Karen Walker is a successful New Zealand fashion designer with stores worldwide. She aims to analyze trends and target markets for a new apparel line. Short term trends show cautious consumer spending in Australia and more online shopping overseas. Long term trends indicate individual expression, customization, and eco-friendly materials will be important. Competitors like Shakuhachi, Pixie Market and ModCloth were analyzed for strengths and weaknesses. The target market is urban Australians aged 25-34 who prefer unique, neutral-colored pieces influenced by the 1960s-70s and made from natural fabrics. Current trends include nautical, preppy and military influences along with stripes and muted prints.

1. CREATING AN APPAREL LINEMARKET ANALYSIS & TARGET MARKETTerm 1 / Product Development & Design / Robin Hall

2. BRAND OVERVIEWKaren Walker started in 1988 with $80. She made one shirt and sold it on consignment.

3. She now shows at New York Fashion Week and London Fashion Week and is stocked in over 350 stores in cities including New York, London, Paris, Los Angeles, Sydney and Tokyo.

4. There are five Karen Walker flagship stores in New Zealand and one flag ship store in Taipei.

5. Karen Walker also has a Jewellery line, Eyewear line, KW Paints and also a diffusion line, Hi There, sold exclusively through Myer.

6. Karen has dressed Björk, Sienna Miller, Jennifer Lopez, Claire Danes, Cate Blanchettand Liv Tyler.MARKET ANALYSISIdentify and document long-term and short-term social and economic trends that are relevant to your target market, and explain how they influence apparel purchasing behaviour.

7. SHORT TERM ECONOMIC TRENDSConsumer confidence in Australia is still low and there’s more saving and less spending.

8. Significant portion of fashion spending is going offshore. Consumers want access to a greater product range and fashion-forward pieces. Australian retailers need to not just serve the Australian market but expand to new markets via online sales.

9. Zara opening in Australia with no competition. The Australian marketis devoid of giants such as H&M and Uniqlo, so Zara has its own niche. This will effect retailers such as Sportsgirl and Witchery.

10. Strong Aussie dollar has halved the number of international delegates to RAFW (110 international buyers and retailers down from 200 last year.) Designers are counting on buyers from Asia, Europe and the UK.LONG-TERM ECONOMIC TRENDSContinuing strong dollar (On the other hand if our relationship is not maintained China may start to look elsewhere (to Africa and Latin America) as a different source for commodities.)

11. Global Textile industry affected by a price on carbon – will garment manufacturing cost grow?

12. Consumers will expect more from local brands and expect them to live up to global brands

13. Consumer confidence grows in Australia more spending less savingSHORT TERM SOCIAL TRENDSWith the death of Osama bin Laden and the eventual withdrawal of the US from Afghanistan, fashion will gradually become less somber and conservative and more joyful and experimental.

14. Brit-fever as William and Kate marry and London hosts the 2012 Olympics.

15. Boardwalk Empire hits Aussie screens – think drop waists and embellishment again.LONG-TERM SOCIAL TRENDSConsumers will increasingly (and automatically) receive targeted ratings, recommendations and reviews from their social networks.

16. Shopping will become increasingly social, even when consumers and their peers are not physically together

17. The cult of the individual. As social media usage increases so do blogs and fashion galleries like The Sartorialist and Lookbook.nu. People value unique garments and being ‘individuals.’

18. Custom-made becomes big. Bike by Meallows you to choose the colour of every part of your bicycle and Trikoton allows you to buy clothes that reflect the sound of your voice - a computer turns your speech patterns into knitting patterns.

19. A return to eco and natural fibres, and hand-made techniquesMARKET ANALYSISIdentify and analyse three competitors for your apparel line. Describe their strengths and weaknesses and how your apparel line will create a competitive advantage.

20. SHAKUHACHIwww.shakuhachi.net.auSTRENGTHSCollections are always youthful and fun

21. Great fabrics

22. Physical stores in Sydney and Bali

23. Online shoppingWEAKNESSESPrices are cheaper on other sites

24. No social media marketing

25. Online store technology quite datedPIXIE MARKETwww.pixiemarket.comSTRENGTHSMulti-label so more variety

26. Really strong social media marketing

27. Great fabrics

28. $15 international shipping

29. No physical store, so low overheadsWEAKNESSESMostly only available in sizes under Aussie 10

30. Not a ‘happy’ brand

31. Small volumes, so quite priceyMODCLOTHwww.modcloth.comSTRENGTHSNew products added daily

32. Multi-label so more variety

33. Sell homewares as well

34. No physical store, so low overheadsWEAKNESSESAs they’ve grown bigger the fabrics used have decreased in quality

35. Doesn’t appear very exclusive – brand is a bit ‘cute’ – not great for Aussie market

36. No flat-rate international shippingMY BRANDSTRENGTHSThere aren’t a lot of Aussie online stores doing eCommerce well.

37. Intend to market to a worldwide audience, not just Australia.

38. Have eCommerce, advertising and Social Media marketing background

39. Inhouse fabric design

40. Want to work with only natural fibres (silk, cotton, linen, leather, wool)

41. Want to release two main and 12 mini-collections per year to keep website fresh and current.TARGET MARKETDescribe the target market in terms of geographic/demographic/behavioural and psychographic characteristics.

42. GEOGRAPHICSLive in Australia

43. Live in big cities

44. Live in urban areas

45. Have seasonal weatherDEMOGRAPHICS25-34 years old

46. In a relationship

47. Have a Bachelor’s and Post-Grad degree

48. Make less than $50,000

49. They are professionals

50. They work in an officePSYCHOGRAPHICSMiddle class

51. They somewhat/subconsciously care about fashion trends

52. They identify as ‘individuals’ and do not belong to a fashion tribe/pack

53. Identify as urban and edgyBEHAVIORALSpend under $100 a fortnight on clothing

54. They value how garments flatter their bodies, individuality/uniqueness of garment and bargains

55. Willing to pay more for individuality/uniqueness of garment, natural fabrics (silk, linen, cotton, wool, leather) and tailoringTHEIR STYLEEclectic and urban

56. Rate Audrey Hepburn, Kate Moss and Chloë Sevigny as top style icons

57. Prefer neutral colours (blacks, greys, beiges, khakis) and jewel colours (amethyst purple, ruby red, emerald green, sapphire blue)

58. They like colour blocking and classic prints (houndstooth, spots, stripes)THEIR SHOPPING HABITSThey shop online often–at least once a month

59. Favourite online storesareEtsy, Ebay + Urban Outfitters

60. Mostthey’vepaidfor a garment (excludingshoes/handbags) is $100-$300FASHION TRENDS ANALYSISIdentify and analyse current fashion trends for your target market. Describe the direction in which these trends are headed, drawing on principles of fashion and theory of fashion.

61. OVERALL TRENDSNautical

62. Preppy

63. Military

64. Stripes

65. 70s Pucci/DVF influence (flares, prints becoming brighter)

66. Subtle 80s does 40s influence

67. Textures (lace, leather, fur)

68. Muted organicprintsCOLOURSMagentaand red

69. Dull plum/dark lavendar

70. Neutrals (khaki, beige)

71. Naturals (rust, ochres, mustard)KW’s MAIN COLLECTIONMod and 60s

72. Feminine/romantic

73. Vintage-feel

74. Beach Boys beach partyKW’s HI-THEREMuch more ‘on trend’

75. Nautical/Sailor

76. 1940s dresses

77. Stripes

78. Muted organic abstract printsMILITARYOn the decline (especially with death of bin Laden). To be replaced with androgynous or dominatrix look.NAUTICAL/PREPPYThis look is classic and the Australian market is conservative so I think this is here to stay. The shapes might become more 40s-inspired.STRIPESStripes are on the decline (they are in discount and low-end stores). A/W 2011/12 showed a lot of spots and circles.TEXTUREHere to stay – especially as Winter is approaching. Leather, fur, sequins, beading were in much evidence at A/W 2011. Everything – all at once!MUTED ORGANIC PRINTSOn the decline – bold prints are back. Dots, baroque, bright loud floral, feathers and lions and tigers and bears, oh my.WHAT DECADE IS IT AGAIN?The state of the world has put us all in a nostalgic mood. Take your pick from the Sixties, Seventies or the Forties. BIBLIOGRAPHYTrendwatching May 2001 Updatewww.trendwatching.comThe ConversationZara’s Australian Entrance to Challenge Local Retailers www.theconversation.edu.auFashion AllureSpring Summer 2011 Trend Must Haveswww.fashion-allure.comThe EconomistThe status seekers, Global stretch: When will Zara hit its limits?, I've got you labelledwww.economist.comVogueA-Z Trend Reportwww.vogue.com.auCreative3 When you are in a creative world, inspiration can come from everywherewww. creative3.com.auKaren Walkerwww.karenwalker.com