First of all, Ted Baker is operating on the fashion retailing market, which we are going to study, with particular attention to United Kingdom, where the company started. In this report, we will be mainly concerned with women swear retailing which is currently the most important part of the fashion industry and is still increasing: women swear expenditure has increased by 27.4% between 2000 and 2005 , will increase by 20.6% by 2005-20101 (forecast) and will account for 53.5% of total clothing market expenditure in 20101 (forecast). Nevertheless, expenditure on clothing is threatened by increasing expenditure on leisure, travel and financial services, but it can reveal new opportunities in the clothing market: for example participation in sports has increased over the long term and it has undoubtedly allowed sportswear clothing retailers to develop. However, space and new stores openings have been driving growth for many retailers3, which lead to a potential danger of saturating the market with too many offers or even to be in competition with yourself or other stores of your brand (cannibalisation of sales, already observable for Inditex brands).
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