK have taken to the digital age in a major way and to the extent that online and mobile commerce are accounting for a significant proportion of overall retail sales and growing fast. Latest government statistics put online sales at 9% of total sales and analysts are already predicting this moving to 12% by 2015 with compound annual growth still showing more than 7% increases. E-commerce has one of the highest penetrations of any retail market in the world today.

The effect of both these massive changes is that UK retailing has had to confront a new reality where the old rules of retailing have gone and a new set of rules have emerged which determine who is going to win in the future.

What will that future look like? There is no doubt that the retail sector will continue to consolidate and evolve. Across all of the key product sectors, the major players have acquired or merged with their weaker rivals. Despite this consolidation, there remains a strong independent retail sector that has also had to re-focus and strengthen to survive. There are close to 190,000 registered retail businesses in the UK with 287,100 retail outlets across the country.

The UK is now fully embracing the omni-channel retail age with some of the leading retailers

The convergence of the two drivers of change: the economy and the digital revolution, has meant that retailers have woken up to the fact that whilst they may not require as much physical retail space, they do need to own the channels or routes to market, from online to tablet to mobile and even catalogue. This also means that they have to stay even closer to their customers and to understand their needs and wants in a far more detailed and informed way.

The UK is now fully embracing the omni-channel retail age with some of the leading retailers such as John Lewis, Tesco, Argos and Marks and Spencer radically re-shaping their businesses. These large retailers, but also many smaller retailers too, are quickly becoming very effective omni-channel retailers across different product areas. Millions of pounds are being invested by UK retailers in new technologies to transform themselves into businesses for the digital age. The fashion and apparel sector is the biggest online sector and will continue to grow. There is also a strong appetite to embrace new thinking and new ideas to win and retain customers.

Consumer confidence is showing signs of stabilising and even strengthening according to GfKs analysis of the UK market. Like retailers, consumers have learnt to live with the new normal as many commentators are calling this economic landscape.

From the gloom of the last five years there is now a growing sense that UK retailing is not only adjusting but embracing a new and exciting era not without its challenges, but certainly with great opportunities for those ready to seize them.

For the last 25 years, retailing in the UK has been transformed by major consolidation, an explosion of new retail space and the emergence of a whole new generation of dynamic retail brands.

UK reTailers eMBrace The new realiTy

I would encourage all

manufacturers, designers, brands and

suppliers to look seriously at the UK

311 billion UK retail sales in 2012

1 million new home moves in 2013. Up from 800,000 in 2012

1/3 of consumer spending goes through shops

UK RETAIL KEY FACTS

ONS/BRC

ONS/BRC

Ernst & Young Item Club

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As one of the most competitive retail environments in the world, especially within the womenswear category, with arguably the broadest range of fashion brands found anywhere, the top players in the UK remain world class and have reacted to the rigors of the financial downturn by innovating.

This innovation does not just stretch to supply chain and in-store technology but to the customer service they offer and most importantly the fashion product itself.In an industry polarised between small independent boutique businesses and large high street and etail operators, it is essential to stand out from the crowd to win consumer spend and avoid the discounting spiral.Our own research suggests that consumers, while they are more cautious, will still spend on a particular fashion brand if they feel they are getting value for their money and that the product on offer is different and more exciting that what they might find elsewhere.

Britain is now leading the world in terms of the technology behind its fashion retail operations

This has led the UKs buyers to be more creative in the edit of brands they stock, with many seeking new brands in the international market that consumers in the UK might be less familiar with in order to give their retail offer a point of difference.

A lot more European and American brands are making their way into UK retail as a result of this and larger retailers are seeking exclusive lines and collections or producing their own collaborative product in conjunction with brands and designers so that they can avoid price comparison pushing down their retail prices.

With the value end of the market already sewn up by the likes of Primark and George at Asda who operate a commodity business around basics alongside own-brand fast fashion items, the independents and department stores have carved their niche around uniqueness within the branded part of the business.

Britain is now leading the world in terms of the technology behind its fashion retail operations through mobile, for example, and the electronic control of its stock, and is flying internationally, so now is the perfect time for any brand looking to enter the UK to do so.

Caroline NodderEditor-in-Chief, Drapers

drapers has been covering the fashion business sector in the UK for over 125 years but rarely in all that time has the sector undergone such a transformation. led by the exponential growth in online sales and shaped by the competitive environment bred of the recession, the way fashion businesses operate has been transformed over the last decade.

european clothing and footwear sales forecasts 2013-2018

european clothing and footwear total sales by country

The TransForMaTion oF UK Fashion UK Fashion sales leadinG The way

SPAIN

10.5bn total sales 20133.34% CAGR 2013-2018

NETHERLANDS

2.3bn total sales 20133.83% CAGR 2013-2018

GERMANY

20.7bn total sales 20135.80% CAGR 2013-2018ITALY

3.7bn total sales 20136.61% CAGR 2013-2018

FRANCE

11.7bn total sales 20134.35% CAGR 2013-2018

24.8bn

uK

20.7bn

Ger

man

y

Port

ugal

11.7bn

Fran

ce

10.5bn

spai

n 3.7bn2.3bn

24.8 billion Total clothing and footwear sales 2013 (forecast)

4.66% CAGR (Compound Annual Growth Rate) 2013-2018

UK

Source: Planet Retail

9% of total sales are online190,000 registered retail businesses in the UK

287,100 retail outlets across the country.

UK RETAIL KEY FACTS

ONS/BRC

BRC

BRC

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The cyclical nature of the economy has led to an interesting dichotomy within the purchasing habits of many fashion conscious shoppers. At one end the desire for and growth of high end fashion from the celebrated names we see on the catwalk has continued unabated. Whilst at the opposite end, the fast fashion focus has again continued without pause. In times of austerity the self-treat mechanism is still very much in evidence and the insatiable desire to have the latest version of the trends transposed from the catwalk to the High Street continues.

With the insatiable interest in celebrity culture and the ever developing online retail offerings that promise a celebrity look for an everyday cost, the fashion industry shows no signs of slowing down. The shopping journey, from first thought to purchase through to final receipt of the goods is becoming easier and easier and the UK leads the way in technological innovations that make this possible. The advent of guaranteed next day delivery, of same day delivery, of click and collect, all allow for the goods to be available whatever the occasion or need.

The UK is in the fortunate position to have many of the worlds leading retail exponents within its borders.

The power of social media cannot be underestimated when looking at drivers for purchase. Whether a celebrity tweet or a friends recommendation, the circle of influence on the purchase decision has morphed over time to become something more akin to a call to action and a

decision made. The use of social media by brands and retailers is an interesting balancing act between being intrusive into someones personal space and engaging them with interesting advertorial comment. Those that get this right will experience real growth, and increased loyalty and interaction, which is all important in these challenging times.

The UK is fortunate to have leading fashion designers and some of the most luxurious stores in the world in which fashion can be exposed to a willing audience. This is supported by a vibrant online and High Street retail environment that ensures we can all be as fashion forward as we desire whatever our budget.

Andrew PhippsRetail Director, GfK

The UK fashion scene has long been synonymous with setting the trends that the rest of the world follows. From the dedicated tailors of savile row to the eclectic mix found in the small boutiques dotted around the country, the consumer in the UK is able to make whatever fashion statement they choose.

UK consumer confidence: moving in the right direction

online retail as a % of Total UK forecast online sale vs key markets

Fashion leads The way

29 billion UK internet retail sales in 2012

300% growth in mobile commerce in 2012

20% UK consumers spend 20% more online than in the US, France or Germany

7.6% compound annual growth in e-commerce 2012-2016

UK oNLINE RETAILING

ONS/BRC

IMRG

Oriel Securities

Mintel Group forecasts

Jan 97 Jan 98 Jan 99 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13

Consumer confidence indicator

Retail trade confidence indicator

The economic sentiment indicator

Jan 07

Source: GfK

Source: Citi Research, Euromonitor Source

2012e 2.1%

2013e 2.4%

2014e 3.0%

2015e 3.4%

2016e 3.7%

2017e 4.1%

2012e 5.0%

2013e 5.6%

2014e 6.2%

2015e 6.8%

2016e 7.3%

2017e 7.8%

2012e 4.2%

2013e 4.6%

2014e 5.0%

2015e 5.4%

2016e 5.7%

2017e 6.0%

2012e 5.0%

2013e 5.3%

2014e 5.6%

2015e 5.9%

2016e 6.1%

2017e 6.3%

2012e 1.3%

2013e 1.6%

2014e 1.9%

2015e 2.3%

2016e 2.7%

2017e 3.1%

2012e 0.9%

2013e 1.1%

2014e 1.2%

2015e 1.4%

2016e 1.5%

2017e 1.6%

2012e 6.5%

2013e 7.2%

2014e 8.0%

2015e 8.9%

2016e 9.7%

2017e 10.6%

us

Ger

ma

nY

2012e 9.6%

2013e 10.3%

2014e 10.8%

2015e 11.4%

2016e 12.0%

2017e 12.3%

uK

Fra

nce

ita

lYsP

ain

turK

eYn

eth

erla

nd

s

GfKs monthly UK Consumer Confidence Index shows that consumers are adjusting to the new normal and should be considered as very good news following last years very deep trough.

10 11

Luxury department stores like Harrods, Harvey Nichols, Selfridges and Liberty are renowned the world over for the extravagant theatre they offer their consumers. Mid-market operators like Marks & Spencer, John Lewis, Fenwick and House of Fraser command significant market share across the UK. Multiples as varied as Topshop, River Island, New Look, L K Bennett, Ted Baker and JD Sports cover every sector of the fashion spectrum with a sophisticated approach to modern retailing that is the envy of the world. And British fashion retailers such as Next and Schuh are at the forefront of developing omni-channel strategies to blend online retailing with conventional channels.

Alongside the impressive performance of the majors, however, its worth remembering that the UK boasts a vibrant, creative, influential and still significant independent fashion retailing sector. Research from the Local Data Company (LDC), a specialist research firm that monitors British retailing, suggests that there are more than 27,000 shops selling fashion in the country. If only a third of these are independent businesses which seems a modest assessment then there are almost 10,000 shops serving eager British consumers with style choices.

the UK boasts a vibrant, creative, influential and still significant independent fashion retailing sector.

The leading trade body for small- and medium-sized stores is the British Independent Retailers Association (bira), which represents more than 5,000 businesses. More than 1,000 of these that concentrate on fashion, footwear and accessories are gathered in biras division called the Fashion Association of Britain (FAB), which hosts a coffee lounge at Pure each season to meet existing and potential members.

Research carried out by bira and the LDC has shown that, until very recently, openings by independents retailers have outweighed closures of both large and small shops. While the profile of the small boutiques may not be high, their collective importance is crucial to the fashion scene in Britain.

Central to the appeal of the independents is the variety of the brands they stock. A good independent always reflects the taste and knowledge of its owner thats why the owners name is often above the shop window.

The reason consumers shop with independents is that that they are looking for something that they cannot find in the major retailers. All successful fashion shop owners tell you that their biggest point of difference, their Unique Selling Point, is the assortment of brands that they bring together. The collection of brands at shows like Pure is therefore essential to the independent boutiques prosperity.

My job is to find the best I can in the marketplace for my customers, says Rosemary Edwards, owner of La Belle Femme, a special occasion womenswear business with three branches in Kent and central London, and a member of FAB. Whether its a simple dress for 90 or a spectacular evening dress at 1,500, it has to represent great value.

Pure is always on Edwards buying schedule as she looks to add to her considerable roster of brands, which includes Condici, Michaela Louisa, Save the Queen, Ischiko, Bleu Blanc Rouge, Elisa Cavaletti, Rayure, NYDJ Tummy Tuck Jeans, Mashiah and Frank Lyman.

A highly developed level of personal service is an important facet of independent fashion retailing. FAB member Kate Crisp, owner of the Follies boutique in Tarporley, Cheshire, explains. My sales staff will go to a customers house, at no charge and in their own time, to have a look through her wardrobe so they can advise what she should be buying this season. We know everything about our customers their name, their lifestyle, their family situation, where they went for their holidays. We remind them what they bought last season or the season before and point out what from the new collections will work with it.

I am a regular at Pure as I am always looking for new brands, especially interesting smaller brands that wont be found in the high street majors. Oska, Sahara, Grizas, Sandwich, Cannisse and Two Danes are among the labels with which she does well.

Quality and value, rather than budget prices, are the important attributes of progressive fashion businesses. My customers are aged from 35 to 70-ish, says Sally White, who owns White Boutique in Narberth, South Wales. She is a FAB committee member. I have a lot of Yummy Mummies, but also middle-aged ladies who dont want to dress like their mothers or their daughters! What is common to them all is that they are conscious of quality. Thats what they look to me for.

Many of Whites key brands, which include Havren, FeeG, Almost Famous, Odd Molly, Nougat London, Luke Lovely and Unisa shoes, are familiar exhibitors at Pure.

A significant number of successful independent fashion retailers used to work for large concerns and learned all the right retail disciplines and systems, but chose to go their own way to have greater freedom of expression and more flair. Maura Thomas worked for a depart-ment store group for 14 years before opening her own thriving special occasion shop, Fashion Scene in Meopham, Kent, over 30 years ago. My advice to any aspiring independent fashion retailer is, whatever sector you work in, do it with authority. Dont mess about.

Thomas, a long-standing FAB member, is a familiar figure at Pure. I have been going every season since its inception in 1997, she says. As a buyer, my job is to source new manufacturers the whole time. I like

the fact that Pure offers a great mix of British brands with international suppliers. Her

brand line-up includes Condici, John Charles, Presen, Carina, Mascara,

Veromia, Ronald Joyce, Sonia Pena, Cabotine, Zeila, Michaela Louisa and Gina Bacconi.

Given the huge competition from the multiples in the UK and now from online sales, independent shop owners are looking to develop mutually beneficial relationships with their suppliers. Gerald Voisin, the sixth generation to run his familys department store, Voisins in St Helier, Jersey, observes: Our relationships with our suppliers are more important than ever. In one or two instances we have parted company from a brand because we were concerned about their management of online sales. It makes no sense for us to offer something that is available noticeably cheaper on the internet.

An eye for new brands, close relationships with both consumers and suppliers, and a never-ending passion for fashion will ensure that British independent retailer will not go out of style.

Eric Musgrave Eric is an industry commentator and consultant to the Fashion Association of Britain

The British enthusiasm for creating fashion is matched by the countrys ability to retailing clothing, footwear and accessories.

pUTTinG on The sTyle1

Rosemary EdwardsLa Belle Femme

12 13

To underline how dynamic retailing is, retail experts are seeing signs of a new shape to the UK scene. The multiples have called a halt to their expansion and for many of them the main focus has been on cutting back on store numbers in order to create a better balance between on and off-line. This has provided an opportunity for smaller independents to move into retail space that they wouldnt previously been offered.

For fashion brands this is very positive news because it is the independents as well as the department stores that offer the greatest collection of brands. With many of the major multiple fashion and clothing retailers built around single brands, the independents offer variety and excitement.

The latest data from the UKs specialist property research group, the Local Data Company (LDC) shows that the number of independents retailers with less than 5 shops - has grown by 65% in 2010 to 67% today at a time when multiple retailers are closing more than they are opening. Its latest research, conducted in conjunction with the Oxford University Institute of Retail Management, The State of UK Retail Places showed that fashion independents have grown in number. This reflects the fact that the barriers to entry are becoming less prohibitive as more shop units come on to the market.

With much of the UK media focussed on the store closures by the larger multiples, the common view is consistently that small shops and many high streets are being killed off. Looking below the surface shows that the opposite is actually true and that fashion and clothing independents are critical to the future of retailing in cities, towns and villages around the UK.

The UK consUMer: sTill in love wiTh FashionindependenT reTailers BacK on The GrowTh cUrve

The UKs high streets and town centres are dominated by independent retailers. larger multiples may account for the majority of retail sales through their sheer size, but by numbers of shop units, the smaller, privately-owned retailers provide the back-bone of UK retailing.

UKS MOST INSPIRING FASHION AND CLOTHING INDEPENDENTS:Each year, Drapers magazine surveys the industry for their views and recommendations on the best independent retailers in the UK. They canvass the views of the people who know best: brands, agents, fellow retailers and consumers. The results are brought together in an annual report on the Top 100 most inspiring independents. We have selected here the top 20.

1 The Dressing Room 2 Browns 3 Black White Denim 4 Psyche 5 The Goodhood Store6 Donna Ida 7 Jules B 8 Dover Street Market 9 Bottega 10 Sunday Best 11 Darkroom 12 25 Ten Boutique 13 Six Whiting Street 14 Sadie the Bra Lady 15 The Hambledon 16 End Clothing 17 Present 18 Flannels 19 Javelin 20 Start

The UK is where a high street brand Top Shop has reinvented itself as a leading designer brand at the cutting edge of technology; Rihanna designs clothes for River Island and luxury brands like Burberry and Mulberry thrive on their quintessential Britishness. Reflecting this varied and dynamic industry, the UK fashion shopper is increasingly sophisticated and demanding in terms of fashion, quality and service. The generally younger fast fashion consumer shops the high street and surfs online looking for the latest fashions to make a statement. For this consumer, fashion demands active participation aspiring to an outfit, photographing it and sharing it bridges the digital world and the real world. This young highly active fashion market (15-24) is showing only a slight reduction in frequency of spend as tuition fees hit home and graduate unemployment bites.

The UK is seeing a blurring between demographic boundaries as the current young fashion consumer grows up. The core market of working women and men have grown up in the world of fast fashion and have high expectations; they earn more, shop more and save more than younger people. They are the generation who took advantage of affluence and education. These fashion shoppers are searching for the latest edit, the ideal wardrobe staples and a style they can own in the most convenient way to suit their busy lives, reflected in the growing demand for multichannel engagement.

For suppliers, the prize in the UK is access to some of the biggest, and increasingly international, retail brands in the world

The rapidly ageing UK population means that older consumers are becoming a key demographic that clothing retailers need to cater for. However, the stereotype of an older person no longer applies to a lot of over 55s as they are living and working longer than ever before. There is a real disparity between different age segments within the group. For example, 55-64s, who fall into the first wave of baby boomers, shop at a wide range of clothing retailers and tend to enjoy buying new clothes and making impulsive purchases. This group are the fast growing in

terms of internet usage. Meanwhile, over 65s are the most likely to feel that there are a lack of clothes stores that cater for their age and struggle to find fashionable garments. Quality is a big priority and mature shoppers place more emphasis on durability and well-made clothes than on value.

Overall, the recession is making UK customers more selective and value is increasingly important but there is evidence that consumers will still pay for the right fashions, quality, style and value and will trade up or save up for more expensive products that will last.Alongside increasing insight into consumer behaviour and new routes to market, product has become a key differentiator in this battle. From exclusive tie-ups in fashion to food, these partnerships have delivered an advantage for retailers including Debenhams and Waitrose.

For suppliers, the prize in the UK is access to some of the biggest, and increasingly international, retail brands in the world. And, whether its through global flagships in Londons West End, new multichannel technologies that reach the UKs digitally savvy consumer or expansion abroad, a footprint in British retail continues to be a signpost to the very best in global retailing.

Stella HartleyStella Hartley has operated at a senior level in retail and multi channel marketing for over 20 years. She has held board positions and consulted with many leading high street names including Wallis, Warehouse, Miss Selfridge, River Island, Tesco, Hamleys, The White Company and Tie Rack Retail Group.

The UK fashion market is one of the most vibrant and dynamic in the world reflecting the tastes and desires of a changing demographic and a shifting structure in terms of online and omni-channel shopping.

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To book a stand or discuss further contact:-h(sales@purelondon.com/h(+44 (0)20 3033 2223Oh(www.purelondon.com

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To book a stand or discuss further contact:-h(sales@purelondon.com/h(+44 (0)20 3033 2223Oh(www.purelondon.com

14 15

The UK retail market has been considered an attractive prospect for a number of international brands over the years, offering an opportunity for lower risk expansion and access to a sophisticated consumer base.

The competitive landscape is represented by US and European players alike. Retailers need to recognise the differences between the regions respective consumers. It is for this reason that the UK is often considered a springboard for those global retailers wanting to enter Europe.

The UK is considered to have some of the most fashion forward shoppers. Retailers in particular, have to offer a compelling proposition in terms of value, price and service. Those with a generic and undifferentiated product will struggle in this environment.

When developing a UK entry strategy, global brands must consider the relevant tax and duty implications at the earliest stage. These can impact both the desired price

points and profit margins. If the regulatory charges are factored in after these figures are set, they will become distorted.

Succeeding in the UK is not only about product and price offerings but increasingly also about the most relevant channel mix. The UK is one of the most developed multichannel retail markets where consumers enjoy shopping across a variety of digital and physical channels, which all help make it hugely attractive for international brands.

Silvia RindoneDirector with Deloittes retail practice. She specialises in stategies for global retailers and CPG companies.

To help international businesses enter the UK, either by selling directly to retailers or by setting up their own distribution, the UK Government has a well-developed network of international offices, integrated advisory services and extensive online information. The UK Trade and Industry department (UKTI) produce a series of information sheets specifically for international companies. Full information can be found at www.ukti.gov.uk Email: enquiries@ukti.gov.ukTel: +44 (0) 20 7215 4957

against the backdrop of a challenging economic outlook, the UK retail market shows signs of recovery. in 2012, UK retail sales grew by 3% to reach over 311 billion. online sales accounted for 29 billion last year and are forecast to continue to grow by 10% per annum until 2017.

The UK is one of the leading destinations for foreign businesses and received the highest number of foreign direct investment projects in europe in 2011/12, helped by its highly competitive business environment.

GeTTinG ready To enTer The UK reTail MarKeTdoinG BUsiness in The UK

UK MARKET ENTRY CHECK LISTA number of questions are critical to answer when entering a new market: Customers - Who are your target consumers

and what are their needs and preferences? In how far is that different from your core target in your home market? What are implications in terms of adapting the ranges and price points to the new market?

Competition Which of the existing players are already targeting your potential customers? What is their proposition? How do your competitors strengths challenge your own?

Value Proposition What is a proposition in terms of product, price and service offering that is relevant to the target consumers and differentiating versus the competition? What is the brand usp?

Format and Channel presence What is the preferred channel mix that is going to allow 1. To serve the customers as they prefer and 2. To balance initial resource investments and risks?

Regulatory Considerations What tax and duty implications need to be considered when developing a pricing strategy? What are implications in terms of targeted margin / profits? Are there specific employment laws that will have implications when potentially exiting the market?

Method of market entry Do you invest directly or do you choose a Partner? What is the best entry mode based on the ambition in terms of speed of market entry and risk appetite? Own stores versus wholesale model / concession in department stores to minimise the risk?

operational Implications How do I best serve the market? What are implications for the supply chain? When is the tipping point to build warehouse capability in market? How will returns be handled if entering online only?

KEY FACTS

24%: The UKs rate of corporate tax - one of the most competitive rates not just in Europe, but also worldwide. This will fall further to 21% by 2014

13.8%: the rate for an employers National Insurance Contributions on the earning of each individual employee. One of the lowest in Europe (France, 41.6%)

7.8%: rate of unemployment. One of the lowest in Europe. European Union average is 10.7%

2.7%: official rate of inflation (Consumer Price Index) as at January 2013

0.5%: Official Bank Rate in the UK

20%: standard rate of Value Added Tax

Zero Rate of VAT applied to a limited range of goods and services (most food, books and clothing for young children)

16 17

pUre london The GaTeway inTo UK reTailinG

Now in its 34th season, Pure is a key date in the global fashion calendar and ensures that brands meet the most powerful fashion buyers in the UK and beyond.

Over 88% of Pures visitors have direct purchasing responsibility and represent leading independent boutiques, multiples and department stores and online businesses. All attend to see the latest collections of womenswear, accessories, lingerie, swimwear, footwear and childrenswear. Buyers attending the most recent edition of Pure collectively spent 152 million.

Importantly, Pure has a close partnership with global trend forecasters WGSN, which helps ensure that their world-renowned catwalk show, Live at Pure London is highly relevant and directional. Pures ideal location provides fast transport links nationwide as well as

accessibility to Europe and the rest of the world which further creates an international platform to sell to over 1,700 fashion buyers from outside the UK.

Pure London is the ideal setting to launch new product lines under the assurance that they will be seen by the right buyers with the right budgets.

The following pages are designed to give you a more detailed overview of Pure and how it can help you enter the UK market. As organisers of Pure, i2i Events Group has a network of international agents and a support team designed to help international brands looking to come to the UK.

Full contact details can be found on the back page of this report.

pure london is the UKs leading fashion buying event, attracting over 12,000 fashion buyers each season. showcasing mid to high end brands, pure is held twice a year during February and august at londons olympia exhibition centre.

Olympia, Londonwww.purelondon.com

pUrchasinG responsiBiliTyAre you responsible for purchasing decisions?

yes88.1% no

11.9%

spent as a direct result of

Pure London February 2012

ToTal visiTor spend

152 Million

direcTor / owner / proprieTor

BUyer / sTore ManaGer

sales / MarKeTinG

oTher

desiGner / prodUcTion ManaGer / Merchandiser / phoToGrapher / sTylisT

46.9%

32.0%

7.2%

6.7%

7.2%

Weve been much busier than last season! Our corner stand makes a huge difference in the number and type of buyers we get. Weve had a lot more international buyers from Japan, India, Germany and Belgium.

Nina Ricardio, Aftermath

18 19

pUre london woMenswear pUre london spiriT

pUre london accessories & FooTwear

Grow your business with a presence in the largest section at pure london, showcasing a diverse array of contemporary womenswear brands to attract buyers interested in all styles and price points.

Womenswear is split into four areas to help focus buyers needs and ensuyre you generate as many orders as possible.

directionalContemporary womenswear labels with a focus on design and creativity for the fashion-forward woman.

Brands represented:

ALMOST FAMOUS DARLING IKKSCHARLI FENN WRIGHT MASON SEASALT

boutiqueStylish eveningwear and occasionwear brands offering exquisite designs for special events.

Brands represented:

GILL HARVEY COLLECTION MASCARA MONTIQUELINEA RAFFAELLI MICHAELA LOUISA PRESEN OF BARCELONA

studioA mix of classic, contemporary brands offering timeless pieces and effortless elegance.

Brands represented:

CAPRI EVE IN PARADISE NISSAELEMENTE CLEMENTE LILITH SARAH PACINI

editA showcase of inspirational, fasion-led brands whose imagery and branding reflect the most progressive designs seen at the show.

Brands represented:

EMILE JOLANTA VOUS! FRAU BLAU MANITIC

increase your revenue potential in the young fashion sector a showcase of carefully selected, edgy collections designed to attract trend-setting retailers.

Align yourself alongside brands including:

DANITY IRON FIST PEPE JEANSFOREVER UNIQUE THE PRETTY DRESS CO. LOUCHEGLAMOROUS NUMPH SUGARHILL BOUTIQUE

Embracing the fun in fashion, this section boasts brands with individual style, helping to capture interest from independent boutiques, multiples and depatment stores, ensuring you meet buyers who will help grow your business.

The accessories section at pure london offers the latest, most creative designs across a range of categories including jewellery, handbags, hats and scarves.

If you provide a touch of luxury, then allow buyers to find you amongst the seasons must-haves in Premium Accessories, the section dedicated to exquisite high-end pieces.

Align yourself alongside brands including:

ECHO FIORELLI OWEN BARRYESTELLA BARTLETT ORELIA PIECES

Premium brands including:

DESTI SAINT MAKKI SAM UBHI LAMB 1887PASSIGATTI THE BRANCH

Footwear Be part of a dazzling display of must-have labels, directional styles and the latest innovations in footwear.

Split into design-led and Trend-led areas ensures buyers are able to find you amongst over 200 of the latest footwear brands and designers.

We have had really good feedback and have been really busy. Weve had lots of interest from buyers after theyve seen our pieces on the catwalk. Lots of orders were placed and the launch of handbags in the collection was received really well.

Vicky, The Style, London

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UNITED KINGDOMKaty RobertsEvent Manager T: +44 (0)20 3033 2016F: +44 (0)20 3033 2001E: Katy.Roberts@i2ieventsgroup.comW: www. i2ieventsgroup.com

Lucy WalshCommercial DirectorT: +44 (0)20 3033 2165F: +44 (0)20 3033 2001E: Lucy.Walsh@i2ieventsgroup.comW: www.i2ieventsgroup.com

FRANCEFlorian BaudoinT: + 33 (0)546 76 00 64E: fbaudoin@ivytex.fr GERMANY, AUSTRIA & SWITZERLANDKerstin KoschnickeKln-Turm, Im Mediapark 850670 Kln T: +49 (0)221 55 405 - 293F: +49 (0)221 55 405 - 45E: Kerstin.Koschnicke@i2ieventsgroup.com

SPAIN & PORTUGALFlavia GattiniT: +34 (0)933 435 510F: +34 (0)933 435 511E: Flavia.Gattini@i2ieventsgroup.com

ITALYLuca DelicatiProject ManagerInternational Show s.r.l.Viale Bacchiglione, 28 20139 MilanoT: +39 02 57403340 F: +39 02 57402055Skype: internationalshow1 oppure internationalshow2W: www.internationalshow.it TURKEY

compiled by i2i events in collaboration with:

Ilyada ColakT: +90 216 338 45 25E: ilayda@tg-expo.net

USA Katherine TruesdaleSales Manager, North AmericaPO Box 57046 AtlantaGA 30343T: +(404) 909-2969E: katherine.truesdale@i2ieventsgroup.com

CHINAKaty RobertsEvent Manager T: +44 (0)20 3033 2016F: +44 (0)20 3033 2001E: Katy.Roberts@i2ieventsgroup.comW: www. i2ieventsgroup.com

INDIA Lucy WalshCommercial DirectorT: +44 (0)20 3033 2165F: +44 (0)20 3033 2001E: Lucy.Walsh@i2ieventsgroup.comW: www.i2ieventsgroup.com

your contacts at i2i events Group: