Market research highlights that the fashion sector is defying the gloom to focus on boosting online sale

In-depth research into the confidence of the fashion sector reveals that expectations for forthcoming sale and plans to boost revenue through e-commerce and multi-channel retailing.

Executive Highlights

• 80% of companies have a cost reduction focus as their principal means of surviving in the current ecenomic climate.
• 64% of companies consider that after cost reduction, the next most important strategy is development or enhancement of multi-channel retailing and transactional web sites.
• For 49% of companies, website and e-commerce systems come out top in terms of investment priority over the next three years. Most companies see the web as the best way to increase sales at a lower cost.
• At 1.8% of sales, IT budgets in the fashion industry are higher than the 1.3% of sales average across the UK's leading 100 retailers.
• Disruption to the business is the main reason companies cite for not investing in IT projects.
• 57% of fashion retailers have not heard of Software as a Service (SaaS), but when the concept is explained, the majority agree that it is a good way to buy software

*This UK fashion industry survey conducted by Martec International covers companies with total sales of £5.6 billion and a total of 5,214 stores, representing a statistically significant 16% of the UK fashion industry.

As the leading provider of software, services and consultancy to the fashion & lifestyle sector in the UK, Prologic issues an annual report that examines the general economic outlook of its core market.

Using in-depth interviewing techniques, Martec International, the market leader in market research in the retail sector, has conducted a major research project covering 16% of the UK's clothing, footwear and accessories market.

"It is unsurprising that retailers are keen to maximise the opportunities presented to them given the current economic climate, but the optimism displayed by their intentions to actually invest in new sales channels is very encouraging."
Fran Riseley, Practice Manager, Martec International.

This report focuses on the challenges and issues faced by the UK fashion industry whilst providing a crucial insight into strategies for surviving and prospering in the current economic climate. It also examines investment priorities for IT budgets, satisfaction with current systems and views on the relatively new concept of Software as a Service (SaaS).

"The benefits of Software as a Service and its very structure as a low risk and high efficiency solution make it the perfect investment for the current times."
Oracle Spokes Person

The results of this report have been compiled during a market research project conducted by Martec International and commissioned by Prologic and Oracle.