PHASE 3 INDIVIDUAL PROJECT
KENNETH C HOLMES
ENTR615-1504B-01
PROFESSOR THERESA PAVONE
DECEMBER 7, 2015
PRELIMINARY MARKET RESEARCH FOR THE MEN’S WEAR MARKET
Introduction:
This assignment calls for statistical information regarding the size of the men’s wear
industry in revenues and geographic scale, whether the industry is niche or mass market, the
industry producers and their activities, and current and upcoming trends. This document explains
all research and findings.
Mass and niche marketing approach:
Mass marketing:
Mass marketing is an approach that sells products to the entire marketplace, does not
account for consumer segmentation, and is the traditional method of selling in the U.S. Mass
marketing advantages include: It reaches the maximum number of consumers for the seller, is
cost effective on a large scale, and provides the seller a large market share with high volume
when the seller has a solid business model and plan. Disadvantages include: It can be expensive,
and sometimes prohibitive; it reaches every consumer, not just the seller’s best consumer; and
profit margins tends to be smaller (Ingram, 2015).
Appropriate advertising methods include television, newspaper and radio. Each of these
methods will reach the masses, but can be expensive and cost prohibitive. For example,
television will reach an entire country, but reaches all audiences, and is the most expensive
because it requires unavoidable production costs; radio time and newspapers space are regional
and must be purchased regularly (Ingram, 2015).
Niche Marketing:
Niche marketing is an approach that divides the entire marketplace into specific segments
based on: age, income, gender, race, ethnicity, culture, lifestyle, etc. Niche marketers usually
offer higher price points, provide a smaller product selection, and usually sell their own brand.
Niche marketing advantages include: It enables the establishment of private label stores, it
encourages brand loyalty, provides for higher profit margins because it charges higher prices, a
solid business model and plan will enable a large market share, it enables the seller to identify
segments the product will most appeal to, it is a practical method for attracting the right
consumer for the product, it makes advertising easier by applying methods geared specifically to
that consumer segment, it requires the seller to research their target consumer to know and
understand their wants and needs, and it enables the seller to create the ideal message to attract
their target consumer (N.A., Mass Marketing vs. Niche Marketing, 2011).
Appropriate advertising methods include: snail mail, email, newspapers, radio,
magazines, trade journals, billboards and websites. Each approach provides the seller direct
access to their target consumer. Websites enable the consumer to obtain more information about
the product, provide the consumer the seller’s total message, and enable the consumer to locate
the seller’s website with a simple keyword. Newspaper, radio and billboards will reach target
consumers, but must be purchased regionally and regularly. Magazines and trade journals will
reach the target consumer across the country, but can be expensive, and also must be purchased
regularly (N.A., Mass Marketing vs. Niche Marketing, 2011).
Designs by Ken:
Designs by Ken uses the niche marketing approach addresses the needs of the U.S. based
male consumer, earns $40,000 and up, is urban and suburban, age 25 to 45, is single or married,
urban and suburbia, lives in warm and cold climates, enjoys an active social life, has apparel
needs but may not like to shop or may not have the time to shop regularly, and has good taste
and style. Designs by Ken is for “The confident and well-dressed man, who knows what he
wants, and expects high quality for a fair price”. Designs by Ken will also appeal to the woman
in his life.
Since Designs by Ken specifically provides products the urban male will wear, the
website provides him the ideal method to achieve his needs, without having to go to the mall.
Prices will range from $50 to$100 initially, with new products being added based on season,
consumer demand, and available fabrications and colors, with pricing based on type of garment
and fabrication.
Advertising will be heavily internet based, since it is a relatively low cost method.
Additionally, magazines including GQ, Esquire, and men’s health will provide a media outlet
that will gain attention across the country. Television interviews and celebrity endorsements, as
they occur will also create publicity, and a following, and international publications will
potentially be applied as momentum and publicity for the line builds.
Industry statistics:
The men’s wear market is of global proportion, the men’s wear market for 2014 expected
over $402 billion in revenues, reflecting 14 percent growth over five years. Most of the industry
revenues are generated by apparel and footwear, and constitutes 60 percent of the entire market.
South America, Canada and the U.S. constitute 35 percent of global revenues (Pearson, 2015).
In today’s men’s wear industry there are designers and manufacturers from virtually
every country around the world. The importing and exporting of men’s wear fashions is common
place, and new designers and manufacturers enter the marketplace every year, making
competition fierce.
To maintain industry dominance through global economic hardships and increased
competition, most global organizations apply intensive advertising and public relations strategies
to maintain their position, build consumer loyalty, and compete with new competition.
Additionally, the men’s wear industry adapts by following fabrication and color changes,
adopting new styles based on consumer lifestyle and status, and by staying on top of trends.
Men’s wear is divided into several categories including: essential (socks and underwear),
outerwear (jackets, coats, shirts, pants), formalwear (suits and tuxedos), casualwear (shirts, pants,
sweaters, blazers, vests), and active-wear (fitness apparel) (Pearson, 2015).
Performing market categories:
For 2010, global men’s denim increased and reached over $115 million, with low priced
denim dropping three percent to less than $3 billion, translating to growth in the premium denim
sector. Outerwear revenue is rising, with pants, short and shirting with the highest volume
(Pearson, 2015).
U.S. 2010 statistics show neckwear (neckties, mufflers and scarves) generated $413
million in revenues, and performed with a gross profit margin of 26 percent, domestic production
constituting $204 million, imports from 55 countries constituting $223 million, and exports to 45
countries constituting over $13.5 million. Suits constituted 35 percent of total revenues, with
sales dropping due to a poor employment outlook and less available income (Pearson, 2015).
International perspective:
For 2014, China expected industry revenues of $78 billion, and expected the quickest
growth of the top five developing countries: South Africa, Mexico, India, China and Brazil. For
2010, the UK men’s wear industry revenues increased by 5 percent, and the UK continues to be a
strong men’s wear market (Pearson, 2015).
Future prospects:
Economic conditions are expected to improve, and the men’s wear market will grow, but
the apparel producers will need aggressive advertising campaigns to maintain their customer
base, must differentiate themselves from the completion to compete successfully, and even
combining efforts to strengthen their position and market share (Pearson, 2015).
Industry trends:
For fall 2015 the industry trends include: wearing all black, from casual to dress,
sportswear to outerwear and streetwear. Key pieces will include leather and wool coats, and
jackets, hats and gloves, pullover shirts and sweaters, and back packs; Shearling, fur and faux fur
collars are also on trend. Key pieces include waist and thigh length coats and jackets; Slim fitting
sweat pants paired with sweaters and coats; Tennis and converse style shoes worn with pants and
jeans; Three-piece suits, Velvet jackets, slouchy coats, and plain and patterned print knit wear
(N.A., This Seasons Most Affordable Men's Wear Trends, 2015).
(Photos courtesy of fashionbeans.com)
2016 will see ten major fashion trends, some of which are contrary to the traditional male
look, and they include: Fur and faux fur overcoats; Velvet pants, sweaters and blazers; Seventies
inspired casualwear, streetwear and suits; Burgundy in pants, tops, sweaters and coats; Baggy
pants are back; Long scarves are in; the androgynous look will play a role; Shearling will be
popular in coats and jackets; Leather pants will be popular; and leopard print in blazers, coats
and tops (N.A., Top 10 menswear trends for 2016, 2015).
(Images courtesy of MEN IN FASHION.net)
For spring 2016 the trends will include: mixing casual and formal apparel; sports inspired
apparel, accessories and shoes; and functional light weight back packs, and athletic shoes (Top
Menswear Buyers on trends to Watch for the Spring 2016 Season, 2015).
For spring and summer 2016 there are many trends to watch for including (Beckman, 2015):

















Linen tops, pants, and suiting in relaxed and tailored silhouettes, made from comfortable
linen, in neutral colors.
Blazers will be an essential, and will easily coordinate with pants, shorts and, sweaters,
and belted blazers will make their debut.
Creative black and white prints will appear in most collections.
Military inspired jackets including: windbreakers, parkas, bombers and trench coats, in
sporty, oversized, monochromatic, and zipper styles.
Spring and summer will see neon colors in many collections.
Pinstripe shirting, sweaters, pants, and suiting with 1930’s and 1950’s silhouettes will be
a big part of collections.
The tailored skinny suit, coordinated with thin ties will be popular.
Relaxed fit shirting, pants, jackets, and coats will show their presence.
Denim style including: suits, jeans, shorts, blazers, shirting, jackets, and rolled-up hems,
all worn as formal casualwear.
Oversized is back, in shirts, jackets and overcoats.
High School inspired sweaters will be a big part of sportswear.
The layered look is back with sweat pants, leggings, shorts and knits.
Off White will be a big part of this year’s collections.
Wearing all one color will be a popular trend with all colors.
Androgynous jumpsuits are back, and will be in better and street fashion.
Classic Hawaiian prints make their presence known.
Backpacks (The Man bag) will be a must have.
Competition and revenues:
The international men’s wear industry has many competitors, and the primary industry
competitors include: designers like Armani, Calvin Klein, Dolce and Gabbana, Ermenegildo
Zegna and Ralph Lauren; and manufacturers like Levi Strauss, Hugo Boss, Nike, Diesel, and
Burberry, just to list a few. The following are those most closely related to the brand Designs by
Ken wants to achieve.
Ralph Lauren:
A U.S. based designer whose apparel appeals to the sophisticated consumer.
His collection includes men’s wear, women’s wear, children’s wear, the Ralph
Lauren Purple Label for men, home fashions, hosiery for men and women, and
fragrances. Ralph Lauren has an international presence, with his collection found in
department stores, Ralph Lauren stores around the world, and Ralph Lauren.com
(N.A., Ralph Lauren Biography, 2015).
Year to date September 2015, Net Revenues are $3.5 billion, Gross Profit is $2.079
billion, Gross Profit Margin is 57.9%, and Net Income is $224million. The outlook for 2016
indicates revenues expected to increase by 4% globally. The Ralph Lauren strategy remains the
same, maintain multiple distribution, merchandising and global differentiation, as well as
inspiring design, product development, supply chain, advertising and marketing, and superior
customer service (N.A., Ralph Lauren Reports Better-Than-Expected Second Quarter Fiscal
2016 Results, 2015).
Calvin Klein:
A U.S. based designer whose apparel appeals to male and female
consumer who likes clean lined, simple, chic and season-less clothing,
that transition from professional to evening, and easily coordinate with
many garments. His collection includes men’s and women’s sportswear,
couture and denim, and licensed products including: men’s sportswear,
outerwear, accessories, lingerie, men’s and women’s hosiery,
swimwear, eyewear, furs, and fragrances. He has an international presence, with his collection
found in department stores, Calvin Klein stores around the world and Calvin Klein.com (N.A.,
Calvin Klein biography, 2015).
For 2015, first quarter revenues ending May 3, 2015 were $653.9 million, quarterly
earnings were $95.7 million, anticipating the same for the second quarter, and a 6% increase for
the entire year. The 2015 figures represent a 5% revenue increase from $665 million, and a 25%
earnings increase from $82.1 million from the first quarter 2014. Calvin Klein’s strategy is
simple, defy traditional fashion, and utilize provocative advertising that keeps the press talking
about him (N.A., Calvin Klein, Inc. Key Developments, 2015).
Perry Ellis
A U.S. based designer whose apparel appeals to the male consumer who
likes styles, colors and patterns that defy tradition, are loose fitting, and stylish for
today’s man. He has an international presence, with his collection is found in
department stores, Perry Ellis stores around the world and Perry Ellis.com (N.A.,
Perry Ellis Biography, 2015).
For 2015, Annual Revenues were $889.97 million, Gross Income $290.81 million, and
Net Income was ($37.18 million). For 2016, annual revenues are $205.4 million and climbing.
Perry Ellis International is experiencing reduced income and inventory, net income losses, and is
losing market share, but is hopeful for the future. The plan is to continue to provide creative and
innovative styling, and enhance their consumer relationship with operational and customer
service excellence (N.A., Annual Financials for Perry Ellis International Inc., 2015).
Hugo Boss:
A men’s wear manufacturer based out of Germany, had rough start during
the Nazi regime years, changed leadership several times to overcome boycotts of
the line, and has become a global manufacturer with production facilities in
Germany, Italy, Poland, Turkey, Indonesia and the United States. Hugo Boss
produces mid and high-end fashions for men and women, has licensing
agreements with numerous companies to produce children’s wear, fragrances,
skincare, watches and eyewear. They have a global presence, and their collection
is available in major department stores, their own private label stores and Hugo
Boss.com (N.A., Hugo Boss, 2015).
For 2015, Annual Net Revenue is $2.0587 billion Euros, and increase of 9% from 2014,
Gross Profit is $1.347 billion Euros, Gross Profit Margin is 65.4%, and Net Income is $234.7
million Euros, and there is still one more quarter in the fiscal year. Their sales and profit margin
are increasing. Their growth is expected to continue, with the UK being the sales leader,
followed by Europe, the United States, and Asia slowing down. Hugo Boss expect to continue
their growth through smart refinancing, lowering their cost, and enabling further financial
stability (N.A., Hugo Boss: Nine month report January - September 2015, 2015).
Men’s Wearhouse:
Men’s Wearhouse is a U.S. based men’s fine clothing retailer, with
their corporate headquarters in Houston Texas. The Men’s Wearhouse look is
all season casual to professional for men, as well as tuxedos and alterations,
for men and boys, for weddings to formals. Additionally, they provide 90 days
for a full refund if not completely satisfied, free pressing for the life of the
garment, pants hemmed while you wait, and 24-hour tailoring by request.
Prices range from $20 for accessories to $800 for suits, and their average price
point is ranges from $150 to $300. Their motto is “You’re going to like the
way you look; I guarantee it”, and has been immensely successful. Their target market is the
unpretentious average man, who prefers to put the least amount of effort to maintain his
wardrobe (N.A., About Men's Wearhouse, 2015) .
For 2015, year to date Annual Revenue is $890.637 million, Gross Profit is $369.205
million, and their Net Income is $6.793 million. Their figures are lower than 2014, but they
maintain very healthy financials (N.A., Men's Wearhouse Inc. Income Statement, 2015).
BOMBFELL.com:
BOMBFELL.com is an online men’s clothing store that provides men
membership and a personal stylist. The member will stipulate their size, style
and budget, and can make their own selection, or allow the stylist to choose.
They make product selection, purchasing, and return convenient and simple,
and send product on a monthly basis, unless cancelled by the member. They
offer product from many reputable labels, a full collection of head to toe
styling that is classic, casual, preppy and hipster, prices range from $69 to
$200, and regular shipping is always free (N.A., The Monthly Clothing Service Entirely For
Men, 2015). Bomfell.com is backed by venture capital groups, therefore is a privately held
company, and their financial are not publicly available.
Topman.com:
Topman is a UK based men’s wear retailer, has over 400 stores around
the world, as well as their own website. Topman features their own label, as
well as up and coming British designers, and will dress the customer from
head to toe with chic and casual, dressy and professional apparel. They offer
an in-store personal stylist, and free standard shipping. Their prices range
from under $10 up to $500, and they provide students a 10% discount (N.A., 2015). Since
Topman is a privately held retailer, their financial are not publicly available.
REFERENCES
Beckman, T. (2015). Top menswear trends NYFWM S/S 2016 . Retrieved from Examiner.com:
www.examiner.com/article/top-menswear-trends-nyfwm-s-s-2016
Ingram, D. (2015). What Is the Meaning of Mass Market? Retrieved from Chron:
smallbusiness.chron.com › Advertising & Marketing › Marketing
N.A. (2011). Mass Marketing vs. Niche Marketing. Retrieved from Niche: Market Advisor:
www.nichemarketadvisors.com/51-mass-marketing-vs-niche-marketing
N.A. (2015). About Men's Wearhouse. Retrieved from Men's Wearhouse.com:
www.menswearhouse.com
N.A. (2015, November 19). Annual Financials for Perry Ellis International Inc. Retrieved from
Market Watch: www.marketwatch.com/investing/stock/PERY/financials
N.A. (2015). British Mens Fashion. Retrieved from Topman: www.topman.com
N.A. (2015). Calvin Klein biography. Retrieved from Encyclopedia of World biography:
www.notablebiographies.com › Ki-Lo
N.A. (2015, June 1). Calvin Klein, Inc. Key Developments. Retrieved from Bloomberg Business:
www.bloomberg.com/research/stocks/private/snapshot.asp?
N.A. (2015, December 3). Hugo Boss. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Hugo_Boss
N.A. (2015, November 3). Hugo Boss: Nine month report January - September 2015. Retrieved
from Financial Reports - HUGO BOSS Corporate Website:
group.hugoboss.com/en/investor-relations/financial-reports
N.A. (2015, December 4). Men's Wearhouse Inc. Income Statement. Retrieved from Yahoo
Finance: finance.yahoo.com/q/is?s=mw
N.A. (2015). Perry Ellis Biography. Retrieved from bio: www.biography.com/people/perry-ellis20686321
N.A. (2015). Ralph Lauren Biography. Retrieved from bio: www.biography.com/people/ralphlauren-9374814
N.A. (2015, November 5). Ralph Lauren Reports Better-Than-Expected Second Quarter Fiscal
2016 Results. Retrieved from Ralph Lauren Quarterly Report: investor.ralphlauren.com
N.A. (2015). The Monthly Clothing Service Entirely For Men. Retrieved from Bombfell:
www.bombfell.com
N.A. (2015). This Seasons Most Affordable Men's Wear Trends. Retrieved from Fashion Trends
- Men's Fashion Trends For 2015: www.fashionbeans.com/category/mens-fashion-trends
N.A. (2015, June 8). Top 10 menswear trends for 2016. Retrieved from MEN IN FASHION:
www.meninfashion.net/tag/menswear-trends-winter-2016
Pearson, L. (2015). Global Men’s Clothing Industry Analysis. Retrieved from Report Linker:
www.reportlinker.com/ci02122/Men-s-Clothing.html
Top Menswear Buyers on trends to Watch for the Spring 2016 Season. (2015). Retrieved from
VOGUE: www.vogue.com/13291854/menswear-buyers-spring-2016