Dissertation: Online vs. In-Store Clothing Shopping in the UK Market

This dissertation investigates UK consumer shopping behavior for clothing, comparing online versus in-store preferences. It uses a mixed-methods approach, surveying 800 UK citizens (undergraduate students) and interviewing 75 fashion industry companies to understand how consumers shop, their motivations, and how businesses are adapting. The study found that 56% of respondents prefer in-store shopping, while 44% prefer online, with convenience driving online choices and the ability to try on clothes and receive assistance influencing in-store preferences. Companies are increasingly adopting both online and in-store strategies to cater to changing market dynamics.

University of Portsmouth
Online Cloths Shopping versus Cloths Stores in the UK: How do Consumers Shop?
A DISSERTATION
SUBMITTED TO THE GRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS
For the degree
[Business and Management]
Field of [Type Here]
By
EUGENE ENG SZE MING
Date

I. Statement of Originality
I, the undersigned, declare that this dissertation is my own original work, and I give permission that it
may be photocopied and made available for inter-library loan.
Sign ……………………………………….. Date ………………………………………………

II. Acknowledgments

III. Abstract
This study investigates how online shopping compares to in-store shopping for clothing
items by studying the consumers shopping orientation. The researcher uses a mixed methods
approach to establish (1) how UK consumers shop for their clothing items, (2) what factors
motivate a consumer’s shopping orientation, and (3) how companies are strategizing to match the
changing marketplace dynamics in the fashion industry. The study involved n=800 UK citizens
(undergraduate students in the university) aged over 15 years as well as 75 companies in the
fashion industry. The survey technique (a survey was created on the Survey Monkey website)
and interviews were used to collect data.It was established that about 56% of the respondents
shop in stores while 44% shop online for their clothing needs. Convenience was cited as the
main motivating factor for online shoppers while the ability to try on products and presence of
assistive personnel motivates in-store shoppers. To address changing dynamics in the
marketplace as well as meet the demand, firms prefer operating on both online and in-store
fronts.

IV. List of Contents
I. Statement of Originality..........................................................................................................2
II. Acknowledgments...................................................................................................................3
III. Abstract.................................................................................................................................4
V. List of Tables and Figures.......................................................................................................7
1. CHAPTER ONE: INTRODUCTION......................................................................................8
1.1. Statement of the Problem..................................................................................................8
1.2. Research Purpose Statement...........................................................................................10
1.3. Rationale of the Study.....................................................................................................10
1.4. Research Questions and Objectives................................................................................11
2. CHAPTER TWO: LITERATURE REVIEW........................................................................12
2.1. Introduction.....................................................................................................................12
2.2. Online vs. In Store Shopping: How UK Consumers Shop for Clothing Items...............13
2.2.1. Defining Online and In Store Shopping..................................................................13
2.2.2. The Fashion and Apparel Industry in the UK..........................................................14
2.2.3. How UK Consumers Shop for Clothing Items: Online or In-store?.......................15
2.3. The Motivations and Rationale for Shopping Decisions by UK Consumers.................18
2.3.1. The Merits of Online Shopping...............................................................................19
2.3.2. The Demerits of Online Shopping...........................................................................20
2.3.3. The Merits of In-Store Shopping.............................................................................20

2.3.4. The Demerits of In-Store Shopping.........................................................................21
2.4. The Implications of the Trend for Businesses in the UK’s Fashion Retail Industry......22
2.5. Conclusion......................................................................................................................23
3. CHAPTER THREE: RESEARCH METHODOLOGY........................................................25
3.1. Research Questions.........................................................................................................25
3.2. Research Design and Philosophical Framework.............................................................25
3.3. Sample and Sampling Strategy.......................................................................................27
3.4. Instrumentation...............................................................................................................27
3.5. Data Collection Procedure..............................................................................................28
3.6. Data Analysis Plan..........................................................................................................29
4. CHAPTER FOUR: DATA ANALYSIS...............................................................................31
4.1 Introduction..........................................................................................................................31
4.2 Quantitative Data Analysis..................................................................................................31
4.2.1 Demographics...............................................................................................................31
4.2.2 Preference of the customers..........................................................................................33
4.3 Qualitative Data Analysis....................................................................................................40
4.3.1 Thematic Analysis........................................................................................................41
5. CHAPTER FIVE: DISCUSSION..........................................................................................48
6. CHAPTER SIX: CONCLUSION, RECOMMENDATION AND LIMITATION...................50
6.1 Conclusion...........................................................................................................................50

6.1.1 Addressing the objectives.............................................................................................50
6.2 Recommendation.................................................................................................................51
6.3 Limitations...........................................................................................................................51
7. CHAPTER SEVEN: REFERENCES....................................................................................53
8. CHAPTER EIGHT: APPENDICES......................................................................................63

V. List of Tables and Figures
Table 1: The Number of Respondents in Each Age Bracket
Table 2: Percentage Breakdown of Online Shopping for Clothing Items in the Last Two Months
Table 3: Percentage Breakdown of In Store Shopping for Clothing Items in the Last Two
Months
Table 4: Percentage Breakdown of how Shoppers Conduct Research on Clothing Items
Table 5: The Percentage Breakdown of the Shopping Preference of Respondents with Respect to
their Age Brackets
Table 6: The Percentage Breakdown of the Shopping Preference of Respondents with Respect to
their Gender
Table 7: Motivations for Shopping Preferences
Table 8: Final Concepts and Categories from the Coding Process
Table 9: A Breakdown of the Companies with the Associated Concepts of the Mode of
Operation
Table 10: Managerial Responses to Addressing the Changing Fashion Market Dynamics
Figure 1: Annual Expenditure on Clothing Items in the UK
Figure 2: UK Annual Consumer Expenditure as a Percentage
Figure 3: Growth of Cloths Stores in the UK.
Figure 4: Growth of Online Fashion Market in the UK
Figure 5: The Percentage Breakdown of the Shopping Preference of Respondents with Respect
to their Age Brackets

Online Cloths Shopping versus Cloths Stores in the UK: How do Consumers Shop?
1. CHAPTER ONE: INTRODUCTION
1.1. Statement of the Problem
In the UK, the fashion industry is one of the most dynamic sectors currently contributing
to economic development and growth. According to Fashion United (2017), the fashion industry
in the UK has a 6% market share with a GDP per capita of $46,297. Presently, the domestic
market value of UK’s fashion industry stands at 66 billion pounds. So far the fashion-related
sectors in the region have employed close to 555,000 people (Alliance Experts, 2017). According
to Statista, (2017) the apparel and footwear market in the UK has been growing steadily over the
past few years. Similarly, there is an increase in the annual clothing items expenditure in the UK
which is influences the high sales volumes and growth of the industry. From the figure below,
the annual spending on clothing items has been increasing between 2003 and 2016. This trend is
expected to grow in the future.
Figure 5: Annual Expenditure on Clothing Items in the UK (Available from
www.statista.com)
Remarkably, one significant emerging trend in the fashion industry is the advent of online
shopping. Doherty&Ellis-Chadwick, (2006) acknowledge that in the modern world, consumers

no longer have to visit the storefront to research about or buy a product. Instead, Eastman,
Bradley&Randall, (2009) contend that at the comfort of wherever they are, consumers can
research about a product online as well as buy it and have it delivered to their doorstep. It is
interesting that online shopping has taken over most industries in the UK with recent surveys
indicating that some consumers nowadays prefer online shopping due to the convenience and
flexibility involved (Mintel Company 2017). However, at the same time, other consumers still
find it better to access storefronts to research about products and make purchases physically.
Significantly, it is imperative to note that there is stiff competition in the UK’s fashion
and apparel industry (Alliance Experts, 2017). Besides competition at the brand level, online
fashion companies are stiffly competing with their in-store counterparts. A global retail survey
conducted by the PWC Company (2017) on how consumers shop in the clothing and footwear
industry revealed that at least 52% of global shoppers prefer researching about products over the
internet while 34% prefer visiting storefronts to research about the same products. Interestingly,
the same survey by PWC (2017) also reports that 51% of global shoppers prefer making
purchases in a store while 40% favor making purchases online. Another significant finding by
the same survey is that clothing and footwear is the most purchased product category among the
respondents (PWC, 2017). Evidently, although it may be difficult to extrapolate these findings to
fit specific regions such as the UK, the statistics present a particular trend worth investigating.
1.2. Research Purpose Statement
In light of the above background information, the current project seeks to investigate how
online shopping compares to in-store shopping clothing items by studying the consumers
shopping orientation.

1.3. Rationale of the Study
According toDavis, (1989) the advent of information technology was meant to make life
easier and better for human beings. Hence, online shopping is intended to provide convenience
and flexibility to consumers. However, despite all the advantages of online shopping, research
studies and surveys indicate that relatively most consumers still prefer making their purchases in
stores (PWC, 2017). It is interesting, therefore, to compare online shopping to in-store shopping
of clothing items based on how consumers make their purchases. From such a viewpoint,
players in the fashion industry could find value in the study’s recommendations on how well to
approach their business operations to maximize sales volumes, returns, and profits.
Notably, in the UK, the fashion industry makes a significant contribution to economic
growth and development (Fahion United, 2017). Therefore, given that online shopping and in-
store shopping are entirely fragmenting the fashion and apparel industry, it is fundamental to
determine how to strike a balance between the two. It is important for stakeholders in the UK’s
fashion industry to comprehend the dynamics of the sector and the implications of online
shopping versus in-store shopping of clothing items.
1.4. Research Questions and Objectives
The main purpose of this research is to establish how online cloths shopping and in store
cloths shopping in the UK compare by determining how consumers shop. Therefore, the main
research question is: How do UK consumers shop for cloths and related products? Hence, the
researcher seeks to achieve the following specific objectives.
i. To identify whether UK consumers prefer online cloths shopping or in-store cloths
shopping

ii. To determine the motivations and rationale for the consumer’s decision on the type of
shopping style
iii. To establish the implications of the trends for businesses in the UK’s fashion retail
industry
Concerning the same, the researcher also seeks to answer specific research questions to guide the
conduct of the study. These research questions are listed below.
i. How do UK consumers shop for their clothing items; in-store or through the internet?
ii. What are the motivations and rationale for the consumer’s decision on the type of
shopping style?
iii. How do businesses in the UK’s fashion retail industry cope with the fragmented
shopping Orientation of consumers?
It is imperative to note that these specific research questions only act as a guide to the study and
ensure that the research purpose and objectives have been efficiently accomplished.
After this introductory section, the next stage is the literature review section, which
compares, contrasts, analyzes, and critiques arguments and findings from previous scholarly
works on the research topic. The third chapter delineates the methodology assumed by the
researcher. The study utilizes mixed methods involving both qualitative and quantitative
techniques which are detailed in this section. The fourth chapter is the findings section which
presents what the researcher has found from the project. The fifth chapter presents the analysis
section of the project detailing the qualitative and quantitative data analysis techniques and
procedures used in the study. The final section presents the conclusion and recommendation part,
which, besides recapping the entire report, provides potential practical implications of the study
findings.