Market Analysis – Introduction To Market Share
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Definition
Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company. Market share can be measured in several ways. However, the two most important measures are by:
– Sales revenue
– Sales volume (the number of units sold)
Examples of market share
Market share information on the UK clothing retail market is summarised below:
Position
Brand
Sales(ÐЈm)
Market Share (%)
Number of Outlets
Marks & Spencer
2,743
1,708
Arcadia
1,609
1,603
Debenhams
1,076
Matalan
Tesco
New Look
John Lewis
Total of Top 10
11,250
UK Market
26,911
100.0
Source; Deutsche Bank 2002
The UK clothing market, as defined by Deutsche Bank in their recent report, is valued at ÐЈ26.9 billion. It is one of the most concentrated retail markets in Europe, with the top ten retailers accounting for some 42% of the market.
What is market concentration? It is the proportion of market value that is owned by the leading brands or products/companies in the market. Where the market leaders own a large part of the overall market, the market is said to be highly concentrated. By contrast, where the market leader has a relatively small market share and there are many other competitors, a market is said to be “fragmented”
There has been little change in the concentration of the UK clothing retail market in recent years. The top 10 retailers