The Environment of Fashion

Four Major Environmental Factors

1. Market Segmentation by geographics, demographics, psychographics and behavior

2. The degree of economic development3. Sociological characteristics4. Psychological attitudes

1. Market Segmentation

Market Segmentation – Separation of the total consumer market into smaller groups

Target Markets are the specific groups of potential customers (consumers) that a business is directing its attention and efforts towards. Target markets are divided into four segments.

Target Markets

• Geographics – Markets based on climate and geography

• Demographics – Markets based on income, age education, race and/or gender (DC Metro area is 5th in spending on apparel)

Target Markets

• Psychographics – Market based on social class, personality and lifestyle (PRIZM and VALS)

VALShttp://www.sric-bi.com/VALS/types.shtml

                                                                                            

                 

 

Target Markets

• Behavioral – Markets based on occasion, benefit, status or attitude

These studies divide consumers according to:

1. Opinions of specific products2. Use rate

VALS2

• Innovators

• Thinkers

• Achievers

VALS2

• Experiencers

• Believers

• Strivers

VALS2

• Makers

• Survivors

2. Economic Environment

Fashion demand depends on a high level of economic development that is reflected in consumer income, population characteristics and technological advances.

2. Economic EnvironmentKey Terms

Personal Income – Total income of a group before taxes

Disposable Income – Income after taxes“take home pay” used for basic food, clothing and

shelterDiscretionary Income – Money remaining after

taxes and basic needsMOST IMPORTANT TO FASHION DEMAND!!!

3. Sociological Factors

• Leisure Time• Ethnic InfluencesUS Population:1999 – 72 % White2025 – 62% White (major increase in the

Asian and Hispanic population)

Bathing Suits 1920

Bathing Suits 1940/50

Sociological Factors

• Status of Women – higher education• Social Mobility –Rising Middle/ Upper

Middle Class• Physical Mobility – quicker transportation,

moving, vacations• Faster Communication – Internet and TV• “Green Fashion” - ecology

4. Psychological Environment

• Boredom – Fashions greatest ally• Curiosity – People like to experiment• “New” – brings the consumer to shop• Reaction to convention – opposition and

acceptance• Self assurance – Clothing can put us at a

psychological advantage• Companionship – needed by all humans• Uniform/ “tribes” – puts people in a group