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Market analysis

Facts and figure about UK fashion Industry: Depending on a research of the British Fashion Council in 2009, the UK fashion industry is one of the most vibrant and creative business sectors in this country. It directly contributes 20.9 billions to the UK economy which is equal to 1.7% of total UK GDP, and the fashion retail contributes almost 22.5% of all retails value added to GDP in the UK. It indirectly contributes (via encouraging spending in other industries, such as: Media, Textiles, Manufacturing, education, marketing....) over 16 billions. In comparison with other industries, fashion industry has contributed more than publishing (9.9 billions), car manufacturing (10.1 billions), chemical manufacturing (10.6 billions), and only slightly smaller than telecomunication (28.7 billions) and real estate (26.4 billions) VAT from consumers payment, companies manufacturing and retailing fashion items tax and employees income tax contribute to the Exchequer about 13.2 billions. Employing directly around 816,000 people which is about 2.8% total employment. In comparison with other industries: travel and tourism 1.4 million, real estate 419000, telecommunication 215000, car manufacturing 174000, publishing 172000... The fashion magazine industry in particular contributes about 401 millions to the UK GVA and creates about 3000 jobs; and the fashion Marketing and related activities create an extra 241 million of GVA. Of this, 184 million is related to the promotion of clothing and footwear, with the remaining 57million linked to other products. Summary: Contribution to UK employment (Unit: thousand jobs) Contribution to UK GVA (Unit: billion pounds) Contribution to Exchequer (Unit: billion pounds)

Non-retail direct 155 6.6 1.4 impact Retail direct 661 14.3 11.7 impact Indirect and 494 16.3 4.4 induced impact Total: direct and indirect and 1,309 37.2 17.5 induced GVA = Gross Value added: how much actual wealth is created in an area, industry or sector of an economy. With the contribution is total about nearly 40 billions to the UK GVA and more than a million jobs to the labor market, Fashion industry is clearly a huge market for Clickmylook to enter and develop.

Clickmylooks customers: Clickmylook is a website for students of London Universities and Colleges. The main customers of this website mainly are people at the age of 18 to 30 or 35, including local and international students. As a research of the website, the rate of Clickmylooks target audiences in the overall population in the UK can be seen via the below figure: UK population in 2010

Predicted population in 2020:

That is to say, the UK population at the age of 15 to 34 is about 16 millions people in 2010. It might increase to about 17 millions in 2020 As a research of the Higher Education Statistic Agency, in the school year 2010/2011, there are about 2,501295 students of both Undergraduated and Postgraduated levels, the staff amount is about 381790 people including academic and non-academic fields. It can be said that total people at Universities and colleges is about nearly 2,9 millions

which is about 18% of total population at the age of 18 to 34 in the UK. And due to a statistical list of the UCAS, there are about 70 universities and colleges with around 300 thousands students in London, which means the target audiences of Clickmylook is about 10% of all students in the UK, and about 3% of all people at the age from 18 to 35 in the UK. It can be said that Clickmylook has a huge market to develop in the future. Depending on a research of the department for Work and Pensions, in that target group of customers, the rate between employed and unemployed people ( which mean having and not having income) can be seen as the table below: Number of people ( Unit: thousand) 16 - 24 25 - 49 3670 17232 916 1176 2734 3090 The rate (%) 16 - 24 50.1 20 37.3 25 - 49 80.2 6.4 14.4

Employment Unemployment Inactivity

In which the rate between men and women are: Number of people ( Unit: thousand) 16 - 24 25 - 49 Men Women Men Women 1903 1767 9249 7983 535 380 646 529 1287 1447 816 2273 The rate ( %) 16 - 24 Men Women 51.1 49.2 22 17.7 34.5 40.3 15 - 49 Men Women 86.3 74 6.5 6.2 7.6 21.1

Employment Unemployment Inactivity

The distribution of median income and median tax by age range and gender in 2010 of this target audience due to a research of the HM Revenue and Customs organization can be seen as the table below: Men Tax 725 1570 2590 3330 3900 Women Tax 567 1270 2210 2620 2370

Under 20 20 - 24 25 - 29 30 - 34 35 - 39

Before tax 10200 14500 19800 23900 27300

After Tax 9475 12930 17210 20570 23400

Before tax 9410 13000 19700 20200 18900

After tax 8843 11730 17490 17580 16530

Therefore, the median income per month by gender and age are as the table below:

Under 20 20 24 25 29 30 34 35 - 39

Men (Unit: pound) 789.6 1077.5 1434.2 1714.2 1950

Women (Unit pound) 736.9 977.5 1457.5 1465 1377.5

Therefore, the mean income of people at the age group from about 18 to 35 is about 1253.9/month for the men and 1159.2/month for the women. An international student who wants to study and live in London has to have at least 800 per month in the bank account. However, a local student who does not have anyone helping them can get a benefit from the British government with an amount about 200 per month. That is to say, the income of Clickmylooks customers is from about 200 to 800 per month in general. On the other hand, a single student nomally has to pay about 400 per month for a single room, others payment including: food, entertainment... Therefore, in general, the students do not have much money on clothing. As the suggestion of many universities, such as Brunel, Queen Mary, Westminster.... a student normaly should has about 50 per month for clothing. Therefore, majority of them are looking for special styles with the minimum money via sale, vouchers, bargains ( seasonal fashion)... The difficulties that Clickmylook has to face when entering the UK fashion industry:

Clickmylook is a website for London students to share and experience fashion. Therefore, the market of Clickmylook will be the online market of fashion information supply. It can be said that the main competitors of Clickmylook would be fashion e-newspapers and e-magazines, fashion companies websites, fashion followers personal websites... Moreover, as London is one of the four most famous fashion cities in the world (including: Paris, Milan, New York and London), the fashion market here wil be shared by many companies, designers, fashion followers... In general, it can be any website about fashion and making up of companies, organisations or individuals. Therefore, if Clickmylook wants to enter this market, it has to face with many difficulties and challenges which come from their competitors, suppliers, buyers... There are many fashion websites on the Internet in recent, including websites of fashion companies, fashion designers, fashion lovers blogs..., students who love fashion can easily find alot of information about newest trends of fashion, fashion styles just by one mouse click. As a new entry, Clickmylook will firstly face with the threats of rivalry. That would be the recent competition between various existing fashion companies websites and fashion blogs, fashion online magazines, different social media as they also share the online

platform for videos, photos as well as ideas about fashion and focus on the same audiences which are the students in London. Clickmylook also has to face with the threats from substitutes. The competition engendered by Threats of Substitutes comes from products outside the industry. In Porters model, substitute products refer to products in other industry but relating to each other.That is to say, the substitutes of a fashion websites like Clickmylook could be any other entertainment websites, or any kinds of entertainment that existing on the Internet, including Youtube which allows people to share video of fashion shows, tips for making up or even websites of fashion photographers and models, make-up artists.... As a new websites, Clickmylook will need many suppliers in order to be set up. It will need a domain and host supplier, security software companies. In this field, Clickmylook would have many choices as there are many organisations supply these services. On the other hand, as Clickmylook is the website for students themselves to show their styles, serve the London students, therefore, Clickmylook also need the supports from London universities students and teachers including fashion and non-fashion studying, fashion industry experts. It also need the fashion and cosmetic companies as they will give out vouchers, discounts,... However, their suppliers in these fields have many other choices which are other fashion websites or magazines..., therefore, there threats for Clickmylook is overall not too high but not low as well. Clickmylook will be free for students. But other objects want to use Clickmylook to expand their customers amount via advertisement, or make their names be known by Clickmylooks customers have to pay fee. That is to say, Clickmylooks buyers would be any companies want to advertise through Clickmylook, including Model agencies, fashion branches, mobile phones companies... However, there are many other websites on the internet; their buyers have many choices, so that Clickmylook will face with a high threat in this field. One more important point that Clickmylook has to take care of when entering this risky industry is that the target audiences of the site is the students who might normally send about 50/month for clothing ( as the suggestion of many universities websites for their students), so that, Clickmylook has to bring them a nice style with a low price. In conclusion, as London is one of the most popular fashion cities in the world, there are many companies as well as individuals have been joined this industry. Therefore, Clickmylook will face with a high competition in all aspects: suppliers, buyers, substitutes,...