Market for sustainable fashion_Briefing

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THE MARKET FOR ETHICAL AND
SUSTAINABLE FASHION PRODUCTS
Briefing report 2011
This report compiles and summarises information on the UK market for sustainable / ethical
fashion products, drawing from Ethical Fashion Forum (EFF) research as well as referenced
research from several other bodies.
1. Expenditure on ethical clothing continues to grow
2. Shoppers put more emphasis on sustainability
3. Increased availability and quality of ethical fashion has driven market growth
4. Rapid expansion in number of retailers stocking sustainable fashion
5. Shoppers buy on design and style first. Ethical/eco credentials are a bonus that can
help secure the sale.
6. Opportunities with women’s outerwear, underwear, childrenswear and menswear
7. A new consumer profile for ethical fashion has emerged
9. Consumers are most interested in supporting community benefits and a fair price to
producers
10. Opportunities for ethical fashion vary across product value sectors
11. Consumers remain sceptical about ethical claims made by retailers
12. “Ethically minded” clothing buyers do spend more money on clothing
13. An untapped market
1. Expenditure on ethical clothing continues to grow
Expenditure on green goods and services has grown by 18 per cent over the last two years,
despite the economic downturn. Overall, the ethical market in the UK was worth £43.2 billion
in 2009 compared to £36.5 billion two years earlier, against the background of one per cent
growth in overall household expenditure over this period.
Ethical personal products, including clothing and cosmetics were the fastest growing sector,
increasing by 29 per cent over two years to reach £1.8 billion
Sales of ethical clothing grew by 72 per cent to reach £177 million, while charity shop sales
grew by 62 per cent to £340 million.
(Co-operative Bank Ethical Consumerism Report 2010)
2. Shoppers put more emphasis on sustainability
A majority of adults (82%) claim to make their clothes last - we think the disposable fashion
trend could have peaked and 2011 may see shoppers reassessing value for money and
putting more emphasis on sustainability, integrity and durability of clothing.
(Mintel, Clothing Retailing - UK - 2010)
61% of women feel “It is important that a company acts ethically”
(Mintel, Ethical Clothing – UK –2009)
3. Increased availability and quality of ethical fashion has
driven market growth
The widening availability of ethical fashion is central to this growth. Real choice in styling and
quality and truly fashionable design has been vital in the market’s development.
Ethical clothing has now been transformed by the presence of new and exciting designers
taking it right up into the realms of high fashion and expanding into all clothing sectors. Many
consumers are as yet unaware of these changes – mainstream opinion always lags behind
the fashion front – but awareness will grow and with it far greater demand.
(Mintel, Ethical Clothing – UK –2009)
4. Rapid expansion in number of retailers stocking
sustainable fashion
Increased availability, quality, range and promotion of ethical fashion designers and brands
in the media has led to a rapid expansion in the number of multi-brand retailers stocking
ethical fashion products in the last 3- 5 years.
The Ethical Fashion Forum carried out surveys of both online and UK on street retailers
stocking sustainable fashion products in November 2010 and May 2011.
23 mainstream UK on street retailers were identified as stockists of ethical fashion and
evaluated as part of the survey. Over half of these stores began to stock ethical fashion
products within the last 3 years. This survey looked at prominent High St retailers rather than
being an exhaustive survey on all on street shops stocking ethical fashion products- of which
there are far more than 23.
43 prominent online multi-brand stores with a specific focus upon sustainable fashion product
were identified. The majority of these stores have been established within the last 3 years,
and new and innovative online platforms for sustainable fashion continue to be launched,
with US, Canadian and UK companies leading the sector.
5. Shoppers buy on design and style first. Ethical/eco
credentials are a bonus that can help secure the sale.
EFF’s buyer survey carried out with retailers across the sector during May 2011 established
that for the majority of customers, design and style are a primary consideration. Ethical
credentials and well-communicated stories behind the product do help to secure the sale,
providing design and product standards are high.
6. Opportunities with women’s outerwear, underwear,
childrenswear and menswear
While all sectors of the mainstream market for clothing and accessories are open to ethical
brands, the best potential, on the grounds of practicality and sales performance, lies with
women’s outerwear and underwear and also childrenswear.
(Mintel, Ethical Clothing – UK –2009)
7. A new consumer profile for ethical fashion has emerged
The Ethical Fashion Forum carried out a survey during 2008 of existing businesses in the
ethical fashion sector through interview and questionnaire. Businesses surveyed included
leading multi brand retailers and leading design led ethical fashion labels.
This survey identified two main consumer groups for design led ethical fashion product
ranges:
1. Established consumers of ethical fashion
Characteristics:
35-40+,
Have supported social/ environmental issues for 5-10 years or more
Willing to pay a bit extra for ethical fashion
Not generally followers of fashion, not accustomed to buying designer fashion
2. A new emerging market of younger consumers
Characteristics:
20’s-40’s,
Fairly new to sustainability issues related to fashion
Fashion focused and trend aware
Will commit to a higher spend on fashion products
Characteristics in common to both these groups
A gender bias towards women
Professionals with disposable income
A high degree of loyalty
Have some awareness of the ethical issues behind fashion
Findings set out in the Ethical Clothing Report 2008 byTNS Worldpanel Fashion:
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Compared to the other age groups, 35-44’s and 55+ are the most concerned by
ethical criteria
… the under 25’s care more than other age groups about profits being given to
charity
9. Consumers are most interested in supporting
community benefits and a fair price to producers
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Year-on-year, most of the ethical criteria have become more important, community
benefits in particular becoming more important
But a fair price to producers and the sweat shop elements remain by far the most
important
(Ethical Clothing Report 2008, TNS Worldpanel Fashion)
10. Opportunities for ethical fashion vary across product
value sectors
During 2008-9 Focus group research was carried out by the Ethical Fashion Forum into the
opportunities for ethical fashion products in different market sectors. Groups of consumers
from 3 target market sectors were randomly selected to take part:
Group 1 regular Primark and/or Tesco shoppers – Budget market
Group 2 regular All Saints and/or Whistles shoppers – Mid range market
Group 3 regular Harvey Nichols and/or Browns shoppers – High end designer market
Focus groups were conducted with an impartial, varied demographic of 21 consumers aged
20-44
Focus Group 1 comprised of participants who regularly shop at Primark and/or Tesco
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These consumers would like to buy ethical fashion but find it not available enough and
expensive.
Most felt that Primark’s practices had improved recently in relation to ethical sourcing.
They were aware of Primark's recent marketing campaign to defend the ethics of its
manufacturing processes.
However they still feel relatively low levels of trust in retailer’s ethical claims. These
consumers would like independent bodies to verify retailers claims and they would like to
see proper labelling, posters and leaflets – “the retailers word is not enough”
This group were the most receptive and positive about learning more about how
garments are made and the stories of producers behind the products. They think “Body
Shop does this well as they are clear on their ethos and people pay more for that”
This group were the most aware of media coverage about ethical fashion but would like it
to be less about the negative issues. They would buy more if better informed of the
positives outcomes of their purchases.
The group expressed confusion about labelling. They would like clear labelling,
supplemented with bullet point, easy to read information.
Focus Group 2 comprised of participants who regularly shop at All Saints and/or Whistles
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This group were the most unanimous in their views.
They are interested in learning more about how the clothes they buy are made…
…but it wouldn’t necessarily make them more likely to buy a product. They are concerned
about compromising on quality and style.
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This group had the most trust/brand loyalty in their retailers ethical claims “because it
would not be in their best interest to lie”
This group have been encouraged by the media to make more ethical choices with food
but not with fashion. Participants were not aware of media covering ethical fashion.
They all agreed retailers should make it clear through labelling when garments have been
produced according to ethical standards, which would make consumers feel “less guilty”
Focus Group 3 comprised of participants who regularly shop at Harvey Nichols and/or
Browns
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These consumers enjoy the experience or “scene” of high end designer shopping and are
unsure how ethical fashion would fit into this. They felt that ‘point of sale’ information,
ethical sections and swing tags would not work with the generally minimalist branding.
Participants were split in opinion regarding whether they would be interested to learn
more about how their clothes were made. They agreed that they would only be interested
in the story if they liked the product first.
The research showed ostensibly conflicting views. Participants showed high levels of
trust in their retailers and were more sceptical of the ethical fashion facts – they spoke of
feelings of being “bombarded with propaganda” and a “worthy overload”…
… However these consumers don’t link high price designer goods with non-sweat shop
labour, they are cynical of designer manufacture and assume items are made in
sweatshops along side cheap garments. Participants weren’t bothered by this as long as
the products have a designer label and are stylish.
Participants felt that the responsibility to improve practices lies with the retailers,
producers and distributors rather than with the consumers. The availability of ethical
fashion is poor; therefore they should not be made to feel guilty for what they do buy.
11. Consumers remain sceptical about ethical claims made
by retailers
57% of respondents are sceptical about the ethical claims made by retailers
(Ethical Clothing Report 2008, TNS Worldpanel Fashion)
11% of consumers do not trust that ‘ethical’ clothing is genuinely so. This is only a minority
perhaps, but sufficient to show the need for action from retailers and NGOs to publicise and
promote the activities of verification bodies like the Fair-trade Foundation. Equally, retailers
themselves have to earn credibility.
(Mintel, Ethical Clothing – UK – 2009)
12. “Ethically minded” clothing buyers do spend more
money on Clothing
People who say ethical clothing is important generally spend around £200 more than people
who think it’s unimportant…and there are 34.8m customers who say ethical clothing
considerations are quite/very important.
Of these 34.8, 6.9 million rate the availability of Ethical Clothing as being poor/very poor.
These 6.9 million are the key customers to target. They want to buy ethical clothing, but
cannot source it easily.
(Ethical Clothing Report 2008, TNS Worldpanel Fashion)
13. An untapped market
Despite growth, this remains as yet an undeveloped market, if one with plenty of potential.
The ethical clothing market is a little larger than the bridalwear sector and equivalent to
almost half of the value sales of hosiery. Although tiny in relation to the whole [at less than
1%], 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
exponentially.
The main impediments currently are awareness, appreciation and availability. All three are
within the control of brands and retailers, and thus they can increase the growth potential.
(Mintel, Ethical Clothing – UK – 2009)
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