The Environment of Fashion

Four Major Environmental Factors Market Segmentation by geographics, demographics, psychographics and behavior The degree of economic development Sociological characteristics 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)

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

Target Markets Behavioral – Markets based on occasion, benefit, status or attitude These studies divide consumers according to: Opinions of specific products 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 Environment Key Terms Personal Income – Total income of a group before taxes Disposable Income – Income after taxes “take home pay” used for basic food, clothing and shelter Discretionary Income – Money remaining after taxes and basic needs MOST IMPORTANT TO FASHION DEMAND!!!

3. Sociological Factors Leisure Time Ethnic Influences US Population: 1999 – 72 % White 2025 – 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