CREATING  AN  APPAREL  LINE  

MARKET ANALYSIS & TARGET MARKET Term 1 / Product Development & Design / Robin Hall

BRAND  OVERVIEW  

•  Karen Walker started in 1988 with $80. She made one shirt and sold it on consignment. 

•  She now shows at New York Fashion Week and London Fashion Week and is stocked in over 350 stores in cities including New York, London, Paris, Los Angeles, Sydney and Tokyo.

•  There are five Karen Walker flagship stores in New Zealand and one flag ship store in Taipei.

•  Karen Walker also has a Jewellery line, Eyewear line, KW Paints and also a diffusion line, Hi There, sold exclusively through Myer.

•  Karen has dressed Björk, Sienna Miller, Jennifer Lopez, Claire Danes, Cate Blanchett and Liv Tyler.

MARKET  ANALYSIS  

Identify and document long-term and short-term social and economic trends that are

relevant to your target market, and explain how they influence apparel purchasing behaviour.

SHORT  TERM  ECONOMIC  TRENDS  •  Consumer confidence in Australia is still

low and there’s more saving and less spending.

•  Significant portion of fashion spending is going offshore. Consumers want access to a greater product range and fashion-forward pieces. Australian retailers need to not just serve the Australian market but expand to new markets via online sales.

•  Zara opening in Australia with no competition. The Australian market is devoid of giants such as H&M and Uniqlo, so Zara has its own niche. This will effect retailers such as Sportsgirl and Witchery.

•  Strong Aussie dollar has halved the number of international delegates to RAFW (110 international buyers and retailers down from 200 last year.) Designers are counting on buyers from Asia, Europe and the UK.

LONG-­‐TERM  ECONOMIC  TRENDS  •  Continuing strong dollar (On the

other hand if our relationship is not maintained China may start to look elsewhere (to Africa and Latin America) as a different source for commodities.)

•  Global Textile industry affected by a price on carbon – will garment manufacturing cost grow?

•  Consumers will expect more from local brands and expect them to live up to global brands

•  Consumer confidence grows in Australia more spending less saving

SHORT  TERM  SOCIAL  TRENDS  

•  With the death of Osama bin Laden and the eventual withdrawal of the US from Afghanistan, fashion will gradually become less somber and conservative and more joyful and experimental.

•  Brit-fever as William and Kate marry and London hosts the 2012 Olympics.

•  Boardwalk Empire hits Aussie screens – think drop waists and embellishment again.

LONG-­‐TERM  SOCIAL  TRENDS  

•  Consumers will increasingly (and automatically) receive targeted ratings, recommendations and reviews from their social networks.

•  Shopping will become increasingly social, even when consumers and their peers are not physically together

•  The cult of the individual. As social media usage increases so do blogs and fashion galleries like The Sartorialist and Lookbook.nu. People value unique garments and being ‘individuals.’

•  Custom-made becomes big. Bike by Me allows you to choose the colour of every part of your bicycle and Trikoton allows you to buy clothes that reflect the sound of your voice - a computer turns your speech patterns into knitting patterns.

•  A return to eco and natural fibres, and hand-made techniques

MARKET  ANALYSIS  

Identify and analyse three competitors for your apparel line.

Describe their strengths and weaknesses and how your apparel line will create a competitive advantage.

SHAKUHACHI  www.shakuhachi.net.au  

STRENGTHS •  Collections are always

youthful and fun •  Great fabrics •  Physical stores in Sydney and

Bali •  Online shopping

WEAKNESSES •  Prices are cheaper on other

sites •  No social media marketing

•  Online store technology quite dated

PIXIE  MARKET  www.pixiemarket.com  

STRENGTHS •  Multi-label so more variety •  Really strong social media

marketing •  Great fabrics •  $15 international shipping •  No physical store, so low

overheads

WEAKNESSES •  Mostly only available in sizes

under Aussie 10 •  Not a ‘happy’ brand •  Small volumes, so quite

pricey

MODCLOTH  www.modcloth.com  

STRENGTHS •  New products added daily •  Multi-label so more variety •  Sell homewares as well •  No physical store, so low

overheads WEAKNESSES •  As they’ve grown bigger the

fabrics used have decreased in quality

•  Doesn’t appear very exclusive – brand is a bit ‘cute’ – not great for Aussie market

•  No flat-rate international shipping

MY  BRAND  

STRENGTHS •  There aren’t a lot of Aussie

online stores doing eCommerce well.

•  Intend to market to a worldwide audience, not just Australia.

•  Have eCommerce, advertising and Social Media marketing background

•  Inhouse fabric design

•  Want to work with only natural fibres (silk, cotton, linen, leather, wool)

•  Want to release two main and 12 mini-collections per year to keep website fresh and current.

TARGET  MARKET  

Describe the target market in terms of geographic/

demographic/behavioural and psychographic characteristics.

GEOGRAPHICS  

•  Live in Australia •  Live in big cities •  Live in urban areas •  Have seasonal weather

DEMOGRAPHICS  

•  25-34 years old •  In a relationship •  Have a Bachelor’s and Post-

Grad degree •  Make less than $50,000

•  They are professionals

•  They work in an office

PSYCHOGRAPHICS  

•  Middle class •  They somewhat/

subconsciously care about fashion trends

•  They identify as ‘individuals’ and do not belong to a fashion tribe/pack

•  Identify as urban and edgy

BEHAVIORAL  

•  Spend under $100 a fortnight on clothing

•  They value how garments flatter their bodies, individuality/uniqueness of garment and bargains

•  Willing to pay more for individuality/uniqueness of garment, natural fabrics (silk, linen, cotton, wool, leather) and tailoring

THEIR  STYLE  

•  Eclectic and urban •  Rate Audrey Hepburn, Kate

Moss and Chloë Sevigny as top style icons

•  Prefer neutral colours (blacks, greys, beiges, khakis) and jewel colours (amethyst purple, ruby red, emerald green, sapphire blue)

•  They like colour blocking and classic prints (houndstooth, spots, stripes)

THEIR  SHOPPING  HABITS  

•  They shop online often – at least once a month

•  Favourite online stores are Etsy, Ebay + Urban Outfitters

•  Most they’ve paid for a garment (excluding shoes/handbags) is $100-$300

FASHION  TRENDS  ANALYSIS  

Identify and analyse current fashion trends for your target

market. Describe the direction in which these trends are headed, drawing on principles of fashion

and theory of fashion.

OVERALL  TRENDS  •  Nautical •  Preppy •  Military •  Stripes •  70s Pucci/DVF influence (flares,

prints becoming brighter) •  Subtle 80s does 40s influence •  Textures (lace, leather, fur) •  Muted organic prints

COLOURS  

•  Magenta and red •  Dull plum/dark lavendar

•  Neutrals (khaki, beige)

•  Naturals (rust, ochres, mustard)

KW’s  MAIN  COLLECTION  

•  Mod and 60s •  Feminine/romantic •  Vintage-feel •  Beach Boys beach party

KW’s  HI-­‐THERE  

•  Much more ‘on trend’ •  Nautical/Sailor •  1940s dresses •  Stripes •  Muted organic abstract prints

MILITARY  •  On the decline (especially

with death of bin Laden). To be replaced with androgynous or dominatrix look.

NAUTICAL/PREPPY  •  This look is classic and the

Australian market is conservative so I think this is here to stay. The shapes might become more 40s-inspired.

STRIPES  •  Stripes are on the decline (they

are in discount and low-end stores). A/W 2011/12 showed a lot of spots and circles.

TEXTURE  •  Here to stay – especially as

Winter is approaching. Leather, fur, sequins, beading were in much evidence at A/W 2011. Everything – all at once!

MUTED  ORGANIC  PRINTS  On the decline – bold prints are back. Dots, baroque, bright loud

floral, feathers and lions and tigers and bears, oh my.

WHAT  DECADE  IS    IT  AGAIN?  

•  The state of the world has put us all in a nostalgic mood. Take your pick from the Sixties, Seventies or the Forties.

BIBLIOGRAPHY  Trendwatching   May 2001 Update www.trendwatching.com  The  Conversation Zara’s Australian Entrance to Challenge Local Retailers www.theconversation.edu.au  Fashion  Allure Spring Summer 2011 Trend Must Haves www.fashion-allure.com  The  Economist The status seekers, Global stretch: When will Zara hit its limits?, I've got you labelled www.economist.com  Vogue A-Z Trend Report www.vogue.com.au  Creative3  

When you are in a creative world, inspiration can come from everywhere www. creative3.com.au  Karen  Walker www.karenwalker.com