2007 Fairchild Publications, Inc.

1. 2007 Fairchild Publications, Inc.

2. The Environment of Fashion The four major environmental factors that affect fashion interest and demand: • Market Segmentation by geographics, demographics, psychographics, and behavior • The degree of economic development and well-being of a country or society • The sociological characteristics of the class structure • The psychological attitudes of consume 2007 Fairchild Publications, Inc.

3. Geographics: In what type of climate does the consumer live? Marketing Segmentation Target Marketsare specific groups of potential customers that a business is attempting to turn into regular customers. These markets are divided into four major segments. • Demographics: What is the educational, income, age, race or gender of the consumer? • Psychographics: How do social class and lifestyle affect the mind of the consumer? • Behavioral: Is the purchase about an occasion, benefit, status, or attitude? 2007 Fairchild Publications, Inc.

4. The Economic Environment Fashion demand depends on a high level of economic development, which is reflected in consumer income, population characterisitics, and technological advances. 2007 Fairchild Publications, Inc.

5. PERSONAL = Total income of a group, i.e., before taxes. The Economic Environment Consumer Income DISPOSABLE = “Take home pay.” Used to buy food, shelter, clothing and other necessities. DISCRETIONARY = What remains for the consumer to spend after taxes and necessities. Most Important Income for Fashion Demand 2007 Fairchild Publications, Inc.

6. 106 million 274million 350million Population: United States The U.S. population has increased dramatically and will continue to grow. 1920 2000 2025 (estimated) • “BABY BOOMERS” are an aging population with income. • Conversely, education and different lifestyles form a large “YOUTH MARKET”. 2007 Fairchild Publications, Inc.

7. The Sociological Factors • The key sociological factors influencing fashion today are leisure time, ethnic influences, status of women, social and physical mobility, instant communications, wars, disasters, and crises. • Leisure time and suburbs greatly influence the fashions in today’s America. 2007 Fairchild Publications, Inc.

8. U.S. Population Percents by Ethnicity 2007 Fairchild Publications, Inc.

9. Status of Women • At the beginning of the 20th century, women could not vote, rarely worked outside the home or attended college, and enjoyed little social freedom. • As the century progressed, advanced education became available to increasing numbers of women. • More than half of today’s college students are female. • As women’s rights advanced throughout the 20th century, the marketing of fashion evolves… 2007 Fairchild Publications, Inc.

10. Status of Women • Women have progressively achieved more social freedoms and entered areas formerly the sole domain of men. Work • This affects fashion from planning to production through retailing. 2007 Fairchild Publications, Inc.

11. Social Mobility • Many sociologists relate fashion change to changes in social mobility and the effort to associate with a higher class by imitation. • The middle class tends to follow the upper class’s fashion choices; however, the size of the middle class has a great economic influence on fashion. 2007 Fairchild Publications, Inc.

12. Physical Mobility Driving • The great American pastime takes people all over the continent, exposing them to different lifestyles. • This exposure creates the desire to emulate lifestyles, which can be achieved through donning the clothing of different regions. 2007 Fairchild Publications, Inc.

13. Physical Mobility Vacation Travel • Formerly an entitlement of the wealthy, decreasing airfares and enhanced flights allow the middle class to experience different cultures within the U.S. and internationally. • The effect is similar to the automobile domestically, but with greater range and economic punch. It also enhances the need for clothing that is easy to maintain and pack. 2007 Fairchild Publications, Inc.

14. Physical Mobility Moving • Americans move often and live in different parts of a vast country. • This exposes people to different cultures, economies and weather patterns. 2007 Fairchild Publications, Inc.

15. Faster Communications The Internet • The instantaneous medium with interactive capacity. You can learn what others are wearing in distant parts of the globe at the speed of light. • The medium shines as the newest marketing opportunity for the fashion industry. 2007 Fairchild Publications, Inc.

16. Faster Communications Television • A ubiquitous media engine which propels ads at the consumer. • It informs us about fashion on a national and international scale • Celebrities often act as spokespersons in “infomercials” (program length advertising on television). 2007 Fairchild Publications, Inc.

17. The Psychological Environment • Boredom, the greatest ally of the fashion industry. • Curiosity – curious consumers like to experiment. • “New” is often the quality that brings the consumer to the shop. 2007 Fairchild Publications, Inc.

18. Psychological Reaction to convention comes in two forms: • Each new generation establishes independence by asserting values in opposition to the establishment. • Conversely, acceptance by the majority is an important part of the definition of fashion. 2007 Fairchild Publications, Inc.

19. Psychological Self assurance • “Fashionistas” have an armor that gives them self-assurance. • In a way, the fashion conscious are secure knowing they are wearing the most current look. • Those who know their clothes are dated are at a psychological disadvantage. 2007 Fairchild Publications, Inc.

20. Psychological • Companionship…all humans seek companionship. • “Uniforms”, or conformity in dress, put people in “tribes”, or certain groups. • “Tribes” create psychological comfort. • We all balance individuality with the need to belong. • People conform to the dress of certain groups in order to be accepted in that group. 2007 Fairchild Publications, Inc.