Ask Wonder Project

Part
01
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Part
01

Market Value and Growth - Men's Tailored Clothing

Growth in the menswear segment is growing globally, with particular strength in the luxury end of the market. As of 2017, the global menswear market was worth approximately $419bn, with designer menswear worth around $30.6bn, and tailored menswear worth around $4.2bn.

FINDINGS

After an extensive search I was unable to find any sources that explicitly provided the information that you were looking for. However, I was able to triangulate your request information and also provide some important trends for the segment.

The global menswear industry overall is worth just over $400bn per year, as indicated by FashionUnited ($402bn) and Euromonitor ($419.3bn), with Euromonitor predicting growth of 4.7%.

Of this, multiple sources found the luxury menswear market to be around $30bn in 2017, growing at a rate of around 2.3% per year up to $33bn by 2020.

Furthermore, chief industry analyst for market research group The NPD Group, estimates that the tailored suit industry accounts for around 1% of the total menswear industry (or $4.2bn). I was unable to find growth figures for tailored menswear; however, based on the trends for luxury menswear I would expect tailored menswear to grow at least by 2.3% per year.

While still significantly smaller than the global womenswear market ($621bn), menswear continues to hold a large share of the global fashion industry. Within this market, luxury menswear accounts for roughly 7%, with tailored menswear accounting for 1% of the total.

This said, the shift towards online shopping promises to radically increase both the share of luxury menswear and tailored menswear. Between 2013 and 2016, the ten largest luxury menswear retailers grew their online sales by 100%, while the ten largest premium menswear retailers (where tailored menswear is more likely to fit) grew their online sales by 278%. This is compared to a sales decrease of 5% for mass market menswear retailers.

In mid-2017, Amazon also patented a process for making custom-made clothing on demand, although as yet, this service has not launched. Once online, however, this could radically change both the market and public opinion for tailored clothing.

Social media is reported as driving much of this interest in designer menswear. And as men's awareness of fashion increases, it is reasonable to expect ongoing growth in the luxury menswear segment that includes tailored clothing.

CONCLUSION

Globally, the current market value of menswear is approximately $419bn. Out of this total amount, the designer menswear’s market value is $30.6bn, while for tailored menswear, the value is $4.2bn. Regarding growth rate, the designer menswear clothing industry is seen to grow at round 2.3% per year, and this can be considered as applicable to tailored clothing as well.

Part
02
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Part
02

Market Value and Growth - Premium Men's Shirts

Globally, the market for premium men's shirts is worth an estimated $16.82 billion. The market is expected to experience growth of over 14% CAGR from 2015 to 2020 when it is projected to reach a value of over $21 billion. You'll find a deep dive of my research and calculations below.

Findings

Despite extensive searching, I could not find a solid figure for the size of the premium men's shirt market in existing and publicly available market research. The information that was available centered around the luxury market and the luxury men's market as a whole. Limited details were also available for the men's shirts market but specific information on the luxury segment of that market was unavailable.

However, I was able to triangulate an estimate for this market size based on available data. Since the precise proportion of the premium men's shirts segment is not publicly available, the actual data points may vary. For example, is not clear whether the luxury market is growing overall or if it is growing due to a surge in demand for a specific segment such as luxury accessories, luxury pants, etc. With this in mind, its noted that my triangulation is a rough estimation based on industry averages.

The total global market for luxury apparel is currently worth $339.4 billion. This source tells us that tops account for 37% of the apparel market overall, and if we assume that holds true for the luxury market specifically, we can estimate that the market for luxury shirts is worth approximately $125.58 billion (37% of $339.4 billion).

According to this source, the total global apparel market is worth $3 trillion. The menswear industry is worth $402 billion, so that's 13.4% of the total apparel market ($402 billion is 13.4% of $3 trillion). If we assume that ratio, of menswear to non-menswear, holds true for the luxury apparel market, and luxury shirts specifically, we can estimate that the global market for men's luxury shirts is $16.82 billion:

$125.58 billion (global luxury shirts market) x 0.134 (percentage of total apparel market) = $16.82 billion (global market for men's luxury shirts)

To corroborate this triangulation, I found another source which reports that the global market for men's designer apparel was worth $29 billion as of 2015. Again, if we know that shirts account for 37% of the apparel market overall, and we assume this ratio applies to the designer apparel segment specifically, we can estimate that the market for men's designer shirts in 2015 was worth $10.73 billion (37% of $29 billion). Moreover, the same report projects the men's designer apparel market to grow to $33 billion by 2020; 37% of that would put the men's designer shirt market at $21 billion in 2020.

If the men's premium shirts market grew from $10.73 billion in 2015 to $21 billion in 2020, that's a CAGR of 14.37%. This rapid growth is corroborated by other market research, which reports that the ten biggest luxury menswear retailers grew 100% between 2013 and 2016. Moreover, the ten biggest premium retailers grew 278%. This market research suggests that the APAC region has the highest growth due to its rising middle class, and accounts for 32% of the global menswear market.

Clearly, this market as a whole is experiencing significant growth. While this cannot be directly linked to premium men's shirts, it does indicate that growth in this market segment is likely. Still, it should be stressed that this is an estimation that, at this time, cannot be proven with certainty.

Conclusion

To wrap up, the global market for premium men's shirts is worth approximately $16.82 billion. The market is expected to experience growth of over 14% CAGR from 2015 to 2020 when it is projected to reach a value of over $21 billion.
Part
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Part
03

Market Value and Growth - Men's Sportswear

Premium sportswear, or athleisure wear use has been increasing each year, and that trend is projected to continue. In 2017, premium men's sportswear was a $14 billion market, and it keeps growing. The worldwide compound annual growth rate of the athleisure market is around 8.3%.

Men's sportswear statistics

In 2017, the global revenue of the total sports apparel market was $168 billion. By using this statistic and by finding the percentage of sportswear that is premium and for men, the market value and growth of men's sportswear can be found. Men make up 52% of the sports apparel market. This means that in 2017, men's sportswear revenue was about $87 billion (52% of $168 billion). The percentage of luxury or premium brands that were sold in 2015 was 16%. This is the percentage for both genders combined, so it is assumed that it is the percentage for both men and women. This article does include data from just over two years ago, but it is still fairly recent. Since men's sportswear is an $87 billion market, and 16% of it is luxury or premium wear, the total market value of premium men's sportswear was approximately $14 billion in 2017.

Growth of the market

We calculated the global growth rate by looking at the average growth rate of some leading regions. In the United States, there are two different projections of growth that can be averaged to find the estimated growth of the athleisure market. The projections cover the total market regardless of gender, but the amount of growth remains very similar for both men and women. Vivian Chen of SCMP states that the athleisure market could grow by more than 30% by 2020. Since this article was written in July 2016, this 30% growth is projected to occur in a 4.5 year time period. This means there is a projected compound annual growth rate (CAGR) of 6.8%. The other growth projection predicts even more success for the athleisure market. In 2016, it was a $46 billion market in the United States, and Lauren Thomas of CNBC believes the market could be worth $83 billion by 2020. This amounts to a CAGR of 10.7%. By combining these two CAGRs, the average CAGR of the athleisure industry in the United States is 8.8%. This number was found by adding 6.8 and 10.7 and then dividing by 2.

While the United States may have the largest sportswear market, China has seen its market begin growing at a faster rate. In 2016, China's athleisure sales experienced an 11% jump. Europe also has a prominent athleisure market, but it is growing at just a 5% rate.
The top worldwide athleisure markets of the United States, China, and Europe are all experiencing levels of different market growth, so they can be averaged to find a global growth figure. Since the US had an average CAGR of 8.8%, China had a CAGR of 11%, and Europe had a CAGR of 5%, the total CARG of athleisure is approximately 8.3% worldwide. This number was found by adding 8.8, 11, and 5, and then dividing by 3. An article from Allied Market Research stated that women's sportswear is growing faster than men's sportswear globally.

In conclusion, athleisure, or premium sportswear is a growing market for both men and women. As more people worldwide look to increase both fitness and comfort, athleisure will be a prominent market for years to come.

Part
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Part
04

Market Value and Growth - Men's Shoes

In 2017, men's premium shoes generated $9.6 billion dollars in global retail sales. Retail sales of men’s designer footwear have grown faster than women’s designer shoes over the last three years, according to data provided by Euromonitor International, a market research provider. Due to the scarcity of accredited sources that clearly state the exact growth rate of premium men's shoes market, the research results here consider the men's premium shoes market as a part of the global premium shoes market. So:

-According to Technavio's analysts, the global premium shoes market shall grow at a compound annual growth rate (CAGR) of 2.42% during the period 2017-2021.

-By providing the current investment amount of the global premium shoes market ($9.6 billion dollars) and its CAGR (2.42%) during the upcoming years (2017-2021), Technavio’s latest market research study forecasts that the global premium shoes market is expected to grow to $49.14 billion by 2021. This amount projects the growth amount of the men's premium shoes market as well.

The Shoe type that dominated most of the premium men's shoes market

In the year 2016, sport shoes were the largest revenue-generating segment in the global premium shoes market. The three major reasons behind this development are:

-High concentration of players in the developed as well as emerging economies.
-Growing scope of international and regional sports tournaments across the world.
-Rising health awareness among individuals leads to more customer membership in gyms and health clubs, in turn raising the demand for sports shoes.

Due to the aforementioned factors, it is expected that the demand for premium sports shoes will increase significantly through to 2021.

In 2016, the men’s segment of the premium sports shoes contributed the highest revenue share, followed by the women and children’s segments. It is predicted that in five years, the men’s segment will continue to dominate the global premium shoes market, not just the premium sports shoes, whilst the women’s and children’s segments will unexpectedly lose their respective market shares.
The top vendors operating in the global premium sports shoes market are Adidas Group, ASICS, New Balance, Nike and SKECHERS.

Conclusion

Men's premium shoes generated $9.6 billion dollars in global retail sales in 2017. As there are no accredited resources that define the growth rate of men's premium shoes market in isolation, the research results here consider the men's premium shoes market as a part of the global premium shoes market. Thus, Technavio’s latest market research study forecasts that the global premium shoes market is expected to grow to $49.14 billion by 2021, where this amount projects the growth amount of the men's premium shoes market as well. The sport shoes were the largest revenue generating segment in the global premium shoes market in 2016.
Part
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Part
05

Market Value and Growth - Men's Outerwear

The global luxury men's outerwear market is worth $1.47 to $4.29 billion, and is expected to grow by a yearly average of 2.1% through 2020. By 2019, menswear will contribute close to US$40 billion in the global apparel market.

premium men's outerwear market

A global fashion industry statistics revealed that the global apparel market is valued at $3 trillion US. Menswear, specifically, will contribute close to US$40 billion in the global apparel market. Meanwhile, the retail value of the luxury goods market is $339.4 billion, meaning 11.3% of the market (339.4 billion / 3 trillion x 100). How about the luxury outerwear market? According to Euromonitor, "the global luxury outerwear market hit $11 billion last year [2016], up from $8.75 billion in 2011."

To come up with the more specific data on premium men's outerwear market, we can use as given the global apparel market which is valued at $3 trillion US. Men's wear industry is valued at $402 billion, which means it makes up 13.4% of the market (402 billion / 3 trillion x 100). The women's wear industry, on the other hand, is valued at $621 billion. Comparing women's wear and men's wear, the split is around 61% women's wear to 39% men's wear.

$402 B [men's wear market] +$621 B [women's wear market] = $1.023 trillion

$402 B / $1.023 trillion X 100 = 39% [men's wear]

$621 B / $1.023 trillion X 100 = 61% [women's wear]

We can assume then that 13.4% to 39% of the luxury outerwear market is men's wear. Therefore, the total luxury men's outwear market is $1.47 to $4.29 billion.

$11 B [global luxury outerwear market] X 13.4% = $1.47 B
$11 B [global luxury outerwear market] X 39% = $4.29 B.

market forecast

According to an assessment, "by 2020, the global luxury outerwear market will have grown a yearly average of 2.1 percent since 2016."

Also, a reliable statistics portal mentioned that "in 2021, the global jackets and coats market is estimated to generate 94.5 billion U.S. dollars in retail sales."
If we use the calculation above, we can estimate the following:
11.3% x 94.5 billion = $10.68 billion in luxury jacket/coat sales
13.4% x 10.68 billion = $1.43 billion
39% x 10.68 billion =$4.17 billion

So, a range of $1.43 billion to $4.17 billion is the estimated men's luxury jacket/coast sales in 2021.

the global luxury market and the major players

A report entitled Global Powers of Luxury Goods 2017 contains interesting data including the major players in the global luxury market. The top three companies mentioned in the report (page 28) are Ralph Lauren, PVH Corp., and Hugo Boss, which accounted for 40.7 percent of total FY2015 luxury sales in the sector of apparel.

conclusion

Based on the current global apparel market, global luxury outerwear market, and men's wear industry value, the global luxury men's outerwear market is worth $1.47 to $4.29 billion, and is expected to grow by a yearly average of 2.1% through 2020.










Part
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Part
06

Market Value and Growth - Men's Accessories

The global market for premium men's accessories was worth an estimated $111 billion in 2017. Based on a growth rate of 8.45%, this market will grow to $130 billion by 2019. The luxury watches segment of this market has a $23 billion share of men's luxury accessories overall. Moreover, the luxury handbags and accessories market segment accounts for approximately $9 billion. You'll find a deep dive of my research and calculations below.

findings

Despite extensive searching, I could not find recent market research on the size or growth of the men's segment of the global luxury accessories market. However, I have triangulated an estimate of the size of this market, its growth, and its major segments, based on available data from 2015.

The men's share of global luxury goods market is 35%. As the market share of men's premium/luxury accessories is not publicly available, we have used this measure as our standard.

The 2017 total global luxury accessories market, for both men and women, is €262 billion, which converts to $320 billion. So, based on the above assumption, we can estimate that the men's share of this market, at 35%, is $111 billion.

According to this market research report, the global luxury goods market will grow at a CAGR of 8.45% through 2019. If we assume this growth rate will be roughly the same for the men's luxury accessories market, we can project that the market size in 2019 will be $130 billion, based on the below calculations:

$111 billion (2017) + (8.45% x $111 billion) = $120 billion (2018)
$120 billion + (8.45% x $120 billion) = $130 billion

Luxury watches account for a significant share of the men's accessories market. According to this source, the global luxury watch market is worth $37 billion. Men's luxury watches account for 64% of this market. Therefore, we can estimate the global men's luxury watches market to be worth $23.68 billion (64% of $37 billion).

We used a similar estimation for the men's premium handbags and accessories market segment. In 2015, this market was worth $7 billion globally. If we assume the growth rate for this market is around 8.45%, the same as the global luxury goods market, then we estimate the 2018 value:

$7 billion + ($7 billion x 8.45%) = $7.59 billion (2016)
$7.59 billion + ($7.59 billion x 8.45%) = $8.23 billion (2017)
$8.23 billion + ($8.23 billion x 8.45%) = $8.92 billion (2018)

conclusion

To wrap up, the global market value of the premium men's accessories market is $111 billion, projected to grow to $130 billion by 2019. Luxury watches account for $23 billion of this market, and luxury handbags and accessories account for $8.92 billion.
Part
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Part
07

Premium Men's Apparel Trends - U.S.

Trends that are impacting the luxury men’s clothing brands in the US include the following: increase in social media exposure of men’s fashion, shift to high-end casual apparel, women's fashion designers adding clothing lines for men, rise in men’s luxury fashion dedicated stores, designers opting for a simpler men’s clothing design, and apparel brand partnership.

TRENDS IMPACTING THE LUXURY MEN’S APPAREL BRANDS IN THE US

The trends below all have contributed to the continuing rise in demand for luxury men’s apparel brands in the United States.
Trend #1:

Social media has become the go-to medium for men when seeking advice on what to wear. The endless social media appearances of fashionable famous men that includes successful entrepreneurs, YouTube sensations, male role models and other notable personalities, resulted in the further socialization of male fashion. There is a rise also on the number of male fashion influencers in various social media platforms that propelled male consumers to focus more on their clothing styles.
Given this development, it certainly points to social media as one of the main drivers in the increasing demand for premium or luxury men’s clothing lines.
Trend #2:
In this fast-paced world, people often prefer high-end casual clothing that are readily available. This is in contrast to people’s penchant in the past for suits and evening wear that usually take a long time to create. Burberry, a high-end brand is now offering their line of casual premium apparel.
Trend #3:
Fashion designers who previously just designed clothing for women are already creating apparel for men. These designer clothing lines are driving sales up as people usually opt for designer labels. Stella McCartney is one such designer who already rode on this trend and unveiled her first men’s clothing line last November 2016.
Trend #4:
Designers are now ditching flamboyant designs on their premium clothing lines. They are now going back to their basic way of styling that has become a trademark of their labels in the past. With this, they are striving to elevate even normal designs into an art that are characteristic of their fashion labels.
Trend #5:
Sales of men’s luxury apparel is expected to have a steady increase as more luxury shops open stores that are dedicated only to men’s clothing lines. With growing interest in fashion, men are not anymore satisfied with just a few store spaces designated for men’s clothing.
Trend #6:
Today’s collaboration culture gave rise to a new way of promoting branded apparel that include men’s fashion. This trend was brought about by the need of lesser known brands to leverage the marketing clout of their bigger counterparts. These marriages of big brands and small brands enable them to leverage on the strength of each other. Big brands for their bigger advertising reach while small brands lend the cool value associated with them. This union is expected to help generate more sales for both brands.

Trend #7:
Menswear saw a rise in the color red and the apparel in men's wardrobes increased in volume in terms of the color red.

CONCLUSION

Social media men’s fashion posts, high-end casual clothing from fashion labels, designers adding men’s apparel, more men only dedicated stores, simpler designs from famous fashion houses, and partnership between brands are just a few trends that are driving the growth of men’s premium apparel industry.
Part
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Part
08

Premium Men's Apparel Trends - Europe

We have organized the response into general groups of trends below including color, pattern, fit, shoe, and sunglasses trends. For each trend we have included prominent designers who have championed the new style. In some trends, designers have been consistent across the board while in others they have diverged. In general, premium designers seem to be looking backwards for their inspiration. The bold solid colors, patterns, and sunglasses, the loose fit, and the casual footwear are all reminiscent of past decades.

Color Trends

For the most part, in fashion shows throughout Europe, solid colors have been prevalent. The most popular colors this season have been stone, pink, and pure white. Stone, a color between white and sandy beige has been the most popular color displayed by designers including Valentino and Giorgio Armani. Pink was close behind stone in popularity with all pink suit designs from Gucci and more casual wear from both Dunhill and Berluti. Pure white has also been a common trend for brands. All-white has been a unique color trend in that its models don't mix the color with other colors. Models for Billionaire, Officine Generale, and more have sported models with every article of clothing being pure white. Any deviation has come from accessories or colored footwear.

Pattern Trends

With the overall bend towards solid colors, the pattern trends have been bold and anarchic. Striped patters are the most common, but square and Hawaiian patterns have also seen a resurgence. Striped patterns, especially those with clashing colors, have been common in all types of clothing. Shirts by Fendi, pants by Lou Dalton, and suits by Versace have all represented this trend perfectly. Square prints were also prominent in both clashing patterns by Wooyoungmi and simple printed outerwear by Ami. Hawaiian patterns have been worn not in the typical feel-good, relaxed fashion, but instead with a punk spin. This style has been shown this season by Ami, Balenciaga, and Louis Vuitton.

Fit Trends

It seems that in general, premium apparel brands have been pivoting to a retro look. The styles are reminiscent of the 80s, and the trends towards a looser fit are no exception. Baggy sweaters were displayed by brands like Balmain and Maison Margiela, while loose pants were debuted by Emporio Armani and Valentino.

Shoe Trends

Shoes have been more casual, as in the trending footwear with fold-down backs from Loewe and Officine Generale. Other great examples of this more casual pivot include tennis shies with thick soles from Valentino and Dior Homme, espadrilles or rope soled shoes with Loewe and Officine Generale, and strapped sandals from Hermes and Louis Vuitton.

Sunglasses trend

Sunglasses have become bolder than ever with patterns, extremely think frames, and deeply tinted lenses across the board of designers including Dior Homme, Kenzo, and Canali.

Conclusion

A general rule of thumb for seeing the direction that European fashion is moving today, is to look at the eighties and early nineties. The bold patterns, colors, and accessories are making a resurgence. Baggy clothing and shoes with a casual fit have become the norm across the board.
Part
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Part
09

Premium Men's Apparel Trends - Asia Pacific

Though information specific to the premium menswear market in the Asia Pacific region is limited, we were able to gather a few trends affecting the market and its players, and they are the following: changes in men's behavior when it comes to apparel, rise in men's spending power and heightened demand for custom-made garments, government policies affecting luxury spending, heightened polarization between affordable menswear and premium menswear, and rise of the premium activewear segment. These trends, excluding government policies, drive growth in the high-end menswear market in the Asia Pacific region.

TRENDS AFFECTING PREMIUM MEN'S APPAREL MARKET - ASIA-PACIFIC

1. Changes in men's behavior with respect to apparel

In China and India, young men belonging to the middle-class are redefining menswear standards and are paying more attention to their appearance. These changes in behavior and the expansion of the middle-class and upper-class populations are driving the increased demand for premium men's apparel in the two countries.

There has been a change in behavior in Australia as well. Whereas before men were scorned for wearing designer brands, now men have more freedom to express themselves through their outfits. According to fashion designer Justin O'Shea, "men are a little more emancipated … you can be a bogan and you can still wear Gucci — it's totally fine." Between 2016 and 2017, the number of menswear designers that participated in Australian Fashion Week had grown.

2. Growth in men's spending power and increased demand for custom-made garments

With their purchasing power increasing, male consumers in China are becoming more demanding when it comes to menswear. Their apparel requirements are now stretching beyond the functional necessities of "staying warm and looking presentable." There is now an increased interest among Chinese men for bespoke outfits, those garments tailored for specific occasions or situations.

All these factors are contributing to the growth in the premium men's apparel market in China. As market surveys would reveal, China has emerged as a key market for international premium menswear. Brands from "France, Germany, Italy, Japan, the US, the UK and Korea" dominate the premium menswear market in China.

During the period 2001-2016, several countries in Asia saw substantial increases in real disposable personal income. For example, China, India, Vietnam, and Malaysia saw increases of 11.5%, 7.5%, 6.6%, and 5.7%, respectively. Japan is seeing an increase in disposable personal income as well. China and Japan together account for around 67% of the market in the Asia Pacific region for menswear.

Custom-made outfits are also becoming a trend in India, and startup Threads & Shirts, which targets luxury menswear market, is taking advantage of the trend. In 2016, the startup generated a revenue of Rs 35 lakh. It sets itself apart from other bespoke fashion companies, including Bombay Shirt Company, through its "classic styling and unique prints."

3. Anti-corruption crusades, stock market crash, and daigou market crackdowns

Chinese President Xi Jinping's campaigns to eliminate corruption among government officials, the sudden decline of stock prices, and the crackdowns on the illegal sale of luxury products purchased overseas were cited as the possible causes of the drop in sales of luxury menswear in China in 2014 and 2015. In 2014, a year-on-year decrease of 10% was recorded and in 2015 a decrease of 12% was estimated.

This does not mean the Chinese were not buying high-end menswear, however. Statistics show they were buying luxury products outside of China, specifically in Japan, South Korea, and Europe. In Japan, purchases by mainland Chinese grew by 251%, while in Europe and South Korea, purchases grew by 31% and 33%, respectively.

4. Increased polarization between affordable menswear and premium menswear

In Korea, as the market for traditional apparel contracted, the market for casual clothing, particularly SPA (specialty store retailer of private label apparel) brands such as H&M, expanded. This has resulted in increased polarization between luxury menswear brands and SPA menswear brands and the decision of a number of key fashion companies in Korea (e.g., Samsung Fashion and LG Fashion) to move from mid-tier brands to premium brands.

5. Growth of the high-end activewear market

The activewear market, whose growth is driven by people's increased interest in health and wellness, has begun to branch out to different segments. There is now a segment catering to more discerning consumers who view activewear as a reflection of their lifestyle. Such is the case in China where high-end activewear brands such as Maia Active and Particle Fever have emerged. Serving as evidence of the growth of the high-end activewear in China is Maia Active's revenue, which had grown 500% in just six months last year.

CONCLUSION

From the limited information we found on the Asia Pacific market for high-end men's apparel, we were able to gather the following trends: behavioral changes leading to expanded apparel requirements, increase in male consumers' purchasing power and increased demand for bespoke outfits, government policies impacting luxury purchases, increased polarization between high-end menswear and affordable menswear, and emergence of the premium activewear segment. Nearly all these trends contribute to market growth.
Part
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Part
10

Commercial Success - Ralph Lauren, Thomas Pink, Burberry

You asked for an overview of brand activities that are driving the commercial success of Ralph Lauren, Thomas Pink, and Burberry. This report focuses on the brands as a whole, as there was scant publicly available data on men's luxury apparel.

Despite being one of the top three most popular brands among affluent men in the U.S., Ralph Lauren has seen declining sales for the last seven quarters as stated in the video at the top of this article. Earlier this month, Fortune reported that the brand is attempting to restore its upscale image by moving away from “discounting and lower-end products.” Ralph Lauren is currently gaining exposure by designing clothing for the 2018 U.S. Winter Olympics team, with select items on sale to the general public.

Thomas Pink’s parent company, LVMH Moet Hennessy Louis Vuitton, reported 21% revenue growth from 2016 to 2017 in its “Fashion & Leather Goods” business group. Like Ralph Lauren, Thomas Pink has a foothold in the sports segment, designing the off-field apparel for the British & Irish Lions rugby team. Recently, the brand has deployed digital solutions that enhance the customer experience, including digital gift certificates with flexible redemption terms.

Similar to Ralph Lauren, Burberry is working to restore its luxury brand status. In the last fiscal year, Burberry’s menswear saw just 1% “underlying revenue growth.” Burberry is pulling out of wholesale and retail channels that are not matching the CEO’s “luxury aspirations.” Most of Burberry’s stores will be refurbished over the next 5 years. In the U.S., Burberry has reduced the number of days its apparel and accessories go on sale.

A deep dive of our findings for Ralph Lauren, Thomas Pink and Burberry is below.

Ralph Lauren

In a survey conducted two years ago, Ralph Lauren was one of the top three brands among affluent men in the U.S. The global survey, conducted by the Luxury Institute, polled 3,900 affluent consumers. For the U.S., "affluent" was defined as an income of at least $150,000. The men surveyed also said that Ralph Lauren was the brand they would most likely consider for their next purchase.

Despite the brand's popularity, Ralph Lauren has seen declining sales for the last seven quarters, as stated in the video at the top of this article. Online sales in particular have have fallen 27%. A decline in the number of online discounts offered by Ralph Lauren is blamed for the shrinking online sales.
Ralph Lauren has reported that “30% of items in its high-end line account for 70% of sales.” Despite this, the brand is closing its flagship store on 5th Avenue in NYC. Instead, the company has turned its focus to bolstering online sales by creating a new sales platform. Additionally, the company is pushing “Ralph’s Coffee,” and has added coffee bars in many of its stores.

Forbes cites that luxury brands such as Ralph Lauren have been hurt by too many outlet stores. Earlier this month, Fortune reported that Ralph Lauren is attempting to restore its upscale image by moving away from “discounting and lower-end products.”
Ralph Lauren has gained attention once again by designing clothing for U.S. Olympic athletes, including the attire for the opening and closing ceremonies. Select pieces are available for sale to the general public. On one Olympic jacket, the Ralph Lauren logo is large and prominently displayed on the front of the jacket.

Thomas Pink

Thomas Pink’s parent company is LVMH Moet Hennessy Louis Vuitton, whose "Fashion & Leather Goods" business group had 21% reported revenue growth from 2016 to 2017. As LVMH reports its combined financial information, I was unable to find any revenue or sales information solely on Thomas Pink.

Similar to Ralph Lauren, Thomas Pink has its foothold in the sports market, designing the off-field apparel for the British & Irish Lions rugby team. The luxury apparel includes blazers and ties. Pieces of the collection are available for retail to the public.

In early 2017, Thomas Pink began employing digital solutions at its Wall Street store in NYC, including detailed tracking of in-store merchandise. For example, if a customer picks up a shirt, but later abandons it in another part of a store without buying it, sales staff will be able to locate the shirt. Real time inventory information is also available, so when the last shirt of specific size is sold out, sales staff are notified immediately.

Thomas Pink also offers digital gift certificates that come with flexible terms. The recipient can redeem the certificate whole or in part, online or in-person. Another feature of these digital certificates (called “vouchers”) is that they can be sent instantaneously to the recipient, or held until a later date.

Burberry

Burberry's latest annual report is robust and highly detailed, offering insight into the brand’s activities. Menswear sales were fairly flat, seeing just 1% “underlying revenue growth.” In an attempt to remain a luxury brand, Burberry is pulling out of wholesale and retail channels that are not matching the CEO’s “luxury aspirations.”

Burberry has simplifed its retail offering by reducing "product option count" by 15–20%. By narrowing its options, the brand is putting more focus on "fashion and newness."
The brand is also providing individualized inventory for each of its stores, taking into account, "in-house and local data sources, such as customer demographics and product purchasing behaviours, as well as data such as climate.” Additionaly, most of Burberry’s stores will be refurbished over the next 5 years.
In the U.S., Burberry has reduced the number of days its apparel and accessories go on sale at reduced prices, and no new stores or floor space will be added in 2018.
Burberry has been successfully engaging consumers with video content, producing a short film about the brand's founder, “The Tale of Thomas Burberry.” The film stars actress Sienna Miller and currently has 15,168,076 views on YouTube.

Conclusion

Ralph Lauren has experienced declining sales, while Burberry has had relatively flat sales. Both brands are struggling to maintain their statuses as luxury brands. In an effort to bolster sagging online revenue, Ralph Lauren is working on a new online sales platform. Burberry has taken a quality over quantity approach and trimmed down its in-store product offerings.

In contrast to these two companies, the "Fashion & Leather Goods" business group for Thomas Pink's parent company saw 21% reported revenue growth in the last fiscal year. In order to enhance the customer service experience, Thomas Pink is utilizing a real-time inventory tracking at its Wall Street store in NYC.
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Part
11

Commercial Success - Indochino, Brooks Brothers, Suit Supply

Brand promotional activities that are driving the success of the Indochino, Brooks Brothers, and Suit Supply clothing brands include enhancing customer experience with the use of technology, using e-commerce and mobility commerce, customizing advertisements, tailoring web pages, and providing seamless online and offline store integration. These promotion strategies enabled these brands to engage their customers better and provide an enhanced shopping experience that eventually results in commercial success.

INDOCHINO

Indochino Apparel Inc. offers men’s custom clothing and accessories through their online platform. It promotes its brand and products through various activities. One activity involves having a customized advertisement approach that involves having highly relevant content to direct users to their site. Aside from this, they use various tools in order to strategically direct potential buyers to their site, capture their information for future marketing reference, show them various enticing offers, and eventually direct them to their shopping page.
They are also very agile in ensuring that their online and offline presence is seamless. One example of this is when they opened several showrooms and they need to reflect this in their online sites. Instead of waiting for developers to modify their website which might take a long time, they took it upon themselves to just create a single landing page for each location. With just a few pages, they were able to direct users to the locations of their showroom.
They have also used several landing pages for various purposes like holding contests which they did with a partner company who is an expert on these lead generation pages. They have made sure that all clicks to their content are not wasted with all these tools and efficient sites.
After just nine months of employing the strategies above, Indochino already secured more than 800 showroom bookings, 750 newsletter signups, over 340,000 visitors directed to their sites, and an estimated 77% increase in customer appointments.
Indochino also plans to go against the flow by opening around 130 new brick-and-mortar stores inside malls over the next three years. Their goal is for shoppers to familiarize themselves with the Indochino brand in these stores, and then eventually shop for these products in their online store. As a result of this, online sales are estimated to be expanding at double the rate in the locations where Indochino has a physical store.
Indochino also plans to expand to other markets like Canada by partnering with Postmedia, a Canadian media company. Armed with CAD 40 million investment in the brand, Postmedia plans to leverage its network to further grow Indochina’s business.

BROOKS BROTHERS

Brooks Brothers retail clothes and specialize in menswear. They have recently launched a mobile site as part of their strategy to promote their brand through mobile e-commerce tools and apps to their consumers in all the locations that they operate in. The company wanted to capture the growing number of mobile consumers who can be potential buyers.
The company is already leveraging various technologies in order to further enhance the experience of their customers when visiting their online website, their physical stores, as well as their mobile app.
They also wanted a personalized experience for their customers by understanding their needs through the data captured from their sites that customers visit.
Making full use of technology has enabled Brooks Brothers to know its customers better in order to tailor-fit solutions according to their individual requirements. This knowledge has enabled the company to make better and faster decisions.

Brooks Brothers will further level-up for growth and spread their white glove brand experience that the company is famous for, regardless of where customers choose to shop.

SUIT SUPPLY

For Suit Supply, a men’s fashion company, their brand promotion strategy is to promote their products by leveraging digital technology in their stores. They are also actively monitoring their online sales in order to determine if a physical store is also needed.
Suit Supply has engaged Demandware, a software technology company, in order to improve the former’s online presence through an e-commerce platform that can be further expanded to international locations. Suit Supply aims to create a seamless experience for customers whether they are shopping online or in their physical stores.
The company also has an active social media presence on Facebook, Twitter, and WhatsApp. It runs e-mail and video campaigns that are linked to their Salesforce software for better customer engagement.
As a result of the brand promotion strategies above, customers gave glowing reviews to the company. The brand is praised by customers for its intuitive design and a large selection of products in all its stores that inspire even the lazy customers to shop.
Suit Supply aims to further expand globally, both online and offline with its proven brand promotion strategies. It also plans to open stores not just in high traffic areas in order to reach more customers. It will also continue to set up inspiring designs in all its stores to further attract more customers.

CONCLUSION

In order to level-up their commercial success, Indochino, Brooks Brothers, and Suit Supply engage in several brand promotional activities. These activities are focused on enhancing the buying experience of their customers whether online or offline with the use of digital technologies, well-targeted web pages, strategic in-store design, e-commerce and mobility commerce platforms.
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Part
12

Premium Men's Apparel - Tactics for Driving Traffic and Sales

OVERVIEW

In summarizing the most effective tactics used in driving traffic and sales, both online and at brick & mortar retail for men's premium apparel, we looked at case studies of campaigns that have been used by the most successful stores. We decided to use two successful global men’s premium wear stores, Van Heusen and Tony Barlow. Using their examples in marketing campaigns, identified the top trends used to increase sales both online and in-person. Overall, we found that it was not possible to separate and label sales revenue as strictly online or in-store. Overlap can occur during the sales journey where a given sale could begin online and then end in-store.

ONLINE CAMPAIGNS

Men’s premium wear stores have made fantastic use of social media campaigns to increase sales. Campaigns built around LinkedIn have proved successful because it is the most used social media by professionals who shop at men's premium apparel stores. A great example is the "Most Fashionable Professional Campaign" ran by Van Heusen in India which attracted almost 30,000 unique visitors to their website in one month. As is shown here, the tactic involved asking professionals to nominate ten people in their network who they felt were fashionable. They did not stop there, they also provided tips on corporate dressing on a micro-site. These tips were presented by top fashion editors. Banner roadblocks, text-based ads, discussion boards and CPM banners were also used on their website to target visitors.

Other social media platforms that have been used are Instagram and Facebook. Both of these platforms are effective for influencer marketing. This study shows that Instagram can give brands up to 25% more engagement than any other social platform. Content marketing that combines text and video components are also popular.
This research shows that referral marketing can also be effective. For example, marketing campaigns that give customers incentives to share visual content of their shopping cart on social media have helped attract more visitors to online stores. Having user-friendly websites, using email marketing, and creating viral videos can improve sales. Identifying where target customers hang out online and focusing a company's brand presence there can also increase sales. Other methods that could be used are organizing contests and giveaways on social media.

IN-STORE MARKETING

Tony Barlow used an online marketing campaign to increase in-store traffic which generated 100 new subscribers each month and lowered their website bounce back rate by 10%. Their case study presented here shows that they created a website for customers to browse through their offerings, and then complete their purchase with a visit to their brick & mortar store. To remain top of the mind during the purchase circle, Tony Barlow provided online style and suit care tips using blogs and video blogs.
Other strategies for increasing in-store traffic as listed here include having a technology area that incorporates USB-charging, providing free Wi-Fi, creating lounge areas, and hydration stations. Advertising discounts on social media have also led to word-of-mouth marketing and increased sales. Another strategy that has been used by UNIQLO and Nordstrom is offering free alterations. In addition, smart mirrors and location-based SEM have proved effective.

We have also added a great example here of Van Heusen, who, in 2016, introduced immersive technologies in-store — a Fit Suite and virtual trial — to improve customer experience.

CONCLUSION

To increase sales, online and in-store tactics should converge, with one flowing seamlessly and leading to the other. Although, it may not be possible to say which is a more effective tactic to drive sales, what can be seen from the case studies is that running effective online campaigns often lead to more in-store sales. In the same way, creating an unforgettable customer experience in-store can result in more visits to the store website and increased conversions.
Sources
Sources