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State of the Apparel and Footwear Market in 2015


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State of the Apparel and Footwear Market in 2015

  2. 2. © Euromonitor International 2 Sustained Global Growth Despite Economic Headwinds NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015 150 350 550 750 950 1,150 1,350 1,550 1,750 1,950 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 0 1 2 3 4 5 6 7 US$billion %year-on-yeargrowth Market Value Growth 2008-2014 Value Market Size % Value Growth
  3. 3. © Euromonitor International 3 6 8 10 12 14 16 2009-10 2010-11 2011-12 2012-13 2013-14 Y-o-y%growth Growth in China, 2009-2014 Euromonitor’s latest data paints a mixed picture for China:  In 2014, the country posted its slowest growth for over a decade.  However, regardless of the slowdown, it is still predicted to take over the US as the largest apparel and footwear market in 2015.  It is also expected to continue leading the future global growth contributing over US$150 billion sales by 2019. China and the “New Normal" of Slower Growth NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
  4. 4. © Euromonitor International 4 Domestic brands International brands  The strategic challenge for retail apparel in China’s interior provinces is altogether different from the coastal regions.  The interior municipalities account for around two thirds of the population yet only a fifth of economic output.  That disparity will narrow significantly over the next five years, however, as infrastructure investment, retail modernisation and economic incentives to entice manufacturers empower China’s interior cities and help create a new breed of middle class consumer. Boosting Visibility in China’s Lower-Tier Cities NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015 Extensive store network Deep local knowledge Relationships with local distributors Support of local government Better access to capital Management capabilities Stronger brand equity Weak local market connections
  5. 5. © Euromonitor International 5 Sportswear and the Rise of Athleisure NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015  Surging consumer interest in health and fitness participation, coupled with a big increase in the number of brands merging sportswear with fashion, pushed up sportswear’s global retail value by 7%, the category’s strongest performance in seven years.
  6. 6. © Euromonitor International 6 Strong Global Performance of Childrenswear NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015 • 2014 Retail Value Sales US$160 billion • Value growth 2013-2014 5.7% • Constant value CAGR 2014-2019 3.0%
  7. 7. 0 1 2 3 4 5 WORLD US %year-on-yeargrowth Menswear Womenswear NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015 Personal grooming + appearance on the rise Internet: a key educational and transactional platform Standalone stores + dedicated fashion weeks Menswear Outperforms Womenswear
  8. 8. © Euromonitor International 8 • A number of luxury brands have found success through launching dedicated denim lines. For example, Calvin Klein Jeans is one of the best performing apparel categories of the brand. Contemporary labels such as Victoria Beckham and Rag & Bone have also expanded into this category. Fashion brands launch denim • On the other hand, denim specialist brands are expanding into other apparel categories to broaden their revenue streams. For example, J Brand launched its first ready-to-wear collection in 2012. Denim specialist brands diversify into ready-to-wear • As super-premium denim brands are generally perceived as coveted fashion items, they are able to access a more fashion- conscious consumer by leveraging seasonal trends, such as the demand for coloured and printed denim in 2012. Alignment to fashion trends • Fashion collaborations are becoming more varied, moving away from fashion designers to influencers like models and actresses. For example, Current/Elliott collaborated with actress Charlotte Gainsbourg to design a capsule collection, and AG Jeans has collaborated with Alexa Chung. Collaborations Fashion Alignment Supports Premium Positioning in Denim NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
  9. 9. © Euromonitor International 9 The Many Faces of Social Media in Fashion NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015 Story-telling tactics • Due to the importance of context in selling fashion, an informed social media strategy is a vital part of selling apparel and footwear online. In particular, image- sharing platforms like Instagram and Pinterest lend themselves well to brand- building for fashion brands. A two-way dialogue • Apart from brand building, social media enables brands to establish closer and more intimate contact with customers. They can also access an existing set of brand evangelists who are blogging, tweeting and Instagram-ing about a particular brand, hence generating valuable marketing content. Social unveiling • Brands have been using online platforms to launch new collections, capitalising on the global reach and rapid dissemination of content possible via social media. J Crew unveiled its 2013 Fall catalogue exclusively on Pinterest, enabling consumers to re-pin their favourite styles for future reference, share with their followers, and click-through to buy online. S-commerce…? • Aside from using social media to direct consumers to e-commerce sites, brands have been experimenting with transforming social sites like Pinterest into transactional platforms themselves. The challenge lies in providing a compelling reason for users to shop though them over the standard web outlets.
  10. 10. © Euromonitor International 10 Joining the Dots for an Omni-Channel Experience NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015 E-commerce Mobile In-store Social media The merging of social media and editorial content provides context and content for purchasing online. Social media and stores serve as important brand- building mediums. Mobile devices facilitate impulse buying when out and about. Mobile connects the tactile in-store experience to the convenience and greater variety available online. Stores let consumers try before buying. Letting consumers collect and return online purchases in stores combines the convenience factors of online and in-store. Extensive data- gathered from online can be used in-store to provide an increasingly personalised experience to consumers across all channels.