Introduction

Verdict Research: This report provides in-depth insight into the UK mail order market including detailed profiles of 10 of the leading mail order operators. The report studies market trends, including growth and value in the agency, direct and door-to-door markets and highlights the issues facing mail order retailers with responses necessary for specialists to compete in this challenging sector.

Scope

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 17
Key Findings 17
Main Conclusions 18
CHAPTER 2 MARKET ANALYSIS 22
Market Definition 22
Sales Trends 23
Channels of Distribution 27
Sales Mix & Sector Share 32
CHAPTER 3 COMPANY DATA ANALYSIS 34
Market Shares 34
Agency Market 36
Direct Market 38
Key Operating Statistics 41
Advertising 41
CHAPTER 4 OUTLOOK 43
Intensifying Competition 45
Opportunities to Broaden Advertising Media 46
Celebrity Endorsements 48
Leveraging Green Credentials 50
Company Structures Evolve 52
Consolidation – Mail Order Acquisitions 53
Consolidation – Fulfilment 53
International Diversification 54
Multichannel 55
Flexibility is Vital 55
Building a Web Platform for the Future 56
Changing demographics 59
Credit Crunch Brings Opportunities 60
CHAPTER 5 AVON UK 62
Company Overview 62
Market Shares 63
Trading Record 64
Year to December 2006 65
Year to December 2007e 65
Retail Proposition 66
Management, Marketing & Operations 67
Outlook 68
CHAPTER 6 BETTERWARE 69
Company Overview 69
Market Shares 70
Trading Record 71
Year to December 2006 71
Outlook 72
CHAPTER 7 BODEN 74
Company Overview 74
Market Shares 76
Trading Record 77
Year to December 2006 77
Current Trading 78
Retail Proposition 79
Marketing & Operations 79
Outlook 81
CHAPTER 8 FINDEL 82
Company Overview 82
Market Shares 83
Trading Record 84
Year to March 2007 84
Current Trading 87
Retail Proposition 88
Management, Marketing & Operations 89
Outlook 90
CHAPTER 9 FLYING BRANDS 92
Company Overview 92
Management 93
Market Shares 94
Trading Record 95
Year to December 2006 95
H1 Performance 96
Current Trading 96
Outlook 97
CHAPTER 10 LAKELAND 98
Company Overview 98
Market Shares 99
Trading Record 100
Year to December 2006 100
Current Trading 101
Retail Proposition 102
Store Portfolio 103
Management, Marketing & Operations 103
Outlook 104
CHAPTER 11 LITTLEWOODS SHOP DIRECT 106
Company Overview 106
Market Shares 109
Trading Record 111
Year to April 2006 111
Year to April 2007a 112
Current trading 112
Retail Proposition 115
Management, Marketing & Operations 117
Outlook 119
CHAPTER 12 N BROWN 122
Company Overview 122
Market Shares 124
Trading Record 125
Year to February 2007 125
Six Months to August 2007 127
Current Trading 128
Retail Propositions 129
Management, Marketing & Operations 133
Outlook 134
CHAPTER 13 NEXT DIRECTORY 136
Company Overview 136
Market Shares 137
Trading Record 138
Year to January 2007 138
Current Trading 140
Retail Proposition 141
Marketing & Operations 142
Outlook 143
CHAPTER 14 OTTO UK (FREEMANS AND GRATTAN) 145
Company Overview 145
Market Shares 147
Trading Record 149
Year to February 2007 150
Current Trading 151
Retail Propositions 153
Management, Marketing & Operations 155
Outlook 157
CHAPTER 15 REDCATS UK 160
Company Overview 160
Market Shares 161
Trading Record 162
Year to December 2006 163
Year to December 2007e 164
Retail Proposition 165
Management, Marketing & Operations 166
Outlook 167
CHAPTER 16 GLOSSARY 169
Financial Statistics – VAT 169
Trading Profile 169
Key Operating Ratios 169
Physical Development 170
Abbreviations 170


LIST OF TABLES
Table 1: Mail order sales trends 1997-2007e 24
Table 2: Mail order sales by channel 2002-2007 27
Table 3: Mail order market sales mix 2002 & 2007e 32
Table 4: Mail order share of product sectors 2002 & 2007e 33
Table 5: Market share trends 2002-2007e 34
Table 6: Agency market share trends 2002-2007e 36
Table 7: Direct market share trends 2002-2007e 38
Table 8: Door-to-door market share trends 2002-2007e 40
Table 9: Mail order retailers key operating statistics 2006/07 41
Table 10: Mail order retailers advertising media expenditure 2001-06 41
Table 11: Mail order retailers advertising spend by medium 2006 42
Table 12: Mail order retailers international expansion 2007/08 54
Table 13: Avon UK company overview 2008 62
Table 14: Avon UK key operating statistics 2002-2007e 63
Table 15: Avon UK trading record 1997-2007e 64
Table 16: Avon retail proposition 2008 66
Table 17: Betterware company overview 2008 69
Table 18: Betterware UK key operating statistics 2002-2007e 70
Table 19: Betterware mail order trading record 1997-2007e 71
Table 20: Boden company overview 2008 74
Table 21: Boden key operating statistics 2002-2007e 75
Table 22: Boden trading record 1999-2007e 77
Table 23: Boden retail proposition 2008 79
Table 24: Findel company overview 2008 82
Table 25: Findel key operating statistics 2002-2007 83
Table 26: Findel group trading record 1997-2007 85
Table 27: Findel mail order (Home Shopping division) trading record 1997-2007 86
Table 28: Findel sales by division 2006-2007 86
Table 29: Findel credit business – catalogue retail proposition 2008 88
Table 30: Findel cash with order acquisitions 2006/07 and 2007/08 89
Table 31: Flying Brands company overview 2008 92
Table 32: Flying Brands key operating statistics 2002-2007e 93
Table 33: Flying brands trading record 2001-2007e 95
Table 34: Lakeland company overview 2008 98
Table 35: Lakeland key operating statistics 2002e-2007e 99
Table 36: Lakeland trading record 1997-2007e 100
Table 37: Lakeland mail order retail proposition 2008 102
Table 38: Lakeland store portfolio 2002-2007e 103
Table 39: Littlewoods Shop Direct company overview 2008 106
Table 40: Littlewoods Home Shopping* UK key operating statistics 2002e-2007e 107
Table 41: Shop Direct UK key operating statistics 2002e-2007e 108
Table 42: Littlewoods Shop Direct UK trading record 1998-2007e 113
Table 43: Shop Direct UK mail order trading record 1996-2005e 114
Table 44: Agency retail proposition 2008 115
Table 45: Direct retail propositions 2008 116
Table 46: N Brown company overview 2008 122
Table 47: N Brown key operating statistics 2003-2008e 123
Table 48: N Brown mail order trading record 1997-2008e 125
Table 49: N Brown home shopping sales by catalogue target market 2002-2007 126
Table 50: N Brown sales mix 2002-2007 127
Table 51: N Brown midlife catalogue titles – retail proposition 2008 130
Table 52: N Brown young target market catalogue titles – retail proposition 2008 131
Table 53: N Brown elderly target market catalogue titles – retail proposition 2008 132
Table 54: Next Directory company overview 2008 136
Table 55: Next Directory key operating statistics 2003-2008e 137
Table 56: Next Directory trading record 1998-2008e 138
Table 57: Next Directory retail proposition 2008 141
Table 58: Otto UK company overview 2008 145
Table 59: Freemans key operating statistics 2003-2008e 146
Table 60: Grattan key operating statistics 2003-2008e 146
Table 61: Freemans mail order trading record 1998-2008e 149
Table 62: Grattan mail order trading record 1998-2008e 150
Table 63: Freemans sales by catalogue type 2005e-2008e 152
Table 64: Grattan sales by catalogue type 2005e-2008e 152
Table 65: Otto UK agency catalogues retail proposition 2008 153
Table 66: Otto UK direct catalogues retail proposition 2008 154
Table 67: Redcats UK company overview 2008 160
Table 68: Redcats UK key operating statistics 2002-2007e 161
Table 69: Redcats UK trading record 1997-2007e 162
Table 70: Agency and direct catalogue sales 1997-2007e 163
Table 71: Redcats agency catalogue retail proposition 2008 165
Table 72: Redcats direct catalogue retail proposition 2008 166


LIST OF FIGURES
Figure 1: Mail order market growth vs retail expenditure growth 1997-2007e 25
Figure 2: Mail order share of total retail and non-food retail expenditure 1997-2007 26
Figure 3: Expenditure online via mail order and total online expenditure 2002-2007 28
Figure 4: Mail order share of total online expenditure 2002-2007 28
Figure 5: Growth via agency, direct channels vs total market growth 1997-2007 29
Figure 6: Direct, door-to-door and agency shares of market 2002-2007e 30
Figure 7: Agency vs direct sales £bn 2002-2007e 31
Figure 8: Agency sales as a % of turnover of major agency companies 2002-2007e 31
Figure 9: Winners and losers in mail order market share 2007e on 2006 35
Figure 10: Winners and losers in agency mail order market share 2007e on 2006 37
Figure 11: Winners and losers in direct mail order market share 2007e on 2006 39
Figure 12: Mail order key issues and responses 2008 43
Figure 13: Competitive threats to traditional mail order retailers 2008 45
Figure 14: Percentage of advertising split by channel 2006 47
Figure 15: Advantages/disadvantages of celebrity advertising 2008 49
Figure 16: Improving environmental credentials 2008 50
Figure 17: Company structures evolve 2008 52
Figure 18: Online opportunities 2008 57
Figure 19: Projected population changes 2007-2012 59
Figure 20: Global credit crisis offers opportunities for mail order retailers 2008 60
Figure 21: Avon door-to-door and mail order market shares 2002-2007e 63
Figure 22: Betterware door-to-door and mail order market shares 2002-2007e 70
Figure 23: Boden mail order and direct mail order market shares 2002-2007e 76
Figure 24: Findel mail order and direct mail order market shares 2002-2007e 84
Figure 25: Flying brands mail order and direct mail order market shares 2002-2007e 94
Figure 26: Lakeland mail order and direct mail order market shares 2002-2007e 99
Figure 27: Littlewoods Shop Direct mail order market shares by brand 2002-2007e 109
Figure 28: Littlewoods Shop Direct agency mail order market shares by brand 2002-2007e 110
Figure 29: Littlewoods Shop Direct direct mail order market shares by brand 2002-2007 111
Figure 30: N Brown mail order and direct mail order market shares 2002-2007e 124
Figure 31: Next Directory mail order and direct mail order market shares 2002-2007e 137
Figure 32: Next Directory active customer numbers & average spend per customer, years to January 2002-2007 139
Figure 33: Otto UK mail order market shares by brand 2002-2007e 147
Figure 34: Otto UK agency mail order market shares by brand 2002-2007e 148
Figure 35: Otto UK direct mail order market shares by brand 2002-2007e 148
Figure 36: Redcats UK mail order, agency and direct mail order market shares 2002-2007e 161