NICHE MARKET REPORT

CHILDRENSWEARMARY LAWTON

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CONTENTS

1 - Executive Summary2 - Inroduction

3 - The Market Sector4-6 Current Market Analysis

7-10 - Current Trends11 - External Influences

12-13 - Brand Introduction14-16 - Brand Values and identity

17-18 - Products and Stores19 - Financial Perfromance

20 - Channels of Distribution.21 - Ansoff Matrix

22 - SWOT Analysis23 - Conclusion.

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EXECUTIVE SUMMARY

The purpose of this report is to take a look at the childswear sector of the fashion market, the competition within the sector, curent trends and potential macro-environmental factors that affect the sectors performance.The report will research into a particluar brand within the sector and also look at financial performance, products, stores, brand identity and conduct a SWOT analysis of the brand.

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This report will look at the childrenswear market and how a variety of external factors affect this particular sector of the fashion market place.

The research in this report will demonstrate the size, performance and growth of the market.

Obvious limitations in my research will be the inability to experience the design, development and manufacturing processes of the products, but I will gain as much understanding as I can about of the marketing and retail stages of this market.

I will also be exploring the ins and outs of the brand ‘Baby Dior’ and hopefully gain some insight into how this particular brand is making their mark within the industry.

INTRODUCTION

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THE MARKET SECTOR

The exclusivity of the brand indicates that it is more designer than it is a high street brand.

The price range for these products can cost up to £2,000. Therefore, only a handful of society’s elite would splash out on luxury, designer clothes for children. This point is justified by Mintel’s research into consumer spending.

“Over three fifths of parents agree that children grow so fast it is not worth spending a lot of money on clothes.”(Mintel, 2013)

Although the majority of kids clothing is found on the high street, reports show that a high percentage of mothers shop for their childeren’s clothes in supermarkets or online.

“Supermarkets remain the most popular places to buy baby’s and children’s clothes, with just under three in ten purchasing from George at Asda and almost a quarter from Tesco.Almost seven in ten consumers agree that supermarkets are the most affordable places to buy childrenswear.”(Mintel, 2013)

There are also various outlets (e.g T.K MAXX) and online discount websites on which to buy children’s clothes which are also very popular. So the kidswear market seems to cover the majority of sales platforms which says a lot for the size and progress of the market.

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HAUTE COTURE

READY-TO-WEAR DESIGNER

VALUE/ DISCOUNT RETAILERS

HIGH STREET STORES

“UK sales of childrenswear grew by

3.8% in 2013 to £6.5 billion, but underperformed the overall clothing

market.”(Mintel,2013)“The

childrenswear market in the UK is heavily influenced

by promotions, with a quarter of consumers looking for clothing which

is discounted.”(Mintel, 2013)

CURRENT MARKET ANALYSIS

“Infantswear is the best performing sector

and has grown by 23% between 2008 and 2013.”(Mintel,2013

“Boyswear has seen the slowest

growth and the sector has struggled in the last year.”(Mintel, 2013)

“Babywear has lent the market some

resilience and as well as benefiting from the recent baby boom, it has been

more protected from the economic downturn due to the strong gifting

market.”(Mintel. 2013)

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CHILDRENSWEAR:VALUE RETAILERS VS MULTIPLE STORES

“The supermarket chains dominate the market and have become even stronger. Grocery chains have thrived on demand for low prices for children’s clothing, combined with the convenience they offer to the customer and have driven down the prices of children’s clothing and schoolwear. “(Mintel, 2013)

“While consumers who prioritise low price are most likely to buy childrenswear from supermarkets, those who place more importance than average on

fashionable clothing also buy from grocery chains, highlighting how supermarkets have upped their game and how their own-brand childrenswear has the potential to become a fashion brand rather than just a supermarket brand.”(Mintel, 2013)

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“The changes to Child Benefits

in the UK have meant that many parents have less disposable income to

spend on items such as childrenswear, fuelling the popularity of supermarkets and value

retailers.” (Mintel,2013)

“Supermarkets remain the most popular

places to buy baby’s and children’s clothes, with just under three in ten purchasing from George at Asda and

almost a quarter from Tesco.” (Mintel,2013)

“Almost seven in ten parents agree

that hand-me-downs or second-hand clothes are a great way of spending

less.”(Mintel, 2013)

“There has also been a growing

trend for buying pre-owned items instead of new ones, driven by the popularity of online sites

like eBay.” (Mintel,2013)

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CURRENT TRENDS IN KIDSWEAR

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Fig 9Page 8

CURRENT TRENDS IN KIDSWEAR

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KEY EXTERNAL INFLUENCES

There are many aspects fo modern day life which make doing everday things a lot easier, but is there a point at which children should or should not be exposed to these advances in technology? This also forces us to

question what our children are exposed to while online.

“A quarter of children aged 10-14 search online for ideas on what clothes to buy, rising to over a third of 14-year-olds and girls. One in six children aged 14 using a smartphone or tablet to look for clothes online.”(Mintel, 2013)

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In modern society there

is definitely an issue of marketing childrens products and clothing in a way that is making children want to look and

act much older than they are.The

subject of over-sexualisation of children can be seen as both a social

and a cultural issue. What we see as socially acceptable in british society is completely different

to the acceptable childrens fashion in other locations such as Asia and Africa.

In America the pagenting of children sparks

a lot of controversy and the fact it is broadcasted on british TV will affect the way our children view

themselves.

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THE BRAND

1947 - Dior launches his first spring summer haute Coture

collection.

1955 - Yves Saint Laurent is Dior’s first and only assistant at 19 .

1957 - Dior is first coturier to appear on cover of Time magazine.YSL becomes artistic director for 6 collections.

1960 - Marc Bohan takes over when YSL starts independent fashion house.

1967 - First Baby Dior boutique is opened.

1984 - Group of investors led by Bernard Arnault takes over Willot group of which Dior belongs to.

1996 - John Galliano becames creative director of Christian dior Coture.

1999 - Popular perfume J’adore is launched.

2012 - Raf Simons is appointed artistic director of haute coture, ready-to-wear and womens accessory collectons.

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1905 - Christian Dior was born in Normandy, France.

1928 - Mr Dior opens art gallery in paris.

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“True Luxury requires genuine materials and the craftman’s sincerity. It is only meaningful

when it respects tradition“. Christian Dior.

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Dior -Values.

“-Be creative and innovate.- Aim for product excellence.

- Bolster the image of our brands with passionate determination.- Act as entrepreneurs.

- Strive to be the best in all we do.” (Bernard Arnault.)

Dior fashion brand is now a

part of the LVMH group owned by Bernard Arnault.

He has compiled a mission statemnt about the groups values, products and

services.

“The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance

and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream

and fantasy.”

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Dior - Brand Identity

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-Classic

-Elegant

-Pastel Colours

-Silk & Organza

-Perfect

-Clean

-Traditional

-Formalwear

-Pinks, Creams

- Quality

- Exclusive

- Feminine

- Designer

-Luxury

-Lifestyle

-Successful

-Unique

- -Glamorous

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Baby Dior - The Products.

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Baby Dior - The Boutiques

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Dior- Financial Peformance

“Latest year-end June 2014.Sales - €1,469 million (year to April 2013: €1,289m)”(Mintel, 2014)

“Although results have not yet been published for the full year to 30th June 2014, quarterly announcements have pointed to good growth in the group’s Couture division.

Sales were reported to have been boosted by its owned boutique network and good momentum in leather goods, men’s and women’s ready-to-wear, and accessories. In the six months to December 2013, profit from recurring operations rose 31% to €108 million.” (Mintel, 2014)

“There is potential for specialist childrenswear retailers with a unique selling point (USP) to stand out in the market, but in the current economic climate and amid competition from multiples, these stores need to excel and have a strong brand identity. “ (Mintel,2013)

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COMPETITORS Baby Dior being a sub-

brand it has slightly different competitors to

Dior but these compeitors are still within the luxury market sector and include other sub-brands such as Burberry kids, Gucci kids,

Stella McCartney kids and Kenzo kids.

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Baby Dior - Channels of Distribution

PRODUCER (BABY DIOR)

E-commerce

Boutiques

CONSUMER

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Ansoff Matrix

The launching of Baby Dior in 1967introduced a brand new product (Childrenswear) into a brand new market (Children/Mothers).This comes under the Diversification Strategy

part of the Ansoff Matrix.This strategy can be majorly beneficial to the company as it widens their horizons with regards to new customers.

It can also be a very

risky move as it requires experience and knowledge of the new market in order for it to be successful.The new venture could also require a new work force and possibly more investment.

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SWOT Analysis

STRENGTHS• Strong brand name and good

reputation as a designer brand.• Excellent quality of advertising e.g beautiful websites/

videos/TV ads.• Carries a continuous theme/identity through the collections

(consistent).• Has not damaged the womenswear and menswear

brands in the process of developing the childrenswear.

WEAKNESSES• Exchange rates can cause loss in

revenue.• Not making enough money through E-commerce channel.

• Limited market share growth due to competition.

OPPORTUNITIES• Online retailing.

• “Green initiatives” opportunity to look into eco-friendly manufacturing and fabrics etc.

• Look into expending markets e.g Brazil or India where demand for more luxury is high.

THREATS• Extremely tough competition from

much cheaper brands.• Luxury brands suffering due to cheaper but similar products

and services.

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CONCLUSION

The report has show that the kidswear market is strong but mainly within the value/ supermaket sector. Luxury kidswear is seen as innaffordable and unnessecary by the majority of mothers. Despite this there is still a market for luxury kidswear brands such as Baby Dior which is seen in the success and devolopement of the sub-brand. The brand would be wise to develop its online busniess and venture into some other emerging market areas such as Brazil. Russia, and India.

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BIBLIOGRAPHY

Insights/Issues overview – (Market Sector) http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1

(Market Analysis) http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1

(Value vs High street)http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1

Key External Influences (Macro-environmental factors)-http://academic.mintel.com.ucreative.idm.oclc.org/display/687435/?highlight#hit1

Timeline Dior – http://www.dior-finance.com/en-US/ProfilDuGroupe/Historique.aspx

Mission Statement (True Luxury …) https://www.facebook.com/Dior/info

LVMH values and productshttp://www.lvmh.com/the-group/lvmh-group/group-mission-and-values

Dior Performance – http://academic.mintel.com.ucreative.idm.oclc.org/display/712905/?highlight#hit1

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APPENDICES

Current Trends in Kidswear- (Fig 8, 9, 10,11)http://www.wgsn.com.ucreative.idm.oclc.org/content/reports/#/Kidswear

Ansoff matrix (Fig 27)– Google Images

Baby Dior images (Fig 26, 1,2,3,4,5,6,7,12,14,15,16,17,18,21,22,23,24,25,28,29)-Google images: search “Baby Dior”

Boutiques & Products (Fig 19,20) – Google images

PESTEL Boards-Google images

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