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1 © GfK 2012 | GfK Fashion Report | July 2012 GfK Fashion Report July 2012 Incorporating data from The Sunday Times Fashion Study and other GfK research Helen Roberts / Lisa Luckhurst GfK NOP, Consumer and Retail

UK clothing retailing July 2012 - GfK

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With consumer confidence almost as low as during the banking crisis of 2008, UK consumers are increasingly targeting clothing as an area to cut back spending. Clothing and shoes are third in a list of 26 areas of expenditure that they have cut back on. GfK conducted a survey for the Sunday Times who were keen to understand current consumer perceptions of quality, price and value for clothes from a number of leading retailers. Getting a bargain proves important to respondents as is buying quality items and brand loyalty. Find out who’s Britain’s favourite brand and what consumers’ perception of quality, price and value for clothes are.

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Page 1: UK clothing retailing July 2012 - GfK

1 © GfK 2012 | GfK Fashion Report | July 2012

GfK Fashion Report July 2012 Incorporating data from The Sunday Times

Fashion Study and other GfK research

Helen Roberts / Lisa Luckhurst

GfK NOP, Consumer and Retail

Page 2: UK clothing retailing July 2012 - GfK

2 © GfK 2012 | GfK Fashion Report | July 2012

Contents

1. Background and objectives of the Sunday Times Research 3

2. Consumer Mindsets – from other GfK data 5

3. Shopping for clothes 15

4. How the 7 brands performed 18

5. Quality, Price & Value 22

6. Design 26

7. Overall performance 29

8. Appendix 35

• GfK Consumer & Retail 36

• The Sunday Times Fashion Study 40

• GfK Roper Consulting 43

• GfK Savvy Shopper 47

• GfK Women’s Clothing Study 48

9. Contacts 54

Page 3: UK clothing retailing July 2012 - GfK

3 © GfK 2012 | GfK Fashion Report | July 2012

Why did we

do it?

What did we

want to find

out?

Background and Objectives

How was it

done?

What else do

we know?

Page 4: UK clothing retailing July 2012 - GfK

4 © GfK 2012 | GfK Fashion Report | July 2012

Background to the project

The research was conducted for the Sunday Times who were keen to understand current

consumer perceptions of quality, price and value for clothes from a number of leading

retailers

Brands evaluated

7 UK fashion retailers were included in the test:

Products tested

5 items were tested from each retailer: chino’s, cargo pants, shirt, blouse and a polo shirt

Survey method

The research comprised 2 simultaneous hall tests, with a total of 82 respondents assessing

35 products. Further details of the method are contained in the appendix

Other GfK data sources

This report also draws on three other GfK data sources to add context and depth to the

analysis:

1. The Consumer Confidence Barometer, conducted by GfK for the European

Commission

2. Roper Reports Worldwide (Mood of World Factbook)

3. GfK Savvy Shopper

4. GfK Women’s Clothing Study

Page 5: UK clothing retailing July 2012 - GfK

5 © GfK 2012 | GfK Fashion Report | July 2012

How’s

Consumer

Confidence?

Are we cutting

back?

What are we

worried about?

Consumer Mindsets

How are we

saving money?

Page 6: UK clothing retailing July 2012 - GfK

6 © GfK 2012 | GfK Fashion Report | July 2012

Confidence is

almost as low as

during the

banking crisis of

2008

The mood of the nation is short on economic optimism!

We are worried

about the

economic

situation

More worried

about how we’ll

maintain our

lifestyle

It’s affecting how

we think

Cutting back

more than ever

It’s impacting

what we do

We are increasingly

targeting clothing as

an area to cut back

spending

Page 7: UK clothing retailing July 2012 - GfK

7 © GfK 2012 | GfK Fashion Report | July 2012

Consumers view of the economic situation has stabilised (at a low level) since the end of 2011

Q3 How do you think the general economic situation in this country has changed over the last 12 months?

Got a lot better = 1 / Got a little better = 0.5 / Stayed the same = 0 / Got a little worse -0.5 / Got a lot worse = -1

Q4 How do you expect the general economic situation in this country to develop over the next 12 months?

Get a lot better = 1 / Get a little better = 0.5 / Stay the same = 0 / Get a little worse -0.5 / Get a lot worse = -1

Better

Worse

General Economic situation of the Country May 2012

2008

Banking

crisis

The Consumer Confidence Barometer Research carried out by GfK on behalf of the

European Commission

Page 8: UK clothing retailing July 2012 - GfK

8 © GfK 2012 | GfK Fashion Report | July 2012

The economic situation, particularly the Euro crisis remains a concern and confidence in those in charge continues to fall

Q18. Now, thinking about the economic outlook for the next 12 months, how much do you agree with the following statements?

n.a.

31

57

25

56

15

68 71

16

68 71

The economy is in good hands Economic situation will get worsebefore it gets better

Euro crisis will have a majorimpact on UK recovery

Jun-10

Late 2010

Late 2011

May-12

Agree Completely or

Somewhat that…%

Source: GfK Savvy Shopper

Page 9: UK clothing retailing July 2012 - GfK

9 © GfK 2012 | GfK Fashion Report | July 2012

Personal Financial Situation of Household – May 2012

-25-23-21-19-17-15-13-11-9-7-5-3-11357911131517

Feb-0

4

Apr

Jun

Aug

Oct

Dec

Feb-0

5

Apr

Jun

Aug

Oct

Dec

Feb-0

6

April

June

Aug

Oct

Dec

Feb-0

7

April

June

Aug

Oct

Dec

Feb-0

8

April

June

Aug

Oct

Dec

Feb-0

9

April

June

Aug

Oct

Dec

Feb-1

0

April

June

Aug

Oct

Dec

Feb-1

1

April

June

August

Oct

Dec

Feb

April

Last 12 Months Next 12 Months Better

Worse

Q2 How do you expect the financial position of your household to change over the next 12 months?

Get a lot better = 1 / Get a little better = 0.5 / Stay the same = 0 / Get a little worse -0.5 / Get a lot worse = -1

Q1 How has the financial situation of your household changed over the last 12 months?

Got a lot better = 1 / Got a little better = 0.5 / Stayed the same = 0 / Got a little worse -0.5 / Got a lot worse = -1

Consumers remain negative about their own financial situation, though some optimism that next year will be better than last

The Consumer Confidence Barometer Research carried out by GfK on behalf of the

European Commission

Page 10: UK clothing retailing July 2012 - GfK

10 © GfK 2012 | GfK Fashion Report | July 2012

Spending money and lifestyle are of more concern than job loss or debt

Q18. Now, thinking about the economic outlook for the next 12 months, how much do you agree with the following statements?

43

25

18

40

24 20

59

45

23

17

63

51

23

18

Current downturn will havedirect effect on money I can

spend

Concerned about how I willmaintain lifestyle in coming

year

I believe I will have moredebt this time next year

I am concerned I may losemy job in next 6-12 months

Jun-10

Late 2010

Late 2011

May-12

Agree Completely or

Somewhat that…%

Page 11: UK clothing retailing July 2012 - GfK

11 © GfK 2012 | GfK Fashion Report | July 2012

Climate for major purchases – is now the right time to buy?

-42-40-38-36-34-32-30-28-26-24-22-20-18-16-14-12-10-8-6-4-202468101214161820222426283032

Feb

Apr

Jun

Aug

Oct

Dec-

04

Feb

Apr

Jun

Aug

Oct

Dec-

05

Feb

April

June

Aug

Oct

Dec-

06

Feb

April

June

Aug

Oct

Dec-

07

Feb

April

June

Aug

Oct

Dec-

08

Feb

April

June

Aug

Oct

Dec-

09

Feb

April

June

Aug

Oct

Dec-

10

Feb-1

1

April

June

August

Oct

Dec

Feb

April

Major purchases Annual moving average

Q8 In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?

Yes, now is the right time = 1 / It is neither the right time nor the wrong time = 0 / No, it is the wrong time = -1

Right time

Wrong time

Consumers continue to feel unwilling to commit to major purchases

Page 12: UK clothing retailing July 2012 - GfK

12 © GfK 2012 | GfK Fashion Report | July 2012

46 45

43

40

37

31

37

29

26

49

45

41 39

37

32 31

28

24

43 43

37 36

33 32

31

25

18

Buying a large electricalitem such as a TV

Buying new furnitureGoing out drinkingEating outPlanning moreholidays/short breaks

Donating to charityBuying new clothesSavingEntertaining at home

May-12 Late 2011 Late 2010

= positive significant difference at 95% confidence level = negative significant difference at 95% confidence level

Q16. Which of these do you think you will be spending more or less on over the next 12 months?

% “I will spend less on… minus % ”I will spend more on…”

Purchase intent – Next 12 months

The trend towards cutting back on clothing spend has grown more than other categories, suggesting increasing frugal behaviour in the category

Euros/

Olympics

effect?

GfK Savvy Shopper

Source: GfK Savvy Shopper

Page 13: UK clothing retailing July 2012 - GfK

13 © GfK 2012 | GfK Fashion Report | July 2012

Roper Reports Worldwide 2011 and 2012 | Mixed-mode trend, core 25 countries

% who have cut back on things in past 12 months

Clothing and Shoes are 3rd in a list of 26 areas of expenditure that people in the UK have cut back on

Source: GfK Roper Reports Worldwide

Page 14: UK clothing retailing July 2012 - GfK

14 © GfK 2012 | GfK Fashion Report | July 2012

Roper Reports Worldwide 2012 (mixed-mode trend, core 25 countries),

% who have done activity in the past 12 months

Cutting back involves the use of multiple money saving techniques and shopping carefully for essentials including clothes is the 2nd most widely taken action

Source: GfK Roper Reports Worldwide

Page 15: UK clothing retailing July 2012 - GfK

15 © GfK 2012 | GfK Fashion Report | July 2012

What’s

important?

How do we

choose what to

buy? Quality?

Shopping for clothes

Price? Style?

Value?

Page 16: UK clothing retailing July 2012 - GfK

16 © GfK 2012 | GfK Fashion Report | July 2012

Most are far more concerned about quality

and value (and getting a bargain). The

Savvy Shopper mindset is strong when

shopping for clothes

We are conservative when it comes to buying clothes!

We are not driven purely by the latest trend

when buying clothes

The decision on where to shop for clothes is

shaped by this core Savvy mindset and

then influenced by the clothing range on

offer and the retail experience

The Shopping

Experience

My Kind of

Clothes Value for Money,

Ethics

My Kind of Store

Range & Style

Source: GfK Green Clothing study

Page 17: UK clothing retailing July 2012 - GfK

17 © GfK 2012 | GfK Fashion Report | July 2012

Source: the Sunday Times Fashion Study

Fashion shopping behaviour It’s clear that getting a bargain is important to respondents but aside from this, buying quality items and brand loyalty are important. Perhaps unsurprisingly, given the typical ‘Middle England’ profile of the sample, having the latest fashion is lower in their list of priorities when buying clothing

77%

44%

41%

30%

20%

15%

10%

I like to seek out a bargain

I always buy high quality clothes

I like to stick to the same brands

The brand of clothes I wear matters

I am happy to pay a price premium just to have ‘in-fashion’ items

I always try to buy the latest fashion

Fashion is more important to methan quality

Page 18: UK clothing retailing July 2012 - GfK

18 © GfK 2012 | GfK Fashion Report | July 2012

Who’s the

best?

What are their

strengths?

Who’s

worst?

How the 7 brands performed

How can they

improve?

Page 19: UK clothing retailing July 2012 - GfK

19 © GfK 2012 | GfK Fashion Report | July 2012

Key findings

• Rated best products overall in blind test,

particularly on cut of fabric, design and quality

of buttons/zips

• Ranked top in terms of preference and likelihood

to purchase (although currently used for

everyday purchases by just 17% of sample)

• Ranked 5th out of 7 in terms of good value

• Rated best value for money

• Placed 2nd overall in blind test, with quality of

fabric and stitching

• Blouse design was particularly popular

• Quality of buttons/zips was relatively low compared with

other retailers

• Very close overall ranking to Primark,

performing particularly well in terms of quality

and design of it’s Polo Shirt

• Poor performance on value for money, ranking 6th out of 7

• Middle ranking overall but with 2nd highest rating

on quality of Cargo Pants and Polo Shirt

• Very poor performance in terms of value for money,

• Perception of quality and design of Cotton Shirt was very

poor in blind test

• Lowest ranked in terms of likelihood to purchase and

preference and not currently used for everyday purchases by

any of the sample

Negative takeouts Positive takeouts

Source: The Sunday Times Fashion Study

Page 20: UK clothing retailing July 2012 - GfK

20 © GfK 2012 | GfK Fashion Report | July 2012

Key findings

Source: The Sunday Times Fashion Study

• Ranks 3rd on good value for money

• Poorest performance in terms of overall design in blind test

• Used for everyday purchases by 1 in 4 respondents

• 2nd highest ranking in terms of preference and

likelihood to purchase

• Blouse quality was considered to be particularly high

• Ranked 6th out of 7 overall in blind test

• 40% of respondents expected products to be low priced

based on evaluation of quality and design

• Ranks 2nd on good value for money

• Poorest performance overall in blind test

• Products least likely to be considered ‘high priced’ based

on evaluation of quality and design (8%)

• Ranked 6th out of 7 on brand preference and likelihood to

purchase and

Negative takeouts Positive takeouts

Page 21: UK clothing retailing July 2012 - GfK

21 © GfK 2012 | GfK Fashion Report | July 2012

H&M Primark M&S TU (Sainsbury) F+F (Tesco) Boden Next

Likely tobuy

Preferred

Ranking in order of preference and likelihood to purchase

Q1. Can you tell me where you typically buy everyday clothes for yourself and/or your family?

Q10. Here is a list of clothing brands. Please rank them in order of a)Preference b)How likely you are to buy? Base: All respondents (82)

Brand preference and likelihood to purchase Respondents were given a list of the 7 brands and were asked to rank in order of preference and likelihood to purchase. Next , H&M and Marks & Spencer are the clear favourites, with Boden receiving the lowest rating for both

7

6

5

4

3

2

1

26% 23% 23% 5% 2% - 17%

% typically buying everyday clothes from each retailer

Page 22: UK clothing retailing July 2012 - GfK

22 © GfK 2012 | GfK Fashion Report | July 2012

Who has the

best quality?

Who is the best

value?

Who has the

best price?

Quality, Price & Value

Page 23: UK clothing retailing July 2012 - GfK

23 © GfK 2012 | GfK Fashion Report | July 2012

Q3. Please tell me, for each of the clothing items on the table, what you think of the quality of the fabric using a scale of 1-5 where 5 = excellent and 1 = very poor;? Q4. And what you think

of the quality of the stitching/workmanship?; Q7. What you think of the quality of buttons, zips fastenings etc.? Base: All respondents (82)

Product quality – T2B ranking summary Taking all product categories into consideration, Next and Marks & Spencer rated

highest in terms of quality. Boden falls in the middle with very similar ratings for all

quality questions – and, somewhat surprisingly, below Primark.

0% 20% 40% 60% 80% 100%

F+F (Tesco)

H&M

Tu (Sainsbury)

Boden

Primark

Marks & Spencer

Next

0% 20% 40% 60% 80% 100%

Buttons/zips

Stitching

Fabric

Page 24: UK clothing retailing July 2012 - GfK

24 © GfK 2012 | GfK Fashion Report | July 2012

Q3. Please tell me, for each of the clothing items on the table, what you think of the quality of the fabric using a scale of 1-5 where 5 = excellent and 1 = very poor;? Q4. And what you think

of the quality of the stitching/workmanship?; Q7. What you think of the quality of buttons, zips fastenings etc.? Base: All evaluating

Quality – %T2B summary by product category Looking at the quality at product level, Boden’s cargo pants and polo shirts are rated highly

compared with the majority of other brands but their cotton shirt, which is actually their most

expensive item, is considered poorer quality than any of the other brands. Respondents had

a similarly poor opinion of their chinos and blouse. H&M, generally a poor performer across

the board, received a very positive rating of the blouse evaluated

Cargo pants

(50)

Chinos

(48)

Blouse

(48)

Polo shirt

(48)

Cotton shirt

(48)

Next 54% 49% 35% 49% 50%

Marks & Spencer 35% 23% 27% 58% 42%

Primark 41% 44% 37% 42% 42%

Boden 50% 29% 25% 56% 28%

TU (Sainsburys) 24% 42% 28% 24% 45%

H&M 35% 32% 43% 29% 36%

F+F (Tesco) 18% 29% 23% 28% 37%

Page 25: UK clothing retailing July 2012 - GfK

25 © GfK 2012 | GfK Fashion Report | July 2012

Q8. Thinking now about cost, please rank each item according to whether you think the price would be ‘low’, ‘medium’ or ‘high’. Q9. Given the actual price, to what extent do you agree that

the item is good value? Base: All respondents (82)

Price (average across all categories) Of all products evaluated, respondents were most split by Boden items, with c.one third each

saying the price should be low, medium and high. Next clothing was considered the most

likely to be expensive and Tesco items the cheapest. Based on the actual price of each item,

Boden’s were rated by far the least value for money and Primark the best.

21%

30%

27%

38%

40%

40%

45%

44%

49%

47%

32%

39%

51%

46%

34%

21%

26%

30%

21%

12%

8%

Next

Primark

M&S

Boden

TU (Sainsbury)

H&M

F+F (Tesco)

Estimated price ranking (de-branded evaluation) Good value for money (de-branded evaluation)

%T2B

54%

88%

41%

20%

65%

61%

71%

Low Medium High

Page 26: UK clothing retailing July 2012 - GfK

26 © GfK 2012 | GfK Fashion Report | July 2012

Who has the

best design?

Does it vary by

product?

Design

Page 27: UK clothing retailing July 2012 - GfK

27 © GfK 2012 | GfK Fashion Report | July 2012

Q5. How would you rate the design of each item?;Q6. And how would you rate the cut of the fabric of each item? Base: All evaluating

Product design – T2B ranking summary The design of the items from Next was the most popular amongst the selection reviewed and

Boden is mid-range as was the case for it’s quality (although, interestingly it is less popular

on both aspects amongst 35-64 year old respondents). Primark performs favourably again,

achieving second place and Tesco clothing once again is least popular.

0% 20% 40% 60% 80% 100%

F+F (Tesco)

Tu (Sainsbury)

H&M

Boden

Marks & Spencer

Primark

Next

0% 20% 40% 60% 80% 100%

Cut of fabric

Design

Page 28: UK clothing retailing July 2012 - GfK

28 © GfK 2012 | GfK Fashion Report | July 2012

Q5. How would you rate the design of each item?;Q6. And how would you rate the cut of the fabric of each item? Base: All evaluating

Product design – T2B summary by product category At category level, the design of both Marks & Spencer and Boden’s polo shirts is rated most

favourably while the cotton shirt from Boden, which received a poor rating for quality, is also

given a poor rating for it’s design.

Cargo pants

(50)

Chinos

(48)

Blouse

(48)

Polo shirt

(48)

Cotton shirt

(48)

Next 53% 51% 25% 42% 59%

Primark 36% 37% 42% 24% 40%

Marks & Spencer 25% 26% 25% 43% 36%

Boden 31% 23% 21% 43% 26%

H&M 30% 27% 18% 18% 38%

TU (Sainsburys) 32% 25% 16% 26% 28%

F+F (Tesco) 14% 23% 23% 22% 33%

Page 29: UK clothing retailing July 2012 - GfK

29 © GfK 2012 | GfK Fashion Report | July 2012

What have we

learnt?

What could be

better?

What are the

opportunities

Overall performance

What’s good?

Page 30: UK clothing retailing July 2012 - GfK

30 © GfK 2012 | GfK Fashion Report | July 2012

Q3; Q4; Q5; Q6; Q7 Base: All respondents (82)

Overall Product T2B ranking summary Taking all product attributes into consideration, Next rated highest Overall. Primark is slightly

ahead of Marks & Spencer, predominantly due to the quality and cut of the fabric and the

design of the items. Boden falls in the middle with similar ratings for most attributes

0% 20% 40% 60% 80% 100%

F+F (Tesco)

H&M

Tu (Sainsbury)

Boden

Marks & Spencer

Primark

Next

0% 20% 40% 60% 80% 100%

Cut of fabric

Design

Buttons/zips

Stitching

Fabric

Page 31: UK clothing retailing July 2012 - GfK

31 © GfK 2012 | GfK Fashion Report | July 2012

Overall Product T2B ranking summary by product category

Cargo pants

(50)

Chinos

(48)

Blouse

(48)

Polo shirt

(48)

Cotton shirt

(48)

Next 54% 50% 31% 46% 53%

Primark 39% 41% 39% 35% 41%

Marks & Spencer 31% 36% 26% 52% 40%

Boden 42% 27% 23% 51% 27%

TU (Sainsburys) 27% 35% 23% 25% 38%

H&M 33% 30% 33% 24% 37%

F+F (Tesco) 16% 27% 23% 25% 35%

Q3; Q4; Q5; Q6; Q7 Base: All respondents (82)

Page 32: UK clothing retailing July 2012 - GfK

32 © GfK 2012 | GfK Fashion Report | July 2012

This must cause some stress for shoppers in-

store if quality varies between products

Findings from the Sunday Times research, highlight opportunities for all fashion retailers

There is inconsistency within brands across

the different products tested

It is vital that the shopping experience is good

regardless of channel (in-store, on-line, on TV, via

catalogue etc.)

For many shopping for clothes remains a

pleasure/leisure activity (despite the financial

pressure)

Retailers should strive to deliver consistent

quality across their range, having understood

customers quality expectations across product

categories

Focus on ensuring that the whole shopping

experience is great for the customer in order to

maximise satisfaction and drive repeat purchase

and recommendation

Page 33: UK clothing retailing July 2012 - GfK

33 © GfK 2012 | GfK Fashion Report | July 2012

Consistently meeting customer requirements for quality and value will drive brand loyalty

It delivers on quality and value

leading to a higher proportion

of Loyal Advocates than

Marks and Spencer who

generally deliver on quality but

not always on value*

Primark delivers to today’s

shopper needs

* Since the LoyaltyPlus analysis was conducted M&S

have introduced a wider Fashion Value range

Page 34: UK clothing retailing July 2012 - GfK

34 © GfK 2012 | GfK Fashion Report | July 2012

Some very successful and respected brands

did not perform very well in this test

Findings from the Sunday Times research, highlight opportunities for all fashion retailers

The power of the brand cannot be under-

estimated

We tested using full-prices for items, but Boden

do sell predominantly on deal (multi-buy and/or

25%+ discount), so loyal customers may have a

different perception of price

Boden did not perform well among this group of

people who were generally not Boden customers

Brand image and reputation can clearly help to

drive sales, but no-one should be complacent

as quality and value are ever-more important

Care should be taken that aggressive offer-based

selling, whilst helping to retain existing

customers, doesn’t alienate those new to the

brand who are not aware of the regularly reduced

prices

Page 35: UK clothing retailing July 2012 - GfK

35 © GfK 2012 | GfK Fashion Report | July 2012

The Sunday

Times Study

GfK Savvy

Shopper

GfK Women’s

clothing study

Appendix

Consumer

Confidence

Barometer

Roper Reports

Worldwide

Page 36: UK clothing retailing July 2012 - GfK

36 © GfK 2012 | GfK Fashion Report | July 2012

Who do I talk

to?

How do I find

out more?

GfK Consumer & Retail

Page 37: UK clothing retailing July 2012 - GfK

37 © GfK 2012 | GfK Fashion Report | July 2012

GfK Group Company Profile

Sales

• 2011: €1.2 billion, +6.2% growth YOY

• 4th largest research company, worldwide

Employees

• 11,000+ full-time staff

• Over 1,000 in the U.K.; approximately 80% outside Germany

Services

• Custom Research, Media, Retail & Technology

• Comprehensive information services on consumer goods, healthcare, media and services markets

Global Coverage

• Operating in over 100 countries

Page 38: UK clothing retailing July 2012 - GfK

38 © GfK 2012 | GfK Fashion Report | July 2012

Consumer and Retail – an overview

Quantitative & Qualitative

NPD & Innovation

U&A / Segmentation

Strategic Innovation

Ideation

Concept Screening

Product

Pack

Price

Promotion

Brand & Comms

Brand Health

Brand Positioning

Ad and Brand Tracking

Ad Pre-testing

Ad Health

Emotional Connection

Retail & Shopper

Customer Management

(Satisfaction & Loyalty)

Shopper

Savvy Shopper

Decision Trees

Category layout

Shopper Segmentation

Local & Global

Consumer

Healthcare

OTC

Claims Testing

Brand & Comms

Switch Rx to OTC

Pharma Shopper Insight

Health Trends

HCP Recommendation

Omnibus

Travel and Leisure

Customer Management

(Satisfaction & Loyalty)

Tourism

Other specialist

Consumer Services

Environmental

Regulatory

Page 39: UK clothing retailing July 2012 - GfK

39 © GfK 2012 | GfK Fashion Report | July 2012

Values we share

Genuine sector expertise

…understanding the challenges our clients face

Business impact

…generating insights that bring about real change

Quality

…delivering high quality work, on time, every time

Creative and innovative

…utilising industry leading research techniques

Passionate

…caring about our clients and the work we do for them

Page 40: UK clothing retailing July 2012 - GfK

40 © GfK 2012 | GfK Fashion Report | July 2012

How was the

study done?

Who did we

talk to?

The Sunday Times Fashion Study

Page 41: UK clothing retailing July 2012 - GfK

41 © GfK 2012 | GfK Fashion Report | July 2012

Hall test process

• In-street recruitment to complete interview in hall (Uxbridge and Nottingham)

• C. 30 minute interview during which, each respondent assessed products from all 7 brands

• The majority of questions used a 5 point rating scale (very poor – excellent) to indicate opinion of a range of attributes such as

quality of fabric, stitching, fastenings, overall design etc.

• Each respondent evaluated 3 product categories in total from the following range, resulting in 48-50 evaluations per category

• Cargo pants

• Chinos

• Blouse

• Polo shirt

• Cotton Shirt

• Respondents were never informed of which item corresponded to which brand but they

were asked to rank the brands separately in terms of preference and likelihood to purchase

at the end of the test

• At the end of each evaluation, respondents were advised of the actual price of each item

(still de-branded) and asked whether they thought the item to be good value or not

• Following the completion of the evaluations, respondents were given a list of the brands

and asked to rank them in order of preference and likelihood to purchase

• All fieldwork was conducted in accordance with the Market Research Society Code of Conduct

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Survey details

Demographic profile %

Uxbridge 50%

Nottingham 50%

Male 38%

Female 62%

18-34 62%

35-54 27%

55-64 11%

AB 38%

C1 57%

C2 5%

Fieldwork

• 82 interviews were completed across 2 locations –

Uxbridge and Nottingham, on Saturday 9th June 2012.

• Each respondent assessed products from all 7 brands

• Each respondent evaluated 3 product categories from

the following range, resulting in 48-50 evaluations per

category

• Cargo pants

• Chinos

• Blouse

• Polo shirt

• Cotton Shirt

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GfK Roper Consulting

How was the

study done?

Who did we

talk to?

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GfK Roper Reports Worldwide | Introduction

GfK Roper Consulting interviews more than 37,500 global consumers each year about a broad range of

topics. Using this robust data source, we develop powerful and actionable insights about global

consumers in order to help our clients to ‘own the future’.

Detailed focus on

your key groups of

consumers

Local level insight

informed by market

expertise

Regional

comparisons to the

world as a whole…

Big picture stories

on what the world

looks like

MICRO LOCAL REGIONAL GLOBAL

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Interviews with approximately 1,500

consumers aged 15+ in each market

Developed Asia

• Australia

• Japan

• South Korea

• Taiwan

Developing Asia

• China

• Indonesia

• India

• Thailand

Middle East / Africa

• South Africa

• Egypt

• Turkey

GfK Roper Reports Worldwide | unrivalled coverage

Conducted annually for 15 years

37,500+ consumers each year

1,500 consumers per market

25+ countries

Consumers aged 15+

Covering c.83% global GDP

Western Europe

• France

• Germany

• Italy

• Spain

• Sweden

• UK

Central/Eastern Europe

• Czech Republic

• Poland

• Russia

The Americas

• USA

• Canada

• Argentina

• Brazil

• Mexico

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GfK Roper Reports Worldwide | Topic Coverage

• Mood of the Nation

• Leisure & Lifestyle

• Personal Values

• Attitudes Towards Life

• Economy

• Green Behaviour

• Technology

• Information Flow

• Health & Wellness

• Retail

• Financial attitudes

• Automotive

• Consumption

• Demographics

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Some retail questions we can help to answer:

• Do shoppers feel now is a good time to buy or wait? How often do consumers around Europe go

shopping for non-grocery items?

• Which consumers are very interested in personal

appearance/fashion/beauty?

• How have your target consumers been saving

money in the past year?

• Which consumers agree that “it is better to buy

well-known brands because of their quality”?

• Where do we find deal hunters who say that “I feel really

satisfied with myself, even excited when I get a really good deal”

• Who goes shopping to overcome stress?

• What types of consumers believe shopping is a chore and

who finds shopping to be a pleasure?

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GfK Savvy Shopper

How was the

study done?

Who did we

talk to?

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What is Savvy Shopper?

Objective

The study began in 2009 with the aim of understanding how the recession was impacting consumer

behaviour and spending.

It continues to measure how consumer concerns are evolving through the double dip recession.

What is

included?

Savvy Shopper is a twice yearly study commissioned and managed by GfK NOP.

Each wave updates core measures regarding consumer confidence and spending behaviour and also

includes topical bespoke issues

The 6 monthly ad hoc study is supplemented by data from GfK’s Consumer Confidence Barometer

commissioned by the European Commission

Who was

interviewed?

Savvy Shopper is conducted amongst a nationally representative sample of 1000 people aged 16+ in the

UK for each wave.

Quotas were placed on gender, region, age and social grade to achieve this.

How was the

research done?

Research is conducted using an online methodology, using GfK NOP’s online panel

Wave 6 was conducted May 23rd - May 30th 2012

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GfK Women’s Clothing Study

How was the

study done?

Who did we

talk to?

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Study Objectives

To explore women's attitudes to ethical issues (Fair Trade and Organic) in

the context of the clothes they buy for themselves:

o there is much talk of ethical brands, recycling, carbon footprints,

food miles etc. Evidence from our own research shows we care

and try to buy ethical in a variety of categories – food, cosmetics

etc. – but do we apply those same morals when buying our next

outfit?

To explore customer loyalty within the high street fashion sector

o using the GfK LoyaltyPlus model we explore the extent to which

customers are loyal to individual retailers, what drives that loyalty

and how best retailers could encourage great loyalty

On-line study conducted among 1000 women in 2007

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Questionnaire Content

Behaviour

• Retailers browsed in

• Retailers purchased from

• Retailers intending to buy from

• Total personal clothing spend

• Share of spend at each retailer used

• Main store for each type of clothing (casual clothing,

underwear, formalwear etc.)

Opinions

• Reasons for choice of retailer

• Overall satisfaction

• Importance of retailer attributes

Advocacy

• Recommendation

• Word of mouth (positive and negative)

Demographics

• Age

• Lifestage

• Employment status

• Income

Green Issues

• Awareness and understanding of ethical issues

(Fair Trade/organic)

• Importance and consideration of ethical

products

• Purchase behaviour – current and intended

• Willingness to pay a price premium for ethical

products

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Retail brands included

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Who do I talk

to?

How do I find

out more?

Contacts

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Want to know more?

• For further information on the sources contained in this report:

• The Sunday Times Fashion Study

• Roper Reports Worldwide

• The Consumer Confidence Barometer

• GfK Savvy Shopper

• Or to find out more about how GfK can help you grow your retail business

• Contact:

Helen Roberts

Senior Director

GfK Consumer & Retail

+44 (0) 7770 991 961 or +44 (0)207 890 9266

[email protected]