Paper 3 Flashcards
1
Q
GCMT: Clothing market by size
A
- USA = $326bn, 332M pop. & +40.5% growth
- China (BRIC) = $294bn, 1410M pop. & +250% growth
- India (BRIC) = $92bn, 1420M pop. & +109% growth.
- Uk spent $1,075 per capita in 2022
2
Q
GCMT: Consumer buying decisions and personal values
A
- In 2023, the fashion industry faced persistent and deepening challenges, with slow growth in Europe and the US, and China’s weak performance.
- In 2024, uncertainty, persistent inflation, and weak consumer confidence pose challenges for businesses.
- China’s economy is facing challenges, but consumers show higher intent to shop for fashion.
- The industry experienced a 20% decline in revenues due to Covid-19, with younger generations more likely to make purchasing decisions with conscience.
3
Q
GCMT: Ethical Standards
A
In 2020, 61% of consumers deemed diversity in brand advertising important.
- 38% of UK adults need clearer information on sustainability.
- 37% want product origins.
- 20% need advertising promoting sustainability as the norm, indicating that consumers interested in a sustainable lifestyle may be more inclined to adopt ethical brands.
4
Q
GCMT: Data Privacy Consumer Concerns
A
- 61% feel cookie-fuelled ads are a creepy, uncool marketing tactics.
- 35% felt frustration when they received marketing campaigns based on information they didn’t directly share with the brand.
- 75% are not comfortable buying from a business that has poor personal data ethics.
- 89% would be more likely to buy from businesses that make a commitment to protecting their personal data online.
5
Q
GCMT: Sustainable fashion
A
- Critics of fast fashion argue that it exploits workers in poorer nations and increases waste, filling landfills and damaging the environment. They seek sustainable fashion, such as long-lasting, recyclable clothes like bamboo socks.
- Consumers also seek an environmentally friendly lifestyle, shopping locally and using small businesses with biodegradable materials.
- Capsule wardrobes, popular on social media, reduce waste and increase clothing usage. Online shopping, while convenient, can increase waste as customers may not return items or forget to return them.
6
Q
GCMT: ‘Sustainability of a brand is not a key factor in my decision of purchasing from them’
A
- Strong disagree = 30.80%
- Disagree = 29.28%
- Neither agree nor disagree = 23.95%
- Agree = 11.79%
- Strongly agree = 4.18%
7
Q
GCMT: The use of influencers
A
- A Mckinsley report shows that 65% of consumers now rely less on fashion influencers due to increased awareness of sponsorships and oversaturation of marketing.
- However, the influencer marketing industry is expected to reach $21.1bn in 2023, with influencers like Alix Earle using their online presence and personal connections to connect with consumers.
- Influencers can help brands connect with consumers and sell products, despite the negative outlook on influencers initially.
8
Q
FOB: Independents and multinationals
A
- Sole trader = Etsy is where individuals can sell items such as crocheted clothing.
- Partnerships = Target x Lilly Pulitzer in 2015 which created clothing, shoes, accessories etc.
- Plcs = Adidas
- Ltds = Uniqlo
9
Q
FOB: UK clothing market
A
- Fashion is 31% of UK e-commerce businesses.
- The UK fashion and textile industry is dominated by SMEs (small to medium enterprises).
10
Q
GCML: Asian production of clothes
A
- Between 1970 and 1990, clothing production shifted from North America and Europe to Asia and countries like China due to the economic center of gravity shifting.
- Countries like China, Bangladesh, and Sri Lanka are known for clothing production due to cheap labor and reduced trade barriers.
- Clothing multinationals can benefit Vietnam by developing infrastructure, providing jobs, and improving trade links.
- However, they can also challenge the country and government politically, leading to corruption and a decline in quality of life.
- China, an emerging superpower, has a history of controversy and is part of the Regional Comprehensive Economic Partnership.
- Indonesia, a significant player in the global clothing manufacturing industry, benefits from competitive labor costs and a skilled workforce.
11
Q
GCML: China’s history of clothing manufacturing
A
- China’s textile trade has grown since the Silk Road, with the implementation of the open-door policy attracting foreign direct investment (FDI) and boosting the manufacturing sector, particularly in textiles and clothing.
- The industry has evolved to cater to high-end fashion brands and fast-fashion retailers.
- However, it raises environmental and ethical concerns, including low wages, poor working conditions, and child labor.
- Textiles are one of the most polluting industries globally, contributing to water and air pollution and waste generation.
- To address these issues, China has implemented sustainable technologies like waterless dyeing and 3D printing.
12
Q
GCML: Clothing manufacturing in the UK
A
- Pre-pandemic = manufacturers relied on the strength on the Made in Britain label creating a desire from British made goods and brand such as Mulberry and Burberry.
- Post-pandemic = many new entrants into the industry as artisan clothing producers have grown in numbers.
13
Q
GCML: Sports Direct’s ethical concerns
A
- ‘Modern day Victorian Workhouse’ is what the conditions of one of the factories were described as.
- Not meeting ethical obligations = ruined reputation and higher labour turnover as employees leave or are fired from the 6-strike rule.
- Higher recruitment and training costs from the turnover.
- Loss of customers as they don’t trust the brand anymore.
14
Q
GCML: Vietnam’s Garment and Textile Export Value and Growth
A
In 2022, Vietnam’s textile and garment exports soared to approximately $44 billion, a testament to the sector’s robust growth. This marked a 14.7% year-on-year increase, solidifying the Southeast Asian nation’s position as a formidable global garment exporter.
15
Q
IGCM: Main retailers globally (physical shops)
A
- Inditex (Zara) - $34.5bn
- H&M - $21.4bn
- Uniqlo - $16.8bn
- Next - $6.1bn - predominantly in the UK not a wide global presence.
- Gap - $15.6bn - may have struggled to survive in the UK causing many closures of its High street stores nationally but this indicates that it has been more successful globally.
- Lululemon - $8bn – owner has bought the company again because the person who took over from them previously took them into the mass market (MARKET DEVELOPMENT IN ANSOFF’S MATRIX) and it ‘lost it’s way’ - niche vs. Mass market.
