Hewson Group - European leaders in CRM information and Analysis
Mastering the Customer Environment
Women, Sex and shopping - The furture retail market
Key Insights
Erotic Goods for women offer many retail opportunities The erotic retail market for women involves a range of goods that is far more varied than that for men. It should correctly be seen as much closer in nature to sectors such as perfume, fashion and cosmetics – but with a more exciting edge. The natural confluence with these sectors should be the driver for innovatory thinking in retail.
The traditional, male focused sex industry is in sharp decline Evidence of poor performance in the traditional sex industry should be discounted when considering women’s erotic retail.. Public companies such as Playboy, Private Media Group and Beate Uhse have suffered from a catastrophic decline in male focused areas such as DVD, media and other entertainments. Older ‘tainted’ brands are not perceived well in the market.
Most women feel disenfranchised by the current retail and online environment The erotic retail market for women is currently worth around £250m in the UK. Apart from Ann Summers and Agent Provocateur there are no major brands in the market, almost no advertising or other buying validators and few high street or online outlets that women are happy with. Hewson Group research suggests that most women feel disenfranchised by the available retail mechanisms but that nearly 80% would prefer to buy erotic goods on the High Street rather than online.
The UK market may be worth over £1bn within 5 years The future value of the market is hard to assess but if major brands enter and shopping environments are more imaginative and far more widespread, then results from the ‘Street Survey’ suggest it should be worth over £1bn within 5 years. The present market is, arguably, dysfunctional and there is effectively a retail vacuum. This applies more or less to all other European countries. The global market may be worth over $20bn by 2016.
Sex Toys are important to the majority of UK women in the 18-59 bracket Fashion, perfume and cosmetics brands should be aware that for women, sexuality enhancement is much less discretionary than many of the goods they buy. Over 60% of women find the idea of buying a sex toy arousing in itself. This suggests a perpetual underlying demand which means that careful consideration should be given to associated product ranges and the cross sell possibilities offered.
Comparison with customers at a woman only shop reveals very different shopping habits A comparative element of the Street Survey was carried out at Sh! Women’s Erotic Emporium in London. Sh is a woman only environment closer to a model that the female shopper is happy with. Sh customers showed a high propensity for serial buying and around half had erotic goods collections worth £150 or more.
The door is open for innovatory retail outlets to be designed and tried The impact of the economic climate on retail should mean that new options and concepts should be urgently considered. The old idea of fashion being best sold through ‘Intimate Salons’ should be re-visited with the idea that more exciting and very different venues can be created for the woman shopper – or their partners.
Brand damage by entering erotic goods is unlikely and maybe enhancing Brand damage caused by entering the erotic area is unlikely. Marketing by Agent Provocateur, Dolce & Gabbana and Calvin Klein already crosses boundaries. Celebrity endorsement of sex toys by stars such as Teri Hatcher, Eva Longoria and Halle Berry act as validators for brands and women alike. Validators to act as ‘OK’ signals are important and effective in the market as proved by Sex and The City. Perfume sector type advertising would be transformational.
Many sectors are not seeing the opportunity in front of them Certain outlets such as jewellers and spas may be missing immediate revenue opportunities. Other sectors such as hotels and cruise lines may simply not be understanding female/couple preferences and are failing to explore customer pleasing ideas. The Hotel sector, in particular, is lacking imagination and has failed to move on from poor quality and expensive in room entertainment.
There is an immediate revenue opportunity despite the economy It will takes several years for a fully mature market to evolve but the here and now revenue opportunity should not be ignored. There is plenty of evidence to suggest that elements of erotic retail for women (eg, sex toys and lubricants) perform very well despite the deficiencies of the market and the economic situation
Who should buy this report?
• High Street Retailers
• Fashion Houses
• Perfume Houses
• Banks and Investment Advisers
• Manufacturers of erotic goods
• Erotic film producers
• Erotic Retail Outlets
• Luxury Goods Manufacturers
• Chemists and Supermarkets
• Hotel Groups and Spas
• Airports
• Marketing Agencies
• Property management companies
We will deliver:
The Report (c. 48pp)
Plus:
1. A free of charge information stream for 6 months after purchase covering ongoing research concerning the UK and incorporated in weekly updates posted online
2. Access to an extensive scanned selection of surveys
3. Agreed telephone access to a Hewson Group analyst for 6 months subsequent to report purchase
2. Key Insights
5. Introduction
7. Research Methodology
9. Current ‘Adult Market’ size
Sex Toy ownership
DVD Sales
Is there growth Potential?
12. Changing Cultures
Branding and Advertising Crossovers
16. Celebrity Endorsement
16. What do we include in the ‘Women and Sex’ sector?
18. Hewson Group ‘Street Survey’
Section 1 Who are you?
Section 2 The Retail Environment
Section 3 Erotic Literature and Pornography
Section 4 Sex Toys
Section 5 Accessories
Section 6 Masturbation
36. Assessment of the Future Market
37. Future Market Value in the UK/Globally
39. How do we see increased Spend in
the market occurring?
43. What might the 2012 Retail store look like?
45. Sector Analysis
Extracts from Women, Sex and Shopping
Somewhere which is specific for erotic goods. In a department store might be a bit embarrassing. ‘Aladdins Cave’ sounds ideal but especially for erotic goods because then you know everyone is there for the same reason.
18-25, London
Definitely not a Department store or Lingerie Shop., Ann Summers appears tacky. Somewhere where you are free to browse but ask advice if needed.
Aged 45-59, London
There is something quite erotic about purchasing a sex toy so the experience should be treated as special. The environment for me would be somewhere with helpful staff and a fairly decent range of toys/goods. A place which doesn’t feel sleazy and is especially catering for the female.
18-25 London
I like the Aladdins Cave idea. A bit of an Emporium would be good with art and books etc to make you feel sexy. It should be exciting when you shop for sex stuff but I don’t feel that on the shops I have been in. I’d like to see and touch more things and get good advice from staff I can trust.
36-45 Peterborough
High Street isn’t exciting. Those shops represent the worst of stereotypes of what women want. Sh! On the other hand is fabulous, friendly and informative.
26-34 London
Analysis –Retail Environment.
It is important to realize that women answered many of the questions in this survey despite the fact that the majority could only have had hypothetical or observational experience in a shopping sense. Examples of this are evident in the first three questions of this section. Nearly everyone (with only a couple of exceptions) answered the first question and there was a clear preference for High St with 78% having this as their choice (although a number added a rider about both being ok). Sh! customers were nearly unanimous on the High St choice but this is perhaps to be expected as they filled in the survey in store.
The strong support for High Street shopping tends to rebut the proposition that this is an embarrassing subject that women would prefer to deal with behind the anonymous cover of the internet. Where women have spoken to us directly they have usually made it clear that they like the idea of physically shopping for erotica. This tends to be reinforced by the fact that nearly half of the women, whom we could determine had bought goods, actually said they enjoyed the experience. Enjoying the experience and liking the shop are two different things. A later question suggests that 60% of women find the idea of buying a sex toy arousing in itself. It maybe that the fun of the acquisition can transcend the dislike of the shop experience.
Only a minority of women in the survey appeared to have bought anything online and with the exception of LoveHoney were unlikely to suggest a website that they liked. The absence of desirable websites will, of course, have influenced answers and we would caveat drawing absolute conclusions on this.
We have referred to the fact that many women did not like the shop environment. ‘Tacky’ was probably the most used adjective in this regard (outside the Sh Group). What women say about an ‘Ideal Environment’ is therefore, of consequence. The Aladdin’s Cave concept was the most popular although...
Sample Surveys
Survey 1
Survey 2
Survey 3
Survey 4
Survey 5
There are two easy ways to order this report
Phone: call 44 1603 864777Email nick@hewson.co.uk
On receipt of order we will invoice your company and release the PDF to you.
Report Price: £890/ US $1350/ EUR1150
Published: v4.1 July 2009
Format: PDF
About the Editors
Nick HewsonNick has worked in the customer manangement area since the 1980s and is regarded as one of the global founders of CRM. Forward looking reports in the 1990s included the CRM Handbook; Emerging Information Technolgies in Marketing (with Professors Malcolm McDonald and Hugh Wilson) and The Business Use of The Internet. Nick is a visiting lecturer and has spoken at conferences around the world and has been interviewed by the Wall St Journal and the Financial Times amongst other publications. He is currently involved in an IT led forum on the future of retail banking.
Judith Pearce
Judy is research director at Hewson Group. She has extensive experience in retail finance and for many years was closely involved with a leading design company.
Hewson Group Drayton Lodge Park, Norwich, Norfolk, NR8 6AT, UK
tel. 44 1603 864777
www.hewson.co.uk
Click here to view table of contents for this report
Click here to purchase this document