MarketLine Blog

Posts about Clothing

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

Primark expansion: The impact of Brexit on its profit margins

MarketLine

Primark, first established as Penneys in 1969 now has over 290 stores in Europe and the US collectively. In 2017, AB Foods the parent company of Primark has stated a further 16 Primark stores are to open across Europe and the US. Following the loss of BHS in 2016, a niche in the market was identified, a niche which Primark intends to capitalize on. Primark has been identified as the leading low-cost clothing retailer in recent years competing against the likes of ASDA and H&M. The branches in Europe were… 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

The dichotomy between H&M’s fast fashion business model and sustainable cotton

MarketLine

H&M is a fashion retailer with over 4,000 stores in 61 markets worldwide. The adoption of the fast fashion business model has been key to the company’s huge expansion since 2000. Fast fashion has a four to six week turnaround, much quicker than traditional collections which were released two to four times per year. As a result, clothing is more on-trend but it also more throwaway. The production of clothing has a huge environmental impact, particularly in the case of cotton. Cotton uses a huge amount of fertilizers and pesticides… Read more

Under Armour issues new shares, underlying concerns persist

MarketLine

On March 16, 2016, Baltimore-based performance apparel giant Under Armour announced it was to issue new stock in the form of new Class C shares. The new shares, which do not carry voting rights, became ‘live’ on April 8, effectively halving the share price. These shares are traded under the ticker UA:C, while the Class A shares continue to float under UA on the NYSE. Both classes of these openly-traded shares exist alongside the company’s Class B shares, all of which are beneficially owned by founder and CEO Kevin Plank,… Read more

Adidas and Manchester United: Top of the merchandise league

MarketLine

As explored in the MarketLine case study adidas AG: Bumpy road on Route 2015, adidas invested significant funds to become Manchester United’s official outfitter and merchandiser and so far, it looks a shrewd investment as sales of this season’s kits have broken all records. In July 2014, adidas announced that that it had signed a deal to become the official outfitter and merchandiser to English football club Manchester United, believed to be the best supported in the world. The deal, worth £750m ($1,235m) over 10 years, more than doubled the… 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

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

Record deal reinforces confidence in Manchester United’s global brand

MarketLine

The news that Nike would not be extending its kit manufacturing deal with Manchester United may have come as a disappointment to some fans, but the blow was softened by the swift announcement of a record-breaking new deal with German manufacturer Adidas, starting in the 2015/16 season. Nike has supplied United’s kit for the previous 13 seasons, and some had pointed to their reluctance to extend the deal as evidence of a slump in United’s brand power after a less than impressive showing last season. Indeed, in a statement Nike concluded that… 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

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

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

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

Inditex’s expansion in emerging markets

MarketLine

Industria de Diseno Textil SA (Inditex), founded in 1963 by Amancio Ortega Gaona, opened its first Zara shop in 1975 in A Coruna, Spain. The company is continuing to grow and has now become a leading player in international/ emerging markets. In 2012 new stores were opened in 64 markets, including the initial launches in five countries: Armenia, Bosnia-Herzegovina, Ecuador, Georgia and the Former Yugoslav Republic of Macedonia. Sales rose 16%, with Asia’s share of Inditex’s total revenues growing to 20% from 18%. Inditex’s international success has been driven 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

Inditex: A Trendsetter

MarketLine

Industria de Diseno Textil SA (Inditex) was founded in 1963 by Amancio Ortega Gaona. The group opened its first Zara shop in 1975 in A Coruna, Spain and has now become a renowned apparel retailer around the world. The company has successfully evolved its fashion lines and markets its range of products through eight sales formats: Zara, Bershka, Pull and Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque. According to MarketLine the global apparel retail industry is forecast to grow at a moderate rate representing a compound annual growth… 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