Authored by:Achim Berg Leonie Brantberg Leda ZaharievaApparel, Fashion partly estimated Phase 3: Expand and sell£100-500mPhase 4: Deepen consumer engagement£500m+Phase 1: Establish your brand£0.5-20mPhase 2: Build the core£20-100mBritishExamplesNumber of companies1Source: Walpole, Meisterkreis, Altagamma, McKinsey12 4200-250 35-4538 17300-400 80-9022 8200-250 4032 15500 35-50Exhibit 14The British luxury marketThis report is focused on the fashion, beauty, F we surveyed companies representing 40% of the value of this sectorBritish luxury industry turnover by sub-sector,2013Our research covers companies with combined turnover of £5bn/40% of the combined value of the fashion, beauty F and this is even more pronounced in luxury where the same 600 cities will account for 85% of luxury growth (Exhibit 5).“ A fifth of our survey population regretted not focusing enough on their entry into foreign markets, and an identical share admitted their company had moved into international markets too quickly.”America is the first port of call for most brands, and UK specifically is gateway to the Middle East 1 Includes responses for North America 2 Includes ASEAN, South East Asia, and “Asia as a whole”069122430337982Middle EastOther Asia244472546505475Other Asia2Middle EastTop current international markets% respondents who selected option as 1 of top 3 international markets by revenueTop future international markets % respondents who selected option as 1 of top 3 international markets by revenue1Source: McKinsey survey of Walpole members, conducted between Oct-Dec 2015Exhibit 42 “Unleashing fashion growth by city,” McKinsey & Company, 2013