The UK Fashion

Market Opportunity
Your independent and authoritative
guide to the UK fashion market

compiled by i2i Events in collaboration with:

Brought to you by:

introduction
Retailing occupies a large and vital part of the UK economy, but for the UK
consumer, shopping has become a key leisure activity and an important
part of peoples lives. More than a third of all UK consumer spending goes
through shops. And fashion is one of the key drivers for retail spending.
The last five years have without doubt been challenging
for the UK economy as they have for every developed
economy around the world. Retailing has faced enormous
pressures with consumer spending slowing down as
households adjust to tighter budgets. This has been further
compounded by the arrival of the digital revolution which
has led to the rapid expansion of new shopping channels
that incorporate the internet, mobile and social media.

This special i2i Events Group report on The UK Fashion

Market Opportunity brings together some of the best
research and insight available to provide a comprehensive
overview of retailing and the fashion sector in the UK. It
helps to provide a detailed look at the reality of the market
place, from both a retailers and a consumer point of view.

This new retail world calls for good retailers to become

great retailers and we are already witnessing this with
strong independent retailers emerging as well as resurgent
department stores and highly focussed specialists.

The following pages examine how retailing generally and

fashion in particular have learned quickly how to adapt to
todays new landscape. The retail winners in the UK market
are those that are constantly looking for new ideas, new
innovations and new, inspirational products. This makes
the UK a highly attractive market for any international
brand or supplier to consider doing business with and as
this report shows, compared to many, its approach to tax
and legal frameworks make it one of the easiest countries
to work with.

UK retailing is fast becoming recognised as one of the most

exciting markets in the world for the way that new ideas
are emerging and with it some world-class retailers that are
becoming true omni-channel businesses.

We hope that this report encourages you to look in detail at

the UK and our network of international agents and the i2i
Events Group team are available at any time to answer any
detailed questions you may have.

The new retail world calls for good

retailers to become great retailers

a word from the Managing Director

of Retail, louise YOUNG
Pure London occupies an important place within the UK
fashion industry.
Held twice a year and each attracting over 12,000 visitors, Pure
London provides fashion retailers with unique access to some
of the very best brands from around the world that will in turn
help attract customers to their stores. It is as simple as that.
However, as everyone in the industry knows, retailing is
far more complex, and is never without its challenges. At
i2i Events Group, the organisers of Pure London, as well as
The Jewellery Show London and the The Jewellery Show
at Spring Fair we feel privileged to be part of this exciting
and dynamic business sector. We also believe that we can
play a role in supporting retailers in their quest to build
great businesses. This has never been more important
as the sector faces up to the enormous challenges of
our Omni channel world. One of the key criteria for
success is increasingly in having fantastic brands that can
differentiate a retailer and delight their customers.

UK retailers have a strong appetite for new

brands and new ranges and at i2i Events Group
we believe we can help deliver this by encouraging
more international brands and suppliers to consider the UK
retail market. Which is why we commissioned this special
report on: The UK Fashion Market Opportunity. Its aim is
to provide an informed overview of the market to support
international brands seriously considering entering the UK
or to convince other brands that it is time to take a serious
look at the potential.
We believe Pure London provides the perfect first step for any
international business wanting to sell to UK retailers. Each
year, Pure London attracts over 24,000 visitors and buyers
making it one of the most important gatherings of the UK
fashion industry. We hope that you find this special report
interesting and useful and our highly experienced team in the
UK and across the world look forward to talking to you about
how this market can deliver exciting opportunities.

The UKs Secretary of State for Business,

Innovation and Skills, Vince Cable,
sets out how the Government is
supporting the retail industry at
home and internationally
At a time when it is global business partnerships and investments
that will stimulate world growth; the retail industry is key.
There are huge opportunities for the sector the channels by
which we shop ever increasing, and the global consumer ever
more accessible.
Britain now has 228,000 retailers that export online more than
the rest of Europes e-retailers put together. It means that the UK,
as a nation, is at the forefront of a huge global opportunity, with
the skills and expertise to lead e-commerce development and a
good environment for long-term sustainable investment
The UK has much to offer. It is one of the worlds most influential
primary shopping destinations with more global brands listed in
London alone than in any other world city.

THE UK AT A GLANCE

63 million
UK population in 2012

ONS

65 million
Forecast population in 2017

Planet Retail forecasts

6th

largest economy in the World

The UK remains the destination of choice for the worlds leading

retail brands to site their European headquarters in, as well as
high-value operations such as manufacturing, logistics and high
end retail outlets.
British luxury goods are also in demand. It is no surprise that
brands such as Burberry, Mulberry and Alexander McQueen are
now household names across the globe. Our internationally
renowned retailers have a great contribution to make as we build
a stronger economy and work to return the UK to balanced,
sustainable growth.
And with the UKs dominance in e-commerce, an online presence
means that many of our retailers enjoy an ever-increasing number
of online-only clients, no matter the size of the company.
The UK also excels in the creation and operation of world class
visitor attractions, including museums, galleries and new leisure
destinations. It means that British companies are best placed to
offer skills, experience and products for the growing international
opportunities for large retail and leisure development projects
across the world - as well as providing great opportunities for
international brands looking to work with UK retailers.
In March 2013, I launched the new International Retail Action
Plan. Produced by UK Trade & Investment with industry to
complement the BIS retail strategy, it pledges government support
for those UK companies starting out internationally and to others
who already have a global presence. It also looks to maintain the
UKs high levels of inward investment, and attract more.

contents
UK retailers embrace the new reality 4
A message from the Chairman of
The British Retail Consortium 5
The tranformation of uk fashion 6
UK Fashion sales leading the way 7
Fashion leads the way 8
UK consumer confidence/online sales ...............9
Putting on the style 10 -11
Independent retailers back
on the growth curve 12
The UK consumer............ 13

I urge retailers across the world to work together build on the

opportunity and watch this sector flourish.

Getting ready to enter the

UK retail market 14-15

Vince Cable
Secretary of State for Business, Innovation & Skills

Pure London the gateway

into UK retailing 16-19

UK retailers embrace the new reality

For the last 25 years, retailing in the UK has been transformed
by major consolidation, an explosion of new retail space and the
emergence of a whole new generation of dynamic retail brands.
The UK has also become a magnet for a growing number
of international retailers and brands, all attracted by a
seemingly unstoppable consumer appetite for shopping
together with a liberal regulatory approach to retail with
fewer controls over opening hours, pricing and foreign
investment.
Since 2008 and the global economic crisis, everything
has changed, just as it has in so many markets. For UK
retailing, much of the growth over the last 25 years was
fuelled by consumers using the ease of access to credit
and the security of the escalating values of the housing
market. With 69% home ownership in the UK, the big
increases in property values from the mid-1990s to 2007
were a major impetus behind rising consumer confidence..

The UK has become a magnet for a

growing number of international
retailers and brands
There is no doubt that with consumers suddenly
and dramatically calling a halt to their spending in
2008, retailing has had to face up to a new reality.
Unfortunately, a number of businesses, large and small
have been lost since the recession hit with the resulting
impact on town centres around the country. Philip Clarke,
the CEO of Tesco, the UKs biggest retailers, last year
called an end to what he called the space race where
retail growth was driven solely by how many new shops
retailers could open.
The economic downturn is however just half of the
picture affecting UK retailing. Consumers in the UK have
taken to the digital age in a major way and to the extent
that online and mobile commerce are accounting for a
significant proportion of overall retail sales and growing
fast. Latest government statistics put online sales at 9%
of total sales and analysts are already predicting this
moving to 12% by 2015 with compound annual growth
still showing more than 7% increases. E-commerce has
one of the highest penetrations of any retail market in the
world today.
The effect of both these massive changes is that UK
retailing has had to confront a new reality where the old
rules of retailing have gone and a new set of rules have
emerged which determine who is going to win in the future.

What will that future look like? There is no doubt that the
retail sector will continue to consolidate and evolve. Across all
of the key product sectors, the major players have acquired
or merged with their weaker rivals. Despite this consolidation,
there remains a strong independent retail sector that has also
had to re-focus and strengthen to survive. There are close to
190,000 registered retail businesses in the UK with 287,100
retail outlets across the country.

The UK is now fully embracing the

omni-channel retail age with some of
the leading retailers
The convergence of the two drivers of change: the
economy and the digital revolution, has meant that
retailers have woken up to the fact that whilst they may
not require as much physical retail space, they do need
to own the channels or routes to market, from online to
tablet to mobile and even catalogue. This also means that
they have to stay even closer to their customers and to
understand their needs and wants in a far more detailed
and informed way.
The UK is now fully embracing the omni-channel retail
age with some of the leading retailers such as John Lewis,
Tesco, Argos and Marks and Spencer radically re-shaping
their businesses. These large retailers, but also many
smaller retailers too, are quickly becoming very effective
omni-channel retailers across different product areas.
Millions of pounds are being invested by UK retailers in
new technologies to transform themselves into businesses
for the digital age. The fashion and apparel sector is the
biggest online sector and will continue to grow. There is
also a strong appetite to embrace new thinking and new
ideas to win and retain customers.
Consumer confidence is showing signs of stabilising and
even strengthening according to GfKs analysis of the UK
market. Like retailers, consumers have learnt to live with
the new normal as many commentators are calling this
economic landscape.
From the gloom of the last five years there is now a
growing sense that UK retailing is not only adjusting
but embracing a new and exciting era not without its
challenges, but certainly with great opportunities for those
ready to seize them.

welcome from the

Chairman of the British
retail consortium
It is my great pleasure, on behalf of the UK retail industry, to
contribute to this special report on The UK Retail Market
Opportunity.
As Chairman of the British Retail Consortium, I welcome any
initiative to promote and support retailing in the UK. The British
Retail Consortium is the UKs lead trade association representing all
levels of retailing, from the largest multiples and department stores to
the smaller independents trading in all retail locations such as town centres,
shopping centres, traditional high streets and of course, on-line.
Retailing plays a vital part in the very fabric of our society and in the UK economy accounting for almost
one in 10 of all VAT registered businesses. It employs close to three million people, making it the largest
employer outside of the public sector and contributes significantly to the training and skills particularly
of young people.
The last few years may have been an endurance test for retailers, battling as we have against
a low or even no-growth economic environment as well as the changing needs of consumers
driven by technology. However, retailers continue to rise to the challenge and respond to market
conditions, listening to our customers and finding new, innovative and dynamic solutions.
Representing the British Retail Consortium, I know just how relevant this is for
any retailer operating anywhere in the world today. Here in the UK, I think we
can rightly and proudly say that we have a growing number of outstanding
retailers of all sizes that are adjusting to the market conditions and
pointing the way forward.

I would
encourage all
manufacturers,
designers, brands and
suppliers to look
seriously at the UK

UK retailers are increasingly looking for new brands and new

suppliers with which they can form strong partnerships to give
them that winning edge when it comes to product and range.
This is one of the critical platforms for successful retailing and
I would encourage all manufacturers, designers, brands and
suppliers to look seriously at the UK and to our retailers.
We look forward to growing together with you at a time of
challenges but even more exciting opportunities.

Ian Cheshire
Chairman, British Retail
Consortium

UK RETAIL KEY FACTS

311 billion
UK retail sales in 2012

ONS/BRC

1 million

new home moves

in 2013. Up from 800,000 in 2012
Ernst & Young Item Club

1/3

of consumer spending
goes through shops

ONS/BRC

THE Transformation of UK FASHION

UK Fashion sales LEADing the way

Drapers has been covering the fashion business sector

in the UK for over 125 years but rarely in all that time
has the sector undergone such a transformation. Led
by the exponential growth in online sales and shaped
by the competitive environment bred of the recession,
the way fashion businesses operate has been transformed
over the last decade.

European clothing and footwear sales forecasts 2013-2018

UK

As one of the most competitive retail environments in

the world, especially within the womenswear category,
with arguably the broadest range of fashion brands found
anywhere, the top players in the UK remain world class
and have reacted to the rigors of the financial downturn
by innovating.

With the value end of the market already sewn up by

the likes of Primark and George at Asda who operate a
commodity business around basics alongside own-brand
fast fashion items, the independents and department
stores have carved their niche around uniqueness within
the branded part of the business.

This innovation does not just stretch to supply chain and

in-store technology but to the customer service they offer
and most importantly the fashion product itself.
In an industry polarised between small independent
boutique businesses and large high street and etail
operators, it is essential to stand out from the crowd to
win consumer spend and avoid the discounting spiral.
Our own research suggests that consumers, while they
are more cautious, will still spend on a particular fashion
brand if they feel they are getting value for their money
and that the product on offer is different and more
exciting that what they might find elsewhere.

Britain is now leading the world in terms of the

technology behind its fashion retail operations through
mobile, for example, and the electronic control of its stock,
and is flying internationally, so now is the perfect time for
any brand looking to enter the UK to do so.

3.7bn
6.61%

NETHERLANDS

CAGR (Compound Annual Growth

Rate) 2013-2018

2.3bn
3.83%

total sales 2013

CAGR 2013-2018

FRANCE

SPAIN

11.7bn
4.35%

10.5bn
3.34%

total sales 2013

CAGR 2013-2018

9%
190,000

total sales 2013

CAGR 2013-2018

4.66%

Caroline Nodder
Editor-in-Chief, Drapers

UK RETAIL KEY FACTS

total sales 2013

ITALY

Total clothing and footwear sales

2013 (forecast)

total sales 2013

CAGR 2013-2018

European clothing and footwear total sales by Country

of total sales are online

ONS/BRC

24.8bn
20.7bn

registered

retail businesses in the UK

BRC

across the country.

retail outlets

11.7bn

10.5bn

BRC

Spain

287,100

UK

A lot more European and American brands are making

their way into UK retail as a result of this and larger
retailers are seeking exclusive lines and collections or
producing their own collaborative product in conjunction
with brands and designers so that they can avoid price
comparison pushing down their retail prices.

24.8 billion

Portugal
France

This has led the UKs buyers to be more creative in the edit
of brands they stock, with many seeking new brands in
the international market that consumers in the UK might
be less familiar with in order to give their retail offer a
point of difference.

20.7bn
5.80%

CAGR 2013-2018

Germany

Britain is now leading the world in terms

of the technology behind its fashion retail
operations

GERMANY

3.7bn

2.3bn

Source: Planet Retail

Fashion leads the way

decision made. The use of social media by brands and

retailers is an interesting balancing act between being
intrusive into someones personal space and engaging
them with interesting advertorial comment. Those that
get this right will experience real growth, and increased
loyalty and interaction, which is all important in these
challenging times.

UK forecast online sale vs key markets

2012E

11.4%
12.0%

2017E
The economic sentiment indicator

12.3%

germany

2012E

Retail trade confidence indicator

Consumer confidence indicator

5.0%

2013E

5.6%

2014E

6.2%

2015E

6.8%

2016E

7.3%

2017E

The UK is fortunate to have leading

fashion designers and some of
the most luxurious stores in the
world in which fashion can be
exposed to a willing audience.
This is supported by a vibrant
online and High Street retail
environment that ensures we
can all be as fashion forward as
we desire whatever our budget.

7.8%

2012E

6.5%

2013E

7.2%

2014E

8.0%

2015E

8.9%

2016E

9.7%

2017E

10.6%

2012E

Andrew Phipps
Retail Director, GfK

5.0%

2013E

5.3%

2014E

5.6%

2015E

5.9%

2016E

6.1%

2017E

6.3%

2012E 1.3%

italy

UK online retailing

29 billion
Jan 99

Jan 00

Jan 01

Jan 02

Jan 03

UK internet retail sales in 2012

300%

Jan 04

ONS/BRC

Jan 05

Jan 06

Jan 07

Jan 08

Jan 09

Jan 10

Jan 11

Jan 12

Jan 13

growth in mobile

commerce in 2012

Source: GfK

Oriel Securities

7.6%

compound annual growth in

e-commerce 2012-2016
Mintel Group forecasts

1.9%
2.3%
2.7%
3.1%

2012E 0.9%
2013E 1.1%

IMRG

20%

1.6%

2015E
2017E

spain

Jan 98

2014E
2016E

2014E 1.2%
2015E

1.4%

2016E

1.5%

2017E
2012E

turkey

Jan 97

UK consumers spend 20%

more online than in the US, France or
Germany

10.8%

2015E
2016E

netherlands

The power of social media cannot be underestimated

when looking at drivers for purchase. Whether a celebrity
tweet or a friends recommendation, the circle of influence
on the purchase decision has morphed over time to
become something more akin to a call to action and a

10.3%

2014E

2013E

The UK is in the fortunate position to

have many of the worlds leading retail
exponents within its borders.

9.6%

2013E

Us

With the insatiable interest in celebrity culture and the

ever developing online retail offerings that promise a
celebrity look for an everyday cost, the fashion industry
shows no signs of slowing down. The shopping journey,
from first thought to purchase through to final receipt
of the goods is becoming easier and easier and the UK
leads the way in technological innovations that make this
possible. The advent of guaranteed next day delivery, of
same day delivery, of click and collect, all allow for the
goods to be available whatever the occasion or need.

GfKs monthly UK Consumer Confidence Index

shows that consumers are adjusting to the new
normal and should be considered as very good
news following last years very deep trough.

Online Retail as a % of Total

france

The cyclical nature of the economy has led to an

interesting dichotomy within the purchasing habits of
many fashion conscious shoppers. At one end the desire
for and growth of high end fashion from the celebrated
names we see on the catwalk has continued unabated.
Whilst at the opposite end, the fast fashion focus has
again continued without pause. In times of austerity
the self-treat mechanism is still very much in evidence
and the insatiable desire to have the latest version of the
trends transposed from the catwalk to the High Street
continues.

UK consumer confidence:
moving in the right direction

uk

The UK fashion scene has long been synonymous with setting

the trends that the rest of the world follows. From the dedicated
tailors of Savile Row to the eclectic mix found in the small boutiques
dotted around the country, the consumer in the UK is able to make
whatever fashion statement they choose.

2013E
2014E
2015E
2016E

1.6%
2.1%
2.4%
3.0%
3.4%
3.7%

2017E

4.1%

2012E

4.2%

2013E
2014E
2015E
2016E
2017E

4.6%
5.0%
5.4%
5.7%
6.0%

Source: Citi Research, Euromonitor Source

PUTTING ON THE STYLE

The British enthusiasm for creating fashion is matched by the
countrys ability to retailing clothing, footwear and accessories.
Luxury department stores like Harrods, Harvey Nichols,
Selfridges and Liberty are renowned the world over for
the extravagant theatre they offer their consumers.
Mid-market operators like Marks & Spencer, John Lewis,
Fenwick and House of Fraser command significant market
share across the UK. Multiples as varied as Topshop,
River Island, New Look, L K Bennett, Ted Baker and JD
Sports cover every sector of the fashion spectrum with
a sophisticated approach to modern retailing that is
the envy of the world. And British fashion retailers such
as Next and Schuh are at the forefront of developing
omni-channel strategies to blend online retailing with
conventional channels.
Alongside the impressive performance of the majors,
however, its worth remembering that the UK boasts
a vibrant, creative, influential and still significant
independent fashion retailing sector. Research from the
Local Data Company (LDC), a specialist research firm that
monitors British retailing, suggests that there are more
than 27,000 shops selling fashion in the country. If only a
third of these are independent businesses which seems a
modest assessment then there are almost 10,000 shops
serving eager British consumers with style choices.

the UK boasts a vibrant, creative,

influential and still significant
independent fashion retailing sector.
The leading trade body for small- and medium-sized stores
is the British Independent Retailers Association (bira), which
represents more than 5,000 businesses. More than 1,000 of
these that concentrate on fashion, footwear and accessories
are gathered in biras division called the Fashion Association
of Britain (FAB), which hosts a coffee lounge at Pure each
season to meet existing and potential members.
Research carried out by bira and the LDC has shown that,
until very recently, openings by independents retailers
have outweighed closures of both large and small shops.
While the profile of the small boutiques may not be high,
their collective importance is crucial to the fashion scene
in Britain.
Central to the appeal of the independents is the variety of
the brands they stock. A good independent always reflects
the taste and knowledge of its owner thats why the
owners name is often above the shop window.

10

The reason consumers shop with independents is that

that they are looking for something that they cannot
find in the major retailers. All successful fashion shop
owners tell you that their biggest point of difference, their
Unique Selling Point, is the assortment of brands that
they bring together. The collection of brands at shows like
Pure is therefore essential to the independent boutiques
prosperity.
My job is to find the best I can in the marketplace for
my customers, says Rosemary Edwards, owner of La
Belle Femme, a special occasion womenswear business
with three branches in Kent and central London, and a
member of FAB. Whether its a simple dress for 90 or a
spectacular evening dress at 1,500, it has to represent
great value.
Pure is always on Edwards buying schedule as she
looks to add to her considerable roster of brands, which
includes Condici, Michaela Louisa, Save the Queen, Ischiko,
Bleu Blanc Rouge, Elisa Cavaletti, Rayure, NYDJ Tummy
Tuck Jeans, Mashiah and Frank Lyman.
A highly developed level of personal service is an
important facet of independent fashion retailing. FAB
member Kate Crisp, owner of the Follies boutique in
Tarporley, Cheshire, explains. My sales staff will go to a
customers house, at no charge and in their own time,
to have a look through her wardrobe so they
can advise what she should be buying
this season. We know everything
about our customers their
name, their lifestyle, their family
situation, where they went
for their holidays. We remind
them what they bought last
season or the season before
and point out what from
the new collections will
work with it.
I am a regular at Pure as I
am always looking for new
brands, especially interesting
smaller brands that wont be
found in the high street majors.
Oska, Sahara, Grizas, Sandwich,
Cannisse and Two Danes are among the
labels with which she does well.

Quality and value, rather than budget prices, are the

important attributes of progressive fashion businesses.
My customers are aged from 35 to 70-ish, says Sally
White, who owns White Boutique in Narberth, South
Wales. She is a FAB committee member. I have a lot of
Yummy Mummies, but also middle-aged ladies who dont
want to dress like their mothers or their daughters!
What is common to them all is that they are conscious of
quality. Thats what they look to me for.
Many of Whites key brands, which include Havren, FeeG,
Almost Famous, Odd Molly, Nougat London, Luke Lovely
and Unisa shoes, are familiar exhibitors at Pure.
A significant number of successful independent fashion
retailers used to work for large concerns and learned all
the right retail disciplines and systems, but chose to go
their own way to have greater freedom of expression
and more flair. Maura Thomas worked for a depart-ment
store group for 14 years before opening her own thriving
special occasion shop, Fashion Scene in Meopham, Kent,
over 30 years ago. My advice to any aspiring independent
fashion retailer is, whatever sector you work in, do it with
authority. Dont mess about.

Given the huge competition from the multiples in the

UK and now from online sales, independent shop owners
are looking to develop mutually beneficial relationships
with their suppliers. Gerald Voisin, the sixth generation
to run his familys department store, Voisins in St Helier,
Jersey, observes: Our relationships with our suppliers
are more important than ever. In one or two instances
we have parted company from a brand because we were
concerned about their management of online sales. It
makes no sense for us to offer something that is available
noticeably cheaper on the internet.
An eye for new brands, close relationships with both
consumers and suppliers, and a never-ending passion for
fashion will ensure that British independent retailer will
not go out of style.
Eric Musgrave

Eric is an industry commentator and consultant to

the Fashion Association of Britain

Thomas, a long-standing FAB member, is a familiar

figure at Pure. I have been going every season since its
inception in 1997, she says. As a buyer, my job is to
source new manufacturers the whole time. I like
the fact that Pure offers a great mix of British
brands with international suppliers. Her
brand line-up includes Condici, John
Charles, Presen, Carina, Mascara,
Veromia, Ronald Joyce, Sonia
Pena, Cabotine, Zeila, Michaela
Louisa and Gina Bacconi.

Rosemary Edwards
La Belle Femme

11

Independent retailers back on the growth curve

The uk consumer: still in love with fashion

The UKs high streets and town centres are dominated by

independent retailers. Larger multiples may account for the majority
of retail sales through their sheer size, but by numbers of shop
units, the smaller, privately-owned retailers provide the back-bone
of UK retailing.

The UK fashion market is one of the most vibrant and dynamic

in the world reflecting the tastes and desires of a changing
demographic and a shifting structure in terms of online and
omni-channel shopping.

To underline how dynamic retailing is, retail experts are

seeing signs of a new shape to the UK scene. The multiples
have called a halt to their expansion and for many of
them the main focus has been on cutting back on store
numbers in order to create a better balance between on
and off-line. This has provided an opportunity for smaller
independents to move into retail space that they wouldnt
previously been offered.
For fashion brands this is very positive news because
it is the independents as well as the department stores
that offer the greatest collection of brands. With many
of the major multiple fashion and clothing retailers built
around single brands, the independents offer variety and
excitement.
The latest data from the UKs specialist property research
group, the Local Data Company (LDC) shows that the
number of independents retailers with less than 5
shops - has grown by 65% in 2010 to 67% today at a time
when multiple retailers are closing more than they are
opening. Its latest research, conducted in conjunction with
the Oxford University Institute of Retail Management,
The State of UK Retail Places showed that fashion
independents have grown in number. This reflects the fact
that the barriers to entry are becoming less prohibitive as
more shop units come on to the market.

12

With much of the UK media focussed on the store

closures by the larger multiples, the common view is
consistently that small shops and many high streets are
being killed off. Looking below the surface shows that the
opposite is actually true and that fashion and clothing
independents are critical to the future of retailing in cities,
towns and villages around the UK.
UKs most inspiring fashion and
clothing independents:
Each year, Drapers magazine surveys the industry
for their views and recommendations on the best
independent retailers in the UK. They canvass the
views of the people who know best: brands, agents,
fellow retailers and consumers. The results are
brought together in an annual report on the Top 100
most inspiring independents. We have selected here
the top 20.
1 The Dressing Room
2 Browns
3 Black White Denim
4 Psyche
5 The Goodhood Store
6 Donna Ida
7 Jules B
8 Dover Street Market
9 Bottega
10 Sunday Best
11 Darkroom
12 25 Ten Boutique
13 Six Whiting Street
14 Sadie the Bra Lady
15 The Hambledon
16 End Clothing
17 Present
18 Flannels
19 Javelin
20 Start

The UK is where a high street brand Top Shop has

reinvented itself as a leading designer brand at the cutting
edge of technology; Rihanna designs clothes for River
Island and luxury brands like Burberry and Mulberry
thrive on their quintessential Britishness. Reflecting this
varied and dynamic industry, the UK fashion shopper is
increasingly sophisticated and demanding in terms of
fashion, quality and service. The generally younger fast
fashion consumer shops the high street and surfs online
looking for the latest fashions to make a statement. For
this consumer, fashion demands active participation
aspiring to an outfit, photographing it and sharing it
bridges the digital world and the real world. This young
highly active fashion market (15-24) is showing only a
slight reduction in frequency of spend as tuition fees hit
home and graduate unemployment bites.

terms of internet usage. Meanwhile, over 65s are the

most likely to feel that there are a lack of clothes stores
that cater for their age and struggle to find fashionable
garments. Quality is a big priority and mature shoppers
place more emphasis on durability and well-made clothes
than on value.

Overall, the recession is making UK customers more

selective and value is increasingly important but there is
evidence that consumers will still pay for the
right fashions, quality, style and value
and will trade up or save up for
more expensive products that
will last.
Alongside increasing
insight into consumer
behaviour and new
routes to market,
The UK is seeing a blurring between demographic
product has become
boundaries as the current young fashion consumer grows
a key differentiator
up. The core market of working women and men have
in this battle. From
grown up in the
world
of
fast
fashion
and
have
high
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exclusive tie-ups in
expectations; they
earn more, shop more and save more
3B(@=53(8B=9(<=2?03(7>2(0>@=90(8B=(C003(8B=9(<=@5>0@@(B<c0635;0@J
fashion to food, these
than younger people. They are the generation who took
partnerships have
advantage of affluence
and education. These fashion
(#D760([GYF
delivered an advantage
shoppers are searching for the latest edit, the ideal
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for retailers including
wardrobe staples and a style they can own in the most
Debenhams and Waitrose.
convenient way to(#I011([Q\_
suit their busy lives, reflected in the
growing demand for
multichannel engagement.
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For suppliers, the prize in the UK is
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access to some of the biggest, and increasingly
For suppliers,()B28(e%>39B2=63B98(b730f([QHH
the prize in the UK is access international, retail brands in the world. And, whether
its through global flagships in Londons West End, new
(P=>5B9(e%>39B2=63B98(b730f([QHH
to some of the
biggest, and increasingly
multichannel technologies that reach the UKs digitally
d(E90C509(@530@(790(6I79?02(73(7(I5?I09(9730(<7@02(B>(1B6735B>(5J0J(6B9>09gC75>(75@10((
international,
retail brands in the world
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savvy consumer or expansion abroad, a footprint in British
retail continues to be a signpost to the very best in global
The rapidly ageing UK population means that older
retailing.
To book aastand
or discuss further
contact:
consumers are becoming
key demographic
that clothing
retailers need to -h(sales@purelondon.com
cater for. However, the stereotype of an
Stella Hartley
/h(+44 applies
(0)20 3033
older person no longer
to a 2223
lot of over 55s as they
Stella Hartley has operated at a senior level in retail
Oh(www.purelondon.com
are living and working
longer than ever before. There is
and multi channel marketing for over 20 years.
She has held board positions and consulted
a real disparity between different age segments within
with many leading high street names
the group. For example, 55-64s, who fall into the first
including Wallis, Warehouse, Miss Selfridge,
wave of baby boomers, shop at a wide range of clothing
River Island, Tesco, Hamleys, The White
retailers and tend to enjoy buying new clothes and making Company and Tie Rack Retail Group.
impulsive purchases. This group are the fast growing in

A PACKAGE TO
SUIT YOUR NEEDS

13

Doing business in the UK

getting ready to enter the UK retail market

The UK is one of the leading destinations for foreign businesses

and received the highest number of foreign direct investment
projects in Europe in 2011/12, helped by its highly competitive
business environment.

Against the backdrop of a challenging economic outlook,

the UK retail market shows signs of recovery. In 2012,
UK retail sales grew by 3% to reach over 311
billion. Online sales accounted for 29 billion last
year and are forecast to continue to grow by 10%
per annum until 2017.

To help international businesses enter the UK, either by

selling directly to retailers or by setting up their own
distribution, the UK Government has a well-developed
network of international offices, integrated advisory
services and extensive online information. The UK
Trade and Industry department (UKTI) produce a series
of information sheets specifically for international
companies. Full information can be found at
www.ukti.gov.uk
Email: enquiries@ukti.gov.uk
Tel: +44 (0) 20 7215 4957

key facts

24%:

The UKs rate of corporate tax - one of the most

competitive rates not just in Europe, but also worldwide. This will fall
further to 21% by 2014

13.8%:

the rate for an employers National Insurance

Contributions on the earning of each individual employee. One of the
lowest in Europe (France, 41.6%)

7.8%:

rate of unemployment. One of the lowest in Europe.

European Union average is 10.7%

2.7%:

official rate of inflation (Consumer Price Index) as at

0.5%:

Official Bank Rate in the UK

January 2013

20%:

Rate of VAT applied to a limited range of goods and

services (most food, books and clothing for young children)

14

points and profit margins.

If the regulatory charges are
factored in after these figures are
set, they will become distorted.

The competitive landscape is represented by US and European

players alike. Retailers need to recognise the differences
between the regions respective consumers. It is for this
reason that the UK is often considered a springboard for
those global retailers wanting to enter Europe.

Succeeding in the UK is not only about product and price

offerings but increasingly also about the most relevant
channel mix. The UK is one of the most developed
multichannel retail markets where consumers enjoy shopping
across a variety of digital and physical channels, which all
help make it hugely attractive for international brands.

The UK is considered to have some of the most fashion

forward shoppers. Retailers in particular, have to offer a
compelling proposition in terms of value, price and service.
Those with a generic and undifferentiated product will
struggle in this environment.

Silvia Rindone
Director with Deloittes retail practice. She specialises in
stategies for global retailers and CPG companies.

standard rate of Value Added Tax

Zero

UK Market Entry check list

A number of questions are critical to answer when
entering a new market:
Customers - Who are your target consumers
and what are their needs and preferences? In
how far is that different from your core target
in your home market? What are implications in
terms of adapting the ranges and price points to
the new market?

The UK retail market has been considered an attractive

prospect for a number of international brands over the
years, offering an opportunity for lower risk expansion and
access to a sophisticated consumer base.

Competition Which of the existing players

are already targeting your potential customers?
What is their proposition? How do your
competitors strengths challenge your own?
Value Proposition What is a proposition in
terms of product, price and service offering
that is relevant to the target consumers and
differentiating versus the competition? What is
the brand usp?

When developing a UK entry strategy, global brands must

consider the relevant tax and duty implications at the
earliest stage. These can impact both the desired price

Format and Channel presence What is the

preferred channel mix that is going to allow 1.
To serve the customers as they prefer and 2. To
balance initial resource investments and risks?
Regulatory Considerations What tax
and duty implications need to be considered
when developing a pricing strategy? What are
implications in terms of targeted margin / profits?
Are there specific employment laws that will have
implications when potentially exiting the market?

Method of market entry Do you invest

directly or do you choose a Partner? What is the
best entry mode based on the ambition in terms
of speed of market entry and risk appetite? Own
stores versus wholesale model / concession in
department stores to minimise the risk?
Operational Implications How do I best
serve the market? What are implications for the
supply chain? When is the tipping point to build
warehouse capability in market? How will returns
be handled if entering online only?

15

PURE LONDON the gateway into UK retailing

Pure London is the UKs leading fashion buying event, attracting
over 12,000 fashion buyers each season. Showcasing mid to high
end brands, Pure is held twice a year during February and August
at Londons Olympia exhibition centre.
Now in its 34th season, Pure is a key date in the global
fashion calendar and ensures that brands meet the most
powerful fashion buyers in the UK and beyond.

accessibility to Europe and the rest of the world which

further creates an international platform to sell to over
1,700 fashion buyers from outside the UK.

Over 88% of Pures visitors have direct purchasing

responsibility and represent leading independent
boutiques, multiples and department stores and online
businesses. All attend to see the latest collections of
womenswear, accessories, lingerie, swimwear, footwear
and childrenswear. Buyers attending the most recent
edition of Pure collectively spent 152 million.

Pure London is the ideal setting to launch new product

lines under the assurance that they will be seen by the
right buyers with the right budgets.

Importantly, Pure has a close partnership with global

trend forecasters WGSN, which helps ensure that their
world-renowned catwalk show, Live at Pure London is
highly relevant and directional. Pures ideal location
provides fast transport links nationwide as well as

total visitor spend

152 Million
spent as a
direct result of
Pure London
February 2012

Weve been much busier

than last season! Our
corner stand makes a huge
difference in the number
and type of buyers we
get. Weve had a lot more
international buyers from
Japan, India, Germany and
Belgium.
Nina Ricardio, Aftermath

The following pages are designed to give you a more

detailed overview of Pure and how it can help you enter
the UK market. As organisers of Pure, i2i Events Group
has a network of international agents and a support
team designed to help international brands looking to
come to the UK.
Full contact details can be found on the back page of
this report.

Director / owner /
Proprietor

46.9

Purchasing Responsibility
Are you responsible for
purchasing decisions?

Buyer / Store
Manager

32.0%
Designer / Production
manager / merchandiser
/ photographer / stylist

YES

7.2%

88.1

No

11.9%

Sales /
marketing

6.7%
OTHER

7.2

16

Olympia, London
www.purelondon.com

17

PURE LONDON Womenswear

PURE LONDON SPIRIT

Grow your business with a presence in the largest section at Pure

London, showcasing a diverse array of contemporary womenswear
brands to attract buyers interested in all styles and price points.

Increase your revenue potential in the young fashion sector a

showcase of carefully selected, edgy collections designed to attract
trend-setting retailers.

Womenswear is split into four areas to help focus buyers needs and ensuyre you generate as many orders as possible.

Align yourself alongside brands including:

Directional

Danity
Forever Unique
Glamorous

Contemporary womenswear labels with a focus on design and creativity for the fashion-forward woman.

Iron fist
The Pretty Dress Co.
Numph

Pepe Jeans
Louche
Sugarhill Boutique

Brands represented:

Almost Famous
Charli

Darling
Fenn Wright Mason

IKKS
Seasalt

Boutique
Stylish eveningwear and occasionwear brands offering exquisite designs for special events.

Embracing the fun in fashion, this section boasts brands with individual style, helping to capture interest from
independent boutiques, multiples and depatment stores, ensuring you meet buyers who will help grow your business.

PURE LONDON Accessories & Footwear

Brands represented:

Gill Harvey Collection

Linea Raffaelli

Mascara
Michaela Louisa

Montique
Presen of Barcelona

Studio
A mix of classic, contemporary brands offering timeless pieces and effortless elegance.
Brands represented:

Capri
Elemente Clemente

Eve in Paradise
Lilith

Nissa
Sarah Pacini

Edit
A showcase of inspirational, fasion-led brands whose imagery and branding reflect
the most progressive designs seen at the show.
Brands represented:

Emile
Frau Blau

Jolanta Vous!
Manitic

We have had really good feedback and have been really busy. Weve had lots of
interest from buyers after theyve seen our pieces on the catwalk. Lots of orders
were placed and the launch of handbags in the collection was received really well.

The accessories section at Pure London offers the latest, most

creative designs across a range of categories including
jewellery, handbags, hats and scarves.
If you provide a touch of luxury, then allow buyers to find you amongst the seasons must-haves
in Premium Accessories, the section dedicated to exquisite high-end pieces.
Align yourself alongside brands including:

Echo
Estella Bartlett

Fiorelli
Orelia

Owen Barry
Pieces

Premium brands including:

Desti saint
Sam Ubhi
Passigatti

Makki
Lamb 1887
The branch

Footwear
Be part of a dazzling display of must-have labels, directional styles and the
latest innovations in footwear.
Split into design-led and Trend-led areas ensures buyers are able to find you
amongst over 200 of the latest footwear brands and designers.

Vicky, The Style, London

18

19

Your contacts at i2i Events Group:

UNITED KINGDOM
Katy Roberts
Event Manager
T: +44 (0)20 3033 2016
F: +44 (0)20 3033 2001
E: Katy.Roberts@i2ieventsgroup.com
W: www. i2ieventsgroup.com
Lucy Walsh
Commercial Director
T: +44 (0)20 3033 2165
F: +44 (0)20 3033 2001
E: Lucy.Walsh@i2ieventsgroup.com
W: www.i2ieventsgroup.com
FRANCE
Florian Baudoin
T: + 33 (0)546 76 00 64
E: fbaudoin@ivytex.fr
GERMANY, AUSTRIA & SWITZERLAND
Kerstin Koschnicke
Kln-Turm, Im Mediapark 8
50670 Kln
T: +49 (0)221 55 405 - 293
F: +49 (0)221 55 405 - 45
E: Kerstin.Koschnicke@i2ieventsgroup.com

Ilyada Colak
T: +90 216 338 45 25
E: ilayda@tg-expo.net
USA
Katherine Truesdale
Sales Manager, North America
PO Box 57046
Atlanta
GA 30343
T: +(404) 909-2969
E: katherine.truesdale@i2ieventsgroup.com
CHINA
Katy Roberts
Event Manager
T: +44 (0)20 3033 2016
F: +44 (0)20 3033 2001
E: Katy.Roberts@i2ieventsgroup.com
W: www. i2ieventsgroup.com
INDIA
Lucy Walsh
Commercial Director
T: +44 (0)20 3033 2165
F: +44 (0)20 3033 2001
E: Lucy.Walsh@i2ieventsgroup.com
W: www.i2ieventsgroup.com

SPAIN & PORTUGAL

Flavia Gattini
T: +34 (0)933 435 510
F: +34 (0)933 435 511
E: Flavia.Gattini@i2ieventsgroup.com
ITALY
Luca Delicati
Project Manager
International Show s.r.l.
Viale Bacchiglione, 28 20139 Milano
T: +39 02 57403340
F: +39 02 57402055
Skype: internationalshow1 oppure
internationalshow2
W: www.internationalshow.it
TURKEY

compiled by i2i Events in collaboration with:

20