Global Lifestyle Monitor IV – Colombia Report

Global Lifestyle Monitor IV – Colombia Report Prepared for

Cotton Council International

Prepared by

Synovate

Job number

6D77

Date

April 2006

Table Of Contents - Colombia Page I. Overall Background

2

II. Overall Methodology

3

III. Shopping and Fashion

5

IV. Quality and Fibers

16

V. Casual Dressing

22

VI. Denim and Stretch

24

VI. Recommendations

28

1

Overall Background Since 1998, Cotton Council International (CCI) has successfully conducted the “Eurostyle Monitor” and “Global Lifestyle Monitor,” which investigate a wide range of lifestyle issues related to clothing, shopping and textiles. This research has been important in adding value and increasing understanding of consumer attitudes and behaviors to CCI members around the globe. The research looks in detail at lifestyles, clothing purchasing habits, and clothing interest and attitudes. Analysis of the results helps CCI understand: 9 The issues behind cotton product demand, 9 What motivates consumers to choose cotton over synthetics, and 9 The implications of these issues for CCI’s strategy in promoting US cotton. In 2006, Synovate was again selected to conduct and coordinate the Global Lifestyle Monitor research for Cotton Council International.

2

Overall Methodology Interviewing Market

Methodology

Brazil

Face to face: Sao Paulo, Rio de Janeiro, Belo Horizonte, Recife, Porto Alegre

China

Telephone: Beijing, Guangzhou, Shanghai

Colombia

Face to face: Bogota, Cali, Barranquilla, Medellin

Germany

Telephone: national

Thailand

Face to face: Bangkok, Chiangmai, Chonburi, Hadyai, Korat

India

Face to face: Mumbai, Delhi, Bangalore, Kolkata, Chennai

Italy

Telephone: national

Japan

Telephone: Tokyo, Osaka

United Kingdom

Telephone: national

NOTE: Korea and Taiwan were not included in the scope of the survey in 2003 or 2006. Hong Kong is also not included in the scope in 2006. Thailand is being surveyed for the first time in 2006. 3

Methodology – Colombia Fieldwork in Colombia was conducted by Synovate from March 8th to March 29th, 2006. 500 respondents in total were surveyed via face-to-face interviewing in four cities: Bogota, Cali, Barranquilla, and Medellin. The key respondent qualification requirement is that they purchase their own clothing. In order to maintain data consistency with the study conducted in 2003, we also set soft quotas by gender, targeting 250 males and 250 females. All respondents fall within the 15-54 age range. This summary of results highlights major changes between the Global Monitor I conducted in 1999, Global Monitor II conducted in 2001, Global Monitor III conducted in 2003, and Global Monitor IV currently conducted in 2006. Store Examples Used During Interviewing: z

Department stores (e.g., Éxito, Superley, Ley, La 14, Cafam, Tia, Vivero, SAO)

z

Chain stores (e.g., Casa Estrella, Only, Iserra, Flamingo)

z

Hypermarkets/Warehouse Clubs (e.g., Makro, Carrefur, Alkosto)

z

Chain/Specialty shops outside of department stores (e.g., Benetton, Jeans & Jackets, Azucar)

Base: Total Respondents: 1999 (n=500); 2001 (n=500); 2003 (n=500); 2006 (n=500)

4

Shopping and Fashion - Colombia

5

Shopping and Fashion - Colombia A majority of Columbian shoppers continue to shop at department stores – despite a significant decline since 2003 – as well as at small, independent clothing stores, where there has been a significant increase in frequency of personal clothing purchases. Small stores have seen a steady increase and are challenging department stores for overall consumer preference in Colombia for the 3rd consecutive GLM survey. Stores And Places Used To Buy Clothes For Yourself

72% 64%

61%

61%

54% 42%

46%

45%

48% 38% 38%

28%

28% 22%

23% 11%

’01

’03

’06

Department stores

’99

’01

’03

’06

Small, independent clothing stores

’99

’01

’03

’06

Chain/specialty shop outside dept stores

’99

18% 7%

3%

NA ’99

15%

’01

’03

Chain stores

’06

’99

’01

’03

’06

Hypermarkets/ warehouse clubs

’99

8% 12% 10%

’01

’03

’06

Off-price/ discount stores

NA Not asked Significantly higher than GLM III at the 95% confidence level Significantly lower than GLM III at the 95% confidence level 6

Shopping and Fashion - Colombia Department stores continue to be the place consumers shop for most of their clothes, but by a gap that has narrowed from 42% - 14% in 1999 to just 30% - 28% in 2006 over small, independent clothing stores.

Stores and Places Used To Buy Most Of Your Clothes

42%

37% 35%

30%

26% 28%

30%

27%

20%

22% 21%

14% 7%

8%

7%

NA ’99

’01

’03

’06

Department stores

’99

’01

’03

’06

Small, independent clothing stores

’99

’01

’03

’06

Chain/specialty shop outside dept stores

’99

’01

’03

Chain stores

’06

NA

NA

’99

’01

2%

4%

’03

’06

Hypermarkets/ warehouse clubs

NA Not asked

7

Shopping and Fashion - Colombia The selection and variety of items available continues to be the main reason for liking a particular clothing store. Good/low prices and styles/designs are also major considerations.

Clothing Store Attributes

60% 46%

42% 43% 35%

31%

36% 38%

33%

28%

33%

31%

35%

32%

28%

27% 18% 16%

24% 17%

9%

’99

16%

12% 4%

’01

’03

’06

Selection or variety of items

’99

’01

’03

’06

Good/low prices

’99

’01

’03

’06

Styles/designs

’99

’01

’03

’06

Carry quality clothes

’99

’01

’03

’06

Knowledge of salespeople/ customer service

’99

’01

’03

’06

Promotions

Significantly lower than GLM III at the 95% confidence level

8

Shopping and Fashion - Colombia Colombians’ attitudes toward shopping is relatively unchanged, with nearly 8-in-10 claiming to love/somewhat like shopping for clothes; 17% are ambivalent. Significantly more women than men love shopping.

Love/Somewhat Like Clothes Shopping 1999

76%

Males 66%

2001

2003

2006

1999

2001

2003

2006

78% 77% 79%

Males 74%

Males 71%

Males 72%

Females Females Females Females 83% 82% 82% 85% M F M

Neither Like Nor Dislike

20%

18% 20% 17%

Males 29%

Males 23%

Males 27%

Males 23% F

Females Females Females Females 14% 15% 14% 12%

Significantly greater than women at the 95% confidence level Significantly greater than men at the 95% confidence level 9

Shopping and Fashion - Colombia Over a three month period, Colombian shoppers spent an equivalent of US$161 on clothes for themselves, a figure that has risen for the 3rd consecutive GLM survey. A constant percentage of roughly 26% shop for clothes at least once a month.

Average Spent on Clothes In Past 3 Months 1999

2001

2003

US $147 US $116

2006

Buy Clothes At Least Once A Month 1999

2001

2003

2006

27%

26%

US $161

US $123

33% 21%

Males 13%

Males 30%

Males 25%

Males 23%

Females Females Females Females 28% 26% 36% 28% 10

Shopping and Fashion - Colombia In the past three months, a majority of shoppers have bought underwear, jeans, and t-shirts, but this represents a decline relative to the same period in 2003. There was a decline in each of the top categories compared to the 2003 results.

Top Items Purchased In Past Three Months* 87%

83% 71%

71%

69%

80%

63%

69%

67%

63% 55%

56%

61% 48%

47%

’01

’03

Underwear

*

’06

’01

’03

’06

Jeans

’01

’03

T-Shirts

’06

‘01

‘03

Shirts

‘06

’01

’03

’06

Pants

Question not asked in GLM I - 1999 Significantly lower than GLM III at the 95% confidence level 11

Shopping and Fashion - Colombia In-store display and magazines are the current leading sources for consumers to get ideas for their clothes. Significantly more are using in-store displays relative to 2003, and there is a decline in the percentage who are relying on television for their inspiration.

Place Where Consumers Get Ideas For Clothes

65% 64% 61% 54%

36% 28%

30%

33%

37% 31%

34% 29%

26%

33% 29%

35% 27%

29%

22%

24%

32% 30% 23%

24% 16%

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

-’99 ’01 ’03 ’06

In store displays/ windows shopping

Magazines

Friends and colleagues you see regularly

Family members

Television

Catalogs

19%

13%

14% 9%

18% 12%

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

What you already own and like

People you see on the street

Significantly higher than GLM III at the 95% confidence level Significantly lower than GLM III at the 95% confidence level 12

Shopping and Fashion - Colombia Similar to 2003, Colombians ranked each of the fabric attributes high in importance, with more than 90% citing that the overall quality, finish, durability, price, style, and color are major pieces of information to know prior to purchasing clothing. Fiber, despite a small increase, is ranked lowest. Attributes

99% 99% 99% 99%

95% 96% 97% 95%

96%

92%

96% 94%

96%

93% 93% 94% 83% 85% 85%

‘99

‘01

‘03 ‘06

Overall quality

‘99

‘01

‘03 ‘06

Style

‘99

‘01

‘03 ‘06

Color

‘99

‘01

‘03 ‘06

Finish

‘99

‘01

90%

‘03 ‘06

Price

93% 94% 92%

89% 77% 75% 77% 79%

‘99

‘01

‘03 ‘06

Durability

‘99

‘01

‘03 ‘06

Fiber

Significantly lower than GLM III at the 95% confidence level

13

Shopping and Fashion - Colombia Relative to the past 12 months, shoppers are likely to buy at least as many, if not more, of various types of clothing such as denim, casual clothing, and sports clothing in the future. Intent to Purchase More/As Many/Fewer Clothing Items Than in Past 12 Months* More ‘01

Denim/jeanswear

‘03 ‘06 ‘01

Casual clothing

‘03 ‘06 ‘01

Sports clothing

‘03 ‘06 ‘01

Formal clothing

‘03 ‘06

Work clothes/ smocks/overalls

*

As Many 39% 40% 42%

38% 41% 38%

45% 47% 49%

32% 29% 32%

42% 43% 44%

32% 32% 30% 26% 25% 27%

4% 3% ‘06 5% ‘01 ‘03

40% 29% 35% 9% 12% 6%

Fewer 15% 16% 11% 18% 16% 13% 19% 20% 15% 22% 22% 18% 10% 9% 7%

Question not asked in GLM I - 1999 Significantly lower than GLM III at the 95% confidence level 14

Shopping and Fashion - Colombia About 1-in-5 Colombian consumers buy clothes at a significant discount all or most of the time, in line with the 2004 results. Only 10% never do so. The majority (34%) buy clothing at discounts some of the time.

Shop at Discounts of 20% or More* 2001

7% 16%

Most of the time

6% 16%

Some of the time

32%

37%

Rarely

32%

25%

Never

14%

All of the time

*

2003

22%

2006

5% 23%

16%

21%

34%

35%

15% 10%

Question not asked in GLM I - 1999 Significantly higher than GLM III at the 95% confidence level Significantly lower than GLM III at the 95% confidence level 15

Quality and Fibers - Colombia

16

Quality and Fibers - Colombia Within the Colombian marketplace there appears to be relatively little change in attitude toward the importance of natural fibers. Consistent with previous waves, nearly half of respondents in Colombia agree that it is important that clothes are made from natural fiber such as wool or cotton.

It Is Important That My Clothes Are Made From Natural Fiber Such As Wool And Cotton 1999

Agree strongly

2003

2006

18%

15%

16%

23%

47% 44%

Agree somewhat

21%

Neither agree nor disagree

26%

Disagree somewhat

19%

Disagree strongly

2001

11%

47%

45%

29%

30%

31%

30%

30%

29%

12%

14%

17%

11%

11%

8%

17

Quality and Fibers - Colombia Opinions regarding fiber content versus brand name have significantly changed since 2003, with a larger numbers of respondents preferring to know the fiber content rather than the brand name. A consistent number of Colombians (71%) still prefer to pay more for quality rather than to sacrifice quality for price (29%).

Preferences 84%

1999

To pay more for better quality clothes

79%

2001 2003

72%

2006

71%

63%

2001

63%

2003

51% 60%

2006

OR

OR 1999

To sacrifice a little quality to get a better price

To know the fiber content of a garment

1999

2001

16% 21%

2003

28%

2006

29%

To know the brand name of a garment

1999

37%

2001

36%

2003 2006

49% 40%

Significantly higher than GLM III at the 95% confidence level Significantly lower than GLM III at the 95% confidence level 18

Quality and Fibers - Colombia Colombians state that natural fibers are best suited for today’s fashions; cotton, which is rated slightly higher than it was in 2003, is seen as best.

Fiber Best Suited For Today’s Fashions

77%79% 64%62%

60% 57% 54% 50%

3%

6%

11%9%

8%

4% 4% 6% 6%

2% 4% 3% 4%

3% 1% 1% 3%

5% 3%

2%

3% 1% 1% 2%

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

‘99 ‘01 ‘03 ‘06

Natural Fibers (Net)

Cotton

Denim/ jeanswear

Linen

Lycra

Silk

Blend of cotton & polyester

Polyester/ Dacron

**

1% 1% 1% ** ‘99 ‘01 ‘03 ‘06

Wool

Less than 0.5%

19

Quality and Fibers - Colombia In comparison to polyester, cotton is ranked significantly higher in most important attributes. Being breathable and traditional are also highly associated with cotton and have significantly increased in association with cotton since 2003, led by being seen as soft and comfortable.

Attributes Describing Cotton % 80 76 78 81

73

66 64 70

59 62

69

74 62

67

65

54

57

63

51 54

58 61

62 57 59 58

36

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

NA ’99 ’01 ’03 ’06

Soft

Comfortable

Breathes

47 46 44 40

39

30 33

40

46 32 27 30 6 3 6 2

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

Traditional

Keeps you warm

Is a quality fabric

Is sporty

Youthful

Stylish

Wrinkles

Scratchy

Attributes Describing Polyester % 38 5 3 4

4

3 4 4

4

7 6

8

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

NA ’99 ’01 ’03 ’06

Soft

Comfortable

Breathes

6 8

14

12 17 16

7

27 6 4 3

5

16 14 16 15

11 8 9 7

13 10 9 7

35

28

36

48

46 45 33

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

’99 ’01 ’03 ’06

Traditional

Keeps you warm

Is a quality fabric

Is sporty

Youthful

Stylish

Wrinkles

Scratchy

NA Not asked Significantly lower than GLM III at the 95% confidence level Significantly higher than GLM III at the 95% confidence level 20

Quality and Fibers - Colombia As indicated by the growing trend to take note of fiber content, more people say they avoid particular fibers such as polyester/Dacron. Silk (18%) is the fiber most avoided by Colombian consumers. Fiber Avoided When Purchasing Clothing (Among Those Who Said They Avoid Particular Fibers)

18% 21% 20% 18%

17%

17% 16%

19%

23%

24%

24% 18% 16%

’01

’03

Silk

’06

’99

’01

’03

9% 10%

9%

7% ’99

17%

15%

13%

3% 1% 1% 2% ’06

’99

Polyester/ Dacron

’01

’03

Lycra

’06

’99

’01

’03

Wool

’06

’99

’01

’03

Synthetic

’06

’99

’01

’03

’06

Cotton

Significantly higher than GLM III at the 95% confidence level Significantly lower than GLM III at the 95% confidence level 21

Casual Dressing - Colombia

22

Casual Dressing - Colombia Two-thirds of shoppers prefer to change clothes throughout the day to fit each event, with only 33% choosing to wear one outfit for several activities. Comfort is still the preference, as well, with a significantly higher percentage of shoppers (92%) than in 2003 (85%) preferring to forget about fashion in favor of comfort.

Preferences

To change clothes to fit each event

1999

68%

2001

69%

2003

66%

2006

67%

To forget about fashion and wear clothes that are comfortable

90%

2001

85%

2003

92%

2006

OR

OR To wear one outfit all day for several activities

95%

1999

1999

32%

2001

31%

2003

34%

2006

33%

1999

To follow fashion and wear uncomfortable clothes

2001 2003 2006

5% 10% 15% 8%

Significantly higher than GLM III at the 95% confidence level Significantly lower than GLM III at the 95% confidence level 23

Denim & Stretch - Colombia

24

Denim & Stretch - Colombia The proportion of consumers who know which fiber denim/jeanswear is made from has decreased significantly, with less than 1-in-5 now aware that it is made from cotton.

Aware That Denim and Jeanswear Is Made From Cotton 1999

2001

37%

2003

2006

33% 24%

22%

Significantly lower than GLM III at the 95% confidence level

25

Denim & Stretch - Colombia As in 2003, a majority of Colombians enjoy wearing denim on a regular basis, with a consistently small percentage of the population stating that denim is just not for them.

Attitudes Towards Denim/Jeans wear

56%

50%

54%

58%

24%

29% 22% 21%

15% 14%

21% 18% 4%

‘99

‘01

‘03

‘06

I enjoy wearing denim on a regular basis

‘99

‘01

‘03

‘06

I have some denim clothes but, in general, I don’t wear much denim

‘99

‘01

‘03

‘06

My wardrobe is full of denim and I love wearing it

‘99

7% ‘01

2%

3%

‘03

‘06

Denim is just not for me

26

Denim & Stretch - Colombia Sports clothes and denim are the leading types of clothing that Columbians feel require stretch.

Think It’s Important To Have Stretch or Elastic Fabric In Certain Types of Clothing

68% 62%

66% 66% 54% 52%

50%

40%

45%

50% 51%

51%

53% 46%

49% 35%

33%

39% 31%

34%

31% 19%

23%

23% 12% 5% 5%

‘99

‘01 ‘03 ‘06

Sports clothes

‘99

‘01 ‘03 ‘06

Denim/jeanswear

‘99

‘01 ‘03 ‘06

Casual clothes/ excluding jeans

‘99

‘01 ‘03 ‘06

T-shirts

‘99

‘01 ‘03 ‘06

Dress/smart/ formal clothes (suits/pants)

‘99

‘01 ‘03 ‘06

Dress/smart/ formal blouses (women)

‘99

9%

‘01 ‘03 ‘06

Dress/smart/ formal shirts (men)

Significantly lower than GLM III at the 95% confidence level

27

Recommendations - Colombia

28

Recommendations - Colombia

Colombians have gradually increased their spending on clothing over the past 7 years from a 3 month average of $116 in 1999 to $161 in 2006. They have a low percentage who look at the label before purchasing to check fiber content. An increasing percentage of clothes shoppers in Colombia are also avoiding polyester. This leads to a recommendation that is based on fiber education above all. z

Purchase intent for the future is static but there is an increased percentage who are currently purchasing casual clothing. Therefore, targeting a campaign geared towards the casual clothing market is recommended.

z

Targeting small, independent stores can be beneficial considering these store types are increasing in importance and department stores are decreasing in importance.

z

Touting the benefits of cotton, such as keeping cool, should be a key ingredient in the marketing program considering they have the lowest percentage who agree that cotton keeps you cool (certainly a key benefit of the fiber)

29