1 OCTOBER 26, 2016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL&TECHNOLOGY DEBORAHWEINSWIG@FUNG1937 US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. In Womenswear, Price Resistance Is Increasing 1)Fung Global Retail&Technology and First Insight conducted an analysis that found there is a persistent and significant gap between the planned manufacturers’ suggested retail prices (MSRPs) of womenswear products tested by First Insight and the prices consumers are willing to pay for them. On average, across all womenswear categories tested between January and June 2016, consumers were willing to pay only 76% of full price. Consumers not seeing the value at full price is a key driver of the markdown challenge that has been plaguing retailers and brands. 2)Over the three and a half years ended June 2016, tested MSRPs of women’s tops and bottoms fell by 14% and 13%, respectively. The prices that consumers were willing to pay in these core women’s categories also declined over the period, to only 74%–79% of planned MSRPs. 3)Due to the growth of athleisurewear and the casualization of womenswear, consumers are showing less price resistance in some subcategories. For example, consumers were willing to pay 82% of planned MSRPs for knit bottoms tested by First Insight, even though planned MSRPs increased significantly over the period. 4)Footwear consumers have been increasingly unwilling to pay the higher prices set by retailers and brands. As of June 2016, consumers were willing to pay only 74% of retailers’ asking prices for footwear. 5)We expect to see continued category growth in athleisure and footwear, and an overall emphasis on incorporating performance technologies into workwear and streetwear.OCTOBER 26, 2016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL&TECHNOLOGY DEBORAHWEINSWIG@FUNG1937 US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. Fung Global Retail&Technology and First Insight partnered to analyze a data set from tests performed on women’s apparel and accessories products. First Insight performed the consumer tests between January and June 2016 in 11 countries: the US, France, Italy, Germany, Great Britain, Spain, Poland, Mexico, the Netherlands, Canada and China. First Insight was founded inand is a cloud-based technology company that tests products on the market across many categories. The company uses predictive analytics to determine which products, price points and design attributes will perform in the market and resonate with consumers. First Insight and Fung Global Retail&Technology analyzed a set of data on more than 57,000 women’s apparel and accessories items in 10 categories that had been tested with consumers. Our analysis revealed that MSRPs are trending downward in core womenswear categories, but upward in noncore categories. We found that there is a persistent and significant gap between the planned MSRPs tested and the prices consumers are willing to pay, that consumers are more willing to accept price growth in athleisurewear and activewear than in other categories, and that consumers are unwilling to pay top dollar for footwear. Between Januaryand June 2016, First Insight tested consumers’ reactions in 11 countries to more than 57,000 apparel and accessories items in 10 womenswear categories. Source: ShutterstockOCTOBER 26, 2016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL&TECHNOLOGY DEBORAHWEINSWIG@FUNG1937 US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Loungewear and Sleepwear Swimwear Boeoms Lingerie Tops Dresses Outerwear Accessories Footwear Workout Apparel 2016 1. Gap Between Planned MSRPs and Prices Consumers Were Willing to Pay Widened in Seven of 10 Categories Tested From Januarythrough June 2016, the prices consumers were willing to pay were lower than the planned retail ticket price (MSRP) across the 10 womenswear categories in First Insight’s testing portfolio. First Insight’s predictive analytics yields a forecasted average unit retail (AUR) price for lifecycle of each item tested, which, when compared with the planned MSRP, provides a predictor of product success in the market. This predictor is highly correlated to actual selling prices. A low predicted AUR price relative to planned MSRP indicates decreased consumer acceptance of the planned selling price. In simple terms, First Insight data reveals that retailers’ proposed selling prices decreased in seven out of 10 womenswear categories tested over the past three and a half years. When tested, the prices that consumers were willing to pay were 65% to 93% of retailers’ asking prices, on average, across all categories tested. The gap between MSRPs and the prices consumers were willing to pay narrowed in lounge and sleepwear, swimwear and bottoms, but widened in the other seven categories. This overall trend aligns with the increasingly promotional nature of retail, the impact of multi-channel selling, and off- price retail and fast-fashion retail. Figure 1. Percentage of Retailers’ Asking Price Consumers Were Willing to Pay in 10 Major Categories,vs. 1H16 Source: First Insight The gap between planned MSRP and predicted AUR widened in seven out of 10 categories tested. Overall, consumers were willing to pay only 76% of planned MSRPs in 2016 testing.OCTOBER 26, 2016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL&TECHNOLOGY DEBORAHWEINSWIG@FUNG1937 US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 2. Planned MSRPs and Prices Consumers Were Willing to Pay Trended Downward in Core Categories of Tops and Bottoms Between Januaryand June 2016, tested MSRPs of women’s tops and bottoms in First Insight’s test set fell by 14% and 13%, respectively. In the core tops and bottoms categories, the test prices declined along with the prices that consumers were willing to pay. Our analysis identified a persistent gap between the average test price and predicted AUR price in core tops and bottoms categories, with consumers willing to pay only 74%–79% of the planned MSRP over the period, as shown in the graph below. This means that a First Insight consumer would be willing to pay only $22–$24 for a top priced at $30, for example. This gap is evidenced by the continued markdown challenges that retailers and brands face. The predictive analysis from this First Insight data set suggests that if the retailer went to market with the top priced at $30, that top may have a higher likelihood of being marked down due to increased consumer price resistance. Figure 2. Percentage of Retailers’ Asking Prices Consumers Were Willing to Pay in Tops and Bottoms, Jan –Jun 2016 Source: First Insight In a July 2016 Euromonitor International survey, 74% of Americans polled said that they loved to find bargains, which is not surprising. Consumers are increasingly seeking value in every aspect of their lives. As shown below, over the past five years, seven of the 20 fastest-growing brands across all retail channels are value-oriented brands. 74% 75% 76% 77% 78% 79% 2015 2016 Boeoms Tops Both planned MSRPs and predicted AUR prices are trending downward for core tops and bottoms categories, with consumers willing to pay only 74%–79% of the planned asking prices. 。。。。。。以上简介无排版格式，详细内容请下载查看