Market Analysis - Introduction to Market Share

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Definition
Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company. Market share can be measured in several ways. However, the two most important measures are by: - Sales revenue

- Sales volume (the number of units sold)
Examples of market share
Market share information on the UK clothing retail market is summarised below: PositionBrandSales(£'m)Market Share (%)Number of Outlets 1Marks & Spencer2,74310.2315
2Next1,7086.3333
3Arcadia1,6095.91,603
4Debenhams1,0764.097
5Asda9633.6215
6Matalan7762.9137
7Tesco7102.6588
8Bhs6312.3163
9New Look5522.1573
10John Lewis4821.825
Total of Top 1011,25041.8
UK Market26,911100.0
Source; Deutsche Bank 2002
The UK clothing market, as defined by Deutsche Bank in their recent report, is valued at £26.9 billion. It is one of the most concentrated retail markets in Europe, with the top ten retailers accounting for some 42% of the market. What is market concentration? It is the proportion of market value that is owned by the leading brands or products/companies in the market. Where the market leaders own a large part of the overall market, the market is said to be highly concentrated. By contrast, where the market leader has a relatively small market share and there are many other competitors, a market is said to be "fragmented" There has been little change in the concentration of the UK clothing retail market in recent years. The top 10 retailers accounted for 39% of the market in 1995. However, as the table below illustrates, the composition of the top 10 has changed quite considerably, with only six of the top ten in 1995 remaining in the top league in 2002: Position199519972002

1M&SM&SM&S
2ArcadiaArcadiaNext
3DebenhamsDebenhamsArcadia
4C&ANextDebenhams
5NextC&AAsda
6SearsSears/AdamsMatalan
7BhsBhsTesco
8LittlewoodsAsdaBhs
9John LewisLittlewoodsNew...
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