Marks and Spencer 2010 Annual Report Download - page 20

Marks and Spencer Group plc Annual report and financial statements 2010 Directors’ report 16
What we sell
Womenswear
Year in review
Over the last year our customers have
continued to weather the difficult economic
environment. Though they remain cautious
about the outlook, women have begun to
show signs that they feel more confident
about spending on their wardrobes again,
searching out investment pieces that offer
long-term value, such as coats and leather
boots collectively growing by 14% on
last year.
In response to this trend our Autograph
range, known for its luxurious fabrics and
high level of detailing, has performed well
with sales increasing by 3.9% over the last
12 months. We’ve introduced customers to
the two top Italian designers behind the per
una, Speziale label, Lorella and Cinzia de
Rosa and produced a new couture inspired
collection to cater for customers looking for
unique investment items.
However, our customers still want the
option of good opening price points, so they
can be flexible with how they spend their
individual clothing budgets. We continue to
differentiate ourselves from other womenswear
brands through our pricing hierarchy, offering
something for everyone through our ‘good’,
‘better’ and ‘best’ price points.
For example, at £15, a cashmilon™ long
sleeve knitted cardigan falls into our ‘good’
pricing category. A chunky knit open front
black cardigan at £29.50 is an example of
‘better’ pricing; while an Autograph pure
cashmere scoop neck cardigan at £59 is
a ‘best’ price point.
Over the last 12 months, we have reviewed
the pricing mix in womenswear in response
to changing shopping habits. We’ve
maintained our level of competitive opening
price points but have strengthened our
position in ‘better’ and ‘best’ in categories
such as knitwear, as customers have shown
more willingness to trade up.
Versatility
Women have told us they want their
wardrobe to work harder for them and our
emphasis on quality and value has served us
well. We used our spring 2010 advertising
campaign to highlight the versatility of our
womenswear range, demonstrating how a
simple pair of black cropped stretch trousers
at £18 can be styled from day to evening.
Over the last year, products that lend
themselves to both dressed-up and dress-
down looks have proved popular with
customers and wardrobe staples such as
tunics, leggings, and casual shirt dresses
have been among our best sellers. This year
has also marked the return of the day dress
as customers responded to the value
offered by a one piece item that can be
transformed using simple accessories.
M&S remains the nation’s favourite in womenswear and over the last 12 months
we’ve grown our market share to 10.7% by value, up 0.2%, as women of all ages
continue to turn to us for great value, stylish clothing. This year we’ve expanded
our market share in casualwear, through the launch of Indigo Collection and
have listened and responded to our customers’ demands for more versatile
investment pieces. We’ve remained focused on refining our brands to deliver
the right looks for all our customers.
Kate Bostock Executive Director,
General Merchandising
Womenswear value market share
1 0 . 7 %
+0.2% pts
Volume market share
9.1%
–0.1% pts
VALUE
Right: Wardrobe
Solution Our Indigo
Collection day dress
at £39.50 can easily
be dressed up or down.
QUALITY
Above: Speziale
Our per una Speziale
label is inspired by chic
Italian design