1. The Environment of Fashion

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

3. 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.

4. 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)

5. Target Markets
Psychographics – Market based on social class, personality and lifestyle (PRIZM and VALS)

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

7. Target Markets
Behavioral – Markets based on occasion, benefit, status or attitude
These studies divide consumers according to:
Opinions of specific products
Use rate

8. VALS2
Innovators
Thinkers
Achievers

9. VALS2
Experiencers
Believers
Strivers

10. VALS2
Makers
Survivors

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

12. 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!!!

13. 3. Sociological Factors Leisure Time Ethnic Influences US Population:
1999 – 72 % White
2025 – 62% White (major increase in the Asian and Hispanic population)

14. Bathing Suits 1920

15. Bathing Suits 1940/50

16. 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

17. 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