Chapter 4 - Pearson

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dia76827_ch04.qxd 11/29/04 7:55 PM Page 88 88 SECTION I Introduction to Fashion Retailing Single-earner couples often have limited resources, especially when they have children. (© Dorling Kindersley) SINGLE-EARNER COUPLES WITH CHILDREN Because of rising living expenses of raising children, this classification has seen a radical decline in the past twenty years. Of course, some in this category do retain the single-earner status and maintain a standard of life that allows them to satisfy their fashion needs. Attorneys, investment bankers, health professionals, and business owners, for example, are part of the upper-middle class and earn enough to make the luxury purchases they desire. Those in this classification with limited funds buy their fashion merchandise from discounters such as Target and Wal-Mart; the more affluent members of the group head for the brick-and-mortar operations such as Bloomingdale’s and Nordstrom, fashion boutiques, and catalog resources or on-line sites that specialize in fashion apparel and accessories. DUAL-EARNER MARRIED COUPLES WITH CHILDREN With two employed parents, members of this group are financially better off than their singleearner counterparts. Those in this group who have very young children generally require preschool programs or nannies to tend to their children while they are at work. This expense can be considerable and can affect the spending capabilities of these families. At the other end of the spectrum, those with children in college also find their expenses spiraling upward, requiring them to be cautious about spending. Those who have substantial dual incomes are more likely to shop in the major department and specialty store organizations, while the less financially affluent are more likely to head to The Gap and Old Navy, where value fashion shopping is possible. Once the children have moved out of the house and expenses for college have been satisfied, the sky is often the limit for these families. At this point, especially if both partners are still employed, cost is no longer a factor in terms of fashion purchases. CHILDLESS MARRIED COUPLES This classification is composed of couples at any age. They may be newlyweds who do not intend to raise a family, middle-aged people, or the elderly. In any case, collectively, they are
dia76827_ch04.qxd 11/29/04 7:55 PM Page 89 CHAPTER 4 The Fashion Consumer: Identification and Analysis 89 financially better off than their counterparts who have children. While the taste levels of those in this group vary considerably, they are generally able to buy whatever pleases them. Fashion purchases are generally made at the traditional full-line or specialized department stores and upscale specialty brick-and-mortar operations. EMPTY NESTERS Those who have raised families but now live alone, known as empty nesters, are in a position to buy what they want without the need to be cautious. With expenses greatly minimized, they often spend on fashion items that they once considered too extravagant to consider. Many are still working and are at higher levels of income than anytime in their lives. With the ability to travel and join country clubs, they are often in the market to purchase fashion apparel and accessories to suit their new lifestyles. Where they once maintained wardrobes that were business oriented, they now adopt a freer approach to shopping. Designer labels are often their choices, as are the stores that offer them in abundance such as boutiques and specialty shops. While family life cycle classifications remain constant, the people within them generally move from one to the other, depending upon their times in life. Singles might marry, dual-earners might retire, married couples might divorce, and so forth, making their needs change. This is particularly true when it comes to fashion merchandise. The places in which they make their purchases might change from the traditional department stores to discount operations where value rather than selection might prevail. Fashion retailers must always address these different classifications and determine which family life cycles are most dominant in their trading areas. While there are numerous theories and concepts that businesses have accepted in the study of consumer behavior and related topics, some companies opt to conduct their own research to determine customer reaction to their products. One such study was undertaken by Dupont to ascertain which groups of consumers had potential to buy products that used Dupont’s fibers. The following “Spotlight” section on Dupont’s study describes its findings. Fashion Retailing Spotlights DUPONT’S COHORT STUDY By studying cohorts, or groups, marketers are able to determine which would be likely candidates for their products. Dupont, world leader in fiber manufacture, undertook research that would not only help the company in its attempt to market the right fibers but also would enable it to examine its potential customer segments. The study separated, or segmented, ten age groups, ranging in age from eight to ninety, and investigated the values and consumption patterns of each.The findings are presented below, along with the implications for the fashion retailer. World War I Babies. The hardships brought about by the Great Depression had lasting effects on members of this group.They remain overly cautious in their purchasing of anything but necessities.This age segment is extremely small and is not very important to the fashion retailer.The merchandise the members purchase is often practical and functional and must last for many seasons.The pay little attention to trendy or fashion merchandise. When they do opt for merchandise with a fashion orientation they usually buy it at chains or department stores that specialize in lower price points. Roaring Twenties Babies. Members of this group are not preoccupied with possessions but prefer to spend on travel, entertainment, and similar things.They are more fashion conscious than their World War I counterparts, but they too are not considered prime targets of fashion retailers. Like the elderly in the preceding group, they are few in numbers.Those who are still interested in shopping for products other than the necessities generally have limited budgets.When they buy apparel and accessories, they do so at off-price stores and discount operations. If they shop at a department store, it is generally at markdown time. (continued)
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Chapter 4 - Pearson

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