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Market
When it comes to buying clothes and shoes, supermarkets are today, becoming the place to go. More than half -- 56% -- of the UK population have bought clothing or footwear in supermarkets in the past year (Source: Fashiontrak). Of those, 33% have bought from George, making it a key player in terms of increasing penetration in the supermarket sector.
The total UK clothing and footwear market, worth 拢29.9 billion in the year to March 2005 and growing by 1%, has extended its reach to supermarkets in the past few years (Source: Fashiontrak). Indeed, supermarkets now account for 18% of volume sales, of which George accounts for almost half (Source: Fashiontrak). George's value share increased from 1.2% in 1997 to 3.3% in 2005,while its volume share increased from 2.6% in 1997 to 8.8% in 2005 (Source: Fashiontrak).
Competing with high street fashion retailers, value fashion retailers and other supermarket fashion retailers, the price of clothes has decreased in George over the past five years.
Achievements
Established in 1990, George has steadily risen in popularity over the past 15 years. Today it is the UK's biggest fashion retailer by volume and fourth by value (Source: Fashiontrak). It has consistently achieved awards voted for by the press and for shoppers. It won Prima magazine's High Street Fashion Awards for Value for Money Retailer of the Year three times and Childrenswear Retailer of the Year twice as well as winning the One to Watch award. Most recently at the Tommy's Parent Friendly Awards, George carried off the prize for Best Children's Clothing 2005.
George at Asda is recognised as an exemplary employer. It won the overall prize in the inaugural National Council for Work Experience Awards, the first initiative specifically set up to recognise, encourage and reward the provision of quality work placements for students. In addition to winning the overall prize, George at Asda won the category for organisations with more than 250 employees.
History
Until the 1980s, shopping for clothes in Britain could often be a dull activity. Most clothing stores were traditional and old-fashioned, selling fairly uninspired products. All this changed in 1982, when the Next chain of fashion stores launched its then unique and innovative shopping concept. The man behind this revolution was George Davies -- regarded by many as a fashion retailing genius.
While Next was making its mark, the Asda supermarket chain was starting to struggle and by 1990, was almost bankrupt. However, the appointment of Archie Norman as new chief executive signalled a change to Asda's position in the market. Part of Archie's strategy was to create a mix of products that would be unrivalled. He hired George Davies to set up Asda's own private-label clothing brand -- George.
In 1990 George Davies launched the George label in 100 Asda supermarkets and achieved sales of 拢130 million in the first year. By 1992 sales had increased by 40%, and in 1995, Asda acquired the George business. During the same year George broke the 拢500 million sales barrier.
In 1999, Asda's new parent Wal-Mart declared that George was "the jewel in the crown". Within less than 10 years, George's second fashion retailing revolution was well underway. Until this time, buying clothing in a supermarket had meant only the basics, a T-shirt or perhaps a pair of socks. In 2000, George Davies left the company and Andy Bond took over as Managing Director, leading a phase of exceptional growth. A year later George was sold for the first time in Germany, launching in five Wal-Mart stores. Also in the same year, George went on sale in the US.
In April 2002, Fast Fashion for womenswear was launched in 251 stores. The range captures the latest styles and trends as they come off the catwalk -- from design to store in eight weeks, and is refreshed every four weeks. In September 2003, George Collection, a premium range of clothing for womenswear and menswear launched in the UK. By the end of 2003 George had achieved sales of 拢1 billion. In 2004, George was sold in 253 of Asda's 271 stores and in six stand-alone stores. Today it employs 6,300 staff worldwide. In 2004 George launched its website, , which showcases the brand.
Product
Fashion is about inspiration, creativity and excitement. George customers want the brand to help them develop their own look. Its designers stay close to all the trends as they come through from catwalks, celebrities and the media. But it believes it should also give customers what they want, not what George thinks they should have. Therefore, when designers are developing George ranges, they listen to customers all the time to make sure they are giving them trends translated into wearable, affordable clothing.
The George brand produces Menswear, Womenswear, Childrenswear and Footwear. In Menswear it offers basic essentials, footwear, 'George Collection', skiwear, 'Admiral' and Levis. In Womenswear it offers lingerie, footwear, nightwear, accessories, 'G21', 'Fast Fashion', 'George Collection', maternity wear, 'Petites', skiwear and 'Michelle for George' lingerie. In Childrenswear it offers 'George Collection jnr', 'Mary Kate and Ashley', 'Barbie', skiwear, schoolwear 'Dressing-up' and footwear.
Recent Developments
In Spring 2004, following on from the success of George Collection for womenswear and menswear, George extended the range into childrenswear. The launch of George Collection jnr in April 2004 was supported with press advertising in key monthly titles aimed at mums, a PR campaign and in-store POS. G21, aimed at the 16-24 age group, was launched in 60 stores in May 2004. Within this fashion-conscious range, the latest looks were arriving in stores every two weeks.
There are now eight standalone George stores in UK high streets and in 2004, George launched in Canadian and Mexican supercentres and was trialled in Japan. George is now sold in eight countries worldwide.
Promotion
As George expands globally it becomes increasingly important that the brand is marketed consistently. Through its marketing the George brand values of style, quality and value are communicated. These brand values are key to differentiating George in a competitive marketplace. George invests 拢8 million per annum in advertising and promotional activity, which includes TV advertising, press advertising, in-store point-of-sale material, Asda Magazine fashion editorial pages, George Mini-Mag, PR, customer research and its website.
In-store, the point of sale strategy 'Good, Better, Best' is designed to communicate value, quality and style. 'Good' communicates the value proposition with black and white price-led point of sale material. 'Better' uses photographic point-of-sale material, while 'Best' communicates style and includes the George Collection; G21; Fast Fashion and Michelle for George.
The first George TV ad campaign 'So you think supermarket clothing is boring?' went on air in February 1997. Since that time, George has produced TV ad campaigns to support seasonal launches, back to school and promotional events.
In Spring 2004, George focused on promoting the style and fashionability of the brand through its TV advertising with the 'Make an Entrance' campaign. The 'Make an Entrance' campaign continued into Summer 2005, as an integrated campaign, which followed through into in-store POS, the George brochure and website.
The Asda Magazine, featuring 15-18 pages of George fashion editorial each month, is Britain's most widely read women's monthly magazine with a circulation of three million (Source: ABC). In addition the George 'mini-mag' is published five times a year with a circulation of two million. In 2004 a schoolwear 'mini-mag' was inserted into Prima magazine. The Asda and George at Asda purpose is 'To make goods and services more affordable for everyone'.
Its stores all strive to play a positive part in all aspects of life in their local community, from establishing a new local supplier to working with the emergency services in the area. George is committed to cause related marketing: George and Asda combined is the biggest fund-raiser for breast cancer in the UK.
Through the Tickled Pink charity it creates awareness of breast cancer in the UK and sells a range of clothing, lingerie, nightwear and accessories from which all profits go to the charity. Liz Hurley, Naomi Campbell, Kate Moss, Jennifer Anniston and Scarlett Johannsen are among the many celebrities who have been photographed wearing a George Tickled Pink T-shirt to raise money for breast cancer.
Brand Values
George has established itself as a stylish, quality brand that has revolutionised the value fashion market in the UK over the past 15 years. It is now set to become a global fashion brand. In the past, it was generally assumed that customers had to compromise -- if the price was low, the quality was bound to suffer and style would be sacrificed or there would be low expectations. The retail market was divided between discount stores offering low-price basics and upscale stores with well-designed, good quality garments at much higher prices.
George was designed to be different. Right from the start, the brand offered customers style, quality and value. These three words are at the heart of the brand -- they define it and are the three pillars upon which George is built and the reason for its success.
Things you didn't know about George
* Together George and Asda is the biggest fundraiser or breast cancer in the UK.
* One in 10 people in the UK own at least one piece of George clothing.
* One in four school children will be wearing a George polo shirt to school this year.
* George sells 40 pairs of knickers a minute.
* In 2003, George launched in Mexico and Korea.
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