MarketLine Blog

Posts about Apparel

Foot Locker: Share price slides on disappointing results

MarketLine

On Friday August 18, Foot Locker announced financial results for its second quarter ended July 29 and they were not what the markets had expected. In fact, they were way short of what the markets anticipated and consequently, the company’s share price plunged. There is a suggestion that product may be at least partly to blame and as Foot Locker is reliant on the goods manufactured by the likes of Nike and Under Armour, the news had a detrimental impact on their share prices too. High-priced products that have failed… Read more

Selfie generation: Refashioning make-up market

MarketLine

The global make-up industry grew by a record 8.4% in 2016 and was the main growth driver for the cosmetics market worldwide. The range of make-up products is endless, and some product categories, in particular those highly popular with the generation of Millennials, (i.e. concealers, illuminating highlighters, lipsticks) are booming. These hyper-connected customers are young, have a strong purchasing power, new ideas about beauty, and are also very keen to spend money on beauty products. While clothing and department stores are increasingly closing their physical locations, not being able to… Read more

Beckham’s Target: Posh on a budget

MarketLine

As common household names, celebrities are always being discussed; especially in modern society. The Beckham family is no different, although their fame has stems from football and music to the latest venture of fashion. Victoria Beckham has recently partnered with Target, a US retailer to sell her range of cheap designer clothes for all age ranges and all sizes. Whilst this range is extensive, it is set to only be available for a limited period of time, with online access as well through victoriabeckham.com creating a global customer base. The… Read more

Nike: England sponsorship deal in jeopardy

MarketLine

In modern sport, funding is a large key to success and in no sport is that more apparent than football, the ultimate game of the haves and have nots. International football has not escaped the phenomenon with England plowing in money as if it is an endless resource while Ghana’s players insisted on cash only payments at the 2014 World Cup amid fears that they would not be paid otherwise. Wembley Stadium, world-leading salaries and a state-of-the-art football center do not come cheap and the money has to come from… Read more

Sports Direct: Working conditions scandal fallout must be managed to minimize damage

MarketLine

Recent revelations about Sports Direct’s working practices have been largely made via exposé reporting from The Guardian. Secret filming in the company’s Shirebrook warehouse led to claims of a culture of fear, pay of less than the national minimum wage, unpaid after-hours work, and questionable punitive practices. This was then followed by written reporting and interviews with workers, both from the warehouse and from stores. Although terminology like ‘Victorian workhouse’ and ‘Gulag’ is sensationalist and unwarranted, Sports Direct was forced to respond to the claims in a bid to limit… Read more

Pack your bags: England joins other UK nations in ending free plastic bags with caveats

MarketLine

England has become the final part of the UK to introduce a charge for plastic carrier bags in a bid to slash the 7.6 billion handed out annually. However, several caveats and exemptions may stifle the scheme’s success compared to other parts of the UK. Although some retailers (such as M&S and the German discounters Aldi and Lidl) have already introduced plastic bag charges, the government has moved to employ a strategy used in Scotland, Wales, and Northern Ireland which has reduced consumption of plastic bags dramatically. The 7.6 billion… Read more

Clothing retailer Gap’s expansion in India

MarketLine

Gap was founded in 1969 in San Francisco. The company’s products are sold under the Gap, Banana Republic, Old Navy, Piperlime, Athlete and Intermix brands. Gap has long been seen as the go- to- for young adults seeking affordable fashion. As explored in the MarketLine Case Study ‘The Gap, Inc. Strategies for a turnaround’ (Advantage subscribers click here to view the report or here for non-subscribers) the company has outlined a number of turnaround strategies including expansion in Asia, following volatile market growth in its domestic market for most of the… Read more

Spieth Masters win great news for Under Armour

MarketLine

Jordan Spieth’s record-laden charge to Masters victory has made front and back page news and Under Armour is basking in the 21 year old Texan’s reflective glory. On his way to a joint tournament record 18 under par, Spieth broke record after record: best 36 and 54 hole scores in Masters history; most birdies ever recorded at one Masters; only man to ever reach 19 under par at The Masters; first wire-to-wire winner since 1976. The list goes on. If Spieth was the happiest man in the US on Sunday… Read more

Good business: can clothing supply chains be managed ethically?

MarketLine

In April 2013, the Rana Plaza building in Bangladesh collapsed with the loss of 1,129 lives, mainly of apparel manufacturing workers. The proximate cause was that four extra floors had been built without a permit, and that a building designed for shops and offices was being used as a factory. But the collapse was an extreme example of the poor conditions suffered by all too many garment workers in low-wage countries. The cutting and sewing of clothes is labor intensive and difficult to automate, so wages loom large in the… Read more

Pinterest: social network drives engagement and sales

MarketLine

Retailers are increasingly using social media to enhance their brands, boost consumer engagement, and drive traffic and sales. Pinterest is a particular area of focus; the social network, founded in 2010, is fairly new and growing fast. The image-based network has been found to generate sales, and retail giants such as Target and Nordstrom have utilized this. Social media is used globally Billions of people around the world use social media, and retailers are increasingly witnessing the benefits of this. A study found that 89% of marketers reported found increased… Read more

Menswear – Industry Analysis

MarketLine

Introduction Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal social status. Demand patterns are susceptible to branding and advertising, which, despite the lack of significant switching costs, tends to weaken buyer power. Industry figures The global menswear market had total revenues of $423.2bn in 2013, representing a compound annual growth rate (CAGR) of 4.8% between 2009 and 2013. The Asia-Pacific and Middle East and African markets showed particularly strong growth, in comparison to Europe over this period, with… Read more

Childrenswear – Industry Analysis

MarketLine

Introduction: The performance of the childrenswear market has been considerably more resilient than that of both the womenswear and menswear markets during the difficult economic climate. Children quickly outgrow clothes and therefore the purchase of new children’s clothing is a necessity, whereas adults can delay the purchase of new clothes for themselves. Industry figures: The global childrenswear market had total revenues of $216.2bn in 2013, representing a compound annual growth rate (CAGR) of 5.5% between 2009 and 2013. The Asia-Pacific and Middle East and African markets showed particularly strong growth,… Read more

Extensive marketing campaigns do little to improve Marks and Spencer’s sales

MarketLine

M&S’, one of the leading apparel retailers in the UK; clothing sales have declined for the 10th consecutive quarter.  As discussed in the MarketLine case study, High street fashion retailers: Survival of the fittest, this was partly because of heavy discounting over the Christmas period. 2014 is also proving to be a difficult year for M&S; the company reported underlying pre-tax profits had dropped by 4% to £623m (approx. $973.9m) in the 52 weeks to March 29 2014. The drop in profits was driven by a 1.4% fall in like… Read more

Womenswear – Industry Analysis

MarketLine

Introduction Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal social status. Demand patterns are susceptible to branding and advertising, which, despite the lack of significant switching costs, tends to weaken buyer power. Industry figures The global womenswear market had total revenues of $638.1bn in 2013, representing a compound annual growth rate (CAGR) of 3.2% between 2009 and 2013. The Asia-Pacific and Middle East and African markets showed particularly strong growth, in comparison to Europe over this period, with… Read more

Marks & Spencer: apparel retail dressed for success?

MarketLine

Marks and Spencer is one of the oldest names on the UK high street, with a reputation among consumers as a dependable but slightly staid retailer, ideal for those middle-aged, middle-income clothes shoppers who don’t want to embarrass their children by dressing inappropriately. But its FY2014 financials released today (May 20) show falling profits, as a core revenue stream continues to perform less strongly than hoped. The company’s two main segments are food and general merchandise, the latter largely apparel plus some homewares. Over the 2012-2014 period, its UK food… Read more

Segmented marketing driving Inditex’s growth

MarketLine

In FY2013 Inditex reported strong like for like sales with an increase of 3%. At the end of FY2013 Inditex had grown its operations to 6,340 stores in 87 markets. Under the company’s segmented marketing strategy, each brand tailors its product offering to separate groups and enables catering for multiple customers, allowing Inditex to maximize its consumer base. Prior to the development of market segmentation, mass marketing was the prevailing method; which meant the same product and marketing mix were offered to all consumers.  Inditex adopted the segmented marketing approach… Read more

England’s new football kit: Fans react with disgust

MarketLine

Yesterday (March 31st), the FA and Nike proudly unveiled the new football kit that will be worn by the England national team at this summer’s World Cup in Brazil, but fan reaction was not what they had been hoping for. The new all white kit, so proudly modelled by Premier League superstars such as Wayne Rooney, Jack Wilshere, Steven Gerrard, and Raheem Sterling, is the second England team strip manufactured by US sportswear company Nike, which pays a reputed £25m (approximately $39.6m) for the privilege of being the team’s exclusive… Read more

The rise of e-commerce in fashion in supermarkets

MarketLine

The increasing popularity of online retail has resulted in an increase in online purchases making it an attractive means for retailers to drive top line growth. Asda has boosted its presence in the online marketplace with its website direct.asda.com which offers a wide range of products including its own clothing brand, George. Asda sells over one million products across ‘Asda Direct’ and ‘George.com’, it can utilize the opportunity to market its presence across the globe through Internet services and increase its customer base. Furthermore, enhancement of the internet service could… Read more

Fashion in supermarkets not supermarket fashion

MarketLine

The UK apparel retail industry has experienced fluctuating levels of low growth in recent years which may potentially make it less attractive to new entrants. During a time of financial crisis and low disposable income, consumers are less likely to buy expensive designer wear. According to British national newspaper, the Telegraph, two-thirds of people reported living on less disposable income than last year (2012), and are trying to stretch out a low monthly expenditure budget of £192 ($304). Supermarkets have been able to establish themselves during the economic downturn by… Read more

Inditex: Global fashion powerhouse

MarketLine

Industria de Diseno Textil SA (Inditex) has become one of the world’s largest fashion retailers. It is headquartered in A Coruna, Spain and primarily operates in Europe. The company is engaged in activities relating to textiles design, production and distribution. The group is structured into more than 100 different companies, all of which operate in the fashion industry. Each of these 100 companies performs a specialized activity. This article analyzes the strategies Inditex has adopted to become one of the world’s leading fashion retailers. Inditex was founded in 1963 by… Read more

US Laundry Care Market: How Leading Manufacturers Can Enhance Perceptions of Value

MarketLine

Even though the US laundry care market is commonly characterized by consumer inertia, the recession did bring about changes in buying behavior as shoppers looked to obtain maximum value for money, and this change is continuing in the post-recessionary market. This article examines that how Procter & Gamble (P&G) and the Dial Corporation have looked to reposition their brands in order to capitalize on these changing buying patterns. Reduced levels of financial wellbeing brought about changes in buying behavior as consumers looked to obtain greater value for money from the… Read more

John Lewis faces backlash after it demands rebate from suppliers despite announcing record profits

MarketLine

The John Lewis Partnership is made up of 84,700 permanent staff, or Partners, who own 39 John Lewis shops and 290 Waitrose supermarkets. The Partners also run a John Lewis e-commerce and catalogue business, a production unit, and a farm. The Partners share in the company’s benefits and profits. On March 7th, the company’s financial results for the year ended 26 January 2013 were released. The release pointed to a company that was outperforming with strong results, even in the current economic climate, when many other companies were struggling to… Read more

Play.com: The Rapid Rise of the Internet Retailer

MarketLine

Play.com, is a Jersey-based, privately owned online retailer. Its main product lines include DVDs, CDs, books, gadgets, video games, DRM-free MP3 downloads, and other electronic products, as well as clothes and accessories. Amongst the largest e-commerce retailers, Play.com was the one recording the most rapid growth, since its establishment in1988. Starting with a focus on selling CDs and DVDs mainly to young, tech-savvy men, the company quickly evolved into one of Europe’s most successful e-commerce retailers. Since the acquisition in second half of 2011, Play.com is a part of Rakuten… Read more

Retail-led Strategy by Burberry to Target High Net Worth Individuals in Asia Pacific

MarketLine

During a dark period for retail – when people have become accustomed to hearing about the struggle of many high end brands unable to win market share from more cautious luxury customers – the news of Burberry’s continuing success leaves some wondering how the company is delivering such a strong performance, with a revenue increase of 35%, 105 new stores added and a productivity boost of 11%. “While the luxury industry faces global challenges in the year ahead, we remain confident in our team’s ability to outperform, underpinned by the… Read more

Sustainable Fashion: A Growing Trend

MarketLine

Sustainable fashion, also known as eco fashion, is part of the larger growing trend of creating more sustainable, environmentally friendly and ethical products. Whilst there is a lack of consensus over definitions, the environmental sourcing and manufacture of materials, reduction of carbon footprint, and safety of consumers and laborers, remain important. Christian Kemp-Griffin, chief mission officer at Edun, an eco-fashion brand that focuses on fair trade for its producers in Africa, says, “Ethical companies make thoughtful decisions and sell product thinking about the people who make the clothes – wages,… Read more

Prada: From Family-Owned Business to Global Luxury Goods Powerhouse

MarketLine

Prada Group (Prada) is one of the world’s leading players in the design, production and distribution of luxury leather goods (including handbags), footwear, apparel, accessories, eyewear and fragrances. The company owns and operates four brands: Prada, Miu Miu, Church’s and Car Shoe. Prada retails its goods through a network of 345 directly operated outlets, 30 franchise stores, and concessions in upscale department stores such as Saks Fifth Avenue (New York), KaDeWe (Berlin) and Harrods (London). The company undertook an Initial Public Offering (IPO) in June 2011 and is now listed… Read more