Ted Baker is a British clothing company that was founded in 1988. The company is known for its high-quality clothes and unique designs. It was founded by Ray Kelvin in Glasgow, Scotland.
Since its inception, Ted Baker has expanded its reach to include 376 stores and concessions worldwide. The company’s clothes are sold in countries such as the United Kingdom, Europe, North America, the Middle East, Africa, Asia, and Australia. In recent years, Ted Baker has been working to increase its presence in the Asian market.
As of 2019, the company declared a total revenue of approximately £617.4 million ($744.3 million) which is a clear indication of Ted Baker’s growing popularity. That being said, is the brand considered a luxury because of its wide market reach? Let’s find out!
Is Ted Baker A Luxury Brand?
Ted Baker falls into the premium brand category and is not a luxury. This is because it falls short of a few key luxury indicators such as heritage, price point, and level of exclusivity. And without these elements, a brand cannot be classified as luxury. Needless to say, it is still considered a new player in the fashion industry.
Here are the reasons why Ted Baker is not a luxury brand.
1. It Is A Young Brand
Heritage is an important factor in distinguishing luxury brands from premium ones. Luxury brands typically have a long history that can be traced back generations. This is not the case with Ted Baker which was only founded in 1988. While there are new brands in the fashion industry that were able to gain luxury brand status, Ted Baker, on the other hand, doesn’t meet the requirement to be one.
2. It Is Affordable
Luxury brands are known for their high price tags. This is because luxury brands use the best materials and craftsmanship to create their products. They also have a higher profit margin since they cater to a niche market.
Ted Baker, on the other hand, is more affordable with its prices falling in the mid-range. This is because the brand targets a wider audience. And while its clothes are of good quality, they are not on par with luxury brands.
3. It Lacks Exclusivity
Another key indicator of a luxury brand is exclusivity. Luxury brands are typically only available to a select few who can afford them. This is not the case with Ted Baker as its clothes are widely available and can be bought by anyone; because of the price and because it is accessible on department stores. This is in comparison to many luxury brands that, even though have many stores worldwide, are still quite exclusive because not many people can afford them and access the stores.
4. It is Mass Produced
Ted Baker’s clothes are mass-produced which is the complete opposite of what luxury brands stand for. Luxury brands are known for their limited edition items and bespoke designs for a small group of people who are willing to pay even they’re expensive.
Ted Baker, on the other hand, produces a large number of items to meet the demand of its wide customer base. This mass production takes away the exclusivity that is synonymous with luxury brands. And to ensure clear out inventory against the mass production, Ted Baker often offer sales on its website.
5. It Has Unfavorable Reviews
Speaking of quality and designs, the brand has received relatively low reception in recent years. There have been many unfavorable reviews on sites like Sitejabber, Trustpilot, and Reviews.io about Ted Baker’s clothes with some saying that the quality has decreased while others find the designs to be too basic.
This is in stark contrast to luxury brands that are known for their impeccable quality and cutting-edge designs. This just goes to show that Ted Baker is still far from being a luxury brand.
Does Ted Baker Hold Value?
Unfortunately, Ted Baker does not hold its value compared to luxury brands. One reason is its lack of exclusivity. Because Ted Baker’s clothes are so widely available and already affordable, there is no reason for people to pay a premium for them for second hand items.
For example, Ted Baker’s women’s designer bags cost approximately between $35 to $435, while $41 to $450 for men’s designer bags, which is way more affordable than many luxury bags that people know of. The same goes for many of its items such as clothing, accessories, and homeware that are sold at low price points.
And with the brand’s recent decline in quality and designs, Ted Baker is suffering a sales slump as of 2021, which thoroughly affects the value of its products.
Frequently Asked Questions
What age group is Ted Baker aimed at?
The brand is aimed at people aged 18-35. This is the reason why many of its products are more affordable as the brand is targeting a wider audience. Thus, it’s also aiming to release products with stylish designs to appeal to this age group.
Are Ted Baker products made in China?
Yes, some of Ted Baker’s products are made in China. However, the brand also sources its materials from all over the world.
The company is very transparent about where it sources its products from manufacturing to materials. The list of the factories where its products are made is available on its website.
Who are Ted Baker’s competitors?
Ted Baker’s main competitors are Reiss, Dorothy Perkins, Jack Wills, and AllSaints, according to Fitostic. These brands are all targeting the same age group as Ted Baker and are also more affordable than luxury brands. Thus, the brand has still other competitors in the industry considering that it aims to cater to a wider audience.
What makes Ted Baker different?
Ted Baker is different in the sense that it is more affordable than luxury brands and it also caters to a wider age group. The brand’s designs are also more contemporary compared to its competitors. Thus, it markets its brand as “one of the fastest-growing leading lifestyle brands in the UK”, according to its website.