Mens Wear Market

MAIN ISSUES
· The changing behaviour and attitudes of men towards clothes shopping – becoming more confident, shopping more for themselves and becoming more interested in fashion, not just in brands.

· The deflationary challenges and how some retailers are stretching their product and price architecture to encompass both enticing OPPs and desirable premium lines.

· Discretionary spending is being impacted by rising interest (and therefore mortgage) rates, and menswear is the first thing to be cut back on when household budgets are squeezed.

· The impact and opportunity of selling online.

· The comparative lack of celebrity influence compared to womenswear.

· The competition for share of discretionary spending from other areas such as hobbies and high-tech gadgets.

“Consumers are looking more for something for nothing…so ‘two-for-ones’, and ‘buy-one-get-another-half-price’, are becoming a lot more prevalent across the whole sector, including at Next, Burton and Topman. But the product still has to be something they like if they’re going to buy.”
– Head of menswear, value retailer

KEY POINTS
· Deflation continues, but not just regarding falling prices but having to increase the ‘value’ of a garment while maintaining the same price – eg improving the fabric quality, adding more detailing, adding a belt etc.

· Due to the increased competition from Primark etc, many middle-market players have sharpened their entry level prices, stretching their price architecture downwards, but there is also a movement in the opposite direction – enhancing the ‘best’ end of the spectrum to encourage consumers to trade up. Sub-branding segmentation plays a role here.

· The impact of deflation and rising costs has led to many retailers expanding store numbers and particularly store sizes to maximise economies of scale by driving volumes, and enable them also to introduce new product categories.

· Women remain the key shoppers for menswear, so retailers need to be attractive to both men and women, which is a challenge for store design and visual merchandising styles.

· Fashion trends show a general ‘smartening up’ but there has been a lack of a really big change in direction. So, it is a challenge to get men to spend more. The ‘clean cut’ look from the designer catwalks is difficult for lower-priced high street retailers to interpret successfully.

STRENGHTS
· Projected growth in the number of 25-34s is good for menswear as this age group is likely to be more interested in fashion and brands. Growth in the 45-54s is also good news as older men are increasingly confident and interested in what they wear.

· More players in the menswear clothing sector, and the growth of low-price retailers means more affordable choice, so greater volumes are bought. However, value growth is far less buoyant and retailers’ margins are being squeezed especially with spiralling costs.

· Availability of menswear on the Internet should appeal to those who dislike shopping in stores.

· Retailers investing in their store designs and distinctive product offers are making menswear much more interesting and enticing.

· ‘Dress down Friday’ is much smarter now, and the overall trend to smarter dressing and interest in formalwear (but often minus a tie) is good for encouraging spend on higher-priced items.

· Men are changing. Mintel’s consumer research shows that less than a third say they do not enjoy shopping for clothes, and nearly two in ten say they enjoy shopping on the high street.

WEAKNESSES
· Interest rate rises reduce consumers’ disposable income, and menswear is always the first to be cut back on when household budgets are squeezed.

· A lot of men are very keen on high-tech gadgets (like iPods and Wii) and this can divert their spending away from clothing.

· The overall structure of the population is ageing, with many older consumers historically buying fewer clothes.

· Lack of new directional fashion trends make it harder to persuade consumers to buy other than for replacement. Current and forward ‘clean-cut’ fashion trends (that are more minimal and pared down than the embellished distressed styling) are harder for high street retailers to interpret in an interesting and enticing way.

· Some major players and also independents are struggling in the competitive environment, and consolidation is inevitable.

· Menswear is bought by both men and women, and so retailers need to be attractive to both men and women. As they have different shopping behaviours (browsers vs destination; confident vs needing help) this is a challenge for store design and visual merchandising styles.

· Competition for men’s spending comes from their hobbies. Mintel’s consumer research shows that 20-24s and 35-44s are most likely to spend more money on their hobbies than on clothes – clothing retailers are not just competing among themselves but with other discretionary spending ‘wants’ products. These men are most likely to be the ABC1s who can afford to indulge themselves.