Menswear will “spearhead” growth in clothing market

The UK value clothing market will grow by 3.2 billion pounds in the five years to 2021, equating to 23.6 percent growth on 2016, with menswear expected to “spearhead” the growth and outperform womenswear, according to a new report by retail research and analysis firm Verdict Retail.

The UK Value Clothing Market 2016-2021 report reveals that menswear will be the main driver, outpacing womenswear with its forecast growth of 29.2 percent by 2021, as Verdict Retail states that male interest in fashion and personal appearance has increased and retailers have starting to respond to male consumers’ growing demands.

Kate Ormrod, senior analyst at Verdict Retail, said: “Menswear has taken a back seat over the past decade as value retailers have been focusing on enhancing womenswear offers. However, as male interest in fashion and personal appearance builds, retailers are starting to respond to male consumers’ growing demands for more choice, style, and newness.

“The likes of H&M and New Look have an opportunity to make significant share gains, but they must drive destination appeal and loyalty among shoppers.”

Verdict Retail’s survey of 10,000 UK consumers found that the country’s value clothing shoppers now place more importance on value for money and quality than they have previously, with value for money scoring 8.6 out of 10 for importance when it comes to store selection, and quality scoring 8.4.

Ormrod added: “Focusing solely on price will not satisfy value clothing shoppers. Retailers will lose favour if they opt to downgrade the quality of fabric and fit of their clothes to protect margins and offset rising inflationary pressures caused by the weak pound following Britain’s decision to leave the EU.

“Value players need to make investment across the board with improved in-store merchandising, a personalised shopping experience online with a range of delivery options, enhanced product design and quality, and regular newness to entice frequent spending and retain shopper loyalty.”

Menswear expected to outperform womenswear in value clothing sector

The report predicts that market leader Primark’s share will fall in 2016, following more than 15 years of growth, and that value clothing sales at the supermarkets will continue to be impacted by weak food and grocery footfall, with value clothing share forecast to fall back in 2016.

With 42.7 percent of value shoppers buying clothing at least once a month from value retailers, compared to 36.4 percent of all clothing shoppers shopping the clothing sector at least once a month, the report is stating that retailers need to do more to attract value shoppers who it states are more “impulse driven”.

Online sales is also important, in 2016, Verdict Retail forecasts that the online channel will account for 11.5 percent of the UK value clothing market, compared to 22.5 percent for the total UK clothing and footwear market, indicating how far behind value clothing retailers are in terms of online maturity, accentuated by Primark’s notable online absence. However, over the next five years, online value clothing sales are forecast to grow by 84.9 percent to a share of 17.2 percent.

“With value players’ high volume of SKUs, investment in online filtering is key. This will allay the risk of shoppers becoming overwhelmed with extensive ranges and failing to find what they are looking for, resulting in unfruitful visits and dissatisfaction. Editorial content showcasing new products and trend-led ranges must sit alongside price-led marketing that targets cash-strapped shoppers,” Ormrod concludes.

Image: courtesy of New Look - menswear AW16