price & range review of denim jeans

Transcription

1 price & range review of denim jeans October 2015

2 contents price & range review of denim jeans October 2015 introduction 3 key findings 4 range size & mix analysis 5 women s price architecture 9 men s price architecture 14 women s average price architecture vs men s 19 women s price tier analysis 21 men s price tier analysis 23 women s & men s combined price tier analysis 26 market map analysis 29 overall promotional analysis 32 appendix price tier methodology 36 2

3 introduction price & range review of denim jeans October 2015 This report contains the results of Retailmap's range and price survey of men s and women s denim jeans, in London, in October The fieldwork took place in the 1 week period commencing 7 th October For each product category surveyed, Retailmap has recorded the number of options in each retailer's range by original, full unit price point, to provide an overall view of entry, average and exit price architecture. In addition to price positioning, Retailmap has also analysed competitor range size. Debenhams data includes only their Own Label and Designers At Debenhams ranges. Urban Outfitters was audited only for men s jeans. Unless stated otherwise to the right, all stores were audited at Westfield White City. The following retailers were surveyed :- American Eagle Outfitters Blue Inc Burton Debenhams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Jack & Jones Levi s M&S New Look Next Primark (Westfield Stratford) Pull & Bear River Island Superdry Topshop/Topman Uniqlo Urban Outfitters Zara (Westfield Stratford) 3

4 introduction key findings Value Sector Taking Primark as the key value retailer in the competitor set, it is interesting to see that the retailer actually has a larger number of options within men s jeans (55) than in women s (49). It is not only in terms of range size where Primark appears to be more competitive within men s jeans. When looking at price, Primark s average price of men s jeans ( 11.15) is actually than the entry price of the next lowest retailers (New Look, H&M at 14.99). Compare this to women s jeans, where Primark s entry price ( 7) is only 99 pence than those of New Look and H&M. Mid Market Looking at M&S, the retailer has a considerably larger range size within women s (113 options) than men s (40). But given that, there is actually little difference in the price architecture of both departments with women s only being 1.96 higher at average price than men s, and 50 pence higher at entry. Zara s price positioning within denim jeans places them competitively against Gap, River Island and Topshop/Man. Within men s jeans, Zara s average price is around 20% than that of River Island with that differential increasing to around 30% in women s denim jeans. Since entering the UK market, American Eagle Outfitters (AEO) has aimed to be a destination of choice when it comes to denim jeans. However, in terms of pure price & range, you could be forgiven for think that the retailer gets lost amongst the competition. With regards to range size, AEO is only broadly in line with the women s survey average, whilst in terms of price the retailer has narrow price architecture with a difference of only 12 between entry and exit price (compared to 29 at Debenhams). Another retailer with a quirk in their full price range is Gap. Looking at women s jeans, Gap has an average price which is higher than Superdry, Hollister and Topshop. Their range also has a large gap from their entry price ( 22.95) to their next price point of This could be an area where they are missing up trading customers. Upper Middle G Star s entry and exit price architecture for women s and men s is exactly the same ( 80 entry, 140 exit). However, their range size of women s is less than half that of their men s range (15 vs 36 options). Despite this, there is only a 4 difference at average price across the two departments. When looking at the retailer set of Levi s, Guess, G-Star and Diesel, there is an interesting market dynamic. Within women s jeans, the entry price of said retailers are at least 5 higher than the exit price of the next nearest retailer (Gap). But within men s jeans, their ranges have a direct overlap with multiple different retailers. Men s vs Women s Price Architecture When looking at the market average price architecture of women s denim jeans vs men s, there is surprisingly little difference. There is only 1 difference at entry and average price, and only 4 difference at exit. Men s is the department which is only slightly higher at all three price metrics. 4

5 denim jeans range size & mix analysis October

6 women's denim jeans range size Oct ' number of options the chart shows cash values of the entry, average and exit price shopping bags for each retailer. the shopping bag is based on a list of comparable product categories common to all retailers (see shopping bag tables) further details on shopping bag composition can be found in shopping bag methodology. 6

7 men's denim jeans range size Oct ' number of options the chart shows cash values of the entry, average and exit price shopping bags for each retailer. the shopping bag is based on a list of comparable product categories common to all retailers (see shopping bag tables) further details on shopping bag composition can be found in shopping bag methodology. 7

8 denim jeans range mix by product Oct '15 department American Eagle Blue Inc Burton Deben hams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Jack & Jones Levi's women's denim jeans men's denim jeans total department M&S New Look Next Primark Pull and Bear River Island Superdry Topman Topshop Uniqlo Urban Outfitters Zara Survey Average women's denim jeans men's denim jeans total Urban Outfitters was audited only for men s jeans. 8

9 women s denim jeans price architecture analysis October

10 women's denim jeans denim jean price architecture Oct '15 exit price average price entry price shopping bag the chart shows cash values of the entry, average and exit price denim jeans for each retailer. 10

11 women s denim jeans original unit price ( ) architecture Oct 15 (area of bubble relates to number of options at each original unit price ( ) point) w price points (options) (49) (62) (84) (46) (98) (71) (113) (63) (22) (51) (54) (43) (48) (68) (23) (23) (44) (24) (15) (46) Primark New Look Source: Retailmap Survey, October '15 H&M Pull and Bear Deb's Zara M&S Next DP Gap American Eagle Uniqlo River Island Topshop Hollister Superdry Levi's Guess G-Star Diesel 11

12 women s denim jeans price architecture no. of options by price point Oct 15 orig. unit price Pull and American Primark New Look H&M Deb's Zara M&S Next DP Gap Uniqlo ( ) Bear Eagle River Island Topshop Hollister Superdry Levi's Guess G-Star Diesel Survey Total Total Source: Retailmap Survey, October '15 12

13 women's denim jeans price stretch Oct ' price stretch American Eagle Debenhams Diesel Dorothy Perkins Gap G-Star Guess H&M Hollister Levi's M&S New Look Next Primark Pull and Bear River Island Superdry Topshop Uniqlo Zara exit price entry price price stretch Survey Average the chart shows each retailer's price architecture stretch (the breadth between a retailer's entry price and exit price denim jeans) a high number means a wider price architecture stretch, a low number means a narrower stretch allows you to quickly compare each retailer s price architecture stretch 13

14 men s denim jeans price architecture analysis October

15 men's denim jeans denim jean price architecture Oct '15 exit price average price entry price shopping bag the chart shows cash values of the entry, average and exit price denim jeans for each retailer. 15

16 men s denim jeans original unit price ( ) architecture Oct 15 (area of bubble relates to number of options at each original unit price ( ) point) m price points (options) (55) (25) (42) (40) (46) (41) (40) (60) (91) (23) (55) (45) (51) (38) (28) (34) (58) (45) (16) (56) (16) (36) (53) Primark New Look Source: Retailmap Survey, October '15 H&M M&S Pull and Bear Blue Inc Zara Next Deb's Burton Topman River Island American Eagle Gap Uniqlo Hollister Jack & Jones Urban Superdry Levi's Guess G-Star Diesel Outfitter 16

17 men s denim jeans price architecture no. of options by price point Oct 15 orig. unit price Pull and Primark New Look H&M M&S Blue Inc Zara Next Deb's Burton Topman River Island American Gap Uniqlo Hollister Jack & Urban Superdry ( ) Bear Eagle Jones Outfitters Levi's Guess G-Star Diesel Survey Total Total Source: Retailmap Survey, October '15 17

18 men's denim jeans price stretch Oct ' price stretch American Eagle Blue Inc Burton Debenhams Diesel Gap G-Star Guess H&M Hollister Jack & Jones Levi's M&S New Look Next Primark Pull and Bear River Island Superdry Topman exit price entry price price stretch Uniqlo Urban Outfitters Zara Survey Average the chart shows each retailer's price architecture stretch (the breadth between a retailer's entry price and exit price denim jeans) a high number means a wider price architecture stretch, a low number means a narrower stretch allows you to quickly compare each retailer s price architecture stretch 18

19 denim jeans women s average price architecture vs men s average October

20 survey average of women s denim jeans vs. men's Oct '15 exit price average price entry price shopping bag women's average men's average the chart shows cash values of the entry, average and exit price shopping bags for the women s and men s survey average. 20

21 women s denim jeans price tier analysis October

22 women's denim jeans price tier analysis Oct '15 Primark Dorothy Perkins Pull and Bear H&M New Look Zara M&S 100% 41% 59% 41% 59% 8% 37% 55% 3% 19% 77% 14% 10% 76% 4% 19% 27% 27% 23% Debenhams Uniqlo Next Hollister American Eagle Topshop Superdry 10% 12% 34% 26% 18% 100% 32% 25% 24% 19% 9% 91% 39% 61% 6% 54% 40% 100% River Island Gap Diesel G-Star Guess Levi's 17% 6% 77% 2% 2% 37% 59% 100% 100% 100% 100% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 22

23 men s denim jeans price tier analysis October

24 men's denim jeans price tier analysis Oct '15 slide 1 of 2 Primark New Look Blue Inc Pull and Bear Burton H&M 22% 17% 4% 41% 4% 65% 33% 100% 96% 59% 74% 35% 50% M&S Uniqlo Next Zara Topman Hollister 2% 15% 7% 18% 17% 58% 51% 100% 45% 100% 52% 15% 40% 38% 17% 28% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 24

25 men's denim jeans price tier analysis Oct '15 slide 2 of 2 American Eagle Debenhams River Island Gap Superdry Jack & Jones 6% 22% 4% 52% 56% 74% 100% 71% 76% 3% 20% 18% 7% 14% 44% 24% 8% 1% Urban Outfitters Levi's Diesel G-Star Guess 27% 93% 100% 100% 100% 71% 7% 2% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 25

26 women s & men s denim jeans combined price tier analysis October

27 women s and men s combined price tier analysis Oct '15 slide 1 of 2 Primark Dorothy Perkins Blue Inc Pull and Bear New Look H&M 6% 11% 2% 6% 41% 41% 32% 56% 36% 100% 59% 59% 58% 41% 53% Burton Zara M&S Uniqlo Next Topman 3% 16% 2% 9% 14% 7% 7% 21% 25% 61% 21% 51% 65% 54% 31% 39% 37% 40% 35% 16% 27% 18% Debenhams Hollister American Eagle Topshop River Island Superdry 5% 4% 3% 6% 9% 31% 33% 54% 67% 100% 19% 96% 57% 40% 13% 34% 7% 12% 10% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 27

28 women s and men s combined price tier analysis Oct '15 slide 2 of 2 Gap Jack & Jones Urban Outfitters Levi's Diesel G-Star 34% 22% 27% 96% 100% 100% 53% 71% 71% 4% 9% 7% 2% 3% 1% Guess 100% the charts compare the proportion of each retailer's range (no. of options) that occupy 5 price segments, or tiers, of the market. each tier represents 20% of the market by price the market is defined by the competitor set a detailed explanation of price tier methodology appears in the appendix 28

29 denim jeans market map positioning October

30 women s denim jeans market map Oct 15 total range size versus average price Diesel average price denim jean G-Star Guess Superdry Hollister River Island Uniqlo Levi's Gap American Eagle Next Topshop Debenhams M&S Dorothy Perkins Pull and Bear Primark New Look Zara H&M range size this analysis plots each retailer on a market map in terms of range size (no. of options) and average price of a denim jean. the size of each retailer s bubble is relative to their range size. use this analysis to identify competitor clusters or outlying retailers in the competitive marketplace based on range size and average price position. 30

31 men s denim jeans market map Oct 15 total range size versus average price Diesel average price denim jean Guess Superdry Uniqlo Burton New Look G-Star Gap Zara Hollister M&S H&M Blue Inc Urban Outfitters River Island Levi's Jack & Jones American Eagle Topman Next Pull and Bear Primark Debenhams range size this analysis plots each retailer on a market map in terms of range size (no. of options) and average price of a denim jean. the size of each retailer s bubble is relative to their range size. use this analysis to identify competitor clusters or outlying retailers in the competitive marketplace based on range size and average price position. 31

32 denim jeans overall promotional analysis October

33 denim jeans range mix by promotion type no. & % of options Oct 15 promotion type % off mixed sale multibuy off total American Deben Dorothy Jack & New River Urban Survey Blue Inc Burton Gap H&M Hollister M&S Uniqlo Eagle hams Perkins Jones Look Island Outfitters Average % - - 8% % % % - 12% 100% 56% 100% 100% - 100% 100% 100% 100% 100% 27% % 80% % % % % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% the table shows the range mix by promotion type, for each retailer, both as a number of options and percent of the total range. the data shown is a combined total across women s and men s denim jeans. the table only shows retailers who had promotional activity at the time of the survey. 33

34 denim jeans range mix by promotion or multibuy no. & % of options Oct 15 promotion vs. multibuy promotion multibuy total American Blue Inc Burton Debenha Dorothy Jack & New River Urban Grand Gap H&M Hollister M&S Uniqlo Eagle ms Perkins Jones Look Island Outfitters Total % 100% - 20% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 78% % 80% % % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% the table shows the range mix by promotion or multibuy split, for each retailer, both as a number of options and percent of the total range. the data shown is a combined total across women s and men s denim jeans. the table only shows retailers who had promotional activity at the time of the survey. 34

35 denim jeans promotion and depth % of options Oct 15 denim jeans % of options on promotion denim jean % depth of promotion American Eagle 90% Uniqlo 72% Burton 83% Dorothy Perkins 58% Urban Outfitters 47% New Look 57% Jack & Jones 47% Jack & Jones 50% Blue Inc 41% H&M 50% Debenhams 26% Hollister 38% Gap 18% M&S 38% Survey Average 13% River Island 38% Dorothy Perkins 9% Gap 34% Hollister 9% Survey Average 32% Uniqlo 4% Urban Outfitters 31% New Look 3% Debenhams 27% M&S 3% American Eagle 25% River Island 1% Burton 20% H&M 1% Blue Inc 20% 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% the left chart shows the % of a retailers range that is on promotion (promotion or markdown) at the time of the audit. the right chart shows the depth of promotion, the amount of possible savings, in each retailer at the time of audit represented as a %. the data shown is a combined total across women s and men s denim jeans. the charts only show retailers who had promotional activity at the time of the survey. 35

36 appendix price tiers methodology & price bands October

37 price tier methodology example price tier architecture no. of options by original price point original unit price Retailer 1 Retailer 2 Retailer 3 Retailer 4 Retailer 5 Retailer 6 Retailer 7 Retailer 8 Retailer 9 Retailer 10 Survey Total Survey Average Cummulative Survey Average % 1% % 1% % 3% % 5% % 7% % 17% % 19% % 20% % 24% % 25% % 26% % 38% % 40% % 43% % 48% % 50% % 52% % 54% % 60% % 64% % 65% % 66% % 68% % 77% % 78% % 79% % 80% % 82% % 89% % 93% % 95% % 96% % 96% % 97% % 97% % 98% % 98% % 99% % 100% Total % - LOWEST 20% OF OPTIONS = LOWER PRICE TIER SECOND 20% OF OPTIONS = LOWER MIDDLE PRICE TIER MIDDLE 20% OF OPTIONS = MIDDLE PRICE TIER SECOND HIGHEST 20% OF OPTIONS = UPPER MIDDLE PRICE TIER HIGHEST 20% OF OPTIONS = UPPER PRICE TIER Each product category is split into 5 equal parts in terms of overall number of options Each of these 5 equal parts has a price tier name (, etc.) If a category can not be split into 5 equal (or roughly equal) tiers then it is excluded from the analysis This price tier analysis provides a strategic measure of a retailer s price architecture approach 37

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