Apparel Spending in the UK

SUPPLY CHAIN CONSUMER APPAREL MARKETS INSIGHTS GLOBAL LIFESTYLE MONITOR: THE UNITED KINGDOM Growth in consumer spending on apparel purchases in the United Kingdom is estimated to outpace growth in both Italy and Germany in 2020.' APPAREL SPENDING IN EUROPE 2020 vs. 2013 (IN BILLIONS) €71.9 United Kingdom +13% €63.7 Italy €60.3 +4.6% €57.7 Germany €57.8 -2.2% €59.1 Consumer apparel spending in the United Kingdom is projected to grow by 13% (from 63.7 billion to 71.9 billion Euros) from 2013 to 2020. KEY CONSUMER APPAREL SHOPPING TRENDS IN THE UNITED KINGDOM SALE COTTON UK consumers continue to become more price- conscious shoppers by shopping at lower priced channels, shopping on sale, planning purchases, and shopping less often. Quality is a primary driver for apparel purchases, but most UK shoppers say they are paying more and getting less value from their clothing. UK consumers' experience with performance issues like wear & tear, pilling, and stretch recovery may be why most are bothered by fiber substitution away from cotton and willing to pay a premium to keep cotton in their clothing and home textiles. UK shoppers look to fiber content labels to determine whether a garment is sustainable and they continue to see cotton as the safest fiber for the environment. CONSUMER APPAREL SHOPPING ATTITUDES AND HABITS 2003 2014 % RESPONDING "YES" Over half of UK consumers' continue to saythat the love or enjoy clothes shopping. Love or enjoy clothes shopping 55% 54% Shop for clothing once per month or more often 64% 44% Like their Geman and Italian counterparts, British consumers report that their shopping frequency and impulse purchasing of clothing has declined, while their tendency to shop for clothing on sale has increased. Shop for clothing on sale 75% 90% Buy clothing on impulse 63% 40% WHAT RETAIL CHANNELS ARE SHOPPED WHAT ARE CONSUMERS' TOP SOURCES OF THE MOST FOR CLOTHING? IDEAS FOR NEW CLOTHES? TOP 5 SOURCES 2014 British consumers shopping at B&M specialty stores has declined significantly within the past decade, atthe same time that shopping online has surged. Consumers in the UK, Gemany, and Italy rank chain stores as the top place most shopped for clothing. 44% Store 37% displays 60% Intemet 2003 2014 Already own and ilke Chain stores 30% 29% Friends & 23% 30% People on the street colleagues Internet WHAT ARE THE TOP PLACES CONSUMERS START <1% 16% SHOPPING ONLINE FOR CLOTHING ? TOP 5 PLACES 2014 Of-price stores Retailer/brand webeites 52% (5% 14% Search engines Warehouse clubs 27% 7% 12% E-commerce websites Department stores 25% 17% 12% Emails from retailers/brands 17% Specialty stores 24% E-commerce specific apps 6% 14% HOW DO CONSUMERS USE THE INTERNET WHEN SHOPPING FOR CLOTHES? 2014 46% 38%) 32% 26% 15% Compare prices Research clothing items Browse stylee Shop at stores not easy to get to Bead reviews CONSUMERS ON SUSTAINABILITY AND APPAREL IMPORTANCE OF SUSTAINABILITY IN APPAREL PURCHASES As concern over the impact of goods and services on the environment has increased, the importance of sustainability of clothing has become more significant. 39% 23% Environmentally- friendly is important in their apparel purchnne decisiom Percent who seck out envirormentally friendly olothing WHO DO CONSUMERS HOLD Fiber Poder 38°% 15% Manufacturer MARKETING TERMS THAT ARE VERY OR ACCOUNTABLE FOR NON-SUSTAINABLE SOMEWHAT LIKELY TO INFLUENCE CONSUMER 17% 20% APPAREL PURCHASE DECISIONS APPAREL? Myself Brand In the UK, Germany, and Italy, consumers say that 100% Cotton is the marketing term that is more likely to influence their clothing purchase decisions when compared to other sustainability temms. 51% 46% 100% Cotton 53% HOW DO CONSUMERS DETERMINE Natural WHETHER A GARMENT IS 40% 40% 40% 40% 39% 38% 27% 26% 25% Do not try don't know SUSTAINABLE? Fair Trade Edhically Sourced Made locally 21% 18% 13% 12% Made in the USA Fiber Gament Sustainable label hang-tag Seals or Packaging certifications Environmentally-Friendly Organic Recycled HOW DO CONSUMERS DISPOSE OF GARMENTS Compostable THEY NO LONGER WEAR? Donate to charity CONSUMER RANKING OF FIBERS SAFETY 61% FOR THE ENVIRONMENT Sell them 10% 36% Polyester 34% Nylon Throw it away 79% 10% Cotton 33% 34% Re-use or use themin a different way 7% Rayon Lycra Spandex Keep them 6% CONSUMER ON COTTON AND SUSTAINABILITY Give it away 89% describing Percent Percent describing 68% cotton as environmentally- friendly 5% cotton as natural SATISIFYING CONSUMER QUALITY EXPECTATIONSs IMPORTANCE OF QUALITY DEFINITION OF GOOD QUALITY CLOTHING Over 9 out of 10 British consumers indicate that clothing quality strongly impacts their decision to purchase. 63% 35% 17% Made well 92% 73% 66% Durable/ long-lasting Made of good/strong fibers Quality is important in clothing purchases Expect to wear new clothing purchases longer than before Willing to pay more for better quality clothes COTTON MEETS CONSUMERS' QUALITY EXPECTATIONS 85% of consumers in the UK say that cotton and cotton blends are their favorite fiber and describe cotton as good quality. CONSUMER ASSESMENT OF OFFERINGS OF CLOTHING AT RETAIL Cotton and 85% cotton bleads are favorite Consumers 85% describe cotton as good quality Noted declines in British clothes shopping frequency and impulse purchasing may be due to a gap between shopper quality expectations and experiences with clothing purchases. Almost 6 out of 10 UK consumers indicate that they are paying higher prices for clothing atthe same time that clothing quality has declined. fibers REACTION TO FIBER SUBSTITUTION Consumers have taken notice that other fibers have been substituted for cotton in clothing and half of UK consumers say they are willing to pay more to keep cotton in their clothing. 57% 49% 45% 44% 40% 49% 50% Paying higher prices Quality of clothing Thinner Clothing fabrics in clothing durability has Noticed fiber substitution has Bothered by fiber substitution away from cotton Willing to pay more to keep cotton in their clothing away from declined cotton declined CUSTOMER REVIEW OF WOMEN'S DENIM JEANS WHAT ARE THE TOP ISSUES CONSUMERS ARE EXPERIENCING WITH THEIR CLOTHING PURCHASES? FIBER CONTENT: 72% Cotton, 27% Polyestec 1% Spandex ..The tag used to say 9 coton nnd used to retain its shape to the body. Now the tag says only 72% cotton and once thay stretoh the least little bit thay do not bonnce back to conform to your body..not to mention the now blend thay are using for the denim is very itoby Mine are going book to the store.Very disappointed" 66% 60% 58% 53% 46% Wear and tear Pilling Stretch recovery Shrinking Fading ABOUT THE GLOBAL LIFESTYLE MONITOR (GLM) SURVEY The Global Lifestyle Monitor survey is a biennial consumer research study sponsored by Cotton Council International and Cotton Incorporated. In the 2014 survey, approximately 10,000 consumers (i.e., 1,000 consumers in 10 countries) were surveyed via telephone, in face-to-face interviews, or online. Respondents were both male and female, ages 15 to 54. The ten countries included in the survey are Brazil, China, Colombia, Germany, India, Italy, Japan, Thailand, Turkey, and the United Kingdom. COfton INFO: [email protected] lifestylemonitor.cottoninc.com © 2014