THE MARKET FOR ETHICAL AND SUSTAINABLE FASHION PRODUCTS
Briefing report 2011 This report compiles and summarises information on the UK market for sustainable / ethical fashion products, drawing from Ethical Fashion Forum (EFF) research as well as referenced research from several other bodies. 1. Expenditure on ethical clothing continues to grow 2. Shoppers put more emphasis on sustainability 3. Increased availability and quality of ethical fashion has driven market growth 4. Rapid expansion in number of retailers stocking sustainable fashion 5. Shoppers buy on design and style first. Ethical/eco credentials are a bonus that can help secure the sale. 6. Opportunities with women’s outerwear, underwear, childrenswear and menswear 7. A new consumer profile for ethical fashion has emerged 9. Consumers are most interested in supporting community benefits and a fair price to producers 10. Opportunities for ethical fashion vary across product value sectors 11. Consumers remain sceptical about ethical claims made by retailers 12. “Ethically minded” clothing buyers do spend more money on clothing 13. An untapped market
1. Expenditure on ethical clothing continues to grow Expenditure on green goods and services has grown by 18 per cent over the last two years, despite the economic downturn. Overall, the ethical market in the UK was worth £43.2 billion in 2009 compared to £36.5 billion two years earlier, against the background of one per cent growth in overall household expenditure over this period. Ethical personal products, including clothing and cosmetics were the fastest growing sector, increasing by 29 per cent over two years to reach £1.8 billion Sales of ethical clothing grew by 72 per cent to reach £177 million, while charity shop sales grew by 62 per cent to £340 million. (Co-operative Bank Ethical Consumerism Report 2010)
2. Shoppers put more emphasis on sustainability A majority of adults (82%) claim to make their clothes last - we think the disposable fashion trend could have peaked and 2011 may see shoppers reassessing value for money and putting more emphasis on sustainability, integrity and durability of clothing. (Mintel, Clothing Retailing - UK - 2010) 61% of women feel “It is important that a company acts ethically” (Mintel, Ethical Clothing – UK –2009)
3. Increased availability and quality of ethical fashion has driven market growth The widening availability of ethical fashion is central to this growth. Real choice in styling and quality and truly fashionable design has been vital in the market’s development. Ethical clothing has now been transformed by the presence of new and exciting designers taking it right up into the realms of high fashion and expanding into all clothing sectors. Many consumers are as yet unaware of these changes – mainstream opinion always lags behind the fashion front – but awareness will grow and with it far greater demand. (Mintel, Ethical Clothing – UK –2009)
4. Rapid expansion in number of retailers stocking sustainable fashion Increased availability, quality, range and promotion of ethical fashion designers and brands in the media has led to a rapid expansion in the number of multi-brand retailers stocking ethical fashion products in the last 3- 5 years. The Ethical Fashion Forum carried out surveys of both online and UK on street retailers stocking sustainable fashion products in November 2010 and May 2011. 23 mainstream UK on street retailers were identified as stockists of ethical fashion and evaluated as part of the survey. Over half of these stores began to stock ethical fashion products within the last 3 years. This survey looked at prominent High St retailers rather than being an exhaustive survey on all on street shops stocking ethical fashion products- of which there are far more than 23. 43 prominent online multi-brand stores with a specific focus upon sustainable fashion product were identified. The majority of these stores have been established within the last 3 years, and new and innovative online platforms for sustainable fashion continue to be launched, with US, Canadian and UK companies leading the sector.
5. Shoppers buy on design and style first. Ethical/eco credentials are a bonus that can help secure the sale.
EFF’s buyer survey carried out with retailers across the sector during May 2011 established that for the majority of customers, design and style are a primary consideration. Ethical credentials and well-communicated stories behind the product do help to secure the sale, providing design and product standards are high.
6. Opportunities with women’s outerwear, underwear, childrenswear and menswear While all sectors of the mainstream market for clothing and accessories are open to ethical brands, the best potential, on the grounds of practicality and sales performance, lies with women’s outerwear and underwear and also childrenswear. (Mintel, Ethical Clothing – UK –2009)
7. A new consumer profile for ethical fashion has emerged The Ethical Fashion Forum carried out a survey during 2008 of existing businesses in the ethical fashion sector through interview and questionnaire. Businesses surveyed included leading multi brand retailers and leading design led ethical fashion labels. This survey identified two main consumer groups for design led ethical fashion product ranges: 1. Established consumers of ethical fashion Characteristics: 35-40+, Have supported social/ environmental issues for 5-10 years or more Willing to pay a bit extra for ethical fashion Not generally followers of fashion, not accustomed to buying designer fashion 2. A new emerging market of younger consumers Characteristics: 20’s-40’s, Fairly new to sustainability issues related to fashion Fashion focused and trend aware Will commit to a higher spend on fashion products Characteristics in common to both these groups A gender bias towards women Professionals with disposable income A high degree of loyalty Have some awareness of the ethical issues behind fashion Findings set out in the Ethical Clothing Report 2008 byTNS Worldpanel Fashion: • AND •
Compared to the other age groups, 35-44’s and 55+ are the most concerned by ethical criteria … the under 25’s care more than other age groups about profits being given to charity
9. Consumers are most interested in supporting community benefits and a fair price to producers • •
Year-on-year, most of the ethical criteria have become more important, community benefits in particular becoming more important But a fair price to producers and the sweat shop elements remain by far the most important
(Ethical Clothing Report 2008, TNS Worldpanel Fashion)
10. Opportunities for ethical fashion vary across product value sectors During 2008-9 Focus group research was carried out by the Ethical Fashion Forum into the opportunities for ethical fashion products in different market sectors. Groups of consumers from 3 target market sectors were randomly selected to take part: Group 1 regular Primark and/or Tesco shoppers – Budget market Group 2 regular All Saints and/or Whistles shoppers – Mid range market Group 3 regular Harvey Nichols and/or Browns shoppers – High end designer market Focus groups were conducted with an impartial, varied demographic of 21 consumers aged 20-44 Focus Group 1 comprised of participants who regularly shop at Primark and/or Tesco • •
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These consumers would like to buy ethical fashion but find it not available enough and expensive. Most felt that Primark’s practices had improved recently in relation to ethical sourcing. They were aware of Primark's recent marketing campaign to defend the ethics of its manufacturing processes. However they still feel relatively low levels of trust in retailer’s ethical claims. These consumers would like independent bodies to verify retailers claims and they would like to see proper labelling, posters and leaflets – “the retailers word is not enough” This group were the most receptive and positive about learning more about how garments are made and the stories of producers behind the products. They think “Body Shop does this well as they are clear on their ethos and people pay more for that” This group were the most aware of media coverage about ethical fashion but would like it to be less about the negative issues. They would buy more if better informed of the positives outcomes of their purchases. The group expressed confusion about labelling. They would like clear labelling, supplemented with bullet point, easy to read information.
Focus Group 2 comprised of participants who regularly shop at All Saints and/or Whistles • • •
This group were the most unanimous in their views. They are interested in learning more about how the clothes they buy are made… …but it wouldn’t necessarily make them more likely to buy a product. They are concerned about compromising on quality and style.
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This group had the most trust/brand loyalty in their retailers ethical claims “because it would not be in their best interest to lie” This group have been encouraged by the media to make more ethical choices with food but not with fashion. Participants were not aware of media covering ethical fashion. They all agreed retailers should make it clear through labelling when garments have been produced according to ethical standards, which would make consumers feel “less guilty”
Focus Group 3 comprised of participants who regularly shop at Harvey Nichols and/or Browns •
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These consumers enjoy the experience or “scene” of high end designer shopping and are unsure how ethical fashion would fit into this. They felt that ‘point of sale’ information, ethical sections and swing tags would not work with the generally minimalist branding. Participants were split in opinion regarding whether they would be interested to learn more about how their clothes were made. They agreed that they would only be interested in the story if they liked the product first. The research showed ostensibly conflicting views. Participants showed high levels of trust in their retailers and were more sceptical of the ethical fashion facts – they spoke of feelings of being “bombarded with propaganda” and a “worthy overload”… … However these consumers don’t link high price designer goods with non-sweat shop labour, they are cynical of designer manufacture and assume items are made in sweatshops along side cheap garments. Participants weren’t bothered by this as long as the products have a designer label and are stylish. Participants felt that the responsibility to improve practices lies with the retailers, producers and distributors rather than with the consumers. The availability of ethical fashion is poor; therefore they should not be made to feel guilty for what they do buy.
11. Consumers remain sceptical about ethical claims made by retailers 57% of respondents are sceptical about the ethical claims made by retailers (Ethical Clothing Report 2008, TNS Worldpanel Fashion) 11% of consumers do not trust that ‘ethical’ clothing is genuinely so. This is only a minority perhaps, but sufficient to show the need for action from retailers and NGOs to publicise and promote the activities of verification bodies like the Fair-trade Foundation. Equally, retailers themselves have to earn credibility. (Mintel, Ethical Clothing – UK – 2009)
12. “Ethically minded” clothing buyers do spend more money on Clothing People who say ethical clothing is important generally spend around £200 more than people who think it’s unimportant…and there are 34.8m customers who say ethical clothing considerations are quite/very important. Of these 34.8, 6.9 million rate the availability of Ethical Clothing as being poor/very poor.
These 6.9 million are the key customers to target. They want to buy ethical clothing, but cannot source it easily. (Ethical Clothing Report 2008, TNS Worldpanel Fashion)
13. An untapped market Despite growth, this remains as yet an undeveloped market, if one with plenty of potential. The ethical clothing market is a little larger than the bridalwear sector and equivalent to almost half of the value sales of hosiery. Although tiny in relation to the whole [at less than 1%], major retail players including Marks & Spencer, H&M, Topshop, Sainsburys, Tesco and others are increasingly adding their own ethical ranges which will drive up sales exponentially. The main impediments currently are awareness, appreciation and availability. All three are within the control of brands and retailers, and thus they can increase the growth potential. (Mintel, Ethical Clothing – UK – 2009)
