WHAT IS A FASHION MARKET SEGMENT?
Fashion market segmentation is the process of dividing a large market into specific segments which relate to characteristics such as lifestyle, demands, and income. This process allows designers identify who they are aiming their products towards and helps define their target market. Designers will not be able to reach an entire market with one brand identity which is why many names such as Prada create different brand such as Miu Miu to reach a completely different market. The fashion market segmentation is divided into six categories. At the top of the Hierarchy is Haute Couture followed by Luxury Fashion, Bridge Brands, Diffusion, High Street, and lastly Economy.
HAUTE COUTURE
Haute Couture is founded on elitism. It's
elevated status in the fashion segment hierarchy is evident in it's name - Haute
Couture. This industry provides bespoke clothing to
a privileged few as these garments usually have an entering price of
around £16,000. Couture was founded during the 19th Century. Charles-Frederick Worth was a fashion designer whose
works was produced in Paris and is considered the Father of Haute Couture. For
a brand to be considered 'Couture' it must reach the requirements of "The
French Ministry of Industry". The brand must originate from Paris,
releasing only two collections per year in January and July. As the price for a couture item can reach up to six figures and with many items made-to-fit with garments taking seven hundred to nine hundred hours some people may ask "what is the point
in Couture" ? Most luxury houses make the bulk of their profits not through
clothes but through handbags, wallets and perfume. Is there much of an audience or
market for this segment? Until recently, couture clothing was only really
visible to the masses during awards season for example a beautifully made Dior
dress was seen on Jennifer Lawrence at the Oscars, however, the
age of social media, when the worlds most remarkable images are shared, hash tagged tweeted and Instagrammed around the globe, the sparkle and glamour created by
couture shows has an ever greater footprint and has become some what a trend setter for the future. This January Chanel sent it's models strutting down the runway in trainers and knee pads during their couture show which reflected an interest in fashion sportswear for both male and female on the high street. We have seen this trend continued in a large amount of shows this year.
LUXURY FASHION
Luxury fashion has an exclusive persona.
It has a high-end, ready-to-wear identity and is a step lower in the
hierarchy than Haute Couture. The luxury brand first appeared in the
19th Century making it fairly new to the world of fashion. Luxury fashion
is still considered expensive, therefore, the consumers who buy into luxury
goods consider themselves part of the elite market however the pieces they are
wearing are slightly more affordable than six figures. The Luxury segment
is ran by many different groups, the three most dominant being LUMH, Kering and
Richemont. Luxury fashion is mainly targeted at a younger audience, however the main buyers of Luxury are individuals aged between 35 - 54 in social class A. There is no distinguished entry price for products within the luxury market segment brand which sit within this market such as Prada, Burberry, Versace and Hermes all have a different prices for their products therefore making it difficult to identity a specific entry price.
Bridge brands are positioned below luxury and above high-street on the fashion segment hierarchy. The name Bridge Brand is quite self explanatory, this market segment is a clever advertising technique which is used as a bridge between luxury and high street this therefore attracts a larger market mainly targeted at women over the age of 30 onwards who have a reasonable amount of disposable income. The essence of Bridge Brands is sophistication, the minimal entering price for a brand which lyes within this category such as Ted Baker, Karen Millen and Michael Kors is around £50.
BRAND DIFFUSION
Brand diffusion is a segment which is made up of ready-to-wear items designed by the big named fashion designers which are relatively inexpensive and are produced for label addicts who desire to shop at the luxury and couture labels but may not be fortunate enough to earn enough disposable income to splash their cash. Brand diffusion is bulk produced as the brand sells more variety than the original luxury brand, with more clothes, accessories, fragrances and shoe lines available. The original Luxury/Couture brand would not sell this as it devalues the rest of the brand. For this section of the fashion market, the entry price ranges between £40 – £400. The prices are controlled by a professional body whereby the fashion house decides the price they want to retail their lines at. The products are usually priced 30% less than their catwalk lines. Due to this, it attracts a younger market. It allows the younger generation to afford the more mature and higher end products and garments and wear the labels they want. A popular example of a familiar diffusion label would be Miu Miu which is owned by Prada. Ultimately designers are businessmen or women as well as artists. Having secondary line will produce more money and press.
Most people are familiar with high street stores and the concept behind them. High street stores tend to hit a large audience this is mainly due to the finical position these stores have undertaken. The core market for high street is individuals aged 30 and over with a basic and simple taste however the high-street is dying as more people are moving toward economy and fast-fashion. High-street labels are cheaper than most fashion market segments however still have an element of quality to them as they tend to be higher quality than economy garments. The entry price of garments starts at around £10, which may be for a t-shirt or vest. 15 years ago shops needed 250 store across the UK to create a national presence however due to the popularity of online shopping retailers now need just 70 store to create presence in the national market. This shows how quickly the market has changed and manipulated to fit the target markets needs and wants. Examples of High-street store include Warehouse, Monsoon and GAP.
ECONOMY
Economy is fashion-fashion. It is place right at the bottom of the hirerachy. Economy garments are mass produced and have the largest market in the fashion market segmentation. Ecoconmy is aimed that individuals who want fast-fashion. They want to look on trend for affordable prices. With this, the entry prices on average is around £10 with jeans available for a small amount of money and deals such as "2 for £10" for basic tees at Topshop. The collections for economy fashion is available within 2 weeks, creating up to 10,000 style per year. Example of economic conglomerates are Inditex, H&M AB and Arcadia.
