E-Market Overview Essay

Submitted By lizmcna12
Words: 1108
Pages: 5

Market analysis

The United Kingdom infant apparel industry has shown an increasingly growing market, valued at 5.91bn in 2010, an increase of 6.5% from 2009. Based on the National Statistics consumer trends publication, the children’s garments sector accounts for the second largest share of the clothing market, following the women’s market. Many factors have influenced the growth of the childrenswear market, the necessity for children’s clothing being the main influence. The fast growth of children has shown an increasing demand in infant apparel, boosting sales in the industry. Additionally, many families are having children at an older age, when they generally have a higher disposable income, and more families on average having fewer children, resulting in an increase per capita being spent of children’s clothing. Furthermore, consumers are disposing of or recycling clothes more frequently, further influencing the industry growth as more items are being purchased.
It has been forecasted that the childrenswear market will witness continual growth over the forecast period, reaching 6.99bn in 2015. Factors including the rising price of clothing and a greater focus on the chilrens clothing market will assist in increasing the value of the industry. Furthermore, analysis into the online market for infant apparel indicates a strong potential for market penetration. In 2010, 4.3 billion worth of clothes were purchased over the internet, 34% being childrenswear.

Customer analysis

As an online company, it is Funsie Onesies aim to market individuals at home. According to the 2011 national census, here are approximately 1.6million women who do not work because they are bringing up their family, indicating a viable market towards mothers. Additionally, women have shown an increasing trend in family buying power, particularly towards the purchase of children’s clothing. According to Barletta (2010), women are responsible for 85% of all consumer purchases in the marketplace. Further studies show that mothers control 85% of household spending (Marketing to Mothers Coalition, 2009).

In terms of the online presence of mothers, statistics show that 61% of mothers shop online, while one in four use smartphones to access the internet daily. The internet provides stay at home mothers with convenience and time saving. This is of prime importance for mothers, particular in clothing purchasing, due to mothers having 40 hours less time to perform shopping functions.

Economic factors

The United Kingdom has one of the strongest economies in the world ranking the sixth largest national economy measured by nominal GDP and eighth largest measured by purchasing parity. Although largely affected by the late 2000’s recession, the current UK economy indicates a promising market for new business establishment. Recent figures have shown the UK economy is continuing to improve with unemployment rates falling to 7.7%, increasing the amount of household disposable income which is believed to have risen since the recession.

Despite the economic damage the recession had on the UK’s retail spending habits, studies indicate that the infant and toddler industry was the least affected in the retail sector. The overall clothing industry was down by 6 percent between July 2008 and July 2009 whereas the infant and toddler market was only down by 3 percent. These spending habits are due to the fact that cost is normally not a determining factor for parents when purchasing items for children.

Socio-cultural factors

In today’s culture, the “obsession” of the celebrity lifestyle is increasingly influencing consumer purchasing decisions. As the new generation of celebrity offsprings are flooding the media with children fashion trends, consumers (particularly mothers) are becoming more conscious of their children’s clothing. In some cases, the purchase of children’s clothing can often be a reflection or extension of a parent’s personal…