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Competitive Industry Analysis Tailoring and High-EndFormal Menswear in China   International University of Monaco         ...
Definition of the Industry• Analyzes the market for suits (bespoke and semi  ready-to-wear) offered at a price of 1’500€ a...
Size of the Industry• Luxury market estimated at € 190 Bn• Accessories and apparel represent +/- 50% of the  luxury market...
Scope of the Industry• Focuses on China• Luxury market has grown by up to 30% in 2010 in  Mainland China• Male dominated m...
Major Players•   Ermengildo Zegna•   Armani•   Brioni•   Kiton•   Canali•   Versace•   Dior Homme• Others but less relevan...
Key PESTL Analysis Findings• Global increase in menswear consumption followed  and nourished by China (P)• Adverse currenc...
Demand Analysis• Potential buyers, estimated:   – 503’326’577 chinese male between 15 and 64   – 47% of those are in urban...
Supply Analysis• Perfect relation with the demand due to the nature of  product• What about the wool supply…?  – Where it ...
Michael Porter’s Five Forces• Buyer Power   – Verdict: Low• Supplier Power   – Verdict: Low but…• Threats of New Entrants ...
Current/Future Trends and         Conclusion• A lot of changes but also growth forecasted• Polemic around digitalization o...
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Tailoring industry analysis presentation

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Tailoring industry analysis presentation

  1. 1. Competitive Industry Analysis Tailoring and High-EndFormal Menswear in China International University of Monaco MLUX - 2012 Justin d’Anethan
  2. 2. Definition of the Industry• Analyzes the market for suits (bespoke and semi ready-to-wear) offered at a price of 1’500€ and above
  3. 3. Size of the Industry• Luxury market estimated at € 190 Bn• Accessories and apparel represent +/- 50% of the luxury market• Male buyers represent 40% of the market• Menswear segment grows at a 14% yearly rate (as opposed to female buyers with an 8% growth rate)• Calculated value of the tailoring market at € 4.8 Bn
  4. 4. Scope of the Industry• Focuses on China• Luxury market has grown by up to 30% in 2010 in Mainland China• Male dominated market• Importance of cultural dimensions and need for status recognition
  5. 5. Major Players• Ermengildo Zegna• Armani• Brioni• Kiton• Canali• Versace• Dior Homme• Others but less relevant either for the Chinese market or the tailoring industry per say
  6. 6. Key PESTL Analysis Findings• Global increase in menswear consumption followed and nourished by China (P)• Adverse currency exchange rate (E)• Growing GDP and individual purchasing power (E)• Growing male population. Population becoming more urbanized, more educated and wealthier (S)• Dependency on wool supply and prices (T)• Threat of e-tailoring and local tailors in competition (T)• Lower counterfeiting threat or, at least, more chances of fighting it (L)
  7. 7. Demand Analysis• Potential buyers, estimated: – 503’326’577 chinese male between 15 and 64 – 47% of those are in urban area. So this would amount to 237’503’491 – Those actually able and potentially willing to spend 2’000€ (up to 15’000 CNY) for a suit, the global affluent segment (0,25%). – We would arrive at a total 593’758
  8. 8. Supply Analysis• Perfect relation with the demand due to the nature of product• What about the wool supply…? – Where it is produced – How it is bought – Who buys it – What are the forecasts
  9. 9. Michael Porter’s Five Forces• Buyer Power – Verdict: Low• Supplier Power – Verdict: Low but…• Threats of New Entrants – Verdict: Low• Threats of Substitutes – Verdict: High• Industry Rivalry – Verdict: High
  10. 10. Current/Future Trends and Conclusion• A lot of changes but also growth forecasted• Polemic around digitalization of services• Increased knowledge of consumers and their expectations• Changing consumer preferences and cultural need for status and social recognition• Higher focus on the ‘experience’ aspect of luxury• Greater recognition of local brands• Increase of tourism

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