Chapter 4 - Pearson

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This is a very diverse segment of the population. Those in their twenties, for example, are relative newcomers to their careers and generally have lower incomes than their older counterparts. Collectively, however, they represent an excellent market for many retailers. With little responsibility other than to themselves, many in the group have a great deal of discredia76827_ch04.qxd 11/29/04 7:55 PM Page 86 86 SECTION I Introduction to Fashion Retailing conscientious workers with conservative values who have a strong desire for their children to earn college degrees Unlike members of the upper-middle class, they place less importance on “showy” fashion merchandise and consider price to be a very important factor in making purchases. Where as the higher classes shop early in the season for fashionable clothes, this group makes its selections as the needs arise, and therefore shops frequently, though rarely spending large sums of money at one time. People in the lower-middle class typically buy their fashion merchandise from department stores that specialize in popular-priced merchandise, from discounters such as Target and Wal-Mart, and from off-pricers such as Burlington Coat Factory and Marshall’s. They are not terribly interested in quality or conservative styles but tend to be attracted by the latest styles and colors. Fashion designer labels are not necessarily important to this group except in cases where they are deeply discounted by off-price merchants. LOWER CLASS This is the largest class of Americans, at 55 percent of the population. At times when the economy falters, as was the case in 2002, this group has a rough time paying for the necessities of life, let alone fashion merchandise. Upper-Lower Class. At 35 percent, this is the largest subsegment of the population. Members of this group are generally poorly educated and hold blue-collar jobs that give them insufficient amounts to spend on fashion merchandise. When they do have fashion needs, they generally buy very inexpensive apparel and accessories. Price is an extremely important factor, so they generally limit their purchases to discount operations, off-price shops, and specialty stores that merchandise the lowest priced lines. Lower-Lower Class. With little or no formal education, the lower-lower class accounts for 20 percent of the population. Many in this group are welfare recipients and have barely enough to satisfy their needs for survival. Fashion merchandise is generally out of the question, except for the occasional celebration. When they do shop for this type of merchandise, they often head for the second-hand shops. Since fashion merchandise is available at just about any price point, it is necessary for merchants to know the social classes of their markets. In this way, they can satisfy the needs of their customers and potential shoppers by providing them with the types of retail operations they find suitable to their social stations and the clothing and accessories they desire. Family Life Cycle People who are at a specific stage in their family life cycle generally have the same needs as others at the same stage of life. By studying these various segments or stages, fashion retailers can assess the needs of particular groups in their trading areas. For example if a geographic area is dominated by empty nesters, it is safe to assume that their needs and desires would be similar. However, there are also differences within each group in terms of income, occupations, educational levels, and lifestyles that affect their purchasing potential. Classifications within the family life cycle have changed in recent years. At one point, retailers that assessed these groups for their planning strategies concentrated on more traditional classifications. Today, however, nonconventional segments have been added to the list and include such categories as multiple-member/shared households and single parents. CHILDLESS SINGLES UNDER 45
dia76827_ch04.qxd 11/29/04 7:55 PM Page 87 CHAPTER 4 The Fashion Consumer: Identification and Analysis 87 tionary income. Once they have satisfied the needs of rent and utilities, the bulk of their salaries is often spent on fashion merchandise and cosmetics. Often intent on meeting others in similar situations, they have memberships in fitness centers, frequently dine in restaurants, and engage in travel to unique destinations. Each of these activities gives them reason to purchase active sportswear, apparel and accessories, and a host of cosmetics. Those at the upper end of the income scale in this classification are usually devotees of designer labels such as Prada, Dolce & Gabbana, Ralph Lauren, Calvin Klein, and Donna Karan. Those at the midpoint of this segment in terms of earning power opt for less costly merchandise and do their shopping at companies such as Banana Republic and Ann Taylor, where the latest fashions are readily available. At the lowest level of this group, The Gap is a familiar haunt where they can have their fashion needs satisfied. CHILDLESS SINGLES 45 AND OVER In today’s society, more and more people are choosing to remain single. As is the case with their younger counterparts, they often enjoy significant incomes that afford them the opportunity to live exciting lifestyles that warrant a great deal of fashion apparel and accessories. Many are in their own businesses, have medical and dental practices, or are employed as attorneys, investment bankers, or technology managers. They too patronize the merchants that offer the latest in fashion. Although many live alone, others participate in lifestyles that are akin to marriages but without the licenses. In these cases, because they share expenses, they often have greater discretionary spending power. SINGLE PARENTS With a divorce rate that seems to be steadily increasing and the number of unwed mothers also spiraling upward, this has become an important segment of the population for retailers to address when planning their merchandise assortments. Often short on cash, single parents typically do not have sufficient amounts of disposable income to purchase a great deal of fashion merchandise. They have to be able to support themselves and their offspring. Women are not alone in this category, although the majority of them have the children from their former marriages live with them. Men, although not typically the everyday rearers of these children, do have some financial responsibility in their upbringing. Given their financial stress, when this group does buy fashion merchandise, it is more likely to buy from discounters such as Target, Wal-Mart, and Kmart and off-price merchants such as SteinMart and Marshall’s. MULTIPLE-MEMBER/SHARED HOUSEHOLDS The costs associated with housing and other necessary expenses have contributed to the need for people without marital connections to live together. In major cities across America, rents keep rising to previously unseen levels. This phenomenon has given birth to this new family lifestyle category, multiple-member/shared households. Those who are part of this group include, same-sex relationships, opposite-sex relationships with the possibility of marriage, opposite-sex relationships without the intention of marriage, and two or more sets of single parents with children who live with them. The diversity of people involved in this group results in purchasing characteristics that differ widely. Singles who plan to marry each other, on the one hand, are among those who often share dual incomes that enable them to make more than just the basic purchases. Many of these couples have no intention of having children, making them excellent customers for fashion merchants. Companies such as Saks Fifth Avenue and Bloomingdale’s and designer boutiques are their main purchasing outlets. On the other hand, single parents sharing a household with one or more children living with them often find it difficult to make ends meet. They often live from paycheck to paycheck and do not have the luxury of buying merchandise other than the basics. When they do purchase fashion items, it is often from discounters and off-price merchants.
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Chapter 4 - Pearson

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