Market Size and Performance
Source: Ethical consumerism report 2010,
2011, 2013
- The ethical clothing market saw a huge
rise in 2008 where the market had
quadrupled in sales according to Mintel's
ethical report in 2009. Since then their
sales have been gradually going down.
- Although tiny in relation to the whole [at
less than 15], major retail players including
Marks & Spencer, H&M, Topshop,
Sainsburys, Tesco and others are
increasingly adding their own ethical
ranges which will drive up sales.
Key Drivers
- Consumers are more aware of where their products come
from, due to the bad conditions of the work environment of
the Rana Plaza in 2013.
- Customers want ethical and sustainable clothes that will
last and that the manufacturing was ethical.
- Organic cotton amounts to an estimated 1% of
the global cotton production, of which 2/3 are
produced in India. This is equivalent €3.1 billion
in retail sales per end of 2009.
- In 2009 the market of organic cotton rose by
35%.
Key Players
-
G Star Raw
Levis
Free People
Nudie
Monkee Genes
Market Share
- The ethical clothing market remains an exceptionally low market share holding
just over 1% of the overall apparel market in the UK.
- Despite growth, this remains yet an underdeveloped market, but one with
plenty of potential. Mintel estimates that the total sales of ethical clothing are
currently worth around £175 million (or about 0.4% of total market).
Future of Ethical and Sustainable garments
- The future of clothing will be made up from recycled materials, for example G Star Raw
created made a new product from recycled plastic. These yarns are said to be 400%
stronger. Therefore they are more durable.
- There are more brands using upcycled materials.
- Urban Outfitters are bringing back vintage clothing to reduce the amount of brand new
products being made.
- More brands are using ethical practices in their business plan, for example using more
organic cotton.
Shop Report
G Star RAW
Free People
-
100% Organic
Looks handmade
Patch work
Doesn't feel luxurious
H&M
- There Conscious denim garments are comprised of at least
50% of conscious material.
- H&M Have been actively working to reduce negative water
impacts for over 10 years now.
- They have reduced water use by 56% and energy
consumption by 58%.
- Their Conscious collection have been made from recycled
old denim fibers.
Price/Style Matrix
Marks & Spencer
Economic
• Clothing sales fell by 0.6% in the three months to the end of June (2014)
• "We have seen a continued improvement in clothing, although as anticipated the
settling in of the new M&S.com site has had an impact on sales," Bolland said.
• M&S re-launched its website in February after a £150m makeover that brought more
video and magazine-style content to the site. But some customers have had difficulty
registering on the site, leading online sales to slump by 8%, the retailer revealed this
morning.
• Although people are still more confident than they were in 2013, Mintel’s data suggests
that they’re not entirely convinced by the economic revival. Wages are still failing to
keep pace with the cost of living. In particular, research shows that those in the middle
age groups are still finding it hard to make ends meet. Until the income squeeze eases
significantly, people will remain wary.
• Marks and Spencer is moving into Scandinavia, with 15 stores planned across Finland
and Norway under two new Franchise deals.
• François Smeyers, regional director of Europe at M&S, said: "Expanding our reach to
Scandinavia, which we see as an important international market for us, is a central part
of our ongoing international growth strategy in Europe."
• M&S is aiming to increase international profits by 40% with a major return to mainland
Europe this year. After a humiliating exit from the continent in 2001, it is now opening
30 Simply food stores in France. Marks and Spencer wants to open 250 new stores
around the world.
Environmental
“Plan A is all about making changes to take better
care of our world. Because lets face it, we want out
world to keep on taking care of us. Our five big Plan
A goals are to cut carbon emissions, reduce waste,
trade fairly, use more sustainable raw materials,
and help people be healthier. From saving energy
to shopping differently, there are lots of Plan A
things you can do too. Why not start now with a
fresh-ground Fairtrade coffee in the cafe.”
Legal
Policy: Marks & Spencer has told Muslim staff they can
refuse to serve shoppers buying alcohol or pork.
Marks & Spencer fined £1m over asbestos risk
M&S and its contractors were convicted of failing to ensure health and safety of staff and
others in July
Continue reading the main story
Marks & Spencer has been fined £1m for failing to protect customers, staff and workers from
potential exposure to asbestos.
Customers at stores in Reading and Bournemouth were put at risk of exposure to asbestos in
2006 and 2007 during refurbishments, a court heard.
From <www.bbc.co.uk/news/uk-england-berkshire-15081278>
Political
• Best of British.
• Supporting the British manufacturing.
•
•
•
•
•
•
Health and safety regulations from the
Government – British Standards.
This is to make sure that the work environment is
safe.
Risk assessments.
Risk control.
Fair Trade policy.
Making sure that they are achieving their
sustainability goals.
Social
• In partnership with a range of charities, covering
environment, poverty, health and wellbeing etc. Charities
supporting: Macmillan Cancer Support, Oxfam, Shelter and
WWF...
Shwopping Campaign - Customers give away their clothes to
Oxfam to be resold in markets internationally.
Above picture taken in Senegal, where clothes are to be sold in
their markets.
“Fairtrade cotton helps small-scale farmers in developing
countries by paying a Fairtrade price and premium that
protects them against volatile market prices.”
“High quality material could be made into new
fabric, low quality will be used for things like loft
insulation or car seat filling.”
Technological
•
•
•
40% of sales came through click and collect.
Invested in technology and staff for this service.
Online sales rose 16.16% accounting for 13% of non food
sales.
•
•
•
•
New flagship.
12 Browse & Order hubs with touch screens.
10 customer service assistants with iPads.
Three to four days for delivery to home or store lags behind
the competition.
•
Online channel is a large part of the companies expansion
plan.
With 10 international websites by 2012.
•
Best of British:
• British craftsman ship.
• Materials and manufacturing from and in Britain.
• Savile row design
• Launching October