We - KappAhl

VOLUMES PEAK IN AUTUMN AND WINTER The fashion
industry follows a clear seasonal pattern. In terms of volume,
autumn and winter are the major seasons. The reason is that
customers buy a greater proportion of more expensive items. A
warm autumn can somewhat delay demand for these garments.
Seen over a longer period of time, however, the weather does
not affect sales to any great extent.
SIZE MATTERS – ALLOWS MORE FASHION FOR THE
MONEY Today’s fashion world is increasingly global and fashion
more similar overall. This has benefited the major fashion chains
that gain market share, mainly at the expense of local stores. In
the global market examples of these chains are H&M, Inditex,
Bestseller and Gap. At Nordic level KappAhl, Lindex and Dressmann
are established players.
Many of these companies are known as fully integrated
chains, with control of the entire business process from design
to store. This makes the chains faster and more responsive to
meeting new trends, purchasing patterns and shifting customer
requirements. Another trend is that shopping malls, which are
often out of town, account for an increasing share of the Nordic
fashion industry.
FINLAND
Population: 5.3 million
Consumer spending on clothing per capita
including VAT: SEK 6,177 per year.
SEK bn %
4,000
6
3,000
2,000
1,000
0
–6
2005 2006 2007 2008 2009*
3
0
–3
■ GDP
GDP growth
Consumer
spending
POLAND
Population: 38 million
Consumer spending on clothing per capita
including VAT: SEK 1,826 per year.
SEK bn %
4,000
8
3,000
2,000
1,000
0
Value-for-money fashion
is something that people
continue to allow themselves
even when times
are tougher ...
–4
2005 2006 2007 2008 2009*
* Estimated for the full year 2009. * Estimated for the full year 2009.
CLEAR CONCEPTS CREATE STABILITY IN TREND
SENSITIVE FASHION WORLD Regardless of the geographic
market it is important to have clear concepts and a well-defined
market position. There are more trends now than ever before
and they shift faster. Consumers more often mix different styles
of clothing, levels of fashion, quality and price.
KappAhl’s target group is well defined and the message is
clear: value-for-money fashion with wide appeal.
STRENGTHENED POSITION ON AN INCREASINGLY
TOUGH FASHION MARKET There is stiff competition in
today’s fashion trade. Despite this, KappAhl continues to
strengthen its position. As regards consumer spending, clothes
also compete with other products that make people feel good,
such as makeup, shoes or perhaps a spa experience.
KappAhl competes with other international chains, local
chains, independent stores, clothing departments in department
stores and with supermarkets and sporting goods stores. Competitors
include H&M, Lindex and MQ (Sweden), Cubus and
Dressmann (Norway) and Seppälä (Finland). In Poland
KappAhl also competes with Reserved.
2008/2009 Kappahl 9
5
2
–1
■ GDP
GDP growth
Consumer
spending
The total value
of KappAhl’s
markets at
the beginning of 2009 was
SEK 194 billion.