clothing manufacturing 2011

Market Report 2011

16th Edition February 2011Edited by Lucy Capstick

ISBN 928-1-84729-610-0

Clothing Manufacturing

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Clothing Manufacturing Foreword

© Key Note Ltd 2011

Contents

Executive Summary 1

1. Market Definition 2

REPORT COVERAGE....................................................................................................................2

MARKET SECTORS.......................................................................................................................2

Natural Fibres..................................................................................................................................3

Cotton..............................................................................................................................................3

Linen.................................................................................................................................................3

Wool ................................................................................................................................................3Cashmere.........................................................................................................................................3

Silk.....................................................................................................................................................4

Man-Made Fibres...........................................................................................................................4

Viscose..............................................................................................................................................4

Acrylic...............................................................................................................................................4

Polyester...........................................................................................................................................4

Polypropylene.................................................................................................................................4

MARKET TRENDS.........................................................................................................................5

The Rising Price of Cotton............................................................................................................5

The Economic Climate’s Affect on the Clothing Industry......................................................5

The Fast-Fashion Phenomena......................................................................................................5

Changes in Clothing Prices...........................................................................................................6

Table 1.1: All Items and Clothing Retail Price Indices in Great Britain(index 1987=100), 2006-2010.......................................................................................................6

ECONOMIC TRENDS....................................................................................................................6

Gross Domestic Product................................................................................................................6

Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices(£m), 2005-2009..............................................................................................................................7

Population.......................................................................................................................................7

Table 1.3: UK Resident Population Estimates by Sex (000), Mid-Years 2005-2009...........8

Inflation...........................................................................................................................................8

Table 1.4: UK Rate of Inflation (%), 2005-2009.......................................................................8

Unemployment...............................................................................................................................9

Table 1.5: Actual Number of Unemployed Persons in the UK (million), 2005-2009.........9

Household Disposable Income....................................................................................................9

Table 1.6: UK Household Disposable Income Per Capita (£), 2005-2009............................9

Clothing Manufacturing Contents


MARKET POSITION....................................................................................................................10

The UK............................................................................................................................................10

Table 1.7: Retail Sales of Clothing and All Retail Sales in the UK (£m and %),2006-2010......................................................................................................................................10

Figure 1.1: Retail Sales of Clothing and All Retail Sales in the UK (£m and %),2006-2010......................................................................................................................................11

Table 1.8: Production Output Indices of Total Production Industries, TotalManufacturing Industries and Textiles, Leather and Clothing Industries in the UK(index 2006=100), 2006-2010.....................................................................................................12

Table 1.9: Private Sector Manufacturing Business Investment by Industry by Valueat Current Prices in the UK (£m and %), 2006-2010.............................................................13

Overseas.........................................................................................................................................13

2. Market Size 14

THE TOTAL MARKET................................................................................................................14

UK Manufacturers’ Sales.............................................................................................................14

Table 2.1: The Apparent UK Market for the Manufacture of Clothing by Typeby Value (£m at msp), 2006-2010..............................................................................................14

Figure 2.1: The Apparent UK Market for the Manufacture of Clothing by Value(£m at msp), 2006-2010...............................................................................................................16

Household Expenditure on Clothing.......................................................................................16

Table 2.2: Total UK Weekly and Annual Household Expenditure on Clothing (£m),2006-2010......................................................................................................................................17

Figure 2.2: Total UK Weekly and Annual Household Expenditure on Clothing (£m),2006-2010......................................................................................................................................17

Table 2.3: Total UK Annual Household Expenditure on Clothing by Type (£m),2006-2010......................................................................................................................................18

Retail Sales of Clothing...............................................................................................................19

Table 2.4: Retail Sales of Clothing in the UK by Size of Retailer and Size of Businessby Value at Current Prices (£m and index 2006=100), 2006-2010......................................19

Table 2.5: Consumption Expenditure on Clothing by Household, Non-ProfitInstitution Serving Households and the General Government(£m at current prices), 2006-2010.............................................................................................20

Figure 2.3: Consumption Expenditure on Clothing by Household, Non-ProfitInstitution Serving Households and the General Government(£m at current prices), 2006-2010.............................................................................................21

OVERSEAS TRADE......................................................................................................................21

General Overview........................................................................................................................21

Table 2.6: UK Trade Articles of Apparel and Clothing Accessories by Value (£m),2006-2010......................................................................................................................................22

Imports...........................................................................................................................................22

By Item...........................................................................................................................................22



Table 2.7: UK Imports of Articles of Apparel and Clothing and Accessoriesby Leading Selected Items by Value (£m and %), 2009.......................................................23

By Region.......................................................................................................................................23

Table 2.8: UK Imports of Articles of Apparel and Clothing Accessories by Regionby Value (£m and %), 2009........................................................................................................24

Exports............................................................................................................................................24

By Items..........................................................................................................................................24

Table 2.9: UK Exports of Articles of Apparel and Clothing Accessories by LeadingSelected Items by Value (£m and %), 2009.............................................................................25

By Region.......................................................................................................................................25

Table 2.10: UK Exports of Articles of Apparel and Clothing Accessories by Regionby Value (£m and %), 2009........................................................................................................26

3. Industry Background 27

RECENT HISTORY.......................................................................................................................27

NUMBER OF COMPANIES.......................................................................................................27

Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engagedin the Manufacture of Clothing by Turnover Sizeband, (number and %), 2010............27

EMPLOYMENT............................................................................................................................28

Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engagedin the Manufacture of Clothing by Employment Sizeband (number and %),2010................................................................................................................................................28

REGIONAL VARIATIONS IN THE MARKETPLACE.............................................................29

Table 3.3: Number of UK VAT- and/or PAYE-Based Enterprises Engagedin the Manufacture of Clothing by Government Office Region (number and %),2010................................................................................................................................................30

DISTRIBUTION.............................................................................................................................31

HOW ROBUST IS THE MARKET?...........................................................................................31

Table 3.4: Number of UK VAT- and/or PAYE-Based Enterprises Engagedin the Manufacture of Clothing by Age of Business (number and %), 2010...................32

LEGISLATION...............................................................................................................................32

KEY TRADE ASSOCIATIONS....................................................................................................33

Association of Suppliers to the British Clothing Industry....................................................33

British Apparel and Textile Confederation.............................................................................33

Confederation of British Wool Textiles...................................................................................34

Knitting Industries’ Federation.................................................................................................34

UK Fashion and Textile Association.........................................................................................34

INTERNATIONAL TRADE ORGANISATIONS.......................................................................35

Euratex...........................................................................................................................................35

International Apparel Federation............................................................................................35



4. Competitor Analysis 36

THE MARKETPLACE..................................................................................................................36

MARKET LEADERS.....................................................................................................................36

AX Realisations PLC.....................................................................................................................36

Berwin & Berwin Ltd...................................................................................................................37

Burberry Group PLC.....................................................................................................................38

Coats PLC.......................................................................................................................................39

CUK Clothing Ltd.........................................................................................................................39

Dawson International PLC..........................................................................................................40

James Johnston & Co of Elgin Ltd............................................................................................41

Pentland Group PLC....................................................................................................................41

Pringle of Scotland Ltd...............................................................................................................42

Umbro International Ltd............................................................................................................43

OUTSIDE SUPPLIERS..................................................................................................................44

UK Textiles Manufacturers.........................................................................................................44

Table 4.1: UK Producers’ Manufacture of Textile and Textile Products by Valueof Output (£m), 2005-2009........................................................................................................44

Table 4.2: UK Index of Production of Textiles by Type by Volume(index 2006=100), 2006-2009.....................................................................................................45

Wool...............................................................................................................................................45

Cotton and Other Natural Fibres..............................................................................................45

Table 4.3: Global Cotton Production by Leading Producer by Volume(000 of 480lb bales), 2005-2009................................................................................................46

Man-Made Fibres.........................................................................................................................46

Table 4.4: World Production of Man-Made Fibres by Region by Volume(000 tonnes and %), 2005, 2007 and 2009..............................................................................47

Textile Machinery.........................................................................................................................47

MARKETING ACTIVITY.............................................................................................................47

Table 4.5: Main Media Advertising Expenditure on Selected Clothing Categories(£000 and %), Years Ending September 2009 and 2010......................................................48

Table 4.6: Main Media Advertising Expenditure on Selected Clothing Brands(£000), Year Ending September 2010......................................................................................49

EXHIBITIONS................................................................................................................................50

5. Strengths, Weaknesses, Opportunities and Threats 52

STRENGTHS..................................................................................................................................52

WEAKNESSES..............................................................................................................................52

OPPORTUNITIES.........................................................................................................................53

THREATS.......................................................................................................................................53



6. Buying Behaviour 54

CLOTHING FOR ADULTS..........................................................................................................54

Table 6.1: Purchasing of Selected Adults’ Outerwear in Great Britain in the Past12 Months by Type (%), Year Ending June 2010...................................................................54

Menswear......................................................................................................................................54

Table 6.2: Purchasing of Selected Men’s Clothing Items in Great Britain in the Past12 Months by Type (%), Year Ending June 2010...................................................................55

Table 6.3: Purchasing of Selected Men’s Clothing Items in Great Britain in the Past12 Months by Type by Amount Spent (% of adults), Year Ending June 2010................56

Table 6.4: Purchasing of Any Menswear in Great Britain in the Past 12 Monthsby Amount Spent by Sex, Age, Social Grade and Region (% of adults), Year EndingJune 2010.......................................................................................................................................57

Womenswear................................................................................................................................58

Table 6.5: Purchasing of Selected Women’s Clothing Items in Great Britainin the Past 12 Months by Type (%), Year Ending June 2010..............................................59

Table 6.6: Purchasing of Selected Women’s Clothing Items in Great Britainin the Past 12 Months by Type by Amount Spent(% of adults), Year Ending June 2010.....................................................................................60

Table 6.7: Purchasing of Any Womenswear in Great Britain in the Past 12 Monthsby Amount Spent by Sex, Age, Social Grade and Region (% of adults), Year EndingJune 2010.......................................................................................................................................61

Childrenswear...............................................................................................................................62

Table 6.8: Purchasing of Childrenswear in Great Britain in the Past 12 Monthsby Amount Spent by Sex, Age, Social Grade and Region (% of adults), Year EndingJune 2010.......................................................................................................................................63

7. Current Issues 65

INDUSTRY DEVELOPMENTS...................................................................................................65

Clothing Prices Soar.....................................................................................................................65

British Sweatshops Revealed in ‘Dispatches’..........................................................................65

Changes in Buying Behaviour of Childrenswear Revealed by Kantar Worldpanel........66

CORPORATE ACTIVITY.............................................................................................................66

Rises in Clothing Retail Prices Announced by Retailer Next................................................66

American Apparel Faces Bankruptcy.......................................................................................66

Haynes & Cann Closes.................................................................................................................66

LEGISLATION...............................................................................................................................67

The US Manufacturing Enhancement Act...............................................................................67

ENVIRONMENT ..........................................................................................................................67

The Waste of Clothing Adding Up...........................................................................................67

H&M Clean up Textile Factories................................................................................................67



TECHNOLOGY.............................................................................................................................67

3D Technology Hopes to Boost Online Fashion Sales...........................................................67

8. The Global Market 69

GLOBAL TRENDS........................................................................................................................69

Table 8.1: Global Exports and Imports of Clothing by Value($bn and %), 2000 and 2007-2009............................................................................................69

Figure 8.1: Global Exports and Imports of Clothing by Value ($bn), 2000and 2007-2009..............................................................................................................................70

Table 8.2: Clothing Exports of Selected Economies by Value($m and %), 2000 and 2007-2009.............................................................................................71

Table 8.3: Clothing Imports of Selected Economies by Value($m and %), 2000 and 2007-2009.............................................................................................72

THE EU...........................................................................................................................................72

Table 8.4: EU-27 Trade in Articles of Clothing and Apparel by Value ($m), 2000and 2007-2009..............................................................................................................................73

Table 8.5: EU-27 Imports of Clothing by Origin by Value ($m and %), 2009..................73

THE US...........................................................................................................................................74

Table 8.6: US Trade in Articles of Clothing and Apparel by Value ($m),2005-2009......................................................................................................................................74

Table 8.7: US Imports of Articles of Clothing and Apparel by Source by Value ($m),2005-2009......................................................................................................................................75

Table 8.8: US Exports of Articles of Clothing and Apparel by Destination by Value($m), 2005-2009............................................................................................................................76

JAPAN............................................................................................................................................76

Table 8.9: Japanese Trade in Articles of Clothing and Apparel by Value ($m), 2000and 2007-2009..............................................................................................................................77

Table 8.10: Japanese Imports of Clothing by Source by Value ($m and %), 2009..........77

9. Forecasts 79

INTRODUCTION..........................................................................................................................79

The Economy.................................................................................................................................79

Gross Domestic Product..............................................................................................................79

Table 9.1: Forecast UK Growth in Gross Domestic Product in Real Terms (%),2010-2014......................................................................................................................................79

Population.....................................................................................................................................80

Table 9.2: Forecast UK Resident Population by Sex (000), Mid-Years 2010-2014...........80

Inflation.........................................................................................................................................81

Table 9.3: Forecast UK Rate of Inflation (%), 2010-2014.....................................................81

Unemployment.............................................................................................................................81



Table 9.4: Forecast Actual Number of Unemployed Persons in the UK (million),2010-2014......................................................................................................................................82

FORECAST 2011 TO 2015........................................................................................................82

The Apparent UK Market...........................................................................................................82

Table 9.5: The Forecast Total Apparent UK Market for the Manufacture of Clothingby Value (£m at msp), 2011-2015..............................................................................................83

Figure 9.1: The Forecast Total Apparent UK Market for the Manufacture of Clothingby Value (£m at msp), 2011-2015..............................................................................................83

Household Expenditure on Clothing.......................................................................................84

Table 9.6: Forecast Total UK Annual Household Expenditure on Clothing by Type(£m at msp), 2011-2015...............................................................................................................84

Figure 9.2: Forecast Total UK Annual Household Expenditure on Clothing(£m at msp), 2011-2015...............................................................................................................85

MARKET GROWTH....................................................................................................................85

Figure 9.3: Growth in the Total Apparent UK Market for the Manufactureof Clothing by Value (£m at msp), 2006-2015........................................................................86

FUTURE TRENDS.........................................................................................................................86

More Manufacturing Plants to Move Overseas.....................................................................86

The End of Cheap Fashion..........................................................................................................87

More Clothing Manufacturers Face Administration.............................................................87

10. Company Profiles 88

BURBERRY GROUP PLC............................................................................................................89

CUK CLOTHING LTD..................................................................................................................91

DAWSON INTERNATIONAL PLC............................................................................................93

JAMES JOHNSTON & CO OF ELGIN LTD.............................................................................95

PENTLAND GROUP PLC............................................................................................................97

PRINGLE OF SCOTLAND LTD..................................................................................................99

UMBRO INTERNATIONAL LTD.............................................................................................101

11. Further Sources 103

Associations...............................................................................................................................103

Publications...............................................................................................................................104

General Sources.......................................................................................................................105

Government Publications ....................................................................................................105

Other Sources...........................................................................................................................106

Key Note Sources ....................................................................................................................107



Understanding TGI Data 110

Number, Profile, Penetration..............................................................................................110

Social Grade...............................................................................................................................111

Standard Region......................................................................................................................111

Key Note Research 112

The Key Note Range of Reports 113



Executive Summary

The apparent UK market for the manufacture of clothing was worth anestimated £13.61bn at manufacturers’ selling prices (msp) in 2010 — a 0.5%increase on 2009 and a 9.2% rise on 2006. Despite this improvement, total UKmanufacturers’ sales have been on a steady decline since 2007, however, dueto a large amount of imports being shipped into the UK during the reviewperiod, the total UK market for the manufacture of clothing experiencedgrowth over the 5-year period.

The clothing market is comprised of the two main sectors — menswear andboy’s clothing and womenswear and girl’s clothing (the larger sector of thetwo).

The UK market has become accustomed to the high levels of imported clothing,due to countries, such as the People’s Republic of China (PRC), providing lowercost production solutions to many UK retailers. This has led to the long-termdecline of the UK clothing manufacturing industry, which has continued tostruggle to compete with overseas facilities. Consequently, somemanufacturers have relocated abroad in order to compete more effectivelywith their overseas rivals, while others have remained within the UK,marketing themselves as more traditional British manufacturers and producinghigh-quality clothes for niche markets.

The recent increase in the price of cotton has created some problems formanufacturers and retailers who have had to factor this extra cost into theretail price of their goods. This particular problem is predicted to continue into2011, with retailers already announcing plans to increase the price of theirclothing, on top of the 2.5% rise in value-added-tax (VAT) which wasintroduced on 4th January 2011. This will ultimately have a significant effecton the cheap-clothes market, as prices are predicted to rise significantly fordiscount retailers such as Primark.

In terms of retail sales, the UK clothing market is predicted to continue to growover the next 5 years, with consumer confidence now mostly restored after thechallenging economic climate experienced during the past couple of years.Despite this, some retailers have expressed concern over the inevitable pricerises, with many anxious that this will once again put a strain on consumerconfidence and spending on clothes. The manufacturing industry is expectedto continue to decline, with many small retailers, that are already strugglingdue to the recent recession, being affected by the rise in VAT, thus puttingstrain on manufacturers that are often solely reliant on such businesses. Inaddition, the UK is not forecast to see a full recovery in gross domestic product(GDP) until 2012, while a further rise in unemployment is predicted in 2011,once again adding pressure to the recovering economy and making consumersmore cautious in terms of buying behaviour.

Clothing Manufacturing Executive Summary

© Key Note Ltd 2011 1

1. Market Definition

REPORT COVERAGE

This report examines the UK clothing manufacturing market and focuses onclothing for men, women, children and infants. The footwear sector is notcovered in this report.

UK clothing manufacturing has changed dramatically over the last decade,with overseas production and manufacturing facilities now commonly basedoverseas, where costs are cheaper. This has accounted for a large amount oflow-cost imports being brought into the UK in recent years. As imports haveincreased in 2010, so have exports, with many UK manufacturers using theirBritish heritage as a unique selling point (USP) in overseas markets.

MARKET SECTORS

There are clothing market comprises two main sectors:

• womenswear and girl’s clothing

• menswear and boy’s clothing.

For some data used in this report, childrenswear is accounted for in a separatecategory.

Within each of these sectors, the principal product areas are as follows:

• outwear

• underwear and nightwear

• workwear

• knitted garments

• hosiery and socks

• sportswear

• accessories.

These garments are typically created using natural fibres, such as cotton, linen,wool, cashmere, flax or silk; or from artificial fibres, such as viscose, acetate,nylon, acrylic, polyester and polypropylene. Garments made from both naturaland artificial fibres are also common. The development of special-use fibres isalso an ongoing process, with many manufacturers investing heavily into newresearch.

Clothing Manufacturing Market Definition


Natural Fibres

Cotton

Cotton is the most popular natural fibre used in the manufacture of clothingand is commonly used for casual clothing, i.e. t-shirts, jeans, sportswear. Thisnatural fibre is also used for more ‘ethnic styles’ and has also becomeincreasingly popular as a fibre for knitwear. ‘Easy-care’ cottons have beendesigned to give surfaces a non-iron or low-crease effect, a popular aspect ofgarments, although cotton is most frequently mixed with polyester to achievethe same effect. All cotton used in the UK is imported, with South Asia beingthe largest importer of such goods into Britain.

Linen

Linen is a textile made from the fibres of the flax plant. The fibre islabour-intensive to manufacture, but is a popular element in garments due toits coolness and freshness in hot weather. Linen can be grown in the UK, withmany UK manufacturers have a high-value trade. The use of linen in clothingmanufacturing is dependent on the current fashion, although it has remaineda popular fabric for use in lightweight suiting, tailored womenswear, blousesand summer dresses.

Wool

Wool is a traditional fibre for suiting, due to its resilience and hard-wearingtexture, although recently sales of woollen products have suffered as themarket for heavy overcoats and suits has declined. This decline has been downto the increased use of central heating in homes and offices, reducing the needfor insulating clothing, such as over-jackets and knitwear. The fibre is a freelytraded international commodity, subject to global supply and demand, withmost imports coming from Australia, followed by New Zealand and thePeople’s Republic of China (PRC).

Cashmere

Cashmere is a type of wool obtained from the cashmere goat and is known forits fine texture, which is light and soft but extremely warm to wear. The fibreis commonly used for jumpers, hats, gloves, socks and other clothing. Purecashmere can be dyed and spun into yarns to be knitted into such garments.The textile is also woven into fabric that can be used to assemble othergarments, such as outer coats, jackets, pyjamas, scarves and blankets. The PRCis the world-leading producer of cashmere, while the UK has a long traditionof manufacturing high-quality, good-value knitwear, with cashmere suitingone of the market leaders within this sector.



Silk

Silk is a natural protein fibre with some forms able to be woven into textileswhich have become increasingly popular as the textile has become moredeveloped, with many ‘easy-care’ and washable versions available. The textileis popular in the manufacture of suits, lingerie and lightweight women’sclothing, such as dresses and blouses. Silk can also be mixed with other fibres,including flax and cotton, for use in the manufacture of knitwear. While allthe silk used in the UK is imported, the country does have a few silk mills,although most silk garments imported are readymade.

Man-Made Fibres

Viscose

Viscose is also referred to as ‘artificial silk’ and is used on its own or with amixture of natural fibres such as cotton. The textile has a natural lustre anddrapes like silk, although if unblended with other fibres can crease badly anddoes not wear well, which is why it is usually blended as part of a fibre-mix.

Acrylic

Acrylic is a lower-cost alternative to wool and is primarily used for knitwear.Due to its natural hardness it is often mixed with other fibres.

Polyester

Polyester is the most widely used artificial fibre due to its durability and can bewoven into lightweight fabrics. The textile is often mixed with natural fibres,such as cotton and wool, which improves its ‘washability’ and wear, as, likeother artificial fibres, when it is used on its own it can feel ‘cold’.

Polypropylene

Polypropylene is a thermoplastic polymer created by the chemical industry andis used in a wide variety of applications. As a clothing textile it became popularbecause of its high thermal insulation properties, which meant that it wasuseful in clothing such as thermal underwear and sportswear. Polypropyleneis also used in the manufacture of fleeces, due to it light, warm, washable andwindproof qualities.



MARKET TRENDS

The Rising Price of Cotton

The price of cotton has seen dramatic rises in price over the last 12 months,which is having a severe affect on the clothing industry. The cost of cotton hasincreased due to a global shortage, since farmers reduced planting seeds whencotton prices were low, while many crops in Pakistan were destroyed afterflooding. In October 2010, Just-Style published an article claiming that theprices of cotton had increased by 127% in an 18-month period, endingSeptember 2010.

Overall the high prices of cotton have had a massive impact on manufacturersand retailers, who have to pay more in order to obtain the raw materialsneeded for the production of clothing. This will inevitably have a knock-oneffect on the retail price of clothes and, therefore, the consumer. Someretailers have already forecast specific increases in their clothing, includingNext, Primark and H&M (see Chapter 7 – Current Issues for more information).

The Economic Climate’s Affect on the Clothing Industry

The recent economic downturn and subsequent recovery has seen manyconsumers change their shopping habits accordingly. For example, in recentyears low-cost clothing has become more popular, with consumers forced tocut back on such luxury items due to the credit crunch and recession. This recenttrend has also resulted in an increased amount of low-cost imports into the UK,due to the higher demand by consumers for cheaper clothing. Consequently,many cheaper clothing retailers are now faring better than more traditionalclothing brands, especially supermarket clothing collections, which have seentheir share of the clothing market expand in recent years.

The Fast-Fashion Phenomena

Over the last decade the UK has seen a change in fashion and the buyingbehaviour of consumers when it comes to clothing purchases. The fast-fashionphenomenon has been influenced by retailers who rapidly change their stylesand collections, which are offered at cheap prices and are purchased at aconstant rate. One such example of this is Spanish retailer, Zara, which,according to Just-Style, stocks its stores with new lines up to twice a week in abid to encourage customers to find a new product with every visit, while alsoinstigating a purchase due to the limited supply. Retailers are now also morelikely to use the Internet and social network sites to influence potentialconsumers.

These fast-fashion trends have changed the overall structure of the clothingindustry, where value products are now more popular in comparison to themore traditional labels, which are finding it harder to compete. Ultimately, thishas helped growing production industries, such as those found in the PRC andin India, who have now become global leaders in manufacturing, particularlyof clothing, due to their low production costs.



Changes in Clothing Prices

The price of clothing has not followed the same increase as has been observedin the rate of inflation over recent years, creating concern among UK clothingmanufacturers and retailers. As seen in Table 1.1, the retail price index (RPI) ofall items has risen significantly over the last few years, with increases recordedin each year. However, this has not been the case for the clothing sectors listedbelow, which have experienced slower rises or have even declined. Forexample, the RPI for men’s outerwear fell from 2006 until 2008, with somegrowth observed thereafter, while the RPI for women’s outerwear declineduntil 2009, after which it increased to 58.5 in 2010. The declines and low levelsof growth observed in the RPI of the various clothing items listed in Table 1.1are principally down to the increased level of low-cost imports coming into theUK during the 5-year period.

Table 1.1: All Items and Clothing Retail Price Indices in GreatBritain (index 1987=100), 2006-2010

2006 2007 2008 2009 †2010

All items 202.7 210.9 212.9 218.0 224.1

Men’s outerwear 97.5 96.8 90.4 92.5 97.2

Women’souterwear 69.0 66.3 57.7 54.3 58.5

Children’souterwear 90.8 92.2 86.5 89.4 91.8

Other clothing 150.9 150.6 148.5 151.1 155.3

† — retail price index as of June 2010

Source: Monthly Digest of Statistics, National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO (and theQueen’s Printer for Scotland)

ECONOMIC TRENDS

Gross Domestic Product

Gross domestic product (GDP) has seen a decrease in 2009 at current prices andin annual chain-linked terms. This latest decline is principally due to the poorperformance of the service sector, while both the catering and hotel sectorshave also reported tough trading conditions in 2009.



The weakened economic climate, coupled with declining inflation will havemade consumers more cautious in terms of their spending habits, thusdiscouraging them from making any unnecessary purchases, such as onclothing.

Table 1.2: UK Gross Domestic Product at Current and AnnualChain-Linked Prices (£m), 2005-2009

2005 2006 2007 2008 2009

Current prices 1,254,058 1,328,363 1,404,845 1,445,580 1,392,634

% change year-on-year - 5.9 5.8 2.9 -3.7

Annual chain-linkedGDP 1,292,335 1,328,363 1,364,029 1,363,139 1,295,159

% change year-on-year - 2.8 2.7 -0.1 -5.0

GDP — gross domestic product

Source: Economic & Labour Market Review, November 2010, National Statisticswebsite © Crown copyright material is reproduced with the permission of theController of HMSO (and the Queen’s Printer for Scotland)

Population

The population in the UK has been on the rise for many consecutive years andreached just under 61.8 million in 2009. The growing population is partly dueto the number of immigrants that are being hosted by the UK. A largerpopulation should benefit the clothing industry, as it means more potentialcustomers.

The increasingly ageing population in the UK has also impacted the figuresdisplayed in Table 1.3, with more people now living for longer due to improvedquality of life and improved health services. This area of the population hasalso provided opportunities for clothing manufacturers to target the oldermarket. Not only this, but the population figures also reveal that there aremore women than men, due to women having longer life expectancies. Thiscould also impact the clothing market, as women are more likely to purchaseitems of clothing.



Table 1.3: UK Resident Population Estimates by Sex (000),Mid-Years 2005-2009

2005 2006 2007 2008 2009

Female 30,742 30,895 31,068 31,244 31,418

Male 29,493 29,689 29,918 30,154 30,374

Total 60,235 60,584 60,986 61,398 61,792

% changeyear-on-year - 0.6 0.7 0.7 0.6

Source: Monthly Digest of Statistics, November 2010, National Statistics website© Crown copyright material is reproduced with the permission of the Controllerof HMSO (and the Queen’s Printer for Scotland)

Inflation

The rate of inflation has been constantly changing over the review period, witha deflation of 0.5% recorded in 2009. Prior to 2009, the rate had beenfluctuating between 2.8% and 4.3%. The costs associated with themanufacturing of clothes have often remained above the rate of inflation.Factors such as raw materials, energy and transportation costs have kept thecost of manufacturing high, while the recent rise in the price of cotton will alsoimpact on such costs.

Table 1.4: UK Rate of Inflation (%), 2005-2009

2005 2006 2007 2008 2009

Inflation (%) 2.8 3.2 4.3 4.0 -0.5

Percentage point changeyear-on-year - 0.4 1.1 -0.3 -4.5

Note: inflation is at retail price index (RPI); data shown are annual average changes.

Source: Focus on Consumer Price Indices — Data for October 2010, publishedNovember 2010, National Statistics website © Crown copyright material isreproduced with the permission of the (and the Queen’s Printer for Scotland)Controller of HMSO



Unemployment

The number of unemployed claimants in the UK has increased by 77.9% overthe review period and stood at 1.53 million in 2009. This has impacted theclothing industry, with more consumers opting for cheaper clothingalternatives and often choosing value over premium products during theeconomic downturn.

Table 1.5: Actual Number of Unemployed Persons in the UK(million), 2005-2009

2005 2006 2007 2008 2009

Actual number ofclaimants (million) 0.86 0.95 0.86 0.91 1.53

% changeyear-on-year - 10.5 -9.5 5.8 68.1

Source: Monthly Digest of Statistics, November 2010, National Statistics website© Crown copyright material is reproduced with the permission of the Controllerof HMSO (and the Queen’s Printer for Scotland)

Household Disposable Income

The rate of household disposable income has been increasing over the reviewperiod, with households that have been unaffected by job losses benefiting.Per capita household disposable income rose by a further 1.7% to £15,225 in2009, the highest it has been since the start of the review period. The higherthe level of disposable income, the more opportunities there are for theclothing industry to grow, as sales of clothing are dependent on such income.

Table 1.6: UK Household Disposable Income Per Capita (£),2005-2009

2005 2006 2007 2008 2009

Household disposableincome (£) 13,572 14,080 14,453 14,976 15,225


Source: Economic & Labour Market Review, November 2010, National Statisticswebsite © Crown copyright material is reproduced with the permission of theController of HMSO (and the Queen’s Printer for Scotland)



MARKET POSITION

The UK

Over the last 5 of years, total retail sales in the UK rose by 9.3%, after observingyear-on-year growth, with Key Note estimating that sales will increase to£288.7bn in 2010. Retail sales of clothing have also observed continual growthover the 5 years, standing at an estimated £35.03bn in 2010, after rising by7.8% since 2006. Key Note has estimated that both retail sales of clothing andall retail sales will rise again in 2010, with sales in the fourth quartercontributing significantly to both markets.

Table 1.7: Retail Sales of Clothing and All Retail Sales in the UK(£m and %), 2006-2010

2006 2007 2008 2009 e2010

Retail sales of clothing(£m) 32,498 33,310 33,343 33,733 35,033

All retail sales (£m) 264,184 274,217 279,720 285,090 288,686

Retail sales of clothingas a % of all retail sales 12.3 12.1 11.9 11.8 11.9

e — Key Note estimates

Source: Monthly Digest of Statistics, National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO (and theQueen’s Printer for Scotland)/Key Note



Figure 1.1: Retail Sales of Clothing and All Retail Sales in the UK(£m and %), 2006-2010

Retail sales of clothing (£m)

All retail sales (£m)

2006 2007 2008 2009 e2010

Year

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

275,000

300,000

Ret

ail s

ales

(£m

)



The manufacturing output of the UK textiles, leather and clothing industriesobserved decline between 2006 and 2009, with the largest decrease reportedin 2009 when output fell to 89.8, coinciding with the fall in RPI. Despite this,Key Note has estimated that all industries will witness improvement inproduction output in 2010, with the production, manufacturing and textiles,clothing and leather industries increasing to 87.8, 88.3 and 90.3, respectively.Key Note’s estimates are based on the Monthly Digest of Statistics’ figures forthe first and second quarter of 2010, during which growth has already beenreported in all industries in comparison with the first and second quarters of2009.



Table 1.8: Production Output Indices of Total ProductionIndustries, Total Manufacturing Industries and Textiles,

Leather and Clothing Industries in the UK (index 2006=100),2006-2010

2006 2007 2008 2009 e2010

Total productionindustries 100.0 100.1 97.0 87.1 87.8

Total manufacturingindustries 100.0 100.5 97.6 87.3 88.3

Textiles, leather andclothing industries 100.0 98.5 98.1 89.8 90.3



The private sector manufacturing business investment in the clothing, textilesand associated industries has varied throughout the review period, peaking in2008 at £206m, followed by a significant decrease of 23.3% to £158m in 2009.Key Note has also estimated that private sector manufacturing businessinvestment will decline by a further 3.8% in 2010 to £152m. According toNational Statistics, investment into all manufacturing industries peaked in 2007at £14.9bn, before plummeting to £11.1bn in 2009, with this decline continuingwell into 2010.



Table 1.9: Private Sector Manufacturing Business Investment byIndustry by Value at Current Prices in the UK (£m and %),

2006-2010

2006 2007 2008 2009 e2010

Textiles, clothing, leatherand footwear (£m) 151 180 206 158 152

All manufacturing (£m) 14,352 14,949 14,078 11,103 9,989

Textiles, clothing, leatherand footwear as a % of allmanufacturinginvestment 1.1 1.2 1.5 1.4 1.5



The UK imports a vast amount of clothing and apparel items in comparison tothe level that it exports, creating a negative trade balance. According to theWorld Trade Organization (WTO), in 2009, worldwide exports of clothing andapparel stood at $315.6bn (£197.5bn), while imports were $331.7bn(£207.6bn). According to figures from H&M Revenue, in 2009, the UKcontributed to 1.7% of global exports and 6.7% of worldwide imports (seeTable 2.6 in Chapter 2 — Market Size). Key Note has estimated that, in 2010,UK exports will be worth around £3.45bn, while imports will stand at £14.1bn.

Overseas

According to the World Trade Organization (WTO), global clothing exportsdeclined by 13.5% in 2009 from $364.91bn in 2008 to $315.62bn. In spite ofthis, the value of global exports has observed a 59.8% increase since 2000, withmuch of the recent decline down to the worldwide economic crisis that hasbeen experienced in recent years. The value of global imports has also beenaffected by the recent downturn, falling by 12.1% from $376.22bn in 2008 to$330.87bn in 2009.



2. Market Size

THE TOTAL MARKET

UK Manufacturers’ Sales

UK manufacturers’ sales of clothing, which comprises outerwear, underwear,workwear, knitted garments, hosiery, leather coats, fur and other articles ofapparel has observed decline since 2007, with Key Note estimating that thisdownward trend will continue, with sales of £3bn expected in 2010. The largestsector within the market was outerwear, which has fallen by 1.6% since 2008and contributed to 42.3% of UK manufacturers’ sales in 2010.

Over the last 5 years, most sectors witnessed significant declines, includingleather coats, which reported a decrease of 77.8% over the 5 years and isestimated to be worth £10m in 2010. Underwear also observed a large declineof 71.6% over the review period, despite being the second-largest contributorto the market in 2006. Hosiery was the only sector to observe improvementduring the 5 years, sales of which more than doubled from £98m to £230m,contributing to an estimated 7.7% of total UK clothing manufacturers’ sales in2010.

In 2010, Key Note estimated that UK exports will see a slight increase to £3.4bn,while imports will continue to an estimated £14.1bn. During the review period,the value of both exports and imports has increased since 2006, despite slightlydropping in 2008.

Key Note estimates that, in 2010, the UK clothing market had a value of£13.61bn at manufacturers’ selling prices (msp), after increasing by 0.5% from2009 and by 9.2% from 2006.

Table 2.1: The Apparent UK Market for the Manufacture ofClothing by Type by Value (£m at msp), 2006-2010

2006 2007 2008 e2009 e2010

UK Manufacturers’ Sales

Outerwear 1,340 1,272 1,315 1,290 1,270

Workwear 421 402 418 410 400

Knitted pullovers andcardigans 280 298 199 210 220

Hosiery 98 233 232 240 230

Underwear 529 518 131 160 150

Table continues...

Clothing Manufacturing Market Size


Table 2.1: The Apparent UK Market for the Manufacture ofClothing by Type by Value (£m at msp), 2006-2010

...table continued

2006 2007 2008 e2009 e2010

UK Manufacturers’ Sales (cont.)

Leather coats e45 e30 9 10 10

Fur e6 e6 5 5 5

Other apparel 766 837 857 725 715

Total UKmanufacturers’sales 3,485 3,596 3,166 3,050 3,000

Less exports 2,877 3,100 3,305 3,440 3,445

Plus Imports 11,847 12,310 13,210 13,921 14,050

Total 12,455 12,806 13,071 13,531 13,605


msp — manufacturers’ selling prices


Source: Annual Business Inquiry, Annual Abstract of Statistics, National Statistics© Crown copyright material is reproduced with the permission of the Controllerof HMSO (and the Queen’s Printer for Scotland)/Key Note



Figure 2.1: The Apparent UK Market for the Manufacture ofClothing by Value (£m at msp), 2006-2010

Total UK manufacturers’ sales

Total apparent UK market†

2006 2007 2008 e2009 e2010

Year

0

2,500

5,000

7,500

10,000

12,500

Val

ue

(£m

)


† — less imports plus exports


Source: Annual Business Inquiry, Annual Abstract of Statistics, NationalStatistics © Crown copyright material is reproduced with the permission of theController of HMSO (and the Queen’s Printer for Scotland)/Key Note

Household Expenditure on Clothing

According to National Statistics’ Family Spending review, total weeklyexpenditure on clothing for all households in the UK decreased from £468m in2006 to £435m in 2009. On the basis of these figures it was estimated thatannual expenditure on clothing increased by 0.8% to around £22.8bn in theyear to 2010. However, a loss of 6.3% was recorded for the entire 5-year periodfor annual expenditure, while weekly expenditure peaked in 2006 at £468mand annual expenditure at £24.34bn.



Table 2.2: Total UK Weekly and Annual Household Expenditureon Clothing (£m), 2006-2010

2006 2007 2008 2009 e2010

Weeklyexpenditure 468 448 449 435 438

Annualexpenditure 24,336 23,296 23,348 22,620 22,800


Source: Family Spending, National Statistics © Crown copyright material isreproduced with the permission of the Controller of HMSO (and the Queen’sPrinter for Scotland)/Key Note

Figure 2.2: Total UK Weekly and Annual Household Expenditureon Clothing (£m), 2006-2010

2006 2007 2008 2009 e2010

Year

0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

25,000

27,500

30,000

An

nu

al E

xpen

dit

ure

(£m

)





During the 5-year review period, a larger proportion of household expenditurewas allocated towards women’s clothing in comparison to men’s clothing. In2010, the amount allocated towards women’s clothing contributed to anestimated 53.6% of total household expenditure on clothing. In spite of this,expenditure in this sector declined by 3.7% over the 5-year period, althoughspending has recovered slightly since the low-point of 2008 when it fell to£11.6bn. Expenditure on men’s clothing, however, has continued to decline,dropping by 8.5% from £6.4bn in 2006 to £5.9bn in 2010. Children’s clothingwas the only sector to witness improvement over the 5 years, after increasingby 0.5% from £3.7bn to £3.71bn.

Table 2.3: Total UK Annual Household Expenditure on Clothingby Type (£m), 2006-2010

2006 2007 2008 2009 e2010

Women’s Clothing

Women’s outergarments 10,920 10,660 10,192 10,712 10,830

Women’s undergarments 1,768 1,508 1,404 1,352 1,390

Total women’sclothing 12,688 12,168 11,596 12,064 12,220

Men’s Clothing

Men’s outergarments 5,876 5,720 6,032 5,304 5,325

Men’s undergarments 520 468 468 520 525

Total men’sclothing 6,396 6,188 6,500 5,824 5,850

Children’s Clothing

Girl’s outer garments(5-15) 1,352 1,248 1,300 1,300 1,340

Boy’s outer garments(5-15) 988 936 1,040 884 880

Infant’s outergarments (under 5) 832 884 832 936 950

Children’s undergarments (under 16) 520 416 416 520 540

Total children’sclothing 3,692 3,484 3,588 3,640 3,710

Table continues...



Table 2.3: Total UK Annual Household Expenditure on Clothingby Type (£m), 2006-2010

...table continued

2006 2007 2008 2009 e2010

Others 1,560 1,456 1,664 1,092 1,020

Total 24,336 23,296 23,348 22,620 22,800



Retail Sales of Clothing

Figures from National Statistics’ indicate that the clothing market has beencontinually growing since 2006, with total retail sales currently estimated tobe worth £35.03bn in 2010 (at current prices), after increasing by 7.8% in 2006.The results show that, while large businesses have recorded improvement intheir sales, smaller companies have reported considerable losses over the last5 years. Large businesses managed to increase their retail sales by 13.1% duringthe review period, while smaller businesses registered a fall of 24.5% over the5 years.

Table 2.4: Retail Sales of Clothing in the UK by Size of Retailerand Size of Business by Value at Current Prices

(£m and index 2006=100), 2006-2010

2006 †2007 †2008 †2009 e2010

Retail sales ofclothing (£m) 32,498 33,310 33,343 33,733 35,033

Index (2006=100) 100.0 102.5 102.6 103.8 107.8

Table continues...



Table 2.4: Retail Sales of Clothing in the UK by Size of Retailerand Size of Business by Value at Current Prices

(£m and index 2006=100), 2006-2010

...table continued

2006 †2007 †2008 †2009 e2010

Of which:

- large businesses 27,921 29,010 29,401 29,931 31,579

- small/otherbusinesses 4,577 4,312 3,955 3,799 3,454

† — retail sales of large and small businesses do not sum to total retail sales at source


Note: figures are not seasonally adjusted.

Source: Business Monitor SDM28, National Statistics © Crown copyright materialis reproduced with the permission of the Controller of HMSO (and the Queen’sPrinter for Scotland)/Key Note

Table 2.5 gives a broader view of changes in clothing sales by household,non-profit institutions (NPI’s) that serve households and the generalGovernment during the 5-year review period. The latest results revealed thatconsumption expenditure on clothing increased by 8.8% from 2006 to 2010

Table 2.5: Consumption Expenditure on Clothing by Household,Non-Profit Institution Serving Households and the General

Government (£m at current prices), 2006-2010

2006 2007 2008 2009 e2010

ConsumptionExpenditure (£m) 38,117 39,111 39,281 40,081 41,480


e — Key Note estimate

Source: Annual Abstract of Statistics (2010), National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO (and theQueen’s Printer for Scotland)/Key Note



Figure 2.3: Consumption Expenditure on Clothing byHousehold, Non-Profit Institution Serving Households and the

General Government (£m at current prices), 2006-2010

2006 2007 2008 2009 e2010

Year

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Sale

s (£

m)


Source: Annual Abstract of Statistics (2010), National Statistics © Crowncopyright material is reproduced with the permission of the Controller of HMSO(and the Queen’s Printer for Scotland)/Key Note

OVERSEAS TRADE

General Overview

Table 2.6 shows the UK trade of clothing by value from 2006 to 2010. Thesefigures reveal that both exports and imports have increased during the reviewperiod, which has resulted in a rising trade deficit. Exports have increased by19.7% over the review period, while the amount of imports into the countryhas increased by 15.3% since 2006. In 2010, the UK’s trade deficit stood at£10.6bn, after importing clothing goods to the value of £14.1bn and exportingonly £3.45bn.



Table 2.6: UK Trade Articles of Apparel and Clothing Accessoriesby Value (£m), 2006-2010

2006 2007 2008 e2009 e2010

Exports 2,877 3,100 3,305 3,440 3,445

Less imports 11,847 12,310 13,210 13,921 14,050

Balance of trade -8,970 -9,210 -9,905 -10,481 -10,605

% changeyear-on-year - -2.7 -7.5 -2.7 -0.4


Note: figures for 2009 differentiate to Table 2.1 due to different source.

Source: Annual Abstract of Statistics (2010), National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO (and theQueen’s Printer for Scotland)/Key Note

Imports

By Item

In 2009, the most popular category of clothing import into the UK was women’sor girl’s suits, which accounted for 21.6% of total apparel and clothing imports.Overall, the four largest contributors — women’s or girl’s suits, jerseys, t-shirtsand men’s and boy’s suits accounted for 58.3% of the total value of importedclothing into the UK in 2009.



Table 2.7: UK Imports of Articles of Apparel and Clothing andAccessories† by Leading Selected Items by Value (£m and %),

2009

Value (£m) % of Total

Women’s or girl’s suits, ensembles, jackets,blazers, dresses, skirts, divided skirts, trousers,bib-and-brace overalls, breeches and shorts (otherthan swimwear) 2,882.6 21.6

Jerseys, pullovers, cardigans, waistcoats andsimilar articles, knitted or crocheted 1,881.4 14.1

T-shirts, singlets and other vests, knitted orcrocheted 1,553.5 11.7

Men’s or boys’ suits, ensembles, jackets, blazers,trousers, bib-and-brace overalls, breeches andshorts (other than swimwear) 1,453.3 10.9

Women’s or girls’ blouses, shirts and shirt-blouses 800.0 6.0

Men’s or boys’ shirts 785.2 5.9

Others 3,975.7 29.8

Total 13,331.7 100.0

† — includes articles of apparel and clothing accessories both knitted or crocheted andnot knitted or crocheted

Note: total differs from that shown in Table 2.5 due to use of different source.

Source: HM Revenue & Customs, National Statistics © Crown copyright materialis reproduced with the permission of the Controller of HMSO (and the Queen’sPrinter for Scotland)/Key Note

By Region

The largest contributor of clothing imports into the UK market in 2009 was theAsia/Oceania region, which accounted for 61.7% of total imports. The maincountries involved in the manufacture of clothing include Hong Kong, thePeople’s Republic of China (PRC), India, Bangladesh and Sri Lanka, which areall popular due to their low-cost manufacturing facilities. The second-largestsource of clothing imports was the EU-27, which accounted for 22.6% of totalclothing imports in 2009, while trade from Western and Eastern Europe(non-EU-27) and North America took up the remaining share of the importmarket.



Table 2.8: UK Imports of Articles of Apparel and ClothingAccessories† by Region by Value (£m and %), 2009


Asia/Oceania 8,231.5 61.7

EU-27 3,010.0 22.6

Western Europe (non-EU-27) 1,219.8 9.1

North America 160.4 1.2

Eastern Europe (non-EU-27) 57.8 0.4

Others 652.1 4.9

Total ‡13,331.7 ‡100.0


‡ — does not sum due to rounding



Exports

By Items

The main category of export in the UK clothing market in 2009 was women’sor girl’s suits, which accounted for 20.6% of the total market. Other majorcategories included jerseys, men’s or boy’s suits and t-shirts, while the fourleading categories combined contributed to 52% of all clothing exports fromthe UK in 2009.



Table 2.9: UK Exports of Articles of Apparel and ClothingAccessories† by Leading Selected Items by Value (£m and %),

2009


Women’s or girl’s suits, ensembles, jackets,blazers, dresses, skirts, divided skirts, trousers,bib-and-brace overalls, breeches and shorts(other than swimwear) 651.4 20.6

Jerseys, pullovers, cardigans, waistcoats andsimilar articles, knitted or crocheted 414.0 13.1

Men’s or boys’ suits, ensembles, jackets, blazers,trousers, bib-and-brace overalls, breeches andshorts (other than swimwear) 290.5 9.2

T-shirts, singlets and other vests, knitted orcrocheted 286.5 9.1

Women’s or girls’ blouses, shirts and shirt-blouses 239.9 7.6

Men’s or boys’ shirts 196.8 6.2

Others 1,081.3 34.2

Total 3,160.4 100.0




By Region

The majority of clothing manufactured in the UK was exported to other EU-27countries, accounting for 76.5% of total UK exports in 2009. The main exportdestinations in the EU included the Republic of Ireland and Germany. The Asia/Oceania market was the second most popular export destination, accountingfor 5.3% of the total UK exports.



Table 2.10: UK Exports of Articles of Apparel and ClothingAccessories† by Region by Value (£m and %), 2009


EU-27 2,418.8 76.5

Asia/ Oceania 168.7 5.3

Western Europe (Non-EU-27) 138.3 4.4

North America 119.1 3.8

Eastern Europe (Non-EU-27) 86.7 2.7

Others 228.7 7.2

Total ‡3,160.4 ‡100.0


‡ — does not sum due to rounding





3. Industry Background

RECENT HISTORY

The UK clothing manufacturing sector has changed dramatically over the pastfew years for a number of reasons, including the evolution of low-cost clothingimports; the relocation of UK clothing manufacturers to overseas locations; andthe increase of imported clothing from overseas. In addition, the abolition ofthe Multi-Fibre Agreement (MFA) in January 2005, which placed quotas ontextile exports from leading manufacturing countries, has added to theincreasingly competitive market environment.

NUMBER OF COMPANIES

According to the National Statistics’ publication UK Business: Activity, Size andLocation, there were 3,530 enterprises engaged in the manufacturing ofclothing in 2010. The figures displayed in Table 3.1 indicate that the majorityof companies had a smaller turnover, with 66.4% of enterprises recording saleslower than £250,000, while 38.4% of had a turnover of less than £100,000.Around one in ten companies had a turnover above £1m (11.2%) and only 120enterprises (3.4%) registered a turnover of over £5m.

In 2009, 3,920 enterprises were engaged in the manufacture of clothing,revealing that there has been a significant decline in the number of companiesoperating within the clothing manufacturing industry.

Table 3.1: Number of UK VAT- and/or PAYE-Based EnterprisesEngaged in the Manufacture of Clothing by Turnover Sizeband,

(number and %), 2010

Number ofEnterprises % of Total

Turnover Sizeband (£000)

0-49 635 18.0

50-99 720 20.4

100-249 990 28.0

250-499 480 13.6

500-499 310 8.8

1,000-4,999 275 7.8

5,000+ 120 3.4

Table continues...

Clothing Manufacturing Industry Background


Table 3.1: Number of UK VAT- and/or PAYE-Based EnterprisesEngaged in the Manufacture of Clothing by Turnover Sizeband,


...table continued


Total 3,530 100.0

Source: Business: Activity, Size and Location, National Statistics © Crowncopyright material is reproduced with the permission of the Controller of HMSO(and the Queen’s Printer for Scotland)

EMPLOYMENT

In 2010, it was reported that the majority of enterprises (65.4%) employed upto four people, implying that many clothing manufacturing companies werevery small in size. Only ten companies employed over 250 people, indicatingthat the marketplace had fewer large companies, compared to the number ofsmaller scale operations engaged in the manufacture of clothing in 2010.

Further results have revealed that many of the smaller-sized companies thatwere in trading in 2009 were no longer in operation in 2010, explaining thedramatic decline in the number of enterprises engaged in the clothingmanufacturing industry during this year. Although the industry is still made upof a large proportion of small scale enterprises, the larger companies stilldominate market share.

Table 3.2: Number of UK VAT- and/or PAYE-Based EnterprisesEngaged in the Manufacture of Clothing by Employment

Sizeband (number and %), 2010


Number of Employees

0-4 2,310 65.4

5-9 650 18.4

10-19 320 9.1

20-49 165 4.7

50-99 60 1.7

Table continues...



Table 3.2: Number of UK VAT- and/or PAYE-Based EnterprisesEngaged in the Manufacture of Clothing by Employment

Sizeband (number and %), 2010

...table continued


Number of Employees (cont.)

100-249 15 0.4

250+ 10 0.3

Total 3,530 100.0

Source: UK Business: Activity, Size and Location, National Statistics © Crowncopyright material is reproduced with the permission of the Controller of HMSO(and the Queen’s Printer for Scotland)

REGIONAL VARIATIONS IN THE MARKETPLACE

According to the National Statistics’ publication UK Business: Activity, Size andLocation, London was the most popular region for enterprises engaged in themanufacturing of clothing, accounting for 28.9% of the total number ofcompanies operating within the market in the UK in 2010. East Midlands wasthe second most popular region (17.1%), followed by the North West (11.6%),with these two regions and London accounting for over half (57.6%) of allactivity within the industry.

England was by far the most dominant UK country in terms of clothingmanufacturing activity,with 89.9% of all enterprises based there, followed byScotland (6.1%), Northern Ireland (2.1%) and Wales (1.8%). Much of theclothing manufacture in Scotland is based around the production ofhigh-quality cashmere and woollen products.



Table 3.3: Number of UK VAT- and/or PAYE-Based EnterprisesEngaged in the Manufacture of Clothing by Government Office

Region (number and %), 2010


England

London 1,020 28.9

East Midlands 605 17.1

North West 410 11.6

West Midlands 290 8.2

South East 235 6.7

East 215 6.1

Yorkshire and Humberside 185 5.2

South West 155 4.4

North East 60 1.7

Total England 3,175 †89.9

Scotland 215 6.1

Northern Ireland 75 2.1

Wales 65 1.8

Total 3,530 †100.0

† — does not sum due to rounding




DISTRIBUTION

The distribution of clothing in the UK is very dependent on the type of clothingbeing produced. Clothing such as uniforms and workwear is commonlydistributed directly from the manufacturer, to a network of regional centreswhich incorporate over-the-counter (OTC) sales and technical advice. Manymanufacturers also operate an online or mail-order service, which consumerscan use to buy directly. This mode of distribution is also used overseas, wheremany manufacturers that sell their products internationally have their ownsales office or employ locally-based commissioned agents. Other leadingproducers operate through a network of licensees that source and distributeproducts to retail customers, while also maintaining the brand and creating aglobal identity for the manufacturer.

Many distributors are dependent on the market that their products are beingaimed at and the amount of production that is needed to fulfil the demand.Some niche manufacturers only supply a small amount of products to retailclients, while larger more upscale manufacturers can have huge distributionnetworks in both the UK and overseas, via retail outlets and department stores,as well as through their own retail outlets.

Some manufacturers opt to have their products manufactured incompany-owned production plants which are based in Europe and Asia andare then imported into the UK, while others design their clothes within the UKand then contract overseas plants to manufacture them. The majority ofcompanies manufacture their clothes overseas, with many using productionplants based in Asia due to the lower costs involved.

HOW ROBUST IS THE MARKET?

The UK clothing market is very dependent on the state of the economy, makingthe market vulnerable to any dramatic changes that may be experienced. Thisis especially the case in times of economic downturn, such as has been enduredin recent years. This is principally because clothing is viewed by manyconsumers as luxury goods, spending of which can be cut back on in times offinancial strain. When the UK underwent the ‘credit crunch’ and recession wasannounced in 2008, the clothing market, along with other luxury goodsmarkets, were the first to suffer.

Other factors, such as a change in weather conditions, can also have apotentially harmful impact on the market, due to the seasonal nature ofvarious clothing lines and collections. Manufacturers that source from overseashave also recently been affected by the rising price of cotton and raw materials.

According to UK Business, Activity, Size and Location, just under half (49.2%)of all the enterprises involved in the manufacture of clothing have been activefor over 10 years, which is a higher figure than the total number of businessesin operation within the UK (43.5%). This suggests that less companies are nowentering the market, primarily because the marketplace is developed andsaturated with many well-established clothing companies, thus making itharder for new companies to enter the industry.



Table 3.4: Number of UK VAT- and/or PAYE-Based EnterprisesEngaged in the Manufacture of Clothing by Age of Business


Nu

mb

er o

f En

terp

rises

% o

f Tota

l

Nu

mb

er o

f All U

K B

usin

esse

s

% o

f All U

K B

usin

esse

s

Less than 2 years 505 14.3 299,560 14.3

2-3 years 410 11.6 304,305 14.5

4-9 years 880 24.9 583,680 27.8

More than 10 years 1,735 49.2 912,825 43.5

Total 3,530 100.0 2,100,370 †100.0



LEGISLATION

The clothing manufacturing industry is affected by various legislationconcerning health and safety, waste disposal, recycling, employment andenvironmental protection. The industry is also subject to generallabour-related legislation including the Working Time Directive and Part-TimeWorkers Regulations, while companies must also comply with nationalminimum wage guidelines. The national minimum wage is often subject tochange and was last amended on 1st October 2010. The current rate stands at£3.64 per hour (p/h) for 16 to 17 year-olds, £4.92 (p/h) for 18 to 20 year-oldsand £5.93 (p/h) for employees that are 21 and over.

Various clothing manufacturers, suppliers and distributors also enforce theirown corporate and social responsibility policies, on top of the generallegislation. Much of these policies are typically related to health and safety,environmental protection, equal opportunities and ethical trading standards.



KEY TRADE ASSOCIATIONS

Association of Suppliers to the British Clothing Industry

The Association of Suppliers to the British Clothing Industry (ASBCI) was firstestablished in 1992 and was formed from the British Interlining ManufacturersAssociation. The company has become well-established since 1992 and now hasover 100 members that are involved in the clothing and textiles industry.

The ASBCI is involved in all sectors of the clothing and textile industry includingfibres, fabrics, lining, buttons, zips, machinery and many more. The Associationoffers technical support to its members, as well as expertise and knowledge ofthe industry.

The ASBCI also holds an annual conference in May, where representatives ofthe industry can hold seminars in various key subjects. The Association claimsthat this event has become immensely popular and is now a credited eventwithin the clothing industry, helping members to stay up-to-date with issues,while addressing common key concerns.

British Apparel and Textile Confederation

The British Apparel and Textile Confederation (BATC) is a representative of thetextile and apparel supply chain. Its aims to provide a resource for clothingcompanies, as well as being seen as a united body on issues affecting theindustry. The BATC was formed in 1992 and represents British interests withinEuropean and international trade organisations, such as Euratex, while alsoacting as a main point of contact between national and European Governmentbodies and the industry.

The Confederation represents 80% of all apparel and textile firms based withinthe UK, across all sectors of the industry and provides services which are specificto each of its members. The BATC also collates data on the clothing and textilemarket, which is published in an annual review.

The BATC is based in central London at 5 Portland Place and also has a base inYorkshire at the headquarters off the Confederation of British Wool Textiles(CBWT). The confederation also has an impressive portfolio of memberassociations, including the following:

• UK Fashion and Textile Association (UKFT)

• British Interior Textiles Association (BITA)

• British Narrow Fabrics Association

• British Throwsters’ Association

• Confederation of British Wool Textiles (CBWT)

• Knitting Industries Federation (KIF)

• Lancashire Textile Manufacturers’ Association (LTMA)



• National Wool Textiles Export Corporation (NWTEC)

• Silk Association of Great Britain (SAGB)

• Textile Finishers’ Association (TFA)

• UK Fashion Exports.

Confederation of British Wool Textiles

The Confederation of British Wool Textiles (CBWT) is a non-profitmembership-based organisation (NPO), providing a range of high-qualityservices which are specifically designed to meet the evolving needs ofcompanies operating within the textiles industry. The Association’s aimsinclude representing, supporting and providing guidance and training to itsmember companies in order to ensure their competitiveness in a global marketenvironment. The CWBT’s members include wool traders, raw-fibre processors,spinners, fabric manufacturers, dyers and finishers.

Knitting Industries’ Federation

The Knitting Industries’ Federation (KIF) is a national organisation for tradersand employees who are associated with the UK knitting industry. Since itslaunch in 1970, the Federation has gained a strong national voice to centralGovernment and other bodies. KIF’s main aims are:

• to offer a comprehensive industrial relations service

• to offer advice on employment law and practice

• to represent its members at employment tribunals

• to negotiate the annual pay award with the knitting community

• to act as a recognised trade union, while offering advice on health and safetyand environmental issues.

UK Fashion and Textile Association

The UK Fashion and Textile Association (UKFT), formerly the British ClothingIndustry Association (BCIA) works for the benefit of the fashion, clothing andknitting industries in the UK. The main aims of the Association are to helpmembers with guidelines and advice regarding the running of a businesswithin the industry, both in the UK and globally. This is achieved throughUKFT’s Exports, which supplies help and advice on how businesses can achievesuccess in overseas markets. The Association works alongside many othersimilar organisations that are based within the clothing and textiles sector, thusproviding its members with a large network from which to seek advice.



INTERNATIONAL TRADE ORGANISATIONS

Euratex

The European Apparel and Textile Confederation (Euratex) is a non-profittrade organisation, dedicated to the promotion of the European textile andapparel industry. Euratex’s main objective is to promote the interest of itsmembers, while taking into account the EU’s institutional framework and itsinternational obligations. Other objectives include:

• ensuring the smoothest possible transition into the quota-free era

• the promotion of a further expansion of EU textiles and clothing exports

• the promotion of legislation and its subsequent application

• supporting measures that both enhance environmental protection and areacceptable to the industry

• the promotion of and participation in research, development, innovationand other educational or social projects that bring added value to theindustry at a European level

• the engagement in a constructive social dialogue at EU-level with its socialpartners

• the provision of economic and statistical data to members.

International Apparel Federation

The International Apparel Federation (IAF) describes itself as a politicallyneutral global association, open to entrepreneurs and executives form theworldwide apparel chain. The Federation’s members include companies whosemain business involves souring, designing, developing, manufacturing,distributing and retailing apparel products. Furthermore, the IAF alsowelcomes companies that supply textiles, accessories, equipment, technologyand services to the apparel industry.



4. Competitor Analysis

THE MARKETPLACE

The UK clothing manufacturing market has remained extremely competitive,resulting in many businesses moving their production facilities overseas oroutsourcing production of their products to overseas manufacturers in orderto reduce costs. Despite this, some traditional UK manufacturers haveattempted to remain within the UK. Such companies have establishedthemselves as producers of high-quality, expensive clothing and form part ofa niche market.

The marketplace has also seen the recent fall of some well-establishedcompanies, including the Intimas Group PLC and Stirling Group Ltd, which bothwent into administration in 2007 and 2008, respectively, and are no longertrading, although part of Intimas has been bought by textile maker LinwoodFabrics Ltd.

MARKET LEADERS

AX Realisations PLC

Company Structure

AX Realisations PLC, formerly Alexandra PLC, is a UK supplier of work clothingto a variety of industries including travel, hospitality, healthcare, industrial andretail. Within these industries the company’s biggest customers include EasyJet,McDonald’s and the National Health Service (NHS). The company’s has varioussites based across the UK and employs around 500 people. In July 2010, it wasannounced that the company had gone into administration, reportedly owingmore than £30m to lending banks, HSBC and Barclays, although, it hascontinued to trade.

Current and Future Developments

In September 2010, AX Realisations revealed that it had won a contract withthe Yorkshire Purchasing Organisation. The deal, worth £7m, will involve thesupply of personal protective clothing (both workwear and leisurewear),equipment and footwear to the Organisation.

In August 2010, it was reported that the US-based retailer, Men’s Warehouse,had acquired certain parts of AX Realisation. This latest acquisition has giventhe US company a stronger foothold within the UK apparel market.

Clothing Manufacturing Competitor Analysis


Financial Results

In the year ending the 31st January 2009, the company reported a turnover of£74.7m, a 3.1% loss on the previous year, when turnover of £77.1m wasrecorded. Pre-tax profit fell by 37.7%, from £4.8m in 2008 to £3m in 2009.

Berwin & Berwin Ltd

Company Structure

Berwin & Berwin Ltd has been established since 1885 and specialises in themanufacture and distribution of men’s tailoring. The company has offices inLondon, Leeds and Budapest, which has allowed the company to become aleading distributor within the UK and European markets. The company alsodistributes from a factory in Longkou City, where bulk lines are produced forits European customers. The state-of-the-art factory has the capacity to turnout 1,600 sleeved garments and 1,400 trousers per day and is equipped withthe latest machinery and technology.

The company has a range of private-label customers in the UK, including AustinReed, Next, Ted Baker, Moss Bros, SRG, FCUK, Pierre Cardin and John Lewis,while in France the company supplies Armand Thiery and Mario Dessuti, amongothers. Berwin & Berwin also distribute its own brands to the UK and Europeanmarkets. These include Paul Costelloe, Daniel Hechter, Lambretta and Berwin& Berwin.


Berwin & Berwin subsidiary, Bäumler, recently announced that the companywas back on track, after being rescued from administration by the company inNovember 2009. Bäumler reported that orders for its spring 2011 collection areexpected to be strong, with sales expected to hit £16m in the forthcoming year.Since the acquisition, the company has undergone various changes, and hasnow shifted its focus to its tailored ranges, returning to the brands’ originalheritage. The Bäumler brand alone currently has 90 UK and Republic of Irelandstockists and over 300 outside of the UK.

Financial Results

Berwin & Berwin reported a turnover of £36.6m for the year ending30th December 2009, after dropping by 9.7% loss from £40.6m for the sameperiod in 2008. Pre-tax profit increased to £670,000 in 2009, after a loss of£1.8m was registered in 2008.



Burberry Group PLC

Company Structure

Burberry Group PLC designs, sources, manufactures and distributes luxuryclothing and accessories on a global scale, through its own retail stores,concessions and wholesale customers. The company also licenses third partiesto manufacture and distribute products using the company’s trademark. Thecompany specialises in luxury clothing items and accessories for men, womenand children, and has defined itself as an iconic British luxury brand. In 2010,the company had 131 mainline stores, as well as 262 concessions based indepartment stores and 47 other outlets. The company also distributes itsproducts to retailers worldwide via its wholesale operations and has 97franchises which operate Burberry stores, the majority of which are situated incurrent emerging markets.


Burberry has reported that in the last 2 years, the company has cut the numberof third party manufacturers from 300 to 90. The company’s chief financialofficer (CFO), Stacey Cartwright believes that through ‘dealing with fewer,trustworthy suppliers’ the company has been allowed to ‘develop stronger,long-term relationships’, which has also meant that the company can ‘auditthem more efficiently’.

In October 2010, Burberry revealed that it intends to increase the total floorspace of its retail operations by 25%, with much of this additional spacedesignated to the opening of new stores and the expanding of existing outletsin the People’s Republic of China (PRC). The Group believes that its growth isbeing driven by its operations in the emerging Asian markets, with significantdemand for coats and leather goods. Burberry also considers Europe to be oneof its leading markets, aiding its recent financial success, with the UK, Italy andFrance witnessed the best performance. Overall, the company believes that‘new products, online and customer service initiatives and the Chineseexpansion’ have helped underpin confidence throughout the Group.

In September 2010, Burberry unveiled its latest ‘Retail Theatre’ concept. Thelatest development has been designed to allow consumers to see and buy thelatest spring/summer 2011 collections via an application (app) for the iPad,which will be featured in 25 flagship stores. The app allows consumers tobrowse collections and buy products online, receiving their orders within 7weeks. The custom-built Burberry app will also be updated with frequentbroadcasts from the company’s global headquarters. The Group believes thatthrough its exclusive in-store digital events, customers will be able to‘experience the clothes, the music, the energy and the atmosphere in real time’creating a ‘modern and pure brand environment’.



Financial Results

In the year ending the 31st March 2010, the company reported a £1.23bnturnover, a 6.5% increase on the same period for the previous year, when aturnover of £1.2bn was recorded. Pre-tax profit increased to £166m in 2010,after registering a loss of £16.1m in 2009.

Coats PLC

Company Structure

Coats PLC manufactures, processes and distributes sewing thread andneedlecraft brands. The company was first launched in 1755 and hasestablished itself as a worldwide brand, with over 20,000 employees engagedin customer service, manufacturing and distributing in over 70 countries. Thecompany specifically specialises in thread for apparel usage; speciality items,such as footwear, mattresses and quilting; and zips and needlecrafts.

In 2003, GPG (UK) Holdings PLC, (formerly Guinness Peat Group PLC), aninvestment holding company, acquired Coats PLC.


In June 2010, it was announced that Coats PLC’s parent company GPG (UK)Holdings PLC had made plans to list the subsidiary on the London StockExchange (LSE) in the next 2 years. The parent group believes that theturnaround of the company has taken longer than expected, since it acquiredCoats PLC in 2003 and took full ownership in 2004.

Financial Results

Coats PLC reported a turnover of £1.42bn for the year ending the31st December 2009, a 14.4% decrease on the £1.65bn recorded for the sameperiod in 2008. Pre-tax profit decreased by 87.5% from £110.9m in 2008 to£13.9m in 2009.

CUK Clothing Ltd

Company Structure

CUK Clothing Ltd (formerly Courtaulds (UK) Ltd until June 2010) is a textilesupplier of apparel and clothing, as well as a manufacturer and supplier ofhosiery. The company is one of the biggest underwear manufacturers in theUK and owns the Berlei, Gossard, Aristoc and Pretty Polly brands, while alsoproducing their own-label products for both Marks & Spencer (M&S) and BHS.The company was incorporated on 19th April 2006, after acquiring the majorityof the assets of Courtaulds Textiles (Holdings) Ltd.

CUK Clothing Ltd is a fully-owned subsidiary of Hong Kong-based firm,Magellan Textile Holdings Ltd.




In May 2010, an agreement was signed between CUK Clothing Ltd and the SriLanka Board of Investment (BOI) to establish a knitted fabric manufacturingplant. The plant will be located at Badalgama and will be used purely for thepurpose of exports.

Financial Results

In the year ending 30th June 2009, the company reported a turnover of£166.3m, down by 13.8% from the £192.9m registered for the same period in2008. A pre-tax loss of £9.7m was reported in 2009, compared to a loss of £4.1mfor the previous year.

Dawson International PLC

Company Structure

Dawson International is a world leader in the cashmere market, as well as awell-known supplier of fine bed linen via its Home Group division. Thecompany is headquartered in Kinross, Scotland, and employs around 300people in locations across the globe, including the UK, Europe, the PRC andthe US. The company has a US division, Dawson Forte Cashmere, which sourcescashmere garments from the PRC and the US, and distributes throughprivate-label retail and the company’s own-brand collection, Kinross.

In the UK, the company has a trading agreement with retailer Dunelm, forDawson Home Group to supply its Dorma and own-brand bed linen until 2012.Dawson International also has its own brand, Barrie, which designs, developsand manufactures cashmere knitwear for high-end retailers and KinrossCashmere Europe, which distributes garments throughout Europe and Japan.


Dawson International recently reported a 6% drop in its shares, due to the risein commodity prices in September 2010. The company’s then chief executive(CE), Andy Bartmess believed that the rising cost of cashmere goat wool andcotton had impacted the group’s margins negatively, as the company hasfought to avoid passing on the costs to the consumers. Due to this recent turnof events, the company has announced plans to introduce lighter garmentscontaining less cashmere or mixed fibre blends in order to offer moreaffordable prices to its customers. Despite this recent drop, Bartmess believedthat the Group would be able to turn around sales in the lead up to theChristmas period in 2010.

Dawson International reported the final sale of the company’s subsidiary, Todd& Duncan, in September 2010, after 18 months of negotiations. The subsidiary,whose customers include Burberry, Gucci and Prada, was sold to the Chinesecompany, Zhongyin, in a deal worth £8.4m.



Financial Results

Dawson International PLC recorded a turnover of £72.9m for the 52 weekperiod ending 2nd January 2010, showing a 15% decrease on the £85.7mreported in the 53 weeks to 3rd January 2009. Pre-tax profit fell by 48.7% in2010 to £575,000, compared to the £1.1m registered in the previous year.

James Johnston & Co of Elgin Ltd

Company Structure

James Johnston & Co of Elgin is a company engaged in the production ofcashmere items and is one of the few companies that undertake all stages ofthe manufacturing process, from sourcing raw materials to the finishing ofgarments. The company has two mills which are based at Elgin and Hawick andemploys over 700 people in its manufacturing facilities. The company offers arange of products, including knitwear for men and women, accessories andhome furnishings, and supplies various retailers worldwide.


In June 2010, television fashion show ‘Gok’s Fahion Fix’ visited the company’sHawick factory to learn more about the manufacture of cashmere. The showwhich was aired on Channel 4 on 29th June 2010, showed stylist BrixSmith-Start document the manufacturing process of a cashmere sweater madeby Christopher Kane, an exclusive designer commissioned by the company.

In May 2010, the company won the Heritage Award for being a businessfounded on British traditions at the annual UK Fashion and Textile ExportAwards, after competing against a record number of entries from the industry.

Financial Results

In the year ending 31st December 2009, the company reported a turnover of£38.4m, up by 3.3% on the £39.7m reported for the same period in 2008.Pre-tax profit fell by 97.7% after dropping from £859,000 in 2008 to £20,000in 2009.

Pentland Group PLC

Company Structure

Pentland Group PLC is a UK-based global brand management company,involved in supplying some of the leading global brands in sports, outdoor andfashion clothing. Brands owned by the company include Berghaus, Boxfresh,Ellesse, Gio-Goi, Kickers UK, Lacoste Chaussures, Red or Dead, Speedo and TedBaker Footwear. The company has a global distribution network, supplying 176countries and employing over 12,000 people worldwide.




In October 2010, Speedo launched its first ever app for the Apple iPhone. Theapp has been designed to help triathletes with news, results, training tips andessential information, while also promoting featured products from thecompany’s range of brands.

The Pentland Group’s brand, Berghaus, was involved in the celebrity charitytrek up Machu Picchu in September 2010. The fundraiser, organised bycelebrities Denise Van Outen and Fearne Cotton, was in aid of Breast CancerCare and saw a host of celebrities trek to the destination. Berghaus helped thetrekkers by supplying the team with kits for the challenge, which was thesubject of a documentary that aired on ITV2 in October 2010.

In May 2010, the Pentland Group acquired a 5.86% stake in outdoor retailer,Blacks Leisure Group.

Financial Results

Pentland Group PLC reported a turnover of £1.13bn for the year ending31st December 2009, an 8.7% increase on the $1.08bn registered for the sameperiod in 2008. Pre-tax profit increased by 65.3% to £66.1m in 2009, comparedto £40m in 2008.

Pringle of Scotland Ltd

Company Structure

Pringle of Scotland Ltd is a manufacturer and retailer of luxury knitwear formen and women on a global scale, having expanded to the US and Asia. Thecompany was first established in 1815 as a luxury hosiery manufacturer, but inthe 1870’s it began to concentrate on its knitted cashmere operations. Thecompany was acquired by Joseph Dawson (Holdings) Ltd (now known asDawson International Holdings Ltd) in 1967 and, in 2000, the brand was boughtby Hong Kong-based firm, SC Fang & Sons Company Ltd. The new ownersallowed the company to move into the international luxury market, throughbrand developments and innovations. The company has stores and stockists inthe UK and overseas, as well as concessions in Harvey Nichols retail outlets.

Brand Information

The company produces garments under the well-known brand name, Pringleof Scotland.

In 2010, the company celebrated its 195th anniversary by launching a limitededition 195 collaborations collection. The autumn/winter collection featuresTilda Swinton and Ryan McGinley, as well as the Turner Prize winner DouglasGordon.




Pringle of Scotland has recently moved its flagship store from New Bond Streetto smaller premises in Mayfair, London. The company’s chief executive officer(CEO), Mary-Adair Macaire described the move as a ‘revised approach to retail’,in which a smaller location will better feature the company’s collections. Thecompany also revealed that it is planning to open a new store in London, whichis likely to be based near Savile Row or Conduit Street.

Financial Results

For the 44 weeks ending 30th January 2010, the company recorded a turnoverof £11.1, down by 36% from the £17.3m registered in the 52-week periodending 28th March 2009. A pre-tax loss of £6.7m was reported in 2010, up froma loss of £9.1m in 2009.

Umbro International Ltd

Company Structure

Umbro International Ltd is a subsidiary of Nike Inc of the US, after beingacquired by the company in 2007 in a deal worth £285m. The company wasoriginally a Manchester-based football brand supplier, but now produces arange of sportswear and sports equipment. However, the company is stillheavily involved in football, and creates and supplies the exclusive kits for theEngland and Wales football teams, as well as for Blackburn Rovers, Rangers FC,Manchester City and Sunderland, among others.


In September 2010, Umbro reported that it has agreed to extend its partnershipwith the England football team until July 2018. The company has also launchedthe new England kit, which hit the shops in October 2010.

Financial Results

Umbro International Ltd reported a turnover of £130.9m for the year ending31st May 2010, up by 23.9% from the £105.7m recorded in the 17 months to31st May 2009. A pre-tax loss of £41.4m was registered in 2010, down from aprofit of £14.3m in the previous year.



OUTSIDE SUPPLIERS

UK Textiles Manufacturers

Over the last few years the value of output for the manufacture of textiles andtextile products in the UK has decreased, with Key Note estimating that outputwas worth around £8.4bn in 2009. Over the 5-year period, the value of outputhas dropped by 18.6%, after observing an almost continual decline during thereview period, with the exception of a slight increase in 2007.

The UK market has been seriously hit by the competitive prices of importswhich are available to the UK at much lower costs, with countries, such as Asiaable to produce textiles at a low price. The rising price of cashmere and cottonhas also put a strain on manufacturers in recent years.

Table 4.1: UK Producers’ Manufacture of Textile and TextileProducts by Value of Output (£m), 2005-2009

2005 2006 2007 2008 e2009

Value of output (£m) 10,258 9,316 9,443 8,776 8,350

% changeyear-on-year - -9.2 1.4 -7.1 -4.9


Source: Annual Business Inquiry, National Statistics © Crown copyright materialis reproduced with the permission of the Controller of HMSO (and the Queen’sPrinter for Scotland)/Key Note

According to the National Statistics, the UK index of production for all textileshas seen a year-on-year decrease since 2006, dropping from 100 to 90.5between over the 4 years. The manufacture of textile fibres, weaving andfinishing of textiles was affected the most, after falling from 100 to 81.8 overthe same period, while the manufacturing of textile articles (excludingapparel), knitted and crocheted goods witnessed the smallest decline, afterdropping from 100 in 2006 to 94.8 in 2009. The manufacture of clothingincluding fur observed a significant drop from 100 to 87.3 over the 4-yearperiod, despite seeing some improvement in 2008, when the index ofproduction peaked at 100.4, revealing that most of the deterioration wasexperienced in 2009.



Table 4.2: UK Index of Production of Textiles by Type by Volume(index 2006=100), 2006-2009

2006 2007 2008 2009

Manufacture of clothingincluding dressing of fur 100.0 97.3 100.4 87.3

Manufacture of textile fibres,weaving and finishing oftextiles 100.0 97.8 92.7 81.8

Manufacturing of textilearticles (excluding apparel),knitted and crocheted goods 100.0 98.6 99.2 94.8

All textiles 100.0 98.3 97.1 90.5

Source: Monthly Digest of Statistics 2010, National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO (and theQueen’s Printer for Scotland)

Wool

The majority of wool produced in Britain is used as a quality carpet fibre. Woolused for apparel in the UK is primarily sourced from Australia and New Zealand,although the PRC has also become a major player within this market in recentyears. Wool is a freely traded commodity and subject to global supply anddemand, making prices variable within the market.

According to the British Wool Marketing Board (BWMB), a farmer-runorganisation established in the 1950’s, there are currently 59,078 registeredwool producers in the UK. Under the Wool Marketing Act of 1950, theorganisation is required to register all producers with four or more sheep (withthe exception of Shetland).

Cotton and Other Natural Fibres

The world’s largest producer of cotton is the PRC, which generates 30.7% ofthe world’s cotton. Other major players in the industry include India, the USand Pakistan. Figures sourced from the United States Department ofAgriculture (USDA), show that global cotton production by volume hasdecreased by 12% over the last 5 years, with volume falling year-on-year since2006.



Table 4.3: Global Cotton Production by Leading Producer byVolume (000 of 480lb bales), 2005-2009

2005 2006 2007 e2008 f2009

PRC 28.4 35.5 37.0 36.7 31.5

India 19.1 21.8 24.6 22.5 24.3

US 23.9 21.6 19.2 12.8 12.5

Pakistan 10.2 9.9 8.9 9.0 9.4

Brazil 4.7 7.0 7.4 5.5 5.4

Turkey 3.6 3.8 3.1 1.9 1.7

Others 26.8 22.4 20.3 19.2 17.9

Total 116.7 122.0 120.5 107.6 102.7

e — USDA estimate

f — USDA forecast

PRC — People’s Republic of China

Source: United States Department of Agriculture (USDA)

Man-Made Fibres

In contrast to the deterioration in cotton supply, global production ofman-made fibres has been increasing year-on-year for over 25 years, with theexception of the recent drop observed in 2009, when total production stoodat 43.6 million tonnes, after falling by 2% from 2007. Decreases were witnessedin Western Europe, the US and Japan, while ‘other regions’ witnessed the onlyincrease over the review period. However, this may be because this particularregion included much of the volume of man-made fibres produced in the FarEast and in other Asian markets (excluding Japan).



Table 4.4: World Production of Man-Made Fibres by Region byVolume (000 tonnes and %), 2005, 2007 and 2009

2005 2007 2009% of 2009

Total

Western Europe† 3,820 3,115 2,180 5.0

US 3,820 3,560 2,616 6.0

Japan 1,146 1,335 872 2.0

Other regions 29,414 36,490 37,932 87.0

Total 38,200 44,500 43,600 100.0

† — includes Germany

Note: Key Note volume calculations derived from Industrievereinigung Chemiefaserpercentage breakdown.

Source: Industrievereinigung Chemiefaser/Key Note

Textile Machinery

The British textile machinery industry has experienced some considerablechanges over the last few decades. In the 1970s the industry was made up oflarge companies that dominated the market. Nowadays, many of thesecompanies are no longer in existence, due to the highly competitive anddeveloped nature of the industry, as well as the saturation of imports fromcountries with low-production costs.

MARKETING ACTIVITY

Main media advertising expenditure on clothing increased by 5.5% from£50.3m in 2009 to £53m in 2010.

The largest sector by amount spent was allocated towards the advertising ofwomen’s fashion and design, which contributed to 34.8% of total expenditure.Although, this particular sector observed a 6% decrease on 2009 figures, with£18.4m being spent for the year ending September 2010. The second-highestamount spent was on the sports and leisure wear category, which increased by45.7% to £8.9m in 2010. The third-highest amount spent was on men’s fashionand outfitters, which increased by 2.5% to £6.9m. The top four categories —women’s fashion and designs, sport and leisure wear, men’s fashion andoutfitters and unisex wear, contributed 77% towards total expenditure in2010.



Despite the overall increase in expenditure over the 2 years, some sectors didreport observe a decline in the amount of money allocated towardsadvertising. For example, media expenditure on childrenwear fell by 9.4%from £815,000 in 2009 to £738,000 in 2010. Other sectors to witness a decreasein media expenditure included clothing and accessories, knitwear, waterproofclothing, stocking and tights, beachwear, coats, maternity wear and sleepwear.

Table 4.5: Main Media Advertising Expenditure on SelectedClothing Categories (£000 and %),

Years Ending September 2009 and 2010

2009 20102010 as a % of

Total

Women’s fashion anddesign 19,630 18,447 34.8

Sports and leisure wear 6,093 8,878 16.7

Men’s fashion andoutfitters 6,760 6,926 13.1

Unisex wear 5,582 6,566 12.4

Bridal wear (includingtiaras) 4,683 4,755 9.0

Underwear and lingerie 2,251 2,863 5.4

Jeans 2,247 2,298 4.3

Childrenswear 815 738 1.4

Knitwear 624 403 0.8

Clothing and accessories 489 383 0.7

Waterproof clothing 333 248 0.5

Stockings and tights 341 187 0.4

Beachwear 61 117 0.2

Babies clothing 52 84 0.2

Coats 116 65 0.1

Maternity wear 107 33 0.1

Fleeces 4 19 neg.

Fur 2 15 neg.

Sleepwear 78 1 neg.

Table continues...



Table 4.5: Main Media Advertising Expenditure on SelectedClothing Categories (£000 and %),

Years Ending September 2009 and 2010

...table continued

2009 20102010 as a % of

Total

Total 50,268 53,026 †100.0

neg. — negligible


Source: Nielsen Media Research

Table 4.6 displays main media advertising expenditure on selected clothingbrands for the year ending September 2010. The top 20 brands featured spenta combined £16.8m on advertising for the year ending September 2010,contributing 31.6% towards total expenditure. Adidas was the highest spenderin terms of advertising expenditure, after registering media expenditure of£2.8m in 2010, followed by, Toast with £1.3m and Chanel with £1.1m.

Table 4.6: Main Media Advertising Expenditure on SelectedClothing Brands (£000), Year Ending September 2010

Expenditure (£000)

Adidas 2,755

Toast 1,266

Chanel 1,113

Littlewoods 1,080

Dolce and Gabbana 1,077

Umbro 961

M&Co 789

Lacoste 745

Nike 731

Uniqlo 713

Gucci 706

Calvin Klein 680

Table continues...



Table 4.6: Main Media Advertising Expenditure on SelectedClothing Brands (£000), Year Ending September 2010

...table continued

Expenditure (£000)

Bravissimo 637

Alfred Angelo 574

Puma 558

Mango 499

La Redoute 488

Jamaco.co.uk 487

Joules Clothing 454

Levis 452

Others 36,261

Total 53,026

Source: Nielsen Media Research

EXHIBITIONS

The industry hosts various domestic and international exhibitions and events,which are usually held annually. Within the UK, one of the most importantevents is London Fashion Week (LFW), which is commonly held everySeptember, with the next event scheduled for 17th to 22nd September 2011.There are also a number of leading fashion shows which are hosted in Europe,principally in Milan and Paris, as well as other international events that supportUK fashion which are held in locations such as Japan and Hong Kong. UKFashion Exports (UKFE) organises a broad annual programme of exhibitionsand trade events worldwide, while the Government offers grants to companieswhich wish to show their collections at certain exhibitions.

A selection of upcoming events are detailed below:

• British Bridal Exhibition — Harrogate International Centre, 13th to 15thMarch and 11th to 13th September 2011.

• Clothes Show Live — National Exhibition Centre (NEC) Birmingham, 2nd to7th December 2011.

• Margin London (men’s and women’s clothing and accessories — upscalestreetwear and directional tailoring) — The Music Room, London, 13th and14th February 2011.



• Moda UK (womenswear, lingerie and swimwear, accessories, menswear andfootwear) — NEC Birmingham, 20th to 22nd February 2011.

• Premier Kids — NEC Birmingham, 6th to 10th February 2011.

• Pulse (lifestyle, accessories) — Earls Court, London, 5th to 7th June 2011.

• Pure (branded and designer womenswear and accessories) — Olympia,London, 13th to 15th February 2011.

• Textile Forum — The Music Room, London, 9th to 10th March 2011.



5. Strengths, Weaknesses, Opportunitiesand Threats

STRENGTHS

• The UK clothing industry is substantially developed, with considerableexpertise and knowledge in areas such as design, fashion and technologicalinnovation.

• The ‘made in Britain’ tag remains a strong selling point both in the UK andoverseas, while brands such as Burberry reinforce their British heritagethrough products and clothing collections.

• The industry is well established, with many manufacturers claimingsuperiority due to their lengthy presence within the market.

• A large amount of clothes manufactured in the UK are retailed ashigh-quality, expensive products, due to their promotion as British luxurygoods.

• Many clothing retailers have been accused of supporting unfair workingconditions in their manufacturing plants overseas, particularly in the Far East.This has encouraged some retailers to be more cautious in choosing asupplier, with some opting for a domestic manufacturer based in Britaininstead.

WEAKNESSES

• The UK textile manufacturing industry has become increasingly dependenton manufacturing facilities overseas, particularly in the Far East due to thelower cost of production there.

• Some sectors of the clothing industry, such as seasonal wear (e.g. summerclothing), are very vulnerable to any dramatic changes in the weather.

• The rising costs of raw materials, such as cotton, are putting a strain onmanufacturers, while the weak pound continues to have a negative impacton imports of raw materials.

• Many businesses, and particularly smaller individual clothing retailers, havesuffered as a result of the economic downturn over the past few years, asconsumers have reigned in their spending on luxury items, such as clothing.This has resulted in the closure of a large number of clothing retailers, whichhas, in turn, affected the smaller UK-based clothing manufacturers, that areoften solely dependent on such retailers.

• Some leading clothing retailers have had to restructure in order to cut costs,reducing the number of suppliers used, while also minimising the number ofmanufacturers employed, often opting for a cheaper solution instead.

Clothing Manufacturing Strengths, Weaknesses, Opportunities and Threats


OPPORTUNITIES

• A number of UK clothing manufacturers have gone into administration inrecent years, creating more opportunities for businesses that have remainedafloat.

• The online market for clothing is continuing to expand, creating furtheropportunities in both the UK and overseas.

• The demand for high-quality British clothing remains high, due to its goodreputation and its unique selling point (USP) in various export markets.

• The recovering economy in the UK could see the industry regain strength.

THREATS

• The clothing industry has come under threat during the economic crisis,which saw consumers cut back on luxury goods, such as clothing. This maycontinue, depending on the speed of economic recovery in the UK.

• Production in the Far East continues to be a cheaper option for manymanufacturers and retailers, taking opportunity away from UK businesses.

• The cost involved in the manufacturing of clothing is expected to see anincrease due the rise in price of cotton and raw materials, which will have aknock-on effect on the retail price of such goods.

• Supermarkets have increased their share of the clothing market in the UK inrecent years, due to their offering of low-price and convenient own-brandclothing, creating further competition to small high-street retailers.

• The ageing demographic of the UK could eventually threaten the market, asmost clothing retailers to capture younger consumers, who have moredisposable income and less monetary responsibility.

Clothing Manufacturing Strengths, Weaknesses, Opportunities and Threats


6. Buying Behaviour

CLOTHING FOR ADULTS

In a recent survey conducted by Kantar Media’s Target Group Index (TGI) it wasrevealed that the most popular clothing purchases among adults in GreatBritain were t-shirts (or polo shirts) and trousers, with a penetration of 58.1%and 57.1%, respectively. Other popular clothing purchases included coats (orraincoats) at 37.4%, jackets at 33.8% and sports clothing, at 32.1%. Accordingto the survey, 81.6% of adults purchased an item of clothing in the 12 monthsending June 2010, with slightly more women than men choosing to do so.

Table 6.1: Purchasing of Selected Adults’ Outerwear in GreatBritain in the Past 12 Months by Type (%),

Year Ending June 2010

Male Female All Adults

T-shirts/polo shirts 59.9 56.4 58.1

Trousers 52.9 61.1 57.1

Coats/raincoats 31.7 42.7 37.4

Jackets 31.4 36.1 33.8

Sports clothing 37.2 27.3 32.1

Swimwear 16.1 29.4 23.0

Suits 20.2 11.2 15.6

Any outerwear foradults 79.0 84.1 81.6

Source: Target Group Index (TGI) © Kantar Media, Quarter 4 (July 2009-June2010), 2010

Menswear

Table 6.2 displays the purchasing habits of adults by gender on selectedmenswear items. Unsurprisingly, these results indicate that men bought moremenswear than women, after recording a penetration of 80.1% in comparisonto 49.2%. Overall, just under two-thirds of adults (64.3%) purchased some formof menswear within the last 12 months ending June 2010. The most popularmenswear item to be purchased was socks, with 54.1% of all adults revealingthat they had bought this item, followed by underwear, at 51.7%. The leastpopular category of clothing to be purchased was ties, with just 16% of alladults buying this item in the year ending June 2010.

Clothing Manufacturing Buying Behaviour


Table 6.2: Purchasing of Selected Men’s Clothing Items in GreatBritain in the Past 12 Months by Type (%),



Socks 69.6 39.4 54.1

Underwear 66.4 37.7 51.7

Shirts 57.7 30.0 43.5

Jumpers, woollensand sweatshirts 46.1 29.4 37.5

Ties 21.9 10.4 16.0

Any menswear 80.1 49.2 64.3


Table 6.3 shows a breakdown of purchases on menswear by price. As revealedin Table 6.2, the most popular menswear purchase in the 12 months to June2010 was socks, although, the majority of respondents opted to pay a relativelysmall amount, between £10 and £19, on such purchases. Most adults revealedthat they spent between £50 and £99 on any item of menswear, with 15.8%of respondents agreeing that this was the case. This particular amount was alsothe most popular for items such as shirts and jumpers and sweatshirts. Theseresults therefore indicate that consumers were more inclined to spend moreon larger items, in comparison to smaller items, such as socks, underwear andties.



Table 6.3: Purchasing of Selected Men’s Clothing Items in GreatBritain in the Past 12 Months by Type by Amount Spent

(% of adults), Year Ending June 2010

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Socks 21.2 22.4 8.9 1.3 0.1 0.1 0.0 0.0

Underwear 11.8 20.4 15.0 3.5 0.7 0.2 0.1 0.0

Shirts 4.3 9.4 15.6 9.5 3.1 0.9 0.5 0.4

Jumpers/sweatshirts 2.6 7.3 13.7 8.3 3.8 1.0 0.6 0.3

Ties 5.4 5.6 3.6 0.9 0.3 0.1 0.1 0.0

Any menswear 2.2 8.2 15.2 15.8 8.4 5.9 4.9 3.7


Age and social grade also influenced purchases of menswear, according to thefigures displayed in Table 6.4. Purchases of over £300 were most popularamong those aged between 35 to 54, while younger and older age groups wereless inclined to spend as much on menswear. Indeed, consumers over 65 madethe least expensive purchases, with a penetration of just 1.3%, although thisis often highly influenced by many older people being dependent on statepensions and therefore often having less disposable income to allocate togoods such as clothing.

Understandably, more expensive purchases of menswear were made by thehigher social grades, with 9.9% of consumers in social grade A buying itemsworth over £300. Respondents living in Greater London purchased moreexpensive items of menswear in comparison to other regions, with 6.6% ofadults spending between £200 and £299, while 5.4% spent over £300. Thoseresiding in East Anglia and the North were the least likely to buy expensiveitems of menswear, with only 1.4% and 2.2%, respectively, spending more than£300.



Table 6.4: Purchasing of Any Menswear in Great Britain in thePast 12 Months by Amount Spent by Sex, Age, Social Grade and

Region (% of adults), Year Ending June 2010

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All adults 2.2 8.2 15.2 15.8 8.4 5.9 4.9 3.7

Sex

Men 2.2 9.4 17.8 20.0 11.1 7.9 6.3 5.2

Women 2.1 7.1 12.8 11.8 5.8 4.0 3.6 2.2

Age

16-19 2.1 5.5 12.4 13.2 7.6 5.7 5.3 3.7

20-24 1.6 7.1 17.8 11.4 6.9 7.6 4.7 2.8

25-34 1.9 8.0 15.5 17.0 11.0 7.0 7.3 4.3

35-44 2.3 8.3 15.4 19.4 9.6 6.7 6.1 5.2

45-54 2.2 9.4 16.2 17.8 9.0 7.1 5.7 5.2

55-64 2.0 8.6 15.4 16.7 8.8 5.6 4.1 2.9

65+ 2.6 8.7 13.9 12.4 5.3 2.9 1.8 1.3

Social Grade

A 1.9 6.8 12.7 11.0 9.0 7.5 9.0 9.9

B 1.6 5.8 13.2 18.3 10.2 7.6 7.5 5.9

C1 2.0 7.2 15.4 15.4 8.6 6.5 5.4 3.9

C2 2.4 10.1 16.9 18.3 8.7 5.5 3.8 2.4

D 2.4 10.1 16.9 14.4 7.2 4.4 2.6 1.2

E 3.0 10.9 13.9 9.5 3.6 2.0 1.3 1.5

Region

Scotland 1.7 6.4 15.0 17.2 8.6 4.9 3.6 3.9

North West 2.3 6.3 17.2 15.4 8.5 6.9 5.6 3.6

North 2.1 8.9 15.4 17.7 8.3 6.9 3.2 2.2

Yorkshire andHumberside 2.2 8.8 12.8 16.8 8.8 4.8 5.7 3.3

East Midlands 3.0 8.1 15.6 16.3 8.5 4.4 4.8 3.4

East Anglia 2.4 10.7 14.0 17.7 8.8 6.8 4.7 1.4

Table continues...



Table 6.4: Purchasing of Any Menswear in Great Britain in thePast 12 Months by Amount Spent by Sex, Age, Social Grade and


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Region (cont.)

South East 1.9 9.4 15.1 14.5 8.0 6.8 5.7 4.5

Greater London 2.4 6.7 14.2 14.3 7.8 5.5 6.6 5.4

South West 2.0 10.0 16.7 15.9 8.7 5.4 2.7 2.5

Wales 1.8 8.7 14.0 16.7 9.8 4.6 3.0 3.3

West Midlands 2.2 8.0 16.6 16.2 7.9 6.6 4.9 2.9


Womenswear

Table 6.5 displays the purchasing habits of adults by gender on selected itemsof womenswear. Overall, 50.9% of all adults purchased some form ofwomenswear in the 12 months ending June 2010. 84% of women bought anitem of womenswear during this period, compared to just 16.1% of men. Themost popular type of clothing was sweatshirts, with 57.8% of all adultsrevealing that they had bought such an item in 2010. Blouses and tops werethe most popular item to be purchased by women, with a penetration of74.6%. Jumpers, woollens and sweatshirts, were the third-most popular itemspurchased, while skirts were the least favoured, with a penetration of just24.8%.



Table 6.5: Purchasing of Selected Women’s Clothing Items inGreat Britain in the Past 12 Months by Type (%),



Sweatshirts 52.6 62.8 57.8

Blouses/tops 13.3 74.6 44.7

Jumpers, woollens andsweatshirts 10.6 62.3 37.1

Dresses 8.4 41.4 25.3

Skirts 7.6 41.2 24.8

Any womenswear 16.1 84.0 50.9


Consumers were more inclined to buy mid-range priced womenswear items,costing between £20 and £99. Dresses were the most popular category formore expensive purchases, although there was still only a small amount ofconsumers spending over £300, at 1%, while the most popular womenswearitem to be bought by women, blouses and tops, were likely to be pricedbetween £20 and £49, at 14.8%. Interestingly, consumers were more inclinedto purchase items over £300 (7.3%) than between £200 and £299 (5.3%),although, overall, the majority of purchases were around £50 and £99 (9.8%).



Table 6.6: Purchasing of Selected Women’s Clothing Items inGreat Britain in the Past 12 Months by Type by Amount Spent

(% of adults), Year Ending June 2010

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Sweatshirts 1.1 2.2 2.7 1.2 0.4 0.2 0.0 0.0

Blouses/tops 3.4 8.4 14.8 10.2 4.6 1.9 0.9 0.5

Jumpers, woollens andsweatshirts 2.2 7.5 12.8 8.0 3.7 1.3 0.8 0.6

Dresses 1.3 3.0 8.0 6.4 3.3 1.4 0.9 1.0

Skirts 2.3 6.2 9.0 4.7 1.5 0.6 0.3 0.2

Any womenswear 1.3 4.3 9.2 9.8 8.9 4.7 5.3 7.3

Source: Target Group Index (TGI) © Kantar Media, Quarter 4 (July 2009-June2010, 2010

As with menswear, social grade also proved to be an important factor in thepurchasing of more expensive items of womenswear. Penetration increasedwith social grade for items of womenswear worth over £300, with 16.1% ofconsumers in social grade A purchasing such items compared with only 2.2%of those in social grade E. Unlike the results exhibited in Table 6.4, whichrevealed that older adults, i.e. those aged between 35 and 55, bought moreexpensive menswear products, younger adults seem to be more extravagantin their spending on items of womenswear, with 9.4% of 20 to 24 year-oldsspending over £300, followed by 9.2% of 25 to 34 year-olds and 9.1% of 15 to19 year-olds. Once again, respondents living in Greater London were the mostextravagant in terms of their purchasing of womenswear, with 10.4% of adultsbuying items worth over £300, while those in East Anglia were the least likelyto buy similarly priced items, with a penetration of just 4.2%.



Table 6.7: Purchasing of Any Womenswear in Great Britain inthe Past 12 Months by Amount Spent by Sex, Age, Social Grade

and Region (% of adults), Year Ending June 2010

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All adults 1.3 4.3 9.2 9.8 8.9 4.7 5.3 7.3

Sex

Men 0.4 1.0 3.0 3.5 2.8 1.2 1.7 2.5

Women 2.2 7.3 15.2 15.7 14.8 8.1 8.8 11.9

Age

15-19 0.5 2.3 7.9 6.6 8.0 4.1 6.1 9.1

20-24 1.6 3.5 9.0 7.1 8.2 6.1 4.2 9.4

25-34 1.2 3.7 8.1 11.0 8.2 5.4 5.3 9.2

35-44 1.4 4.5 8.1 10.2 9.5 4.2 6.8 7.9

45-54 1.4 5.0 8.5 9.2 10.1 5.6 6.2 8.3

55-64 1.4 3.9 8.9 10.4 9.8 4.2 5.5 6.4

65+ 1.5 5.3 12.6 10.8 8.0 4.2 3.4 3.5

Social Grade

A 0.3 1.0 5.2 5.9 9.7 5.1 6.5 16.1

B 0.5 2.3 6.6 10.1 9.4 6.5 7.4 11.0

C1 1.1 3.5 8.8 10.0 10.3 5.0 6.4 8.8

C2 1.5 4.4 10.6 9.7 8.7 3.8 3.9 4.6

D 2.1 7.3 10.7 10.2 7.2 4.1 3.6 3.0

E 3.1 7.8 14.0 9.3 6.1 2.7 2.1 2.2

Region

Scotland 0.8 3.4 10.4 10.7 8.3 3.6 5.5 6.4

North West 1.7 4.2 9.2 10.1 9.5 4.9 5.3 7.3

North 0.9 4.7 9.4 8.3 9.5 5.6 4.9 6.4


East Midlands 1.2 3.6 9.5 11.5 9.5 4.9 4.3 7.8

East Anglia 1.4 4.7 11.5 8.5 10.3 7.8 4.6 4.2

Table continues...



Table 6.7: Purchasing of Any Womenswear in Great Britain inthe Past 12 Months by Amount Spent by Sex, Age, Social Grade

and Region (% of adults), Year Ending June 2010

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Region (cont.)

South East 1.1 4.2 9.0 9.6 9.5 4.8 6.5 7.8

Greater London 1.6 4.1 6.9 7.7 7.8 5.2 5.1 10.4

South West 1.3 4.9 8.3 9.0 8.5 4.9 5.7 6.5

Wales 2.0 4.8 9.1 12.8 9.8 3.7 5.1 5.6

West Midlands 1.6 4.8 10.0 10.5 8.7 4.0 4.7 5.9


Childrenswear

For the year ending June 2010, 30.3% of adults purchased an item ofchildrenswear, with women making more purchases, at 39.5%, compared tomen, at 20.6%. Adults aged between 35 and 44 made the most purchases ofchildrenswear, with a penetration of 56.3%, followed by 25 to 34 year-olds,with 51.3%. Adults were also more likely to buy childrenswear items costingbetween £100 to £149, at 6.1%. Unsurprisingly, social grade affected thepurchasing of more expensive items of childrenswear, with 7.8% of consumersin social grade A spending over £300, compared to just 4.2% of those in socialgrade D.

In terms of region, respondents residing in Scotland were the most extravagantin their spending, with 7.7% of consumers spending over £300 onchildrenswear, compared to only 3.9% of adults in the North, South West, WestMidlands and Wales.



Table 6.8: Purchasing of Childrenswear in Great Britain in thePast 12 Months by Amount Spent by Sex, Age, Social Grade and


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All adults 0.4 2.0 4.5 4.4 6.1 3.6 4.1 5.2

Sex

Men 0.1 1.1 2.8 3.1 4.2 2.8 3.2 3.4

Women 0.6 2.8 6.2 5.6 8.0 4.4 5.1 6.8

Age

15-19 0.3 2.7 3.5 1.2 1.2 1.5 0.6 1.2

20-24 0.8 2.7 4.4 4.6 5.7 2.5 3.4 2.8

25-34 0.3 3.3 5.5 7.4 11.3 5.8 7.3 10.4

35-44 0.3 1.4 5.3 7.2 11.1 8.5 10.0 12.4

45-54 0.3 1.5 4.8 3.7 6.7 3.2 3.9 5.2

55-64 0.4 1.8 5.0 3.2 3.7 1.8 1.3 0.9

65+ 0.4 1.4 3.0 2.0 1.0 0.5 0.5 0.2

Social Grade

A 0.4 1.6 1.8 1.3 8.3 4.3 5.9 7.8

B 0.3 1.1 4.5 4.1 5.2 4.1 4.4 6.4

C1 0.3 2.3 4.1 4.0 5.8 3.1 4.4 4.9

C2 0.4 1.9 4.3 5.3 7.1 4.2 3.5 4.6

D 0.5 2.5 5.5 4.8 6.6 3.2 3.6 4.2

E 0.7 3.1 6.2 4.6 5.2 2.9 3.8 4.4

Region

Scotland 0.3 1.8 4.1 4.4 6.4 3.9 3.7 7.7

North West 0.4 1.7 5.4 4.3 5.5 3.6 4.2 5.2

North 0.3 1.3 4.7 3.7 8.3 2.5 4.6 3.9


East Midlands 0.3 2.3 4.2 4.6 6.1 3.9 4.6 4.1

East Anglia 0.4 2.1 4.8 4.6 4.7 4.3 4.0 6.4

Table continues...



Table 6.8: Purchasing of Childrenswear in Great Britain in thePast 12 Months by Amount Spent by Sex, Age, Social Grade and


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Region (cont.)

South East 0.4 2.1 4.6 4.5 6.4 3.3 4.8 5.5

Greater London 0.6 2.2 4.8 4.5 6.1 3.6 2.9 5.7

South West 0.0 2.8 3.9 4.5 4.6 4.5 3.1 3.9

Wales 0.2 1.3 3.8 6.0 5.7 2.3 6.2 3.9

West Midlands 0.5 1.7 4.6 3.6 6.8 4.1 4.5 3.9




7. Current Issues

INDUSTRY DEVELOPMENTS

Clothing Prices Soar

Clothing prices were described as being at their highest for 18 years inSeptember 2010. Due to the soaring cost of raw materials and increases inwages in Asia, the retail prices of clothing have increased rapidly. Accordingto the global business information company, Textiles Intelligence, pricesincreased by only 0.9% in 2010, compared with the same month in 2009,although, due to the current economic climate and with concerns over adouble dip recession, this has had a big impact on consumer buying behaviour.The retail chains, Next, Primark and H&M have warned that prices arecontinuing to rise, blaming this on the increasing cost of raw cotton.

According to Just-Style, in the 18 months between March 2009and September 2010, prices of cotton rose by 127%, from 51 cents per pound(lb) to almost 116 cents per lb. The reason for the dramatic increase is due tocotton being in short supply, since farmers reduced planting seeds when cottonprices were low. Other factors, such as a strong demand in the People’sRepublic of China (PRC) and India and floods destroying crops in Pakistan havealso fuelled the price increases. On top of this, the UK is also having to take onthe added costs involved in transporting such goods from the PRC, due to theappreciation of the Chinese currency at the current time. Despite this, becauseof the country’s expertise in manufacturing in large volumes and for a varietyof products, buyers have continued to source from the PRC.

British Sweatshops Revealed in ‘Dispatches’

In November 2010, the Channel 4’s programme Dispatches launched aninvestigation into UK clothing manufacturing factories. The episode entitledFashion’s Dirty Secret secretly filmed facilities which were based in Leicesterover a 3 month period. The factories, which manufactured clothing for Bhs,New Look, Peacocks, C&A and Jane Norman, were described as having workingconditions similar to those of sweatshops, with some workers being paid lessthan half of the legal minimum wage and working long hours in dangerousworkplaces, which were poorly ventilated and cramped. Regarding workersbeing paid less than the minimum wage, Dispatches stated that some workerswere being paid as low as £2.50 per hour (p/h) with minimal breaks and anenormous workload. The manufacturers featured in the documentary includedSammi Leisurewear Ltd, Kiwi Clothing (UK) Ltd and Europride Ltd. After theprogramme was aired, the retailers which had contracts with these companiesannounced that they would be launching their own investigations in the nearfuture.

Clothing Manufacturing Current Issues


Changes in Buying Behaviour of Childrenswear Revealed by KantarWorldpanel

A recent study from Kantar Worldpanel on the fashion industry, derived from15,000 consumers, divulged many key findings regarding consumers changingbuying habits in the childrenswear market. One of the initial findings was that,although fewer items were being bought, average spending had increased.The study also revealed that grandparents have been more inclined to purchasechildren’s clothing as a gift. In addition, men were found to have been makingmore purchases, accounting for a quarter of the market spend, althoughwomen still remained the most likely purchasers.

CORPORATE ACTIVITY

Rises in Clothing Retail Prices Announced by Retailer Next

Next chief executive (CE), Simon Wolfson, has warned that the retailersclothing prices will rise in 2010, due to recent increases in the cost of cotton.The retailer explained that price increases of around 8% will be seen on someproducts, after previous warnings that clothes would observe hikes of 5% to8% within the first quarter of 2011. Next also claimed that other factors, suchas wage increases in the Far East, where a large amount of the company’smanufacturing operations are undertaken, were contributing to the rise.

However, Next will not be the only retailer to increase the price of its clothing,with many others set to do the same over the coming months because of therise in cotton prices. In November 2010, the British Retail Consortium (BRC)claimed that cotton had increased by 90% over the past 12 months, with thisdramatic rise likely to have a widespread and significant impact on the retailprice of clothing in the UK.

American Apparel Faces Bankruptcy

Clothing retailer American Apparel is facing bankruptcy since its auditorDeloitte & Touche resigned in July, claiming that the company was showingsigns of ‘material weaknesses’. In July 2010, the company revealed that it haddebts of $120m and an average loss of $30m per year, with this trend only setto continue.

Haynes & Cann Closes

In October 2010, footwear manufacturer, Haynes & Cann, announced theclosure of the company. The firm, which manufactured footwear for themilitary was forced to close after its regular Ministry of Defence contract waswithdrawn. The company’s manager and staff, who have been producingfootwear in Northampton for more than 90 years, are described as beingdevastated about the latest events.



LEGISLATION

The US Manufacturing Enhancement Act

A new act has been approved regarding import tariffs in the US, cutting inputcosts for US companies involved in manufacturing. The US ManufacturingEnhancement Act, also known as the Miscellaneous Tariff Bill (MTB), combinesvarious individual bills that have set temporary duties on certain importedgoods.

ENVIRONMENT

The Waste of Clothing Adding Up

In October 2010, a conference was held in London regarding the future of UKfashion, stressing the importance of a greener future. According to theconsultancy group, Brook Lyndhurst, UK consumers buy 2 million tonnes ofclothing every year, while 1.8 million tonnes end up in landfill sites. Aspokesperson for Forum for the Future believes that if this continues it will leadto an even lower cotton supply, which would escalate cost and powershortages in factories, while also having a negative impact on the environment.

H&M Clean up Textile Factories

H&M announced plans to work with its textile supplier based in the PRC inorder to implement a new eco-manufacturing plan drawn up by theenvironmental initiative, Clean by Design, which will help to reduce water,energy and chemical use in its factories. The Clean by Design initiative hasalready been carried out by many leading retailers, including Gap, Levi Strauss,Nike and Marks & Spencer (M&S).

TECHNOLOGY

3D Technology Hopes to Boost Online Fashion Sales

New product lifestyle management (PLM) software created by DassaultSystèmes has been designed to allow users to shop online using 3D technology.The software has been designed specifically for the fashion industry, while thesoftware company already has an extensive portfolio of brands that use itsapplications, including Adidas, Guess, New Balance and Gucci. The softwarealso allows retailers to track the flow of information being consumed acrossthe globe through online stores and global supply chains.



The software was trialled on Espacemax.com, an online department store, andallowed shoppers to look at items from every angle. The company claims thatthe experience of using such technology was like trying out a product firsthand, just as consumers would do in-store. Espacemax.com sent out 50,000pairs of 3D glasses to potential customers for the trial and figures showed thatwithin the first 3 weeks of the promotion, the company sold merchandise to2,000 new customers.



8. The Global Market

GLOBAL TRENDS

World exports have declined by 9.1% since 2007 to $315.62bn in 2009, afterpeaking at $364.91bn in 2008. Despite this, however, exports have increasedoverall, rising by 59.8% since 2000. Much of the recent decline, seen in 2009,has been down to the impact that the global economic crisis has had on theclothing industry, as well as the fall in retail sales that has been documentedin recent years. The downturn has also affected global imports of clothing,which observed a similar decrease of 12.1% in 2009, according to Key Noteestimates based on World Trade Organization (WTO) figures.

Table 8.1: Global Exports and Imports of Clothing by Value($bn and %), 2000 and 2007-2009

2000 2007 2008 2009% Change2000-2009

Exports 197,570 347,059 364,914 315,622 59.8

Importse 218,022 360,156 376,224 330,867 51.8

e — Key Note estimates based on World Trade Organization data

Source: World Trade Organization, International Trade Statistics, 2009/Key Note

Clothing Manufacturing The Global Market


Figure 8.1: Global Exports and Imports of Clothing by Value($bn), 2000 and 2007-2009

Exports

Imports

2000 2007 2008 2009

Year

150,000

175,000

200,000

225,000

250,000

275,000

300,000

325,000

350,000

375,000

400,000

Val

ue

($b

n)

Note: Import totals are Key Note estimates based on World Trade Organization data.

Source: World Trade Organization, International Trade Statistics, 2009/KeyNote

The world’s largest exporter of clothing was the People’s Republic of China,which contributing to 34% of all exports in 2009. The Chinese clothing exportmarket has observed considerable growth since 2000, after rising by 197.4%,however, like most countries, a decline was reported for the period between2007 and 2009, during which exports fell by 10.9%. The second-largestexporter in the world was the EU-27, which accounted for 30.7% of the totalmarket in 2009, after reporting exports of $96.8bn. Combined, these twomarkets contributed 64.7% towards total global clothing exports in 2009,compared to the 46.7% that they contributed in 2000.

In 2009, the total amount of global exports amounted to $315.62bn, comparedto $197.6bn in 2000. Countries that have expanded since the start of the decadeinclude the two largest exporters, the PRC and the EU-27, as well as Turkey,India, Bangladesh and Vietnam. Other export markets have, however, declinedsince 2000. For example, Hong Kong, the US and Mexico have all witnessed adrop in the amount of clothes that they have exported since 2000, decreasingby 5.7%, 49.4% and 51.7%, respectively.



Table 8.2: Clothing Exports of Selected Economies by Value($m and %), 2000 and 2007-2009

2000 2007 2008 2009% of 2009

Total

PRC 36,071 115,516 120,399 107,261 34.0

EU-27 56,240 105,375 114,314 96,797 30.7

Hong Kong 24,214 28,765 27,908 22,826 7.2

Turkey 6,533 13,886 13,590 11,555 3.7

India 5,960 9,932 11,495 11,454 3.6

Bangladesh† 5,067 8,855 10,920 10,726 3.4

Vietnam† 1,821 7,400 8,724 8,629 2.7

US 8,269 4,320 4,449 4,186 1.3

Mexico‡ 8,631 5,139 4,911 4,165 1.3

Others 44,764 47,871 48,204 38,023 12.0

Total 197,570 347,059 364,914 315,622 §100.0


† — includes secretarial estimates

‡ — includes significant exports from processing zones

§ — does not sum due to rounding

Source: World Trade Organization, International Trade Statistics, 2009

According to figures from the WTO, the leading global importer of clothingwas the EU-27, after accounting for 48.4% of the total import market in 2009.However, although imports into the EU-27 have increased since 2000, a declineof 11% was observed in 2009, similar to the trends observed in global exportsdisplayed in Table 8.2.

The second-largest clothing importer was the US, accounting for 21.8% of thetotal market, despite observing some decline since 2007, implying that the USmarket began to deteriorate faster than other economies, as was widely thecase during the global economic crises. Combined, the two largest importersaccounted for 70.2% of total global imports in 2009.



Table 8.3: Clothing Imports of Selected Economies by Value($m and %), 2000 and 2007-2009

2000 2007 2008 2009% of 2009

Total

EU-27 83,181 165,320 179,982 160,112 48.4

US 67,115 84,851 82,464 72,059 21.8

Japan 19,709 23,997 25,870 25,510 7.7

Hong Kong 16,008 19,149 18,546 15,508 4.7

Canada† 3,690 7,613 8,248 7,559 2.3

RussianFederation†‡ 2,688 14,505 12,018 7,250 2.2

Switzerland 3,160 5,184 5,805 5,242 1.6

Australia† 1,858 3,703 4,280 4,058 1.2

Republic ofKorea 1,307 4,318 4,223 3,379 1.0

Saudi Arabia‡ 813 1,939 2,018 3,025 0.9

Others 18,493 29,577 32,770 27,165 8.2

Total 218,022 360,156 376,224 330,867 §100.0

† — imports are valued ‘freight on board’ (f.o.b)

‡ — includes secretariat estimates

§ — does not sum due to rounding


THE EU

The balance of trade between exports and imports in the EU-27 has widenedsince 2000, with the biggest difference recorded in 2008, when a negativetrade balance of $65.67bn was registered. In 2009, this gap closed slightly,although a negative trade balance of £63.32bn was still reported, reflectingthe decrease in both exports and imports observed in this year.



Table 8.4: EU-27 Trade in Articles of Clothing and Apparel byValue ($m), 2000 and 2007-2009

2000 2007 2008 2009

Exports 56,240 105,375 114,314 96,797

Less importse 83,181 165,320 179,982 160,112

Balance oftrade -26,941 -59,945 -65,668 -63,315

e — Key Note estimates based on statistics from the World Trade Organization


In 2009, intra-EU-27 imports accounted for 46.9% of total clothing imports intothe EU-27,and were worth $75.12bn. The second-largest importer supplyingthe EU-27 was the PRC, accounting for 23.8% of the total market, followed byTurkey with 6.2%. Combined, these three countries contributed 76.9%towards total clothing imports into the EU-27.

Table 8.5: EU-27 Imports of Clothing by Origin by Value($m and %), 2009

Import Value ($m) % of Total

EU-27 75,115 46.9

PRC 38,057 23.8

Turkey 9,967 6.2

Bangladesh 7,146 4.5

India 6,316 3.9

Tunisia 3,185 2.0

Morocco 2,813 1.8

Vietnam 1,752 1.1

Sri Lanka 1,687 1.1

Indonesia 1,603 1.0

Table continues...



Table 8.5: EU-27 Imports of Clothing by Origin by Value($m and %), 2009

...table continued


Others 12,471 7.8

Total 160,112 †100.0



THE US

Like the EU, the US imports more articles of clothing and apparel than itexports, producing a negative balance of trade. A trade deficit of $65.14bn wasreported in 2009, which was slightly lower than had been seen over the 5-yearperiod between 2005 and 2009, due to a sharp fall in imports in the latter year.According to figures from the US Department of Commerce, the amount of USclothing exports has decreased by 16.4% since 2005, while imports decreasedby 9.2% over the same period.

Table 8.6: US Trade in Articles of Clothing and Apparel by Value($m), 2005-2009

2005 2006 2007 2008 2009

Exports 5,006 4,885 4,320 4,449 4,186

Less imports 76,383 79,149 81,176 78,893 69,326

Balance of trade -71,377 -74,264 -76,856 -74,444 -65,140

Note: the import and export values sourced from the US Department of Commerce’sInternational Trade Administration differ from those sourced from the World TradeOrganization displayed in Table 8.1 and 8.2 due to the mode of categorisation used.

Source: US Department of Commerce, International Trade Administration



In 2009, the US imported the majority of its clothing and apparel from the PRC,which accounted for over a third (39%) of all clothing imports into the country.Since 2005, clothing imports from the PRC have increased by 35.8%. In 2009,the second-largest importer into the US was Vietnam, followed by Indonesia,contributing 7.4% and 5.8% towards the total market, respectively. Thefourth-largest importer of US clothing, Mexico, has observed a large decline inits exports to the country in recent years, despite being the second-largestexporter up until 2007. During the 5-year period, exports from Mexicodecreased by 43.8%, from $6.32bn in 2005 to $3.6bn in 2009. The majority ofexporters to the US were based in the Asia/Pacific region, with no countriesfrom the EU-27 listed in the top 11.

Table 8.7: US Imports of Articles of Clothing and Apparel bySource by Value ($m), 2005-2009

2005 2006 2007 2008 2009

PRC 19,935 23,126 27,126 27,205 27,062

Vietnam 2,738 3,239 4,387 5,254 5,107

Indonesia 2,987 3,789 4,106 4,158 3,987

Mexico 6,322 5,529 4,706 4,213 3,553

Bangladesh 2,374 2,918 3,103 3,444 3,409

India 3,145 3,326 3,298 3,213 2,955

Honduras 2,686 2,518 2,589 2,676 2,108

Cambodia 1,714 2,135 2,426 2,377 1,872

Thailand 2,221 2,260 2,204 2,134 1,699

Pakistan 1,339 1,499 1,581 1,586 1,381

El Salvador 1,619 1,409 1,485 1,534 1,298

Others 29,306 27,401 24,165 21,099 14,895

Total 76,383 79,149 81,176 78,893 69,326

Note: the import and export values sourced from the US Department of Commerce’sInternational Trade Administration differ from those sourced from the World TradeOrganization displayed in Table 8.1 and 8.2 due the mode of categorisation used.




The main export destination of US clothing and apparel was Canada, whichimported $1.4bn worth of clothing from the country in 2009. This aloneaccounted for 32.6% of the total market in 2009 — a figure that has increasedyear-on-year since the start of the 5-year period presented in Table 8.8. Thesecond-most popular export destination in 2009 was Mexico, followed byJapan, accounting for 17.7% and 6.3% of the market, respectively. Exports toEuropean markets, including the UK and Belgium increased during the 5 years,with the UK importing clothing to the value of $191m from the US in 2009.

Table 8.8: US Exports of Articles of Clothing and Apparel byDestination by Value ($m), 2005-2009

2005 2006 2007 2008 2009

Canada 1,013 1,212 1,287 1,509 1,366

Mexico 1,125 997 710 682 740

Japan 369 309 258 269 265

UK 124 148 163 187 191

Honduras 422 352 269 147 153

Belgium 116 147 147 134 107

DominicanRepublic 470 363 211 155 106

Germany 55 62 78 98 89

South Korea 53 65 83 91 88

Australia 43 47 51 72 71

Others 1,216 1,183 1,063 1,105 1,010

Total 5,006 4,885 4,320 4,449 4,186

Note: the import and export values sourced from the US Department of Commerce’sInternational Trade Administration differ from those sourced from the World TradeOrganization displayed in Table 8.1 and 8.2 due the mode of categorisation used.


JAPAN

Japan has an extensive growing trade deficit, similar to that observed for theEU-27 and the US. In 2009, Japan imported $25.51bn worth of clothing andapparel and exported just $483m — its lowest amount over the last decade.According to the figures displayed in Table 8.9, the trade deficit was greatestin 2008, when it stood at $25.3bn.



Table 8.9: Japanese Trade in Articles of Clothing and Apparel byValue ($m), 2000 and 2007-2009

2000 2007 2008 2009

Exports 534 523 593 483

Less imports 19,709 23,997 25,870 25,510

Balance of trade -19,175 -23,474 -25,277 -25,027


In 2009, the leading supplier of clothing and apparel to Japan was the PRC,accounting for 82.9% of all imports into the country. In the same year, theEU-27 was the second-largest exporter to the country, followed by Vietnam,accounting for 4.9% and 4.1%, respectively.

Table 8.10: Japanese Imports of Clothing by Source by Value($m and %), 2009


PRC 21,153 82.9

EU-27 1,241 4.9

Vietnam 1,045 4.1

Thailand 329 1.3

Republic of Korea 232 0.9

India 195 0.8

Malaysia 194 0.8

US 166 0.7

Indonesia 165 0.6

Myanmar 149 0.6

Others 641 2.5

Table continues...



Table 8.10: Japanese Imports of Clothing by Source by Value($m and %), 2009

...table continued


Total 25,510 †100.0



Source: World Trade Organization – International Trade Statistics, 2009



9. Forecasts

INTRODUCTION

The Economy

Gross Domestic Product

Gross domestic product (GDP) growth is predicted to increase in theforthcoming years after the UK’s exit from recession in 2009, settling at around2.3% to 2.4% from 2013 onwards (in real terms), after increasing at a theslower rates of 1.6% and 1.9% in 2010 and 2011, respectively. This recoverywill be dependent on the UK’s return to growth, which is still relatively slow,with some economists warning of a double-dip recession, amid concerns overGovernment cuts and tax increases. If the forecast growth in GDP is achieved,however, the clothing manufacturing industry should benefit, as continuedgrowth should see renewed confidence in consumer spending.

Table 9.1: Forecast UK Growth in Gross Domestic Product in RealTerms (%), 2010-2014

2010 2011 2012 2013 2014

Gross domestic productgrowth (%) 1.6 1.9 2.1 2.3 2.4

Percentage point changeyear-on-year - 0.3 0.2 0.2 0.1

Source: Forecasts for the UK Economy, November 2010, Treasury IndependentAverage © Crown copyright

Clothing Manufacturing Forecasts


Population

The UK population is forecast to increase by 0.7% year-on-year during the5-year forecast period, peaking at 63.9 million people in 2014. This willultimately impact the clothing industry, as it offers the prospect of morepotential consumers. However, it should be noted, that much of the populationincrease may be down to people living longer due to better healthcare,resulting in an ageing demographic, which may have a negative effect on themarket. This is because many older consumers are generally reliant on statepensions, which are typically low, resulting in such consumers being cautiousin their spending, particularly on items that are considered a luxury, such asclothing. In comparison, younger generations are more spontaneous in theirbuying behaviour and are therefore more likely to purchase goods such asclothing, particularly since this demographic are more likely to be workingfull-time and therefore have more disposable income. This could eventuallylead the industry to target the older generation more as potential customers.

Figure 9.2 also revealed that there are more women than men in thepopulation, due to women having longer life expectancies. This should have apositive impact on the clothing market, as women are regarded as the ‘biggerspenders’ within the industry.

Table 9.2: Forecast UK Resident Population by Sex (000),Mid-Years 2010-2014

2010 2011 2012 2013 2014

Female 31,614 31,807 32,001 32,196 32,391

Male 30,609 30,842 31,073 31,302 31,530

Total †62,222 62,649 63,074 63,498 63,921

% changeyear-on-year 0.7 0.7 0.7 0.7 0.7

† — does not sum due to rounding by source

Source: Population Projections Database (2008-based projections), NationalStatistics website © Crown copyright material is reproduced with the permissionof the Controller of HMSO (and the Queen’s Printer for Scotland)



Inflation

Inflation in the UK is forecast to be at its highest in 2010, before graduallyslipping to 2.7% 2012, thereafter settling at around 3.2% in 2014. Inflationdoes influence the costs of production for many clothing manufacturers, alongwith various other factors that are also becoming more apparent. Accordingto National Statistics, the consumer price index (CPI) of clothing has risen from78.8 for the year ending October 2009 to 79.9 for the same period in 2010(using the monthly indices 2006=100), revealing that prices have increased,with garments, in particular, rising from 77.2 in to 78.1 over the same period.This, coupled with inflationary pressures and the increasing price of cotton,will influence the retail price of clothing in the coming months and years, withcosts expected to soar.

Table 9.3: Forecast UK Rate of Inflation (%), 2010-2014

2010 2011 2012 2013 2014

Inflation (%) 4.4 3.6 2.7 3.0 3.2

Percentage point changeyear-on-year 4.9 -0.8 -0.9 0.3 0.2

Note: inflation is at retail price index (RPI).


Unemployment

Unemployment in the UK is forecast to see an increase of 1.3% to 1.54 millionin 2011 and 2012, before witnessing a steady decline to 1.43 million in 2014.Overall, the number of people unemployed is expected to decrease by 5.9%over the 5-year forecast period, as long as the UK does not witness a doubledip recession. The high number of claimants will have an effect on the industry,as there will be less potential consumers with disposable income.



Table 9.4: Forecast Actual Number of Unemployed Persons inthe UK (million), 2010-2014

2010 2011 2012 2013 2014

Actual number ofclaimants (million) 1.52 1.54 1.54 1.50 1.43

% changeyear-on-year -0.7 1.3 0.0 -2.6 -4.7


FORECAST 2011 TO 2015

The Apparent UK Market

Key Note forecasts that UK manufacturers’ sales will continue to decrease, witha significant loss expected in 2012 to £2.8bn, after which a more gradualdecline will be witnessed. This will be in line with the expected economicrecovery in the UK, which is predicted to regain some strength after 2012, afterwhich there will be more opportunities for UK manufacturers. Despite this,however, the market is estimated to continue declining, albeit at a moregradual pace, finishing the forecast period at £2.7bn.

Exports are predicted to increase by 14.5% over the 5 years, with consistentgrowth expected for the forecast period, as globally economies are predictedto have undergone a full recovery by then, proceeding the global recession,thus creating more opportunities for the clothing industry overseas. Importsare also forecast to increase, rising by 6.7% over the 5 years, as consumerdemand for low-cost imported clothing is expected to continue. If, as isexpected, economic recovery endures over the 5-year forecast period,investment in the luxury clothing market may also observe improvement,creating further opportunities for UK manufacturers that are known for theirquality production of clothing in Britain.

Overall, Key Note forecasts that the total apparent UK clothing manufacturingmarket will increase by 1.7% from £13.7m in 2011 to £13.9m in 2015. Ayear-on-year improvement is estimated, with the exception of 2014, when themarket is predicted to remain static at £13.91bn, before witnessing a furthergrowth of 0.1% to £13.93bn in 2015.



Table 9.5: The Forecast Total Apparent UK Market for theManufacture of Clothing by Value (£m at msp), 2011-2015

2011 2012 2013 2014 2015

UK manufacturers’ sales 2,890 2,770 2,730 2,690 2,670

Less exports 3,510 3,600 3,770 3,910 4,020

Plus imports 14,320 14,610 14,950 15,130 15,280

Total 13,700 13,780 13,910 13,910 13,930

% change year-on-year 0.7 0.6 1.0 0.0 0.1


Source: Key Note

Figure 9.1: The Forecast Total Apparent UK Market for theManufacture of Clothing by Value (£m at msp), 2011-2015

UK manufacturers’ sales

Total apparent UK market†

2011 2012 2013 2014 2015

Year

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

Val

ue

(£m

)


† — imports less exports

Source: Key Note



Household Expenditure on Clothing

Key Note estimates that annual household expenditure on womenswear willincrease significantly more than expenditure on other sectors of clothingduring the forecast period. It is expected that womenswear will increase by14% over the 5 years, with the sector estimated to be worth £14.32bn in 2015,contributing 56.2% towards total expenditure on clothing. Both the menswearand childrenswear sectors will also observe increases, rising by 5.7% and 5.1%,respectively, over the 5-year period.

Furthermore, Key Note predicts that, in 2015, total household expenditure onclothing will reach approximately £25.5bn, after increasing by 9.8% from 2011.

Table 9.6: Forecast Total UK Annual Household Expenditure onClothing by Type (£m at msp), 2011-2015

2011 2012 2013 2014 2015

Women’s clothing 12,560 13,020 13,520 13,970 14,320

Men’s clothing 5,970 6,070 6,130 6,190 6,310

Children’sclothing† 3,760 3,810 3,820 3,880 3,950

Others 930 810 850 910 910

Totalexpenditure 23,220 23,710 24,320 24,950 25,490

% changeyear-on-year 1.8 2.1 2.6 2.6 2.2


† — includes outer garments for boys and girls aged 5 to 15 and for infants under 5 years,as well as under garments for children under 16 years

Source: Key Note



Figure 9.2: Forecast Total UK Annual Household Expenditure onClothing (£m at msp), 2011-2015

2011 2012 2013 2014 2015

Year

0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

25,000

27,500

30,000

Exp

end

itu

re (

£m)


Source: Key Note

MARKET GROWTH

Figure 9.3 represents the actual and forecast values for the clothingmanufacturing market at manufacturers’ selling prices (msp) between 2006and 2015.



Figure 9.3: Growth in the Total Apparent UK Market for theManufacture of Clothing by Value (£m at msp), 2006-2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

12,000

12,250

12,500

12,750

13,000

13,250

13,500

13,750

14,000

14,250

14,500

Val

ue

(£m

)


Source: Key Note

FUTURE TRENDS

More Manufacturing Plants to Move Overseas

It is expected that more manufacturing plants will be moved abroad in theforthcoming years in order to compete will the low costs of overseasmanufacturing. The People’s Republic of China (PRC) and India continue toremain popular locations for manufacturing facilities due to the lower costs ofproduction and wages there, along with the larger populations that they have,which ensure that a good supply of employees is maintained.



The End of Cheap Fashion

Due to the recent changes in the price of cotton, which has hit a 15-year high,many retailers have already announced their plans to increase the retail priceof their clothing lines. In particular, both Next and Primark have spoken outabout how the costs will be incorporated into the price of their clothing, withthis latest rise likely to have significant repercussions for cheap and discountclothing retailers as well. The rising costs are also predicted to impact consumerbuying behaviour, with many becoming more cautious in their spending.Indeed, Next has announced that the company expects to see slow sales growthover the next 3 to 5 years, due to consumers reluctance to spend. The retailerrevealed on BBC News in September 2010, that: ‘Over the long-term Nextexpects its own revenues will be a fraction of the kind of increases that it andother retailers enjoyed in the boom years up to 2007’.

Other factors, such as the 2.5% value-added tax (VAT) rise, which came intoforce on the 4th January 2011, are also predicted to add to the financial strainthat consumers will be undergoing during the year, resulting in a morecautionary approach to spending, particularly on luxury items, such as clothing.

These changes are expected to have a significant impact on cheap clothingretailers, such as Primark and H&M. Although, it is likely to be the smaller,individual clothing retailers and manufacturers that will feel the most strain,as such businesses have been struggling to recover since the recession of 2008.

More Clothing Manufacturers Face Administration

It is expected that the challenging market conditions of the clothing industry,will have a considerable effect on clothing manufacturing companies,particularly those that are based in the UK, with many likely to face thepossibility of administration. Over the last few years, both Intimas Group PLCand Stirling Group Ltd have gone into administration and are no longertrading, as has AX Realisations PLC (formerly Alexandra PLC), although thecompany has continued to trade. It is expected that as more retailers sourcefrom lower cost overseas plants, many UK manufacturers’ will move theirfacilities abroad in order to remain competitive.



10. Company Profiles

INTRODUCTION

The following section contains financial profiles of some of the principalcompanies identified as operating within the market sector discussed in thisreport. The financial results of some of the important names within the sectormay not be reported if:

• their principal activities are so varied that their results are not consideredapplicable to the survey

• they are no longer trading as separate companies

• their financial data are very out of date.

DEFINITIONS

A company which has a ‘Y’ consolidated value has filed consolidated accountsfor the relevant year.

† — denotes that the growth rate calculation is invalid, because the figureseither move from positive to negative or from negative to positive.

Turnover (Sales)

This includes all income derived from the principal activities of the firm, net ofVAT. It encompasses UK sales, exports and overseas and intercompany sales.

Pre-Tax Profit

The net trading profit figure after deduction of all operating expenses,including depreciation and finance charges but before deduction of tax,dividends, subventions or group relief, and other appropriations. Whereapplicable, it will include the share of profits and losses of associatedcompanies. Items described by the company as exceptional are included;extraordinary items are excluded.

Profit Margin

Pre-tax profit expressed as a percentage of sales.

Average Remuneration

Total employee remuneration divided by the number of employees.

Sales per Employee

Sales divided by the number of employees.

FURTHER INFORMATION

For more detailed financial information telephone Key Note on: 0845-5040452.

Clothing Manufacturing Company Profiles


BURBERRY GROUP PLC

Registered Office Horseferry HouseHorseferry RoadLondon, SW1P 2AW

Company Registration Number 03458224Date of Incorporation 30/10/1997Holding Company noneUltimate Holding Company none

Previous Name(s) and Date(s) of Change

Burberry Group Ltd (13/06/2002)Burberrys Group Ltd (10/03/1999)Hackremco (No. 1279) Ltd (14/12/1997)

Principal Activities

A group engaged in the design, sourcing, manufacture and distribution of luxury apparel andaccessories via own retail stores, concessions and wholesale customers and licensing.

SIC Codes

18221, Manufacture of other men’s outerwear.18222, Manufacture of other women’s outerwear.19200, Manufacture of luggage, handbags and the like, saddlery and harness.19300, Manufacture of footwear.51429, Wholesale of clothing not elsewhere classified.52423, Retail sale of other women’s clothing.52424, Retail sale of other men’s clothing.52431, Retail sale of footwear.52432, Retail sale of leather goods.

Structure

Burberry Group PLC designs, sources, manufactures and distributes luxury clothing andaccessories on a global scale, through its own retail stores, concessions and wholesale customers.It also licenses third parties to manufacture and distribute its products with the companytrademark.

Brand Information

The company specialises in luxury clothing items and accessories for men, women and childrenand defines itself as an iconic British luxury brand.

Recent Developments

In October 2010, Burberry reported plans to increase its total retail floor space by 25%, withmuch of this additional space allocated towards its operations in the People’s Republic of China(PRC), where it hopes to open new stores and expand its existing establishments.



FINANCIAL PROFILE

Year End 31/03/2010 31/03/2009 31/03/2008 31/03/2007Weeks 52 52 52 52Consolidated Y Y Y Y

Sales

Sales (£000) 1,279,900 1,201,500 995,400 850,300% change year-on-year 6.53 20.71 17.06 14.57Exports (£000) - - - 850,300Exports/Sales (%) - - - 100.00

Profits

Pre-Tax Profits (£000) 166,000 -16,100 195,700 156,300% change year-on-year † † 25.21 -0.45Profit Margin (%) 12.97 -1.34 19.66 18.38Operating Profit (£000) 171,100 -9,900 201,700 157,000

Employees

Number of Employees 5,608 6,208 5,660 5,218Average Employee Remuneration (£) 33,880 27,400 27,261 27,501Sales per Employee (£) 228,228 193,541 175,866 162,955Profit per Employee (£) 29,601 -2,593 34,576 29,954Capital Employed per Employee (£) 113,730 93,251 91,343 80,356

Balance Sheet/Ratios

Capital Employed (£000) 637,800 578,900 517,000 419,300Return on Capital (%) 26.03 -2.78 37.85 37.28Net Worth (£000) 525,500 481,800 344,900 263,300Current Ratio 1.53 1.36 1.35 1.28Liquidity Ratio 1.20 0.88 0.73 0.83



CUK CLOTHING LTD

Registered Office PO Box 54Haydn RoadNottinghamNottinghamshire, NG5 1DHTelephone: 01159-246 100

Company Registration Number 05786280Date of Incorporation 19/04/2006Holding Company Kadima Holdings LtdUltimate Holding Company Magellan Textile Holdings Ltd

Previous Name(s) and Date(s) of Name

Courtaulds (UK) Ltd (29/06/2010)


The supply of intimate apparel and clothing and the manufacture and supply of hosiery.

SIC Codes

17710, Manufacture of knitted and crocheted hosiery.51429, Wholesale of clothing not elsewhere classified.

Structure

CUK Clothing Ltd (formerly Courtaulds (UK) Ltd) is one of the largest manufacturers ofunderwear and hosiery in the UK. The company was incorporated on 19th April 2006, afteracquiring the majority of the assets of Courtaulds Textiles (Holdings) Ltd.

Brand Information

The company owns a variety of brands, including Berlei, Gossard, Aristoc and Pretty Polly. It alsoproduces own-label products for Marks & Spencer (M&S) and BHS.

Recent Developments

In May 2010, an agreement was signed between CUK Clothing Ltd and the Sri Lanka Board ofInvestment (BOI) to establish a knitted fabric manufacturing plant, which will be located atBadalgama and will be used for the purpose of exports.



FINANCIAL PROFILE

Year End 30/06/2009 30/06/2008 30/06/2007Weeks 52 52 56Consolidated N N N

Sales

Sales (£000) 166,268 192,908 190,828% change year-on-year -13.81 1.09 -Exports (£000) - - -Exports/Sales (%) - - -

Profits

Pre-Tax Profits (£000) -9,718 -4,084 -1,591% change year-on-year † † -Profit Margin (%) -5.84 -2.12 -0.83Operating Profit (£000) -8,599 -2,749 -732

Employees

Number of Employees 955 1,059 1,385Average Employee Remuneration (£) 23,285 22,586 17,583Sales per Employee (£) 174,103 182,161 127,940Profit per Employee (£) -10,176 -3,856 -1,067Capital Employed per Employee (£) 5,584 5,651 5,976


Capital Employed (£000) 5,333 5,984 8,277Return on Capital (%) -182.22 -68.25 -17.85Net Worth (£000) 3,229 -226 1,522Current Ratio 0.94 0.92 0.95Liquidity Ratio 0.54 0.48 0.50



DAWSON INTERNATIONAL PLC

Registered Office Lochleven MillsKinrossFife, KY13 8GLTelephone: 01577-867 000Fax: 01577-867 010

Company Registration Number SC054505Date of Incorporation 15/11/1973Holding Company noneUltimate Holding Company none


A group engaged in the design, sourcing and sale of cashmere garments and cashmere, blended/woollen yarns and the sale of home furnishing products.

SIC Codes

17120, Preparation and spinning of woollen-type fibres.17130, Preparation and spinning of worsted-type fibres.17720, Manufacture of knitted and crocheted pullovers, cardigans and similar articles.51410, Wholesale of textiles.51429, Wholesale of clothing not elsewhere classified.

Structure

Dawson International is a world leader in the cashmere clothing industry, as well as awell-known supplier of fine bed linen, which is supplied through the company’s Home Groupdivision. The company has headquarters in Kinross, Scotland and employs around 300 peopleacross the Group in locations such as the UK, Europe, the People’s Republic of China (PRC) andthe US.

Brand Information

In the UK, the company has a trading agreement with retailer Dunelm, to supply the Dormaand its own-brand bed linen until 2010, via its Dawson Home Group division.The company brand, Barrie, designs, develops and manufactures cashmere knitwear forhigh-end retailers and Kinross Cashmere Europe, which distributes garments throughoutEurope and Japan.

Recent Developments

Dawson International reported the final sale of the company subsidiary, Todd & Duncan, inSeptember 2010, after 18 months of negotiations. The subsidiary, whose customers includeBurberry, Gucci and Prada was sold to the Chinese company, Zhongyin, in a deal worth £8.4m.



FINANCIAL PROFILE


Sales

Sales (£000) 72,883 85,713 92,601 102,093% change year-on-year -15.00 -7.44 -9.30 -8.54Exports (£000) 35,403 43,451 42,370 48,244Exports/Sales (%) 48.58 50.69 45.76 47.25

Profits

Pre-Tax Profits (£000) 575 1,120 -1,555 -3,738% change year-on-year -48.66 † † †Profit Margin (%) 0.79 1.31 -1.68 -3.66Operating Profit (£000) 1,962 1,859 -1,056 -3,128

Employees

Number of Employees 623 873 1,017 1,358Average Employee Remuneration (£) 19,173 17,587 15,538 13,157Sales per Employee (£) 116,987 96,330 91,053 75,179Profit per Employee (£) 923 1,259 -1,529 -2,753Capital Employed per Employee (£) 34,931 33,155 26,398 22,750


Capital Employed (£000) 21,762 28,944 26,847 30,895Return on Capital (%) 2.64 3.80 -5.79 -12.10Net Worth (£000) 1,351 20,109 20,037 8,572Current Ratio 2.71 2.05 1.84 2.22Liquidity Ratio 1.96 1.04 0.79 0.93



JAMES JOHNSTON & CO OF ELGIN LTD

Registered Office NewmillElgin, IV30 4AFTelephone: 01343-554 000

Company Registration Number SC022553Date of Incorporation 25/09/1943Holding Company noneUltimate Holding Company none


A group engaged in the manufacture and sale of cashmere and woollen goods.

SIC Codes

17710, Manufacture of knitted and crocheted hosiery.51410, Wholesale of textiles.52120, Other retail sale in non-specialised stores.

Structure

James Johnston & Co of Elgin is a company engaged in the sales and manufacture of cashmereproducts. It is one of the few companies which undertakes all stages of the manufacturingprocess, from sourcing raw materials to the finishing of garments. The company has two millswhich are based at Elgin and Hawick and employs over 700 people in its manufacturing facilities.

Brand Information

The company produces a range of products for men, women and children, as well as a selectionof homeware and furniture products under the Johnston’s of Elgin brand name.

Recent Developments

In May 2010, the company won the Heritage Award for being a business founded on Britishtraditions at the annual UK Fashion and Textile Export Awards.



FINANCIAL PROFILE


Sales

Sales (£000) 38,421 39,743 41,550 39,888% change year-on-year -3.33 -4.35 4.17 -6.10Exports (£000) 9,277 9,839 9,783 10,770Exports/Sales (%) 24.15 24.76 23.55 27.00

Profits

Pre-Tax Profits (£000) 20 859 2,187 -977% change year-on-year -97.70 -60.72 † †Profit Margin (%) 0.05 2.16 5.26 -2.45Operating Profit (£000) 282 268 1,606 -959

Employees

Number of Employees 674 672 660 739Average Employee Remuneration (£) 19,120 17,598 17,568 16,632Sales per Employee (£) 57,004 59,141 62,955 53,976Profit per Employee (£) 30 1,278 3,314 -1,322Capital Employed per Employee (£) 55,680 56,143 56,953 56,359


Capital Employed (£000) 37,528 37,728 37,589 41,649Return on Capital (%) 0.05 2.28 5.82 -2.35Net Worth (£000) 32,757 33,457 33,773 29,068Current Ratio 9.48 11.02 9.55 9.90Liquidity Ratio 4.25 5.96 3.74 6.07



PENTLAND GROUP PLC

Registered Office 8 Manchester SquareLondon, W1U 3PHTelephone: 020-8346 2600Fax: 020-8346 3700

Company Registration Number 00793577Date of Incorporation 27/02/1964Holding Company noneUltimate Holding Company none


Robert Stephen Holdings PLC (09/12/2002)Robert Stephen Holdings Ltd (03/08/1999)


A group engaged in brand management and the design, sourcing, marketing and distributionof footwear, clothing and related accessories in sports, outdoor and fashion sectors.

SIC Codes

51423, Wholesale of footwear.51429, Wholesale of clothing not elsewhere classified.51479, Wholesale of other household goods not elsewhere classified.

Structure

Pentland Group PLC is a UK-based global brand management company, which is also involvedin supplying some of the leading global brands in sports, outdoor and fashion clothing.

Brand Information

Brands owned by the company include Berghaus, Boxfresh, Ellesse, Gio-Goi, Kickers UK, LacosteChaussures, Red or Dead, Speedo and Ted Baker Footwear.

Recent Developments

In October 2010, Speedo launched its first ever application (app) for the Apple iPhone. The apphas been designed to help triathletes with news, results, training tips and essential information,as well as featuring products from the brand’s range.In May 2010, Pentland Group acquired a 5.86% stake in the outdoor retailer, Blacks Leisure.



FINANCIAL PROFILE


Sales

Sales (£000) 1,134,500 1,043,600 972,600 933,100% change year-on-year 8.71 7.30 4.23 26.90Exports (£000) 247,100 59,200 211,800 -Exports/Sales (%) 21.78 5.67 21.78 -

Profits

Pre-Tax Profits (£000) 66,100 40,000 66,000 22,200% change year-on-year 65.25 -39.40 197.30 -53.16Profit Margin (%) 5.83 3.83 6.79 2.38Operating Profit (£000) 60,000 39,900 42,000 19,000

Employees

Number of Employees 12,115 11,550 23 -Average Employee Remuneration (£) 13,149 476 6,360,870 -Sales per Employee (£) 93,644 90,355 42,286,957 -Profit per Employee (£) 5,456 3,463 2,869,565 -Capital Employed per Employee (£) 37,681 37,160 16,169,565 -


Capital Employed (£000) 456,500 429,200 371,900 346,900Return on Capital (%) 14.48 9.32 17.75 6.40Net Worth (£000) 227,100 233,300 190,100 171,800Current Ratio 1.45 1.38 1.37 1.53Liquidity Ratio 1.12 1.09 1.01 1.10



PRINGLE OF SCOTLAND LTD

Registered Office Quartermile One15 Lauriston PlaceEdinburgh, EH3 9EPTelephone: 020-7259 1660

Company Registration Number SC203627Date of Incorporation 04/02/2000Holding Company Pringle Enterprises LtdUltimate Holding Company Pringle International Holdings Ltd


M M & S (2612) Ltd (15/03/2000)


A group engaged in the development of the Pringle of Scotland brand, including the saleworldwide of branded clothing and products.

SIC Codes

17720, Manufacture of knitted and crocheted pullovers, cardigans and similar articles.52420, Retail sale of clothing.

Structure

Pringle of Scotland is a manufacturer and retailer of luxury knitwear for men, women andchildren. The company is known worldwide, with particular expansion in the US and Asia.Pringle was first established in 1815 as a luxury hosiery manufacturer, but after the 1870’s itbegan to concentrate solely on its knitted cashmere operations. The company was acquired byJoseph Dawson (Holdings) Ltd (now known as Dawson International Holdings Ltd) in 1967 and,in 2000, the brand was bought by Hong Kong-based firm, SC Fang & Sons Company Ltd.The company has stores and stockists across the UK and overseas, and can be found inconcessions at Harvey Nichols retail outlets.

Brand Information

The company produces garments under the well-known brand name, Pringle of Scotland.In 2010, the company celebrated its 195th anniversary by launching a limited edition 195Collaborations Collection for Autumn/Winter 2010. The campaign will involve Tilda Swintonand Ryan McGinley and will also feature Turner Prize winner, Douglas Gordon.

Recent Developments

In 2010, the company disposed of its long-term lease at its flagship Bond Street Store and is nowfound at a smaller retail outlet in Mayfair, London. The company has also revealed that it isplanning to open a new store in London, which is likely to be based near Savile Row or ConduitStreet.



FINANCIAL PROFILE


Sales

Sales (£000) 11,065 17,299 17,746 19,459% change year-on-year -36.04 -2.52 -8.80 -24.38Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profits (£000) -6,703 -9,252 -9,465 -9,547% change year-on-year † † † †Profit Margin (%) -60.58 -53.48 -53.34 -49.06Operating Profit (£000) -6,556 -9,521 -9,415 -9,346

Employees

Number of Employees 122 188 246 266Average Employee Remuneration (£) 33,595 26,287 22,016 21,011Sales per Employee (£) 107,187 92,016 72,138 73,154Profit per Employee (£) -64,932 -49,213 -38,476 -35,891Capital Employed per Employee (£) 35,320 21,324 20,772 26,124


Capital Employed (£000) 4,309 4,009 5,110 6,949Return on Capital (%) -183.84 -230.78 -185.23 -137.39Net Worth (£000) 2,763 1,512 773 5,288Current Ratio 1.29 1.13 1.14 1.31Liquidity Ratio 0.59 0.55 0.48 0.37



UMBRO INTERNATIONAL LTD

Registered Office Umbro HouseLakesideCheadle Royal Business ParkCheadleCheshire, SK8 3GQTelephone: 01614-922 000Fax: 01614-922 001

Company Registration Number 00198168Date of Incorporation 23/05/1924Holding Company Umbro International Holdings LtdUltimate Holding Company Nike UK Holdings BV


Umbro Europe Ltd (02/06/2000)Umbro UK Ltd (31/12/1996)Umbro International Ltd (01/12/1993)


The design, sourcing and marketing of football related products.

SIC Codes

51423, Wholesale of footwear.51429, Wholesale of clothing not elsewhere classified.74849, Other business activities not elsewhere classified.

Structure

Umbro Ltd is a subsidiary of US-based company, Nike Inc, after being acquired in a deal worth£285m. Originally a Manchester-based football kit and equipment supplier, the company nowproduces a variety of sportswear and sports equipment.

Brand Information

The company is still heavily involved in football, creating and supplying the exclusive kits forthe England and Wales football teams, as well as for Blackburn Rovers, Rangers FC, ManchesterCity and Sunderland, alongside many overseas teams.

Recent Developments

In September 2010, Umbro reported that it had agreed to extend its partnership with theEngland football team until July 2018. The company also launched the new England kit, whichhit the shops in October 2010.



FINANCIAL PROFILE

Year End 31/05/2010 31/05/2009 31/12/2007 31/12/2006Weeks 52 74 52 52Consolidated N N N N

Sales

Sales (£000) 130,903 105,692 91,636 146,841% change year-on-year 23.90 15.34 -37.60 21.86Exports (£000) 48,964 34,500 - -Exports/Sales (%) 37.40 32.64 - -

Profits

Pre-Tax Profits (£000) -41,432 14,328 -18,921 30,040% change year-on-year † † † -14.11Profit Margin (%) -31.65 13.56 -20.65 20.46Operating Profit (£000) -41,636 14,286 -21,275 27,857

Employees

Number of Employees 212 231 202 207Average Employee Remuneration (£) 56,557 57,771 52,698 49,034Sales per Employee (£) 617,467 321,515 453,644 709,377Profit per Employee (£) -195,434 43,586 -93,668 145,121Capital Employed per Employee (£) 252,311 398,139 342,856 389,686


Capital Employed (£000) 53,490 91,970 69,257 80,665Return on Capital (%) -77.46 10.95 -27.32 37.24Net Worth (£000) 20,218 67,056 57,986 67,717Current Ratio 0.79 0.95 0.79 1.02Liquidity Ratio 0.74 0.90 0.75 0.91



11. Further Sources

Associations

Association of Suppliers to the BritishClothing IndustryUnit 5, 25 Square RoadHalifaxWest Yorkshire, HX1 1QGTelephone: 01422-354 666Fax: 01422-381 184E-mail: [email protected]://www.asbci.co.uk The British Apparel and TextileConfederation5 Portland PlaceLondon, W1B 1PRTelephone: 020-7636 7788Fax: 020-7636 7515 British Interior Textiles Association3 Queen SquareBloomsburyLondon, WC1N 3ARTelephone: 020-7843 9460Fax: 020-7843 9478E-mail: [email protected]://www.interiortextiles.com British Narrow Fabrics AssociationThorncliffe115 Windsor RoadOldhamLancashire, OL8 1RQTelephone: 0161-620 7272

British Retail Consortium21 Dartmouth StreetWestminsterLondon, SW1H 9BPTelephone: 020-7854 8900Fax: 020-7854 8901http://www.brc.org.uk British Throwsters’ Association5 Portland PlaceLondon W1B 1PRTelephone: 020-7636 7788Fax: 020-7636 7515 Confederation of British Wool TextilesMerrydale HouseRoydsdale WayEuroway Industrial EstateWest YorkshireBradford, BD4 6SBTelephone: 01274-652 207Fax: 01274-682 293 European Apparel and TextileConfederation (Euratex)24, rue Montoyer; Bte. 10B-1000 BrusselsBelgiumTelephone: 00322-285 4883Fax: 00322-230 6054E-mail: [email protected]://www.euratex.org International Apparel FederationPO Box 4283700 AK ZeistThe Netherlandshttp://www.iafnet.org

Clothing Manufacturing Further Sources


Knitting Industries Federation12 Beaumanor RoadLeicesterLeicestershire, LE4 5QATelephone: 01162-663 332Fax: 01162-663 335 Lancashire Textile Manufacturers’Association4 St Andrew’s StreetBlackburnLancashire, BB1 8AETelephone: 01254-580 248Fax: 01254-580 248http://www.ltma.co.uk National Wool Textile ExportCorporationLloyds Bank Chambers43-45 HustlergateBradfordWest Yorkshire, BD1 1PHTelephone: 01274-724 235Fax: 01274-723 124

Silk Association of Great Britain3 Queen SquareBloomsburyLondon, WC1N 3ARTelephone: 020-7843 9460Fax: 020-7843 9478E-mail: [email protected]://www.silk.org.uk Textile Finishers’ AssociationReedham House31 King Street WestManchester, M3 2PNTelephone: 0161-832 9279 UK Fashion and Textile Association3 Queen SquareBloomsburyLondon, WC1N 3ARTelephone: 020-7843 9460Fax: 020-7843 9478E-mail: [email protected]://www.ukft.org

Publications

• International Trade StatisticsWorld Trade OrganizationCentre William RappardRue de Lausanne 154CH-1211 Geneva 21SwitzerlandTelephone: 00412-2739 5111Fax: 00412-2731 4206E-mail: [email protected]://www.wto.org



General Sources

Dun & BradstreetMarlow InternationalParkwayMarlowBuckinghamshire, SL7 1AJhttp://www.dnb.co.uk Kantar MediaEaling Gateway26-30 Uxbridge RoadEalingLondon, W5 2BPTelephone: 020-8433 4000Fax: 020-8433 4001http://www.kantarmedia.com

Nielsen Media ResearchAtrium CourtThe RingBracknellBerkshire, RG12 1BZTelephone: 01344-469 100Fax: 01344-469 102E-mail: [email protected]://www.nielsenmedia.co.uk

Government Publications

HM Revenue & CustomsAlexander House21 Victoria AvenueSouthend-on-SeaEssex, SS99 1AAhttp://www.hmrc.gov.uk HM Treasury1 Horse Guards RoadLondon, SW1A 2HQTelephone: 020-7270 4558Fax: 020-7270 4861http://www.hm-treasury.gov.uk• Forecast for the UKEconomy-Treasury IndependentAverage

National Statistics1 Myddelton StreetLondon, EC1R 1UWTelephone: 08456-013 034Fax: 01633-652 747E-mail: [email protected]://www.statistics.gov.uk• Annual Business Inquiry, AnnualAbstract of Statistics 2010• Business Monitor SDM28• Economic & Labour Market Review,November 2010• Family Spending Review• Focus on Consumer Price Indices –Data for October 2010• Forecasts for the UK Economy,November 2010• Monthly Digest of Statistics,November 2010• Population Projections Database(2008-based projections)• UK Business: Activity, Size andLocation, 2010



Other Sources

The British Wool Marketing BoardWool HouseRoydsdale WayEuroway Trading EstateBradfordWest Yorkshire, BD4 6SETelephone: 01274-688 666Fax: 01274-652 233E-mail: [email protected]://www.britishwool.org.uk Brook LyndhurstLion House26-28 Paddenswick RoadLondon, W6 0UBTelephone: 020-8846 2100Fax: 020-3441 1371http://www.brooklyndhurst.co.uk Channel 4: Dispatches124 Horseferry RoadLondon, SW1P 2TXTelephone: 0845-076 0191http://www.channel4.com Forum for the FutureOverseas House19-23 Ironmonger RowLondon, EC1V 3QNTelephone: 020-7324 3630E-mail: [email protected]://www.forumforthefuture.org Industrievereinigung ChemiefaserMainzer Landstraße 5560329 Frankfurt/MainGermanyTelephone: 004969-2799 7130Fax: 004969-2799 7137E-mail: [email protected]://www.ivc-ev.de

Just-StyleC/o Aroq LtdSeneca HouseBuntsford Park RoadBromsgroveWorcestershire, B60 3DXhttp://www.just-style.com Kantar WorldpanelWestgateHanger LaneLondon, W5 1UATelephone: 020-8967 0007Fax: 020-8967 4339http://www.kantarworldpanel.com Next PLCDesford RoadEnderbyLeicester, LE19 4ATTelephone: 08448-448 333http://www.next.co.uk Textiles IntelligenceAlderley HouseAlderley RoadWilmslow, SK9 1ATTelephone: 01625-536 136Fax: 01625-536 137E-mail: [email protected]://www.textilesintelligence.com UK Fashion Exports5 Portland PlaceLondon, W1B 1PWTelephone: 020-7636 5577Fax: 020-7636 7515



United States Department ofAgriculture1400 Independence Ave. SWWashington, DC 20250UShttp://www.usda.gov United States Department ofCommerce, International TradeAdministration1401 Constitution Ave. NWWashington, DC 20230UShttp://trade.gov

World Trade OrganizationCentre William RappardRue de Lausanne 154CH-1211 Geneva 21SwitzerlandTelephone: 00412-2739 5111Fax: 00412-2731 4206E-mail: [email protected]://www.wto.org

Key Note Sources

Key Note Ltd

5th FloorHarlequin House7 High StreetTeddingtonRichmond Upon Thames, TW11 8EETelephone: 0845-504 0452Fax: 0845-504 0453E-mail: [email protected]://www.keynote.co.uk

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Understanding TGI Data

TGI tables, produced by Kantar Media, are generally based on one of the following groups:

• Households — a private household consists of either one person living alone or a group ofpeople, usually, but not always, members of one family, who live together and whose foodand other household expenses are managed as one unit.

• Adults — any person aged 15 or over.

• Housewives — a member of a private household who is solely or mainly responsible for thehousehold duties.

Number, Profile, Penetration

Tables used in Key Note reports may give figures for the Number, Profile, and/or Penetration.These terms are explained in the following table.

Clothing Manufacturing Understanding TGI Data


TGI data used in Key Note reports are broken down by age, social grade and standard region.

Social Grade

This is normally based on the occupation of the Head of the Household, or if the Head of theHousehold is retired, their former occupation. If this information is not available, social gradeis based on environmental factors such as type of dwelling, amenities in the home, presence ofdomestic help, etc.

Social grade is assessed by the interviewer when collecting the information and is, therefore,based on information given personally and verbally by the respondent. Social grade is checkedby Kantar Media’s coding and editing office.

The following table broadly defines the six social grades used. The relationship between socialgrade and net income of the Head of the Household is a complex one and readers should notethat income is not determinant of social grade.

Social Grade Social StatusHead of Household’sOccupation

A Upper middle class Higher managerial,administrative or professional

B Middle class Intermediate managerial,administrative or professional

C1 Lower middle class Supervisory or clerical andjunior managerial,administrative or professional

C2 Skilled working class Skilled manual workers

D Working class Semi and unskilled workers

E Those at lowest levels ofsubsistence (no other earner)

State pensioners or widows

Standard Region

This is as defined by the Registrar-General.

Clothing Manufacturing Understanding TGI Data


Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range ofconsumer, industrial, business-to-business and services titles. With over 25 years’ experience,Key Note represents clear, concise, quality market information.

For all reports, Key Note undertakes various types of research:

Online searching is carried out by product code or free search method, and covers the periodfrom the last edition of the report to the current day.

Trade sources, such as trade associations, trade journals and specific company contacts, areinvaluable to the Key Note research process.

Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/demographic information and advertising expenditure, respectively. In addition, various officialpublications published by National Statistics, etc. are used for essential background data andmarket trends.

Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone.This provides qualitative data (‘industry comment’) to enhance the statistics in reports;questionnaires may also be used.

Field research is commissioned for various consumer reports and market reviews, and is carriedout by NEMS Market Research.

Key Note estimates are derived from statistical analysis and trade research carried out byexperienced research analysts. Up-to-date figures are inserted where possible, although therewill be some instances where a realistic estimate cannot be made or external sources requestthat we do not update their figures.

Key Note Editorial, 2011

Clothing Manufacturing Key Note Research


The Key Note Range of Reports

Key Note publishes over 180 titles each year, across both the Key Note and Market Assessmentproduct ranges. The total range covers consumer, lifestyle, financial services and industrialsectors.

Title Edition Published

Market Reports and Reports Plus

A

Access Control 11 2010

Accountancy 14 2010

Aerospace 12 2003

Agrochemicals & Fertilisers 3 2002

Air Freight 2 2005

Airlines 21 2010

Airports 14 2010

Animal Feedstuffs 11 2001

Arts & Media Sponsorship 4 2011

Automatic Vending 24 2010

Automotive Services 7 2010

Autoparts 19 2009

B

Baths & Sanitaryware 14 2009

Bearings 2 2007

Betting & Gaming 23 2010

Biscuits & Cakes 18 2011

Book Publishing 19 2007

Bookselling 17 2010

Bread & Bakery Products 26 2011

Breakfast Cereals 14 2009

Breweries & the Beer Market 28 2011

Bricks & Tiles 16 2010

Bridalwear 5 2010

Builders’ Merchants 17 2010

Building Contracting 10 2009

Building Materials 14 2011

Bus & Coach Operators 9 2008

Business Press 14 2009

C

Cable & Satellite TV 10 2004

Camping & Caravanning 13 2002

Canned Foods 18 2011

Carpets & Floorcoverings 16 2009

Catering Equipment 13 2010

Chemical Industry 13 2010

Childrenswear 8 2009

Chilled Foods 15 2009

China & Earthenware 27 2010


Cigarettes & Tobacco 24 2010

Cinemas & Theatres 9 2001

Closed-Circuit Television 12 2010

Clothing Manufacturing 16 2011

Clothing Retailing 8 2011

Commercial Radio 8 2004

Commercial Vehicles 15 2009

Computer Hardware 8 2010

Computer Services 9 2010

Computer Software 7 2008

Confectionery 28 2010

Consumer Internet Usage 4 2000

Consumer Magazines 17 2010

Contraception 4 2009

Contract Catering & FoodserviceManagement 21 2010

Contract Cleaning 21 2010

Cooking Sauces & FoodSeasonings 3 2008

Corporate & PromotionalGiftware 3 2008

Corporate Hospitality 6 2007

Cosmetics & Fragrances 24 2011

Cosmetic Surgery 8 2010

Courier & Express Services 16 2010

D

Dark Spirits & Liqueurs 3 2004

Debt Management (Commercial& Consumer) 6 2010

Defence Equipment 11 2010

Design Consultancies 3 2000

Digital Broadcasting 4 2009

Digital Communications 1 2009

Digital TV 2 2003

Direct Marketing 19 2009

Discount Retailing 7 2009

Disposable Paper Products 13 2009

Document Imaging Systems 1 2007

Domestic Heating 14 2009

Dry Cleaning & Laundry Services 5 2005

Clothing Manufacturing The Key Note Range of Reports



E

Electrical Contracting 9 2009

Electrical Wholesale 5 2009

Electricity Industry 6 2009

Electronic ComponentDistribution 12 2002

Electronic ComponentManufacturing 11 2002

Electronic Games 4 2003

Equipment for the Disabled 5 2009

Equipment Leasing 12 2003

Estate Agents 18 2011

Ethnic Foods 16 2010

Exhibitions & Conferences 12 2011

F

Factoring & Invoice Discounting 2 2003

Fast Food & Home DeliveryOutlets 24 2010

The Film Industry 4 2002

Finance Houses 11 2000

Fire Protection Equipment 8 2006

Fish & Fish Products 14 2010

Fitted Kitchens 7 2007

Football Clubs & Finance 4 2009

Footwear 16 2009

Franchising 12 2010

Free-To-Air TV 8 2004

Freight Forwarding 17 2009

Frozen Foods 24 2009

Fruit Juices & Health Drinks 13 2010

Fruit & Vegetables 21 2009

Further & Higher Education 6 2009

G

Garden Equipment 13 2009

Gas Industry 5 2009

Giftware 19 2010

Glassware 15 2009

Greetings Cards Plus 26 2010

H

Hand Luggage & Leather Goods 15 2010

Health Clubs & Leisure Centres 10 2010

Health Foods 22 2003

Heating, Ventilating & AirConditioning 9 2002

Home Furnishings 19 2009

Home Shopping 13 2009

Horticultural Retailing 17 2008

Hotels 24 2009

Housebuilding 19 2011


Household Appliances (BrownGoods) 11 2008

Household Appliances (WhiteGoods) 16 2008

Household Detergents &Cleaners 16 2009

Household Furniture 19 2011

I

Ice Creams & Frozen Desserts 14 2010

Industrial Fasteners 8 2001

Industrial Pumps 5 2000

Industrial Valves 8 2001

Insurance Companies 12 2009

Internet & Telephone Banking 1 2011

Internet Usage in Business 8 2005

IT Security 9 2009

IT Training 13 2010

J

Jewellery & Watches 26 2011

K

Kitchenware 7 2009

L

Laboratory Equipment 9 2008

Lighting Equipment 14 2002

Lingerie 10 2011

M

Management Consultants 10 2003

Market Forecasts 1 2005

Meat & Meat Products 21 2010

Medical Equipment 17 2009

Metal Recycling 5 2009

Milk & Dairy Products 24 2010

Mobile Phones 7 2010

Mobile Telecommunications 2 2007

N

Natural Products 2 2007

New Media Marketing 3 2002

Newspapers 18 2010

Non-Metal Recycling 3 2010

O

Office Furniture 21 2008

Offshore Oil & Gas Industry 5 2009

Ophthalmic Goods & Services 17 2010

OTC Pharmaceuticals 15 2011

Own Brands 13 2010




P

Packaging (Food & Drink) 6 2010

Packaging (Glass) 13 2008

Packaging (Metals & Aerosols) 12 2003

Packaging (Paper & Board) 14 2008

Packaging (Plastics) 15 2010

Paper & Board Manufacturing 14 2002

Personal Banking 11 2000

Photocopiers & Fax Machines 14 2005

Plant Hire 13 2007

Plastics Processing 10 2003

Poultry 4 2010

Power Tools 5 2007

Premium Lagers, Beers & Ciders 9 2010

Printing 15 2010

Private Healthcare 21 2010

Protective Clothing & Equipment 7 2009

Public Houses 26 2010

R

Rail Travel 7 2008

Ready Meals 11 2009

Recruitment Agencies(Permanent) 11 2011

Recruitment Agencies(Temporary & Contract) 11 2011

Renewable Energy 3 2009

Restaurants 24 2009

Retail Chemists & Drugstores 16 2010

Road Haulage 22 2009

S

Sauces & Spreads 12 2010

Shopfitting 14 2009

Short Break Holidays 4 2001

Slimming Market 8 2000

Small Domestic ElectricalAppliances 12 2010

Snack Foods 20 2010

Spirits & Liqueurs 1 2010

Soft Drinks (Carbonated &Concentrated) 18 2011

Soup Market 3 2009

Sports Clothing & Footwear 13 2011

Sports Equipment 16 2011

Sports Sponsorship 7 2009

Stationery (Personal & Office) 25 2010


T

Take Home Trade 17 2008

Telecommunications 21 2007

Timber & Joinery 19 2008

Toiletries 23 2010

Tourist Attractions 5 2001

Toys & Games 24 2010

Training 19 2011

Travel Agents & Overseas TourOperators 23 2010

Tyre Industry 4 2008

V

Vehicle Security 9 2010

Videoconferencing 4 2007

Video & DVD Retail & Hire 8 2005

W

Wallcoverings & Ceramic Tiles 18 2010

Waste Management 10 2010

Water Industry 5 2010

Windows & Doors 20 2010

Wine 20 2009

White Spirits 1 2005

Market ReviewsCatering Market 21 2009

Clothing & Footwear Industry 13 2010

UK Computer Market 11 2004

Construction Industry 11 2009

Contracted-Out Services 3 2007

Defence Industry 7 2003

Distribution Industry 10 2009

DIY & Home ImprovementsIndustry 11 2009

Drinks Market 18 2008

Energy Industry 8 2010

Film Market 2 2009

Food Industry 19 2009

Healthcare Market 10 2005

Insurance Industry 10 2009

The Legal Services Market 1 2005

Leisure & Recreation Market 15 2005

Leisure in the Home 3 2010

Leisure Outside the Home 3 2010

Local Government Services 3 2010

Mechanical Handling 1 2001

Motor Industry 12 2008

Music Industry 2 2010

Office Equipment Industry 9 2010

Packaging (Food & Drink)Industry 1 2003




Passenger Travel in the UK 5 2007

Pharmaceuticals Industry 6 2008

Process Plant Industry 1 2000

Publishing Industry 13 2010

Railway Industry 2 2006

Security Industry 13 2010

Sports Market 13 2010

Travel & Tourism Market 17 2010

UK Internet Market 1 2009

Market Assessment Reports

A

ABC1 Consumer 2010

Activity Holidays 2009

Advertising Agencies 2007

All-Inclusive Holidays 2000

Alternative Healthcare 2010

Audio-Visual Retailing 2000

B

Baby Foods 2006

Baby Products 2010

Baths and Showers 2000

Beds, Bedrooms and UpholsteredFurniture 2000

Betting and Gaming 2002

Book Retailing on the Internet 2010

Bottled Water 2003

Bridalwear 2002

Business Postal Services 2008

B2B Marketing 2008

Business Travel Market 2008

C

Cable and Satellite Services 2002

Charity Funding 2005

Childcare 2008

Children’s Publishing 2010

Clothing Retailers 2000

Coffee & Sandwich Shops 2009

Commercial Dynamics inFinancial Services 2010

Commercial Insurance for SmallBusinesses 2009

Condiments and Sauces 2008

Consumer Credit & Debt 2010

Contact Centres 2010

Contraception 2002

Cooking & Eating 2009

Cross-Border Shopping 2000

Cruise Market 2008


Customer Loyalty in FinancialServices 2000

Customer Magazines & ContractPublishing 2009

Customer RelationshipManagement 2008

Customer Services in FinancialOrganisations 2010

C2DE Consumer 2010

D

Diet Foods 2009

DINKY Market 2007

Direct Insurance 2010

Direct Mortgages 2010

Domestic Lighting and ElectricalProducts 2000

Domestic Telecommunications 2006

E

E-Commerce: The InternetGrocery Market 2009

E-Commerce: The InternetLeisure & Entertainment Market 2008

Electronic Banking 2008

EMU — The Impact on the UKFinancial Services Industry 2003

E-Recruitment 2006

E-Shopping 2002

Estate Agents and Services 2010

Ethnic Foods 2002

European Electricity Industry 2007

European Gas Industry 2007

European Long-Term Insurance 2008

European Oil & Gas Industry 2007

European Renewable 2008

Energy Industry 2008

European Short Breaks 2008

European Telecommunications 2010

European Tourist Attractions 2009

European Trends in FoodShopping 2009

European Water Industry 2007

Extended Financial Families 2005




F

Financial Services Marketing toABs 2006

Financial Services Marketing toABC1s 2000

Financial Services Marketing toBCs 2009

Financial Services Marketing toC1C2DEs 2006

Financial Services Marketing toDEs 2009

Financial Services Marketing toOver 60s 2004

Financial Services Marketing tothe Affluent 2009

Financial Services Marketing tothe Retired and Elderly 2007

Financial Services Marketing toStart-Up Businesses and the Self-Employed 2010

Financial Services Organisationson the Internet 2009

The Fish Industry 2001

Forecourt Retailing 2010

Functional Foods 2010

Funding in Higher Education 2002

G

General Insurance 2010

Generation Y 2007

Global Waste Management 2007

Green and Ethical Consumer 2008

Grey Consumer 2009

H

Healthy Eating 2008

Holiday Purchasing Patterns 2009

Home Entertainment 2008

Hot Beverages 2009

I

In-Car Entertainment 2000

Independent Financial Advisers 2008

Individual Savings Accounts 2005

Insurance Prospects 2008

Internet Advertising 2009

Internet Service Providers 2005

Issues and Challenges in the UKLife Assurance Market 2002

Issues in Higher EducationFunding 2006

IT Recruitment 2010


L

Lifestyle Magazines 2008

Low-Fat & Reduced-Sugar Foods 2008

The Luggage Market 2000

M

Marketing to Children 4-11 2003

Marketing in the Digital Age 2009

Media Marketing 2010

Medical & Health Insurance 2007

Men and Women’s Buying Habits 2008

Men’s Toiletries & Fragrances 2008

Millennium Youth 2002

Mobile Marketing 2009

Motor Finance 2011

N

The Newspaper Industry 2005

Non-Food Sales in Supermarkets 2010

Nutraceuticals 2008

O

Off-Trade Spirits 2004

Opticians & Optical Goods 2010

Organic Baby & Toddler Care 2007

Organic Food & Drink 2010

OTC Pharmaceuticals 2000

Over-40s Consumer 2005

Over-50s Consumer 2009

P

Pay TV 2004

Pension Extenders 2002

Pensions 2009

Personal Banking 2003

Personal Lines Insurance 2010

Personal Loans 2008

Pet Market 2009

Planning for Retirement 2008

Plastic Cards in Europe 2005

Plus-Size Fashion 2009

Private Sector Opportunities inEducation 2001

Public Relations Industry 2007

Public Transport 2001

R

The Railway Industry 2004

Ready Meals 2001

Recycling and the Environment 2000

Retail Credit 2000

Retail Development 2001

Rural Economy 2009




S

Savings & Investments 2010

Saving Trends in the Eurozone 2002

Singles Market 2009

Shopping Centres 2008

Short Breaks 2004

Slimming Market 2009

Small Businesses & Banks 2010

Small Office Home OfficeConsumer 2001

Small Office Home OfficeProducts 2001

The Soup Market 2001

Sponsorship 2000

Supermarket Own Label 2009

Supermarket Services 2007

Sweet & Salty Snacks 2010

T

Teenage Fashionwear 2008

Teenage & Pre-Teen Magazines 2009

Teleworking 2003

Trends in Food Shopping 2008

Trends in Leisure Activities 2007

Tweenagers 2005


U

Utilities 2007

V

Vegetarian Foods 2009

Vehicle Breakdown Services 2010

Vitamins, Minerals &Supplements 2009

W

White Goods 2000

Women Over 45 2007

Working Women 2009


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1988.

Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames,TW11 8EE. Telephone: 0845-504 0452

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