An investigation into the UK clothing sector for men’s knitwear This dissertation is submitted in the partial fulfilment of the requirement of the MA Fashion Marketing and Communication programme 2008-2009 By Mr. Ojas D. Mogrey N0195481 Under the supervision of Dr. Alistair Knox School of Art & Design Nottingham Trent University
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An investigation into the UK clothing sector
for men’s knitwear
This dissertation is submitted in the partial fulfilment of the
requirement of the MA Fashion Marketing and Communication programme 2008-2009
By
Mr. Ojas D. Mogrey
N0195481
Under the supervision of
Dr. Alistair Knox
School of Art & Design
Nottingham Trent University
COPYRIGHT AND ACCESS DECLARATION
I certify that this thesis does not, to the best of my knowledge and belief:
(i) Incorporate without acknowledgement any material previously submitted for a
degree or diploma in any institution of higher education;
(ii) Contain any material previously published or written by another person except
where due reference is made in the text; or
(iii) Contain any defamatory material.
Signed……………………………………..
Date…………………………………
i
Acknowledgement
I avail this opportunity to express my deep and sincere gratitude to my
supervisor Dr. Alistair Knox, firstly for giving me the opportunity to work
under his guidance. Secondly he has been supportive since the day I started
the project work. He gave me the freedom I needed to progress and finally
for showing me different ways to approach a research problem and
accomplish my goal, and encouraging me during the most difficult times
while writing the dissertation.
Learning is an infinite aspect of knowledge. This journey of learning
becomes more valuable with experienced travellers of the knowledge world;
their motivation and guidance leads us to our destination.
I am extremely honoured for the opportunity bestowed upon me to work
under the guidance of Ms. Yvonne Trew who’s inspiring, scholastic
guidance, helpful criticism and abiding interest has helped me a lot. I
express my sincere gratitude to all those who has participated in primary
research and have given their genuine feedback. I sincerely appreciate Miss.
Roohi and Miss. Milisha for their constant moral support during my stay in
the UK.
Last but not at the least I would like to thank my parents for their constant
encouragement and full support.
Ojas D. Mogrey
Fashion Marketing & Communication
ii
Abstract
This research report particularly focuses on the men’s knitwear market
in the UK clothing sector. It gives an overview of the market and
elaborates whether it is a growing or a declining segment.
The real inspiration came from the geographical location of
‘Nottingham’ on the UK map. Not only general clothing production was
dominant occupation in this part of UK but especially people here were
engaged in ‘knitwear’ business. The thought process and curiosity was
coupled with my past work experience in menswear export company, this instigated me to follow a line of investigation on this clothing
sector of men's knitwear.
After substantial background reading on the topic, this project was broadly researched from four different angles i.e. technological
improvement in production, suppliers/manufacturer’s view (Domestic
and International), retailers perception and consumer behaviour. Data
was gathered from observation and interviews as tools of primary research. Visits to few knitwear production houses in England have
also given a good insight on existing production practices.
Based on primary research, it reflects that market is not growing much
because of the current economic downturn but certainly has good scope in the future, as male consumers are willing to spend on good
quality knitwear. Secondary data also explains that market for men’s
knitwear in terms of production and retail is going down.
There is still further scope in this research process with specific set of
objectives which may lead to a concrete conclusion.
iii
Contents
Chapter one – Introduction
Background (02)
Project Aim and purpose of study (04)
Beneficiaries (04)
Research Objectives and (05)
Related Research Questions
Chapter two – Research methodology
Research Validity and Strategy (07)
Literature Review (09)
Interviews (11)
Observational Research (13)
Technical Visits (14)
Challenges in Conducting Primary Research (15)
Chapter three – Knitwear market analysis in UK
Overview of Menswear Market in the UK (17)
Overview of Knitwear Market within Menswear (21)
Key Findings of the Market (23)
Newsroom (24)
Chapter four – Technology and manufacturing
Latest Improvements in Industrial Knitting (26)
Process of Manufacturing Knitwear in UK (31)
Newsroom (35)
iv
Chapter five – The Consumer
Consumer market segmentation (37)
Male Buying Behaviour (42)
Loyalty Drivers (44)
Newsroom (46)
Chapter six – Retailer and Supplier brands
High Street Fashion Multiples (49)
v/s Independent Brands
Issues for Fashion Multiples and Independents (53)
Newsroom (57)
Chapter seven – Supply chain in knitwear industry
Overseas Knitwear Supply to the UK Market – (59)
Process in Brief
Conclusion (63)
References (66)
Bibliography (70)
Appendices A (73)
Appendices B (76)
Appendices C (79)
Appendices D (81)
v
List of figures & Images
Figures
Chapter two
Figure: 1 – Research objectives – strategy (07)
Figure: 2 – Primary research strategy on manufacturing front (12)
Figure: 3 – Primary research strategy on retailing front (12)
Chapter three
Figure: 4 – Trends in menswear sales (17)
Figure: 5 – Menswear market positioning in the UK clothing retail (18)
Figure: 6 – Trends in the UK’s clothing production (19)
Figure: 7 – Structure of men’s knitwear market (22)
Figure: 8 – Stages in knitwear production (31)
Figure: 9 – Age wise male population in the UK (38)
Figure: 10 – Age wise earnings in the UK (39)
Figure: 11 – Distribution of regional earnings (41)
Chapter six
Figure: 12 – Issues for fashion multiple (53)
Chapter seven
Figure: 13 – Process of overseas supply chain (60)
vi
Images
Chapter four
Image: 1 – Garment panels for seamless knitwear (27)
Image: 2 – Example of seamless technology (28)
Image: 3 – Whole garment knitting (29)
List of Tables
Chapter Six
Table: 1 - Price comparison between M&S and Independents (50)
Table: 2 – Price comparison between (50)
Jack Wills and Independents
Table: 3 - Price comparison between (51)
Austin Reed and Independents
Table: 4 - Price comparison between (51)
Ted Baker and Independents
Table: 5 - Price comparison between (51)
French Connection and Independents
Table: 6 – UK retailer’s product (men’s knitwear) analysis (55)
Table: 7 – Top knit apparel exporting countries in the world (61)
Table: 8 – Top knit apparel importing countries in the world (62)
Chapter One
Introduction
Chapter one - Introduction
- 2 -
Background
England is considered to be the mother land of knitting and has a solid history which dates back to four centuries. Initially, the land was being
used for growing corn and also to provide grazing for sheep. The East
midland was the main region where this activity took pace in counties
like Nottinghamshire; Leicestershire attracted the importance because of its availability in superior quality of fleeces (Mason, S. 2000 p.20-
35).
In the late 18th century, framework knitting had started gaining
importance amongst the peasants staying in these areas. This was mainly because of the advantage in production over hand knitting.
These changes led to a shift in the entire industry and transitioned
house-hold knitting to factory production. During this period, circular
knitting machines first got introduced in England and threatened the hand frame knitting production systems. Though many companies had
significant capital invested in the frames, household knitting was still
in existence (Knitting Together, 2002).
At the end of 19th century, UK had also witnessed a good increase in
selling their technology worldwide. The entire world was a huge
market for British textile technology. Those countries who were not
manufacturing knitting machines, needles etc used to buy them from
UK and try to develop similar products for their domestic usage. The sector also employed more than 9000 people just across East
midlands. Later this region automatically became the obvious choice
for foreign investors as well. Overseas competition forced the UK
knitwear industry to adopt large diameter circular frame knitting machines to manufacture cut-and-sew garments. The main focus was
on producing Cardigans and Jumpers during this period (Knitting
Together, 2002).
With growing and better transportation facilities, manufacturers were
able to reach a larger consumer base throughout the country.
Manufacturers started giving names to their products and thus a new
tool of advertising emerged with a concept called as “Brand” / Brand management. Slowly UK businesses started growing but at the same
time imports were also increasing from low cost countries like India &
Bangladesh. There were strong efforts made by the UK government to
protect the market but due to high labour costs and policy of procuring
goods by retailers like Marks & Spencer directly from these low cost producers, which led to a big decline in the textile industry in UK the
21st century (Knitting Together, 2002).
Chapter one - Introduction
- 3 -
However, still knitwear has been very important product for people &
for the retailers.
This report focuses on one of the most important yet neglected aspect
(in terms of academic research) of UK’s clothing sector i.e. Men’s
knitwear. The total menswear market has reached £9,135 million in
terms of spending in the year 2008. Based on UK Apparel and Textile Confederation data (2006) and Key Note (2008) report, total market
for men’s knitwear could be around £116 million in 2008 as per the
trend of a 20% fall in production every year since 2006. Within the
scope of this dissertation, the focus will be to concentrate and understand UK’s knitwear industry from the perspective of retailers as
well as the manufactures. It finally aims to understand the growth or
decline of an industry as a whole with the support with theoretical
information and collection of factual primary data.
Chapter one - Introduction
- 4 -
Project Aim and purpose of study
The primary aim of this project is to understand whether the men’s knitwear market is growing or declining in UK.
Since the past decade the UK clothing sector has always remained
under tremendous pressure from importers of low cost clothing from developing countries. The total UK clothing sector will continue to
expand but the sales of UK producer’s are forecasted to continue
falling because the growing demands are met by low cost importers
(Key Note, 2007).
The real purpose is to understand the reasons for growth or decline in
the men’s knitwear market based on stated objectives. This project
brief will also suggest some solutions at the end to improve the
unfavourable conditions of market.
Beneficiaries
The beneficiaries of this research project could be new knitwear brands
who want to enter in the UK market. They can predict their sales volumes and formulate strategies by picking up some of the key
findings of this project. Further to this, apparel exporting countries will
get an overview of the market if they would like to fine-tune their
exporting activities to UK. There are latest technological improvements in knitting/processing of knitted fabrics and garment production
mentioned in this report. This information might be useful for a layman
consumer to understand the reason of higher valuation/price of a
knitted product. Finally, overseas suppliers could benefit from this report as they can actually understand the potential of the market for
their export penetration. It is very important for the overseas supplier
to understand saleable qualities, sizes, shades as to keep and maintain
raw material stock for the coming season. The overseas supply chain
which is mentioned in the last chapter (refer chapter seven) can help a UK retailing company to understand and actually plan their inventory
levels, warehouse as well as at the store location. This project report
can also be used as a platform and a launch pad to carry out further
critical and a more robust research. It will be very useful also for those who would like to take this research forward.
Chapter one - Introduction
- 5 -
Research Objectives and related questions
After substantial secondary research and primary research, the following are the objectives drawn to achieve an overall aim. This
project has been looked at from four different objectives which are
important because it forms a basic structure of a niche segment of
clothing sector.
To investigate technological improvements that affect men’s
knitwear production & quality of fabrics in the UK & Overseas
markets.
o What are the latest improvements in knitting, fabric
processing and its impact on knitwear sales?
o What is the process of manufacturing knitwear in UK?
To understand male consumer behaviour.
o What are the broad segments of male consumers in the
UK? o How UK men shop in the stores? What are the factors they
consider while buying clothes?
o Which are the important loyalty drivers for men?
To give an overview of leading high street fashion multiples and supplier brands of men’s knitwear in the UK.
o Which & what product and price ranges do high street
retailers offer? o Which & what product and ranges do independent branded
stores offer?
o What are the key market issues for fashion multiples and
independents?
To understand the supply chain operations in importing knitwear.
o How the product reaches from the manufacturer to the store?
- 6 -
Chapter Two
Research Methodology
Chapter two – Research Methodology
- 7 -
Research validity & strategy
This research aims to explore current retail and production business practices of UK in men‟s knitwear segment. The structure of looking at
the broad perspectives into this niche segment of the UK clothing sector
is self developed and is also based on all the previous investigation into
the whole menswear category.
The strategy formulation began with the careful reading around the
topic. Keeping in mind the overall aim, a critical literature review had
been carried out from various sources like Journals, Magazines, Books,
Research papers etc. This had given a much clearer picture of the whole market segment. Based on this overview of the market, research was
subdivided into 4 focussed objectives.
Figure 1: Research objectives – strategy
There are other research questions attached to this which have already
been mentioned in the previous chapter. Secondary research was focused on these objectives. It was very important to get the
data/feedback from the market and people who are actually working in
the knitwear industry. Qualitative primary research techniques were
applied to gain first hand information.
Knitwear
market
analysis in
UK
Consumer
Behaviour
Retail & Supplier Brands
Supply chain /
Overseas Supply
Technology & Manufacturing
Chapter two – Research Methodology
- 8 -
There are several knitwear manufacturers still into existence in different
parts of England. Initially the process asking for an appointment was to
contact them by telephone or email. A questionnaire was created in consultation with the supervisor to get maximum output from those
meetings. In this current economic downturn and high labour cost,
knitwear production in UK seems to be going down. For this reason, it
was necessary to get feedback from a small-medium level of producers who has been in the market for many years but has a very small set-up
and also from the producer-come- supplier of a much larger turnover.
Similarly on the knitwear retailer‟s front, semi-structured interviews were carried out with three companies who have their own brand being
marketed and sold in their own stores. Two companies are selected
from an up-market level and one from budget market level. The
purpose of selecting these two different levels of companies was to understand how they perform in attracting male consumers. Another
reason was understand whether it‟s only the brand name that speaks or
actual quality/speciality of the product which generates the sales.
Some of the key issues like general product choice in different age brackets, price v/s quality factor, and choice of retailer by particular
group of men on the high street are addressed by a non-participant
observation technique. As Judith Bell (2005:184) pointed out,
observation can reveal characteristics of certain group of people.
It was also worthwhile contacting ex-colleagues who were managing
knitwear export business from supplying countries like India &
Bangladesh. Taking valuable inputs from them on the process of importing knitwear by UK buyers was indeed proved useful. According
to TNS Global report (April, 2008), there was steep increase in the
trend of men‟s knitwear sales with 42% volume growth in the year
2007 compared to the previous year. This growth was mainly due to
sales increase in Cardigans (type of knitwear product). On top of this the report also revealed that 3.5 million men‟s cardigans were bought in
the year 2007. The point of research on this issue was, whether it was
all manufactured in the UK or which were the top countries supplying
these products to UK retail stores.
There were two technical visits arranged with medium level (those with
less than 20 flat bed knitting machines or 5 circular machines)
manufacturers including one Leicester based apparel manufacturer in order to understand the existence of traditional or modern production
practices in UK‟s knitting industry.
Chapter two – Research Methodology
- 9 -
Literature review
The initial phase of reviewing literature was started with general reading around the topic through various Journals, Research papers &
menswear magazines. Market reports from companies like Mintel, Key
Note & Verdict were very useful in providing insight into the UK clothing
industry. UK newspapers e.g. Guardian, The Times & Financial Express was also valuable indeed in giving the latest updates/changes in the
market. This research report discuses mainly the recent literature in
respective context.
The key information derived from below mentioned resources for putting it into the related subject context.
Market analysis & trends
I. Market research firms (Online database) – Key Note Ltd., Verdict
Research, Mintel Intelligence
II. Academic research papers – University of Manchester,
Bournemouth University III. UK National statistics
IV. Web sites www.scotland.gov.uk; www.printwearpromotion.co.uk;
www.sdi.co.uk
Technology and manufacturing
I. Knitting International (Magazine) – Article.
II. Textile Intelligence Magazine – Article.
III. Journal of Textile and Apparel, Technology and Management. IV. TTIS Textile Digest – Article.
V. David Rigby Associates Management Consultants – Research
paper.
VI. Web sites – www.techexchange.com; www.knittingtogether.com; www.mayercie.de;www.snatoni.com;www.stoll.com;www.emarldi
Table 5: Price comparison between French Connection and Independents
Chapter six – Retailer and Supplier Brands
- 52 -
There is a clear indication that price for the same type of product
from fashion multiple is lesser as compared to independent retailers in the UK‟s men‟s knitwear market. There is a price difference of
£30-£40 or more between these two types of retailers. Certainly with
the demand for more premium products growing, albeit still at good
prices, more and more retailers would like to invest in developing this premium knitwear ranges.
Chapter six – Retailer and Supplier Brands
- 53 -
Issues for fashion multiples and independents The current downturn in clothing market growth has forced many
retailers to change their strategic decisions. The priority of
investment to shift towards refurbishment and development of new
back office systems that enables full price sales to be exploited and margins to be preserved. It is important to raise sales densities on
the shop floor for independents as well as for multiples to improve
profitability (Verdict research, 2008).
Figure 12: Issues for fashion multiples Source: Verdict research
Overseas
expansion
Location
strategy
Demographic
trends
Advertising shift
Declining densities
Stagnant market
Sourcing cost
Issues for
Fashion Multiples
and Independent
Chapter six – Retailer and Supplier Brands
- 54 -
Retailers have adopted a new ways of promoting their products to reach
target audience. For example, instead of spending heavy amount on TV
and print advertisements they have started promoting it on the
internet. It is economical for independents to create an online store on their respective web sites where consumers can view and buy the
product without visiting the store in person (Verdict research, 2008).
Researcher has observed the fact during an interview with Mr. Colin
Beattie of Alan Paine knitwear that a customer online database was created with their personal details while every time they shop at their
store or through web site. This information was used later to maintain
better relationship with the customer. For example, this kind of
software sends an automated email on customer‟s anniversary or birthday‟s. This kind of efforts used by independents and fashion
multiples to increase consumer loyalty as well.
An overall household disposable income growth has slowed down in the
UK since year 2005. It was 2.9% in the year 2005 and then has slashed down to 1% in 2007. This year on year change in the disposable income
has created impact on the consumer to spend less on clothing along
with items such as food and utility bills. Thus retailers have also got
affected due to less growth in their sales. Retailers are implementing different strategies to survive in the low growth environment. The best
example of this would be to diversify the product ranges into the store
like knitted scarf and accessories. This product diversification could
prove as a potential for a long term growth in the market (Verdict research, 2008).
Deflation in selling prices of goods has been a fundamental aspect of
the UK clothing market form past 10 years. This trend has been made
possible by the increasing proportion of product that most fashion multiples have imported goods from many low cost countries such as
Bangladesh and China. Especially retailers like River Island or Monsoon
whose focus is mass middle market consumers, source large proportion
of their knitwear from low cost Asian countries. This international sourcing has allowed fashion multiples to keep their enough margin on
the product and also allows them to lower in general price of the
product. This stimulates consumers to buy more and more number of
garments from the fashion multiples when they go out for shopping. Every retailer has a target audience by their age brackets. Generally
there is emphasis given on twenty five year old and above men for
knitwear product in the UK clothing retail sector. There is a normal
perception amongst consumer that specific retailer or a brand offers
Chapter six – Retailer and Supplier Brands
- 55 -
specific (high or low) quality garments and also maintains the standard
product ranges which is appropriate for the consumers of targeted age
bracket (Verdict research, 2008).
Retailer Target
consumer(male)
age bracket
Type of target
consumer (male)
% space
allocation
for knitwear in
the store’s
menswear
section
Burton 25-40 Working/professionals 7.1
TopMan 15-25 Students and fashion
conscious youth
6.4
Debenhams 35-55 Working/professional 3.3
George
(ASDA)
25-35 Grocery shoppers 4.4
Marks & Spencer
40-55 Business/corporate 5.0
Matalan 35-55 Family shoppers 5.1
Moss Bros 25-45 Trend conscious
professionals
4.7
Next 25-45 Wardrobe staples and workwear
8.2
Primark 15-35 Low price fast fashion
conscious
5.2
River Island 15-25 Young fashion
conscious
8.0
Table 6: UK retailer’s product (men’s knitwear) analysis
Source: Verdict research, 2008
It is clear from the above chart that most of the retailers are targeting
twenty five and above men for knitwear products. It might be different
types of consumers shopping at different stores but their target
audience is inclined more towards mature men.
During the year 2004-2005, there was a strategy of opening large
number of stores across the country to maximise sales volume but
recently since the year 2007 average sales densities have gone down. This change has made retailers to improve of productivity of existing
floor space. Retailers like Ted Baker and French connection have scaled
back their rate of new store opening but retailers like Primark is
continuing with ambitious new store openings at prime locations of the
Chapter six – Retailer and Supplier Brands
- 56 -
cities. Generally all high street fashion multiples has located around the
city centre. Very few have out-of-town presence. On the other side,
most of the independents including premium brands like Pringle and Harley are located in outside the town or in the less frenetic area.
Researchers also feel that there is going to be greater development of
such independent stores in the rich residential areas as consumers are
trying to avoid trips to big shopping malls where usually there is a problem of car parking and long queues at the till. There is also an
emerging opportunity for upmarket knitwear brands to open and
establish good sales volumes at the Heathrow airport terminal 5 where
there is a big shopping arcade for passengers (Verdict research, 2008).
In the current economic downturn, UK‟s fashion multiples are looking
for international expansion where there is an untapped market for
quality knitwear. Franchising remains the most preferred model for most of the UK retailers in the international markets. For example, Ted
Baker has opened own stores and few franchises in United States,
Australia and Middle East. It is yet to prove the profitability factor for
many UK fashion multiples in the international expansion. For instance,
in the year 2007 Ted Baker‟s international turnover was accounted for £11.4 million but the profits were only £143,000 with an operating
margin of 1.3% (Mintel, 2008).
Key findings
Fashion multiples are having the capacity to source garments from low
cost countries at cheaper rate as compared to the independents. This cheap sourcing makes possible for them to offer low price products with
the same quality to consumers as compared to the independents.
Fashion multiples and independents are implementing new and
improved methods to maintain the consumer loyalty though future of
independent knitwear brands does not look promising in terms of growth into the market share.
Chapter six – Retailer and Supplier Brands
- 57 -
Newsroom
Knitwear firm confirms fresh cuts
A knitwear company in the Borders has confirmed plans for a
second round of job cuts in a matter of months. Hawick Knitwear
announced 36 redundancies in November and now plans to shed a further 32 posts. A statement blamed the move on a slowdown in
consumer spending which had reduced the size of the company‟s
forward order book. Tory MSP John Lamont described it as
“terrible news” for the workers in Hawick and their families. The proposal will reduce the company‟s capacity by 20% but will still
allow them to manufacture around 7,000 garments per week. It
has also entered separate discussions over proposals to make a
number of changes to the terms and conditions of all employees within the business. Managing Director Benny Hartop said the
latest cuts could not be avoided (BBC News, 2009).
- 58 -
Chapter Seven
Supply Chain in Knitwear Industry
Chapter seven – Supply Chain
- 59 -
Knitwear supply from overseas to the UK market
– Process in brief
The supply chain encompasses all activities associated with the
flow of transformation of goods (products and services) from
initial design stage through the early raw material stage, and on
to the end user. Additionally, associated information and cash flows form part of supply chain activities (Hines 2003 p.1-30).
Offshore sourcing by many clothing multiples in the UK has increased
over the past 15 years as a way to lower costs. China, Hong Kong and Turkey are the top three countries who have got the maximum share of
imports into the UK’s clothing industry. Different retailers have different
strategies of sourcing the products from different countries (Hines, T.
2007). Fast fashion retailers like Primark and Zara has forced overseas
suppliers to manufacture less number of garments with higher designs and fashion content. There are basically two ends of the market, one is
the price-sensitive volume market and the other one is quality end
market. The former market is been catered by the UK clothing retailers
from low wage economies and the later from European countries. Especially knitwear products like cashmere and silk are sourced from
China (Easey, M. 2008 p.20).
There is a extensive process involved in clothing supply chain starting from marketing research till the shipment of goods. Overseas supplier
along with the retailer (from UK in this context) has to plan the process
from the time getting a brief or the idea and product development to
the delivery deadline. Usually in the overseas production, new concepts in designs are originated from retailers sales and marketing and
designing team. Ultimately an overall performance of the supplier
determines the success of ongoing business. Therefore it could be
worthwhile to understand the basic process from concept development
to the store.
Chapter seven – Supply Chain
- 60 -
Concept System level Detail design Testing & Development Design Refinement, Production ramp-up
Figure 13: Process of overseas supply chain
Source: Clothing and Textile Research Journal
1) Marketing
Research
Customers, Merchandisers
,Designers, Sales dev
Concepts
Focus on end consumer’s
need
2) Design with cost
estimation
Technical designers
specify and
make samples
Pre costing
3) Present CAD print-
out to team
Reject Accept
Discard/remake 4) Sample making Check sizing
measurement
Reject
Becomes an order
Production costing
Final approval
5) Production line
o Yarn order
o Knitting o Laundry
o Cut and sew
o Assembly
line
Designer and sales
reps present
samples
Accept
Packaging and shipping to the port of
destination
Chapter seven – Supply Chain
- 61 -
There are basic five important steps in an overseas knitwear supply
chain which starts from the retailers end. The team from retailer’s head
office does the marketing research keeping the end consumer in mind. Designing team develops a product according to the cost estimation.
Designers develops sample accordingly. Sketches are shown on to the
computer (CAD) with precise detailing. These designs are then
discussed in the team for its approval. If the design is rejected then it is discarded and remade. If it is approved then supplier is asked to make
samples. Yarn is ordered then to knit the fabric and prepare a garment.
In this sampling stage, all the required size set is being prepared to
take the fit approval. In the next stage supplier sends his samples for the approval of designers and sales representatives. If the sample gets
approved then retailer places the bulk garment order with the supplier.
Production cost is done by the supplier and given it for the approval of
the buyer. Once it is approved then supplier takes the order for production and keeps the gods ready in stipulated time period given by
the retailer/buyer. This whole supply chain process takes approximately
6-8 months depending upon the volume and transportation time
(Pitimaneeyakul et al., 2004 p.119).
Following were the top knit apparel exporting countries of the world in
the year 2005-2006. This was the latest comparative data available of
major clothing supplying countries especially for knitwear products.
Table 7: Top knit apparel exporting countries in the world
Source: Apparel Export Promotion Council, India
ExportersValues exported
in 2004 (US$ bn)
Values exported
in 2005 (US$ bn)
Annual growth in
2004 - 05 (%)
Share in World
exports (%)
World 117.36 124.79 6.33 100.00
China 25.80 30.87 19.65 24.74
Hong Kong 12.20 13.32 9.18 10.67
Italy 6.83 6.71 -1.76 5.38
Turkey 6.26 6.35 1.44 5.09
Germany 4.44 4.44 0.00 3.56
Bangladesh 2.39 3.48 45.61 2.79
India 2.47 3.20 29.55 2.56
France 3.03 3.19 5.28 2.56
Belgium 2.39 2.69 12.55 2.16
USA 2.70 2.58 -4.44 2.07
Top 10 Total 68.51 76.83 12.14 61.57
Top Knit Apparel Exporting Countries of the World in the year 2005 - 06
Chapter seven – Supply Chain
- 62 -
Following were the top knit apparel importing countries of the world in
the year 2005-2006.
Table 8: Top knit apparel importing countries in the world
As we can observe from the above mentioned tables China was leading
the chart in exporting highest volume of knitwear products to the entire
world. As per the latest data mentioned in the first paragraph of this
chapter, China still leads the position of top exporting nation to the UK for knitwear. On the other hand USA tops the chart of importing the
highest volume of knitwear products in the world followed by Germany.
United Kingdom was the fourth largest knitwear importer in the world
with total share of 7.45% (AEPC, 2007).
Source: Apparel Export Promotion Council, India
ImportersValues imported
in 2004 (US$ bn)
Values imported
in 2005 (US$ bn)
Annual growth in
2004 - 05 (%)
Share in World
Imports (%)
World 120.14 124.22 3.40 100.00
USA 33.04 33.29 0.76 26.80
Germany 10.68 10.40 -2.62 8.37
Japan 9.19 9.79 6.53 7.88
UK 8.83 9.26 4.87 7.45
Hong Kong 8.81 9.24 4.88 7.44
France 7.11 7.59 6.75 6.11
Italy 4.79 5.15 7.52 4.15
Belgium 2.99 3.26 9.03 2.62
Spain 3.58 2.76 -22.91 2.22
Netherlands 2.69 2.50 -7.06 2.01
Top 10 Total 91.71 93.24 1.67 75.06
Top Knit Apparel Importing Countries of the World in the year 2005 - 06
Conclusions
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Conclusion
Investigation and understanding the UK’s clothing sector for men’s
knitwear has been thoroughly analysed through this thesis. The chapter on knitwear market analysis explains that there is a growth in
the menswear market since past four years but albeit at a slow pace.
Thus UK’s menswear as a whole and the knitwear segment have been
analysed and researched in this thesis. An industry data for men’s knitwear shows a decline in this market. Secondary data reveals that
an economic downturn is the main cause of this observed slow growth.
UK clothing retail market for men’s knitwear is divided into two broad
segments i.e. fashion multiples and independents. However, fashion multiples have dominant share of the market as compared to the
independents. Especially value retailers e.g. Primark is a leading player
in the fashion multiples market share. There seems to be a clear
decline in the clothing manufacturing sector of UK. Apparel sourcing by
UK retailers from low wage countries and high labour cost in domestic clothing production are the main important reasons for this decline.
New technology (refer chapter four) in knitting has improved the
productivity in manufacturing processes of knitted apparel. It has also supported the economies of scale in producing high volume of
garments. Seamless and whole garment technology in knitting reduces
the stages in cut-n-sew garment production which are suitable for UK
where labour cost is higher. It is been discovered that vertically integrated units in UK follow similar knitwear production stages to
knitwear suppliers from India. Primary research made it possible to
understand the exact production stages that are followed in the UK.
The comparison of production stages between India and UK was done on the basis of researchers own work experience in India. However,
other technical visits and interviews with the manufacturers indicate
the fact that there is not much production activity left in UK. There is
hardly anyone who would like to invest on latest machinery.
Market segmentation (refer chapter five) allows retailers to target their
audience in a better way and able to offer better products/services.
The highest male population bracket is 45-65, who seem to have good
buying power and are inclined towards quality shopping. However in the current economic downturn, these customers are also taking a
step back while buying high priced apparel. On the other side young
male in UK is likely to get attracted towards value retailers or fast
fashion retailers because of their wider product ranges at reasonable prices. Fashion multiples e.g. Primark, Matalan are offering wide
knitwear ranges to the consumer in order to maintain brand loyalty.
Conclusions
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Hence it is becoming difficult for independent high value knitwear
retailers to sustain in the market with higher margins.
Small independents are finding it difficult to compete (refer chapter
six) with big fashion multiples in the current economic downturn.
Fashion multiples can negotiate better prices with the overseas
suppliers because of their buying power due economies of scale. It has been discovered by systematic price comparative observation that
prices of same quality knitwear from big fashion multiples are cheaper
as compared to the independents. However it seems that premium
brands with a long history will continue to remain in the market. They may shift their production base to low wage countries. For example,
Pringle of Scotland has shifted their original production base from
Scotland to Italy in July, 2008 as a cost cutting measure (BBC News,
2008).
Even though it takes longer periods to source garments from overseas,
retailers from the UK will continue to import in order to gain maximum
margins. Supplier can get a good business for a long term if they
regularly deliver with quality and on time.
Finally, it has to be highlighted that resources and information
channels needed to analyse such a niche clothing segment were
scattered and remote. However with due diligence and a robust research methodology this project intends to conclude that the men’s
knitwear in the UK’s clothing sector seems to be declining in terms of
production as well as retailing. There are few positive growth factors of
the market explained earlier in chapters four, five and six but overall market seems to be declining for men’s knitwear segment.
Recommendations
Existing knitwear companies in UK should concentrate on investing in latest technology rather than following the traditional ways of
manufacturing knitwear. This will reduce their burden on employing
large number of employees. Retailers should design better knitwear
styles for men which will allow them to change their wardrobe frequently. At the same time independents should try and bring their
price down in order to compete with fashion multiples.
This research could have been more incisive if knitwear as a product would have been categorised specifically as either under textile
product or an apparel product. There is a lot of scope to explore and
investigate new entrants in the UK market for knitwear and explore
Conclusions
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their strategies. And also further research can be carried out to find
out reasons for companies who withdraw their existence from the
market.
The men’s knitwear market can be surveyed beyond the set of
objectives which were researched in this dissertation 'An investigation
into the UK clothing sector for men’s knitwear'. Thus, making a point that fashion has no boundaries.
References
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