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Global Apparel (Part 1): Shifting Distribution Landscape and Market Performance

Global apparel market: $1.7 billion industry in 2012

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2014-02-18 15:36:01 - Global Apparel (Part 1): Shifting Distribution Landscape and Market Performance - a new market research report on

The global apparel market was valued at US$1.7 billion in 2012. Despite ongoing economic uncertainty, value sales registered a robust growth rate of 6% in 2012.

Apparel remains largely a discretionary purchase compared to other consumer goods, making it more prone to economic shocks. The market has shown significant recovery from the 2008/2009 slowdown, with robust growth in emerging markets outshining persistent developed market weakness.

In 2012, this two-speed recovery between emerging and developed markets developed into a three-speed recovery trend. While the North American market is continuing on the recovery path, Western Europe remains severely hit by the Eurozone crisis.

Key Headlines

The global apparel market has been shaped by three contrasting regional movements – robust growth in emerging markets, fragile recovery in



the US, and a sharp slowdown in Western Europe.

As internet retailing grows in importance, the medium has becomes more nuanced. Notable developments include the growth of curation-driven sites, m-commerce, and s-commerce.

With the online channel stealing market share, apparel specialist retailers and department stores have been investing heavily in creating compelling in-store environments and services to rebuild their appeal.

Despite a slowdown in the Chinese economy, Asia Pacific remains the largest regional apparel market. Moving forward, lower tier cities in China and India will hold the key to future growth.

Price sensitivity remains a hallmark of the North American and Western European markets. While economy brands and off-price concepts flourish, other retailers have been harmed by heavy discounting.

Western Europes importance to global apparel sales will decline further, while Asia Pacific will move from strength to strength. The region is forecast to contribute over 70% of absolute value sales growth over 2012-2017.

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