Chapter 4 - Pearson

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dia76827_ch04.qxd 11/29/04 7:55 PM Page 84 84 SECTION I Introduction to Fashion Retailing The apparel and accessories requirements of professionals and business executives also change. In the late 1990s two trends in the business world changed how office workers dressed. The first trend was Casual Friday, which became popular in the offices of attorneys, investment bankers, and other high-level places of employment. This phenomenon, which allowed men to wear open-collared shirts, sports coats, and contrasting slacks, caused a downturn in sales for merchants who stocked suits and more traditional workplace clothing. They had to change their merchandise assortments to deal with the new casual mode of dress. In fact, in many places, the Casual Friday approach to dress carried over into other days of the week, causing even more concern for those who sold suits, business shirts, oxfords, ties, and other more formal wear. The women’s wear market was equally affected, since women wore pants suits in place of dresses. At the start of the twenty-first century, many companies returned to the traditional formal mode of dress. This departure from the casual look brought with it a larger market for formal dress. Suits for men began to reclaim their share of the retailer’s inventory, and more dresses were sold. The second trend was the work-at-home phenomenon, which reduced the need for all kinds of career clothing. With approximately 40 million people telecommuting, jeans and T- shirts became the order of the day. Even sleepwear was being bought in greater quantities by those who didn’t have to interact personally with coworkers and clients. Again, fashion retailers had to rethink their merchandise mixes to accommodate this ever-growing group of consumers. These recent trends show that retailers must continuously evaluate the business and professional marketplace to ascertain what the components of acceptable dress will be. Today, there is no longer one standard of proper dress for people who are gainfully employed. Retailers must do regular needs assessment to determine that they maintain the proper breadth and depth of apparel and accessories that their targeted markets desire. They must adjust their inventories accordingly to ensure that they can profit from the trends rather than lose money on outdated merchandise. INCOME A person’s income plays the most significant role in determining if a purchase can be made. Although shoppers might like to buy Armani creations, their ability to pay for them is the ultimate factor in determining if they will do so. Consumers must first pay for the necessities of life, (as outlined in the section on “Maslow’s Hierarchy of Needs”). Other parts of their disposable income must be used for other important purchases; eventually, they determine what portion of their income is discretionary income that is available for more luxury items such as precious jewelry and designer apparel. Fashion merchants must evaluate the various income levels of people residing in their trading area and make certain that they stock merchandise at price points that are commensurate with them. EDUCATION The manner in which people dress is often based upon their educational level. Those with advanced degrees in law and business administration, for example, will have a greater need for fashion apparel and accessories than those with less formal educational achievements. Attorneys, investment bankers, security traders, and those in similar professions are expected to dress in more traditional attire in their business environments and in the social engagements that are often extensions of the office place. The specialty retailer Brooks Brothers is a perfect example of a company that caters to this clientele; others include specialized department stores such as Saks Fifth Avenue and Neiman Marcus. Social Class Groupings One of the concepts most utilized by fashion retailers in the determination of appropriate merchandise mixes and price points is the one involving American social class, by which groups of people are segregated into homogeneous categories according to income, occupa-
dia76827_ch04.qxd 11/29/04 7:55 PM Page 85 CHAPTER 4 The Fashion Consumer: Identification and Analysis 85 tion, background, educational levels, and other factors. Studies show that the different groups have different shopping preferences and merchandise needs. Traditionally, the most popular approach to social class groupings is to divide the population into three distinct classes with two subdivisions within each one. UPPER CLASS The most socially prominent group in the three classes is the upper class. This wealthiest segment accounts for approximately 3 percent of the population. It includes in its numbers both wealthy families that have inherited their wealth from past generations and the “nouveau riche,” who have come into their own wealth as a result of their own successes. Upper-Upper Class. This segment represents about 1 percent of the population. It has among its constituents such family dynasties as the Rockefellers and the Vanderbilts, who are considered to be the socially elite in the United States. Members of this segment make purchases that are often understated and without thought to cost. Their main requirement is quality. In terms of fashion, they prefer understated designs for casual wear and couturier designs for the many social functions that they attend. Some people in this class, in fact, have been known to be the catalysts in bringing new designers to the forefront of the fashion world. This class patronizes such prestigious specialized department stores as Bergdorf Goodman, Neiman Marcus, and Saks Fifth Avenue and boutiques for both men and women that include labels by Calvin Klein, Ralph Lauren, Yves Saint Laurent, Gucci, Ferragamo, Dolce & Gabbana, and Fendi. They frequent such famous American fashion streets as Worth Avenue, in Palm Beach, FL; Madison and Fifth Avenues, in New York City; Rodeo Drive, in Beverly Hills, CA; and overseas venues that include Avenue Foch, Paris, and Rue Antibes, Cannes. Fabulous jewelry from such world-renowned companies as Harry Winston, Van Cleef & Arpels, and Tiffany’s are also part of their fashion purchases. Lower-Upper Class. The remainder of this upper class strata accounts for 2 percent of the population. These are the new rich Americans. Unlike their counterparts of the upperupper class, these people are business executives in major corporations, owners of companies, professionals, and entertainers who have amassed their own fortunes without inheriting them. In terms of spending, price is not a major factor. They are conspicuous spenders and shop at the finest boutiques and specialty stores around the globe. Fashion purchases are often for products that will make them stand out in a crowd. MIDDLE CLASS Comprising approximately 42 percent of the population, the middle class is the second largest segment. Unlike the upper class, where the two subdivisions have spending similarities, the upper- and lower-middle class have distinctly different habits. Upper-Middle Class. The smaller of the middle-class segments accounts for approximately 12 percent of the population. These people are concerned with prestige and status and seem to want to make the transition to the lower-upper class. They are professionals and owners of businesses and spend their leisure time trying to emulate those in the classes above them. Although many in this class are high earners, their wealth is sometimes less than they need to enable them to purchase as freely as they would like. To satisfy their fashion needs with designer clothing and other prestigious merchandise, this group regularly visits wellknown fashion department and specialty stores at times when markdowns enable them to purchase upscale, high-fashion goods at reduced prices. Off-price shops such as Loehmann’s, closeout centers such as Last Call by Neiman Marcus, and designer outlets of companies such as Ralph Lauren and Anne Klein are regular haunts for this class. Shopping in these places allows them to buy the same fashion labels that are found in the traditional stores but to spend less money. Since recognition, by way of their fashionable wardrobes, is important to this class, they are the best customers for quality merchandise at bargain prices. Lower-Middle Class. Significantly larger than the upper level of this class, this segment accounts for 30 percent of the population. Members of this class are primarily
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Chapter 4 - Pearson

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