Marketing intermediaries

These are the main channels that help to get the goods from the manufacturer to the consumer. A detailed consideration of marketing intermediaries is given in Chapter Eight. Their roles can be many and varied. The main ones are:

retailers, agents, distributors, wholesalers, advertising agencies, market research agencies.

The intermediary having the greatest influence on the clothing market is the retailer group. British clothes retailing is unique in that 70% of garment sales come from only 17 retail chains. The larger chains have taken an increasing share of the growing clothing market at the expense of the smaller firms. In 2004 the Arcadia group (formerly Burton), which included Dorothy Perkins, Top Shop, Top Man, Miss Selfridge, Wallis, Evans, Burtons and Outfit, had sales, estimated by Mintel, of £1527 million from their clothing outlets numbering more than 2000. Supermarkets have had an increase in the share of the clothing market; however, the largest market share still goes to Marks and Spencer despite the company's recent difficulties from which 2006 seemed to be a turning point. In Italy, by comparison, 95% of clothes are sold by single shops.

On the whole, competition, particularly on price, has intensified since the 1990s. Customers are increasingly looking for value for money; but are not totally driven by price; they also want good design, comfort and quality.

Companies have had to rationalize and restructure to combat increasing competition, cheaper imports and changing customer expectations. In consequence, many womenswear multiples have been forced to segment markets more effectively, making their customers much more aware of the markets that are being catered for. This has led and will increasingly lead to a narrowing of product ranges.

Retailers always need to be aware of how demographic factors can affect their core 15- to 29-year-old customer and adjust their offering accordingly. Demographic changes often force retailers to reposition themselves in the marketplace as was seen a few years ago when Top Shop, suffering from a reduction in the number of 15-20 year olds, decided to increase the age of their target customer upward. Targeting certain groups in terms of age and, often as important, lifestyle will become ever more crucial. Research into market trends and close co-operation with chosen target groups can help retailers. As the 'middle youth' market of women in their forties continue their youthful interest in fashion, there are opportunities for some retailers to try to keep customers loyal for longer. Others, such as H&M, have professed concern that the presence of too wide a target market in their stores could alienate their core younger customers.

Continue reading here: Consumer motivation

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