The following research report contains market research, analysis, statistics and business intelligence relating to research on E-Business In The Uk Apparel & Textile Industries .

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ABSTRACT
1. Advancing computer and Internet technology provides a great
opportunity for US Retail firms to expand their businesses to the
united kingdom. Measured by the volume of sales, the UK is the FOURTH largest retail market in Europe, behind only Germany, Italy and France, but it is the second largest, just behind Italy, when measured by the number of people employed. US exports of apparel and textiles to all of the EU totals more than $1.5 billion, and some fifteen percent of those travel right here to the British market, making Britain the largest recipient of US apparel and textiles in Europe.
2. For many years in Europe, US apparel was thought to consist of jeans, T-shirts and baseball caps, and stylish fashion was left to the French and Italian designers. Not any more, American designed and manufactured apparel is in high esteem in the fashion world. Even Gucci and Louis Vuitton recently hired American designers to take their labels to even higher levels.

3. Internet technology presents a new opportunity for US companies to successfully trade in Europe. While Europe generally lags two to four years behind the US in both Internet technology development and application, rapidly growing numbers of Internet access and usage still result in a sizeable potential market for US companies. Nearly 60 million Western Europeans are currently online, which is expected to double by 2004. More importantly, European sales are expected to exceed $15 billion by 2003.
4. The United Kingdom, however, is only about six months behind the US in Internet technology development and application. Currently, about twenty million people are online in the UK about twenty-five percent of whom have shopped on line, opposed to only twenty-eight percent in the US. Just last Christmas, over seven million people in Britain bought items over the Internet. Selling on the Internet in the UK appears, so far, to be more successful than the rest of Europe. Total online spending in the UK is expected to grow from almost $1 billion in 1999 to $12 billion in 2004, a growth of some 1200%. As in the United States, the more successful business-to-consumer (BTC) sites tend to fall under computer hardware and software sales, travel bookings and specialty super markets. The supermarket chain Tesco now has over 160,000 subscribers to its e-retail outlet and over one hundred of its stores participate in providing its e-retail service. The company boasts that its annual e-revenue of close to $200 million makes it one of the top e-retailers in the world.
5. While growth is expected to remain steady and sizeable, the BTC market is relatively small compared to the current and potential business-to-business (BTB) market. B2B e-commerce is expanding rapidly in Europe and in the UK in particular. BTB e-commerce in the EU will grow from about $76 billion in 2000 to $1.2 trillion in 2004. While BTC sales is estimated to top $50 billion by 2003, BTB sales in the UK are expected to reach $84 billion in 2003, from $4.7 billion in 1999, surpassing Scandinavia, and second in Europe only to Germany. Almost forty percent of UK businesses now rely heavily upon e-mail as a business communications medium, with over 1,650,000 UK domain web sites, plus as many dot-com web sites registered by UK owners, the majority of large and medium sized companies now have at least some form of web presence.
6. A recent survey found that over fifty-five per cent of UK firms planned to implement e-procurement mechanisms by the end of 2000, compared to only thirty-five percent in the rest of Europe. Currently, there are a number of large established companies moving into BTB e-commerce market in the United Kingdom, including software vendors such as Oracle, content/service providers such as Reuters, and other large distributors. Though initial usage may be confined to the operational margins - making travel arrangements and ordering office supplies, etc. - most medium to large companies are keenly aware of the opportunities provided by B2B to cut costs, reduce inventories and streamline operations.
7. Over forty percent of companies with over 500 employees use e-procurement mechanisms. However, only ten percent of the 1.3 million small to medium sized enterprises (SME) in the UK are making any serious use of the Internet (i.e. using the Internet to cut purchasing and paperwork costs, using it to deliver services, or for e-commerce, either with customers or BTB). The SME market therefore presents huge potential opportunities for suppliers to the industry.
8. Prospective gains from the use of BTB e-commerce are enormous, and the opportunities for the clothing sector are greater than for almost any other. This is due to the highly fragmented and the global nature of the business, the high level of detail required for product information to be meaningful, and the risks in long supply chains. As in the US, B2B is not necessarily used for cost cutting purposes. It is mainly used for faster communication with suppliers, more rapid product development and better stock management. However, when developed properly, these efficiency changes can result in significant savings.

9. Apparel retailing on the Internet is concentrated in the hands of a few large companies, all early adopters of e-commerce, such as Lands' End, Spiegel, and L.L Bean, whose core business is direct mail. Reasons for success: 1) catalog shoppers who are accustomed to buying goods without seeing or touching them have been quick to embrace the e-commerce channel, and 2) these firms tend to already have strong distribution and delivery capabilities. Yet small and medium-sized companies are more advantaged in the apparel industry with the development of Internet technology because their small size allows them to be quicker and more creative in their use of technology than their larger competitors. To do so, however, requires investment not only in computer equipment but also in employee skills.

10. There are a few issues specific to the apparel industry that need to be considered when making e-business to work in the United Kingdom. Typically, niche markets (knit wear, basic tops, etc.) work well in e-commerce as well as items that customers will not have to try on (tops, basics, underwear, and socks). Research studies have found that branding and consumer loyalty usually are the most important factor in selling clothing online, although this is not as important with jewelry and accessories, where competitive pricing tends to be more important. Furthermore, sellers need to be clear about service and quality issues when presenting their site to customers (the highest incidence of returns to stores on the web is clothing sites). Websites should also utilize picture and video technology, which provide visually pleasingly alternatives to flat mail catalogues. Retailers such as LittleBlackDress also maintain Swatch Services, providing customers with fabric samples within a couple days of requesting online. Yet Internet retailers must also be sensitive to the fact that many web users do not have highly sophisticated computers that can process overly complex and high-memory requiring sits (the original Boo.com failed to take this into account in their web design). Finally, although the possibilities of e-commerce for apparel and textiles are immense, for the foreseeable future, e-business will complement, but not replace, traditional business avenues.

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: England
Industry: Textiles
Pages: 45
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