5 Key Facts for Apparel Retailing

 

Internet retailing continues to be a large part of apparel retailing across the globe. Euromonitor International's apparel research team identified five key facts for the industry, which is still recovering from the negative effects of the recession.

 

China Driving the Global Luxury Goods Industry

By Fflur Roberts, Head of Global Luxury Goods Research at Euromonitor International

Hit by the global economic slowdown, the luxury goods industry went through a period of decline in 2008-2009 but by 2010 the recovery had already begun, with most developed countries recording positive growth. At the same time the luxury goods market has witnessed a new wave of newly middle class consumers from China, India, Russia and Brazil beginning to sample the delights of luxury goods, with China’s hunger for luxury in particular proving to be unstoppable.

Benefitting from a fast-growing middle class and a fast-developing luxury distribution network, sales of luxury goods in China have consistently outperformed the global market and the country will overtake France and the UK by 2015, making China the fourth biggest luxury market in the world. Click to tweet!

Prada's Growth Model Shows the Way Forward

Analyst Insight by Rob Walker, Senior FMCG Analyst at Euromonitor International

Almost one year on from Prada's Hong Kong IPO debut, the ensuing volatility of its share price and, ultimately, the company's surging profitability, what are the lessons for luxury goods companies with an eye on a stock market listing?

A bumpy ride for Prada's yield hungry investors

Prada, the Italian luxury fashion house famous for making trendsetting handbags and footwear, raised US$2.14 billion from a Hong Kong IPO in June last year. That was around a fifth less capital than the company had planned for. As things transpired, retail investors were put off by the prospect of Italian capital gains and dividend taxes, which they were liable to pay (even though the listing was in Hong Kong).

Hard Value, Secondary Brands and BRICs Identified as Key Luxury Goods Themes in 2012

Analyst Insight by Rob Walker, Senior FMCG Analyst at Euromonitor International

The luxury goods industry has shown a high degree of insulation from global economic volatility over the past five years, but what is the prognosis for 2012, and what are the main trends, opportunities and company strategies to look out for? Euromonitor International makes some New Year predictions for five key categories.

Designer clothing and footwear: Growth of diffusion brands

In 2012, designer labels will be up against a new set of challenges due to a new era of austerity in the developed markets. We will see stronger investment in secondary (or diffusion) luxury collections as a means to drive demand in lacklustre consumption bases, specifically Western Europe, North America and Japan.

South Africa: Spotlight on Key Market Trends in Luxury Goods

With value sales of R5.6 billion (US$684 million) in 2010, the South African luxury goods market ranked 23rd out of the 26 countries covered by Euromonitor International's luxury goods research and accounted for 0.4% of the global market. Click to tweet! In terms of real growth over the 2005-2010 period, South Africa ranked 10th, just behind Hong Kong and ahead of Singapore.

Over 2005-2010, four of the 10 categories researched recorded positive real value growth. Luxury electronic gadgets led the way with constant retail value growth of 68%, followed by fine wines/champagne and spirits (21%), super-premium beauty and personal care (14%) and luxury travel goods (7%). Luxury jewellery and timepieces (-4%), writing instruments and stationery (-7%), accessories (-14%), fine china and crystal ware (-16%), tobacco (-35%) and designer clothing and footwear (-9%) all registered negative growth. Click to tweet!

Developing Markets to Fuel Global Growth

 

 

 

 

 

 

 

 

 

 

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China continues to outperform other countries in apparel CAGR.

Hear Euromonitor Speak at Sustainable Fashion: An Industry Revolution

Date: March 14, 2012
Location: Palazzo Giureconsulti, Milan, Italy
Event Description:  The British Consulate General in Milan and the Camera Nazionale della Moda Italiana host a seminar to study aspects that are driving change in the environmental and social sustainability fields. Learn more about the factors that are leading the change in the fashion industry, and which affect the whole production chain.
Speaker:  Magdalena Kondej, Global Head of Apparel Research, will present on "Global consumer attitudes towards sustainability and impact on sustainable fashion.” For more information, please click here. 

 

Fashion for the Over 40s Holds Opportunity in Apparel

Analyst Insight by Magdalena Kondej - Head of Apparel Research

"Age is just a number," and "You're as young as you feel," are two common phrases that encapsulate society's changing attitude towards growing old. And in developed markets the world over, society is growing old.

The global population has aged visibly in the last five years, with the over 65s accounting for a share of almost 8% in 2011. In North America, 13% of the population is now aged over 65, while in Western Europe the figure is 16%, the highest percentage globally. Tweet this stat!

London Olympic Games Offer Golden Opportunity to Sportswear Manufacturers

Summer 2012 brings the Olympic Games to London and with it an opportunity for global sporting apparel manufacturers to strike gold. Athletes from 205 countries will be participating during the 19 days of Olympic competition. The combination of so many countries taking part, global improvements in satellite communications and the events taking place over a prolonged period mean viewing figures for the event will be extremely high - the eyes of the world will be watching, and for a significant period of time. For any brand involved with the Olympic Games, this type of global exposure is the stuff of dreams, but for sportswear manufacturers in particular the stakes are even higher. 

Diamonds are Forever as Demand Outpaces Supply in Emerging Asia

Analyst Insight by Rob Walker

Graff Diamonds Ltd, the London-based jeweller renowned for buying and selling some of the world's rarest and most expensive rocks, aims to raise around US$1 billion from a planned Hong Kong IPO in the second quarter of 2012. What will it do with the capital and what does the listing tell us about the strategic direction of the diamond industry?