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1. INTRODUCTION
Traditionally, the plus size category in the UK has been a low priority, “afterthought” market that has been characterized by limited product availability, very few lines and sidelined fashion trends. More recently the combination of an aging population and expanding waste lines has many retailers taking notice of the growing demand and need for fashionable plus size womens apparel.
Marks and Spencer, conducted a survey that generated a lot of publicity, that found that British women are in fact getting bigger. From the results of this survey, Marks and Spencer announced it would assume 14 as its “base size”, and altered the companys whole production process to account for the new size.
Todays plus-size women in the UK, similar are looking for fashionable, stylish clothing that will flatter their body types. For them the issue is no longer simply finding plus size clothing, but finding fashionable plus size clothing that meets their needs and life styles. The United Kingdom is showing increasing demand for womens plus size fashions, with 47% of UKs female population currently at size 14 or larger. The total market for plus-size clothing is estimated to be worth over $5 billion.
This report is focused around the launch of a brand called “Eve”, in order to cater to the growing demand for high fashion, quality garments catering primarily to plus size women.
Statement of Aims and Objectives
In order to establish the aims and objectives, it was necessary to determine the strategy of growth for Eve as a brand.
Fig 1 : The Ansoff Growth Matrix
Ansoff describes four growth strategies that can be adopted by companies, based on the nature of their products and markets. Thus, for Eve the optimal growth strategy would be that of
Product development in the short term
Since this would be a new brand in the market, product development would enable it to strengthen its position in the home market before expanding geographically. Increasing brand awareness and growth of customer base and market share would be the pillars for this strategy.
Market development in the long term
The growth in sales will enable Eve to compete more effectively in terms of cost, or attain higher profits if maintaining the same price. It will also permit geographical expansion, in the form of franchisees or solus stores.
The aims can be described as being (Time period – 10 years)
To be known as the primary retailer catering to the needs of quality, high fashion garments for the plus size segment
Brand image associated with quality, innovation and customization in this segment
Increasing the international presence of the brand
Keeping pace with and formulating trends for the industry
Meeting and exceeding customer and market expectations
The Objectives, based on the principle of SMART are Specific, Measurable, Achievable, Realistic and Time Bound (Time period – 5 years)
Gaining market share in the home markets, specifically for plus size women
35% market share in the segment of 20-35, and 15% of the total market share
70% customers retained or re-purchase
Penetration into segments not currently catered to
Venturing into larger size ranges, and catering to customers of all age bands
20% of total customer base to be new or 1st purchase customers
Development of new products and modifications to existing products
Cost Control in terms of manufacturing and driving up profitability and margins
– Register a profit within 2 years of operation
Increase level of awareness via promotions and advertising
2. MARKET ANALYSIS
Looking at the last five years as a whole, growth in the UK plus size clothing market as a percentage of the entire market has been phenomenal. The total market for plus-size clothing is estimated to be worth over $5 billion. This represents nearly 34% of the total womens clothing market, compared with only 25% in 1997.
Total Womens Clothing and Plus-Size Womens Clothing
Total Womens Clothing (Ј)
Ј20,250
Ј21,300
Ј22,350
Ј23,250
Plus Size Clothing (Ј)
Ј5,589
Ј6,006
Ј6,392
Ј6,743
Plus Size (as a %)
27.6%
28.2%
28.6%
29.0%
Plus-size clothing is now available through all major retailing categories, including extensions of size ranges to include larger sizes and clothing lines specifically dedicated to larger women. Fashion retailers in the UK have approached the womens plus size market in various ways. Some have extended size ranges on normal collections and others have created special collections specifically catered towards plus-size women.
2. 1. MACRO MARKET ANALYSIS
In order to examine the market at a broader level, the PESTLE analysis and Competitive analysis is undertaken.
2.1.1. Pestle Analysis
Fig 2 : PESTLE Analysis
Political and Legal
Relative stability in the current policies of the government as the labor party returns for its third successive term with Tony Blair as Prime Minister.
Encouragement of domestic investment
Due to the EU membership a trend can be seen towards stricter environmental protection legislation. This may have a direct or indirect