Apparel Market Outlook 2013_ext

7/27/2019 Apparel Market Outlook 2013_ext

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Apparel Market Outlook 2013:

Global & U.S.

Dam Huy Binh (Daniel)

E [email protected]

M (+84) 90 273 6863

Apparel Market Outlook : Global & U.S.
mailto:[email protected]:[email protected]


2/15

GLOBAL APPAREL MARKET OUTLOOK

Subdued medium term GDP growth rate to 2015 for major consumingeconomiesexpected less than by 5%, except China and India

Steadily reducing share of apparel and footwear in household

consumption in EU and in U.S.

Growth rate of apparel market combined by CAGR (Compound Annual

Growth Rate) by 2020:

World : 4%

Japan, EU, US : 2% Brazil, China, India : 8%

Rapid rise of e-Sales

P2Apparel Market Outlook : Global & U.S.


3/15

TOP 15 WORLD FASHION BRANDS BY REVENUE IN 2012

3.48 3.68 3.79 3.80 4.51 4.67 4.766.04

9.7111.83 11.91

15.65 15.8318.82

37.14

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

USD Billion



4/15

2012 GLOBAL APPAREL MARKET SIZE BY REVENUE

WHOLESALES TRADE

51,689

14,109

2,513

2,529

583

21

22

- 10,000 20,000 30,000 40,000 50,000 60,000

Sales Revenue Break

< USD 1M

USD 1M - 5M

USD 5M - 10M

USD 10M - 50M

USD 50M - 500M

USD 500M - 1,000M

USD 1,000M - 10,000M

Worldwide

16,038

4,672

1,052

1,035

257

12

11

- 4,000 8,000 12,000 16,000

Sales Revenue Break

< USD 1M

USD 1M - 5M

USD 5M - 10M

USD 10M - 50M

USD 50M - 500M

USD 500M - 1,000M

USD 1,000M - 10,000M

Worldwide

Mens & Boys Clothing Womens & Childrens Clothing

Worldwide: +163,000 companies Worldwide: +78,000 companies



5/15

2012 GLOBAL APPAREL MARKET SIZE BY REVENUE RETAIL

TRADE

45,995

5,236

393

355

132

17

11

1

0 10,000 20,000 30,000 40,000 50,000

Sales Revenue Break

< USD 1M

USD 1M - 5M

USD 5M - 10M

USD 10M - 50M

USD 50M - 500M

USD 500M - 1,000M

USD 1,000M - 10,000M

> USD 10,000M

Worldwide

139,136

6,440

602

608259

42

30

5

0 50,000 100,000 150,000

Sales Revenue Break

< USD 1M

USD 1M - 5M

USD 5M - 10M

USD 10M - 50M

USD 50M - 500M

USD 500M - 1,000M

USD 1,000M - 10,000M

> USD 10,000M

Worldwid

e

Mens & Boys Clothing Womens & Childrens Clothing

Worldwide: +84,000 companies Worldwide: +224,000 companies



6/15

Rising costs

Raw materials

Wages

Energy

Logistics

Exchange risk

KEY CHALLENGES

In most manufacturing countries, costs (minimum wage,inflation, utility costs, currency exchange) continue to rise

faster than efficiency gains. Our costs have risen

considerably over the years and right now there is more

garment manufacturing supply than demand, which

increases competition

-- Roger Lee, Chief Executive of TAL Group--

We will continue to see big wage pressure in supply

countries. Countries where we operate, or which are

competitive in apparel supply - like China, Vietnam,

Indonesia, Bangladesh, Burma and Cambodia - will all

have double-digit labour cost inflation. This puts extra

pressure on manufacturers because apparel is not

increasing in price in the countries that we sell to.

--Andrew Lo, CEO of Crystal Group(one of Asia's largest

apparel manufacturers, producing more than 230million

garments a year for Victoria's Secret, Levi's, A&F, H&M, M&S,

Uniqlo, JC Penneyand Gap) --

http://www.just-style.com/companies/tal-group_id808http://www.just-style.com/companies/victorias-secret_id492http://www.just-style.com/companies/levis_id42http://www.just-style.com/companies/h-m_id133http://www.just-style.com/companies/m-s_id39http://www.just-style.com/companies/uniqlo_id770http://www.just-style.com/companies/jc-penney_id33http://www.just-style.com/companies/jc-penney_id33http://www.just-style.com/companies/uniqlo_id770http://www.just-style.com/companies/m-s_id39http://www.just-style.com/companies/h-m_id133http://www.just-style.com/companies/levis_id42http://www.just-style.com/companies/victorias-secret_id492http://www.just-style.com/companies/victorias-secret_id492http://www.just-style.com/companies/tal-group_id808http://www.just-style.com/companies/tal-group_id808http://www.just-style.com/companies/tal-group_id808


7/15

Look at how best to capitalize on trade preferences like duty-freearrangements;

Need more hard skill knowledge. Need people that know theprocesses and equipment at ground zero;

Focus on adding value through design, innovation and branding toprotect margins; and the use of technology to integrate themultichannel experience;

Manage inflationary trends: work much closer for the entire supplychain, eliminate waste and improve overall efficiencies

KEY TRENDS IMPACTING GLOBAL APPAREL MARKET



8/15

KEY TRENDS OF GLOBAL APPAREL SUPPLY CHAIN

P8

Consumer

Retailer

Wholesaler

Manufacturer

Consumer

Retailer

Wholesaler

Manufacturer

Consumer

Retailer

Wholesaler

Manufacturer

Past Present Future

More complex

Further pressure on shortened delivery time

Increase number of SKUs and lower order quantities per SKU

Apparel Market Outlook : Global & U.S.


9/15

United States Apparel MarketOpportunities For Vietnam Exporters



10/15

U.S. 2012 IMPORT OF TEXTILE & APPAREL BY SPECIFIC ECONOMY

COUNTRY GROUP

ASEAN,USD 18.5B,

18%

EU,

USD 3.8 B,4%

NAFTA,USD 6.0 B,6%

Rest of theWorld,

USD 72.7 B,

72%

2012 U.S. Import Revenue of Textile & Apparel from Worldwide : USD 100.93 B

Apparel: USD 76.81 B

Non-apparel: USD 24.12 B

B-Billion



11/15

U.S. 2012 IMPORT OF APPAREL & NON-APPAREL BY SPECIFIC

ECONOMY COUNTRY GROUP

ASEAN,

USD 17.3B,

23%

EU,

USD 1,93B,

3%

NAFTA,

USD 4.21B,

5%

Rest of the

World,

USD 53,4 B,

69%

Apparel

ASEAN,

USD 1.16 B,

5%

EU,

USD 1,85B,

8%

NAFTA,USD 1.83B,

7%Rest of the

World,

USD 19.3 B,

80%

Non-Apparel



12/15

U.S. 2012 IMPORT OF TEXTILE & APPAREL BY COUNTRY

China,

USD 40.58 B,

40%

Vietnam,

USD7.66B,

8%

India,

USD 5. 90B,

6%

Indonesia,

USD 5.2 B,

5.2%

Bangladesh,USD 4.6B,

4%

Mexico,

USD4.63 B,

4.8%

Pakistan, USD3.0 B,

3%

Rest of the World,

USD 29.34 B,

29%



13/15

SIZE OF U.S. APPAREL IMPORTERS FOR MERCHANT

WHOLESALES

Total: 1,243 companies Total: 1,622 companies

Mens & Boys Womens & Childrens



14/15

SIZE OF U.S. APPAREL IMPORTERS FOR RETAIL TRADE

Total: 384 Total: 952

Mens & Boys Womens & Childrens



15/15

Sources:

ITMF-International Textile Manufacturers Federation

OTEXA Offices of Textiles & Apparel

D&B HOOVERS


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