Global Apparel Markets: Business Update, 4th Quarter 2011
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; corporate social responsibility (CSR); financial results; international trade policy; joint ventures, cooperation, licensing and distribution; market forecasts; markets; new stores; online retailing; store closures; and textile organisations. Companies, organisations and brands analysed in the reports include Abercrombie & Fitch, Adidas, A?ropostale, American Eagle Outfitters, Apparel Export Promotion Council (AEPC), Arcadia Group, Asos, Benetton Group, Brandix, C&A, China National Textile and Apparel Council (CNTAC), EU TCL Skills Council, Fast Retailing, Fiba Group, Gap, Gildan Activewear, Gores Group, Greenpeace, Hang Ten, H&M, Huntsman Textile Effects, Inditex, International Finance Corporation (IFC), Itierre, JC Penney, KMJ Brand Holdings, Kohl's, Komax, Lenzing, Levi Strauss & Co, Li Ning, Li & Fung, Liz Claiborne, Marni, Marks and Spencer (M&S), MH Alshaya, Nike, Perfect Lead Investments, Pull&Bear, Puma, PVH Corp, Smartfiber, SM Investments, Superior Retail, TJX Companies, Tommy Hilfiger, Tukatech, Uniqlo and Zara.
SUMMARY
ACQUISITIONS, DIVESTMENTS AND MERGERS
A subsidiary of Li & Fung has made a bid to acquire Hang Ten
Liz Claiborne has sold a number of its trademark rights and brands
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Adidas, C&A, H&M, Li Ning, Nike and Puma have pledged to eliminate the use of hazardous chemicals throughout their supply chains and products by 2020
An initiative by International Finance Corporation (IFC) has helped textile factories in
Bangladesh to save US$1 mn and reduce water consumption by 75 mn litres
India’s Apparel Export Promotion Council (AEPC) has launched a new sustainability programme
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased by 21% in the third quarter of 2011/12
Asos: group revenues rose by 49% thanks to strong international sales in the second quarter of 2011/12
Second quarter 2011/12
First half 2011/12
Benetton Group: revenues fell by 1.1% and operating profit by 18.4% in the first nine months of 2011
Gap: net income and net sales fell in the third quarter of 2011/12
Gildan Activewear: net sales increased by 30.6% but net earnings fell by 14.6% in the fourth quarter of 2010/11
Fourth quarter 2010/11
2010/11
Outlook
Inditex: net sales and net income rose by 10% in the first nine months of 2011/12
JC Penney: net income and net sales fell in the third quarter of 2011/12
Levi Strauss & Co: net income rose by 14% as net revenues increased by 9% in the third
quarter of 2010/11
Marks and Spencer (M&S): total sales rose by 2.4% but profit before tax fell by 8.1% in the
first six months of 2011/12
TJX Companies: net income rose by 9% as net sales increased by 5% in the third quarter of 2011/12
Third quarter 2011/12
First nine months of 2011/12
INTERNATIONAL TRADE POLICY
The United States-Korea Free Trade Agreement (KORUS FTA) has met with mixed responses from the textile and apparel industries in the USA
JOINT VENTURES, COOPERATION, LICENSING AND DISTRIBUTION
Brandix has selected Tukatech software for digital pattern-making, grading and markermaking
Huntsman Textile Effects has formed a strategic partnership with the China National Textile and Apparel Council (CNTAC)
Fast Retailing has established a joint venture with SM Investments relating to its Uniqlo brand
Lenzing has entered into an agreement with Smartfiber relating to the production of smartcel and SeaCell fibres
Marni will develop an apparel collection for H&M
Tommy Hilfiger has entered into a licensing agreement with Ittierre relating to Tommy
Hilfiger men’s and women’s apparel
MARKET FORECASTS
The apparel market in Eastern Europe grew by 46.0% between 2005 and 2010 and is set to grow by 68.1% between 2010 and 2015
The apparel market in Western Europe is set to grow by 15.2% between 2010 and 2015
MARKETS
EU clothing imports rose by 12.3% in value in the first nine months of 2011
France’s apparel retail sales fell for the third consecutive year in 2010
US clothing imports were up in value by 10.6% in the first ten months of 2011
NEW STORES
A?ropostale is planning to establish around 30 stores in Turkey
American Eagle Outfitters has opened stores in Jordan, Morocco and Egypt
Fast Retailing has opened its first Uniqlo flagship store in South Korea, and will open two
Uniqlo flagship stores in Japan in 2012
Gap has opened its first Gap store in Chile and its first Gap and Banana Republic stores in
Panama
Gap will open its first Gap and Banana Republic stores in Colombia
Gap has opened its first Gap store in Hong Kong
Inditex has opened its first Zara store in South Africa
Inditex has opened its first Zara store in Taiwan
Pull&Bear has launched its first eco-store in the Netherlands
ONLINE RETAILING
Inditex has launched its online Zara store for consumers in Japan
STORE CLOSURES
Arcadia Group is planning to close around 260 stores in the UK by 2014
TEXTILE ORGANISATIONS
The first European Sector Council on Education, Training and Employment has been
launched for the textile, clothing and leather sectors
ACQUISITIONS, DIVESTMENTS AND MERGERS
A subsidiary of Li & Fung has made a bid to acquire Hang Ten
Liz Claiborne has sold a number of its trademark rights and brands
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Adidas, C&A, H&M, Li Ning, Nike and Puma have pledged to eliminate the use of hazardous chemicals throughout their supply chains and products by 2020
An initiative by International Finance Corporation (IFC) has helped textile factories in
Bangladesh to save US$1 mn and reduce water consumption by 75 mn litres
India’s Apparel Export Promotion Council (AEPC) has launched a new sustainability programme
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased by 21% in the third quarter of 2011/12
Asos: group revenues rose by 49% thanks to strong international sales in the second quarter of 2011/12
Second quarter 2011/12
First half 2011/12
Benetton Group: revenues fell by 1.1% and operating profit by 18.4% in the first nine months of 2011
Gap: net income and net sales fell in the third quarter of 2011/12
Gildan Activewear: net sales increased by 30.6% but net earnings fell by 14.6% in the fourth quarter of 2010/11
Fourth quarter 2010/11
2010/11
Outlook
Inditex: net sales and net income rose by 10% in the first nine months of 2011/12
JC Penney: net income and net sales fell in the third quarter of 2011/12
Levi Strauss & Co: net income rose by 14% as net revenues increased by 9% in the third
quarter of 2010/11
Marks and Spencer (M&S): total sales rose by 2.4% but profit before tax fell by 8.1% in the
first six months of 2011/12
TJX Companies: net income rose by 9% as net sales increased by 5% in the third quarter of 2011/12
Third quarter 2011/12
First nine months of 2011/12
INTERNATIONAL TRADE POLICY
The United States-Korea Free Trade Agreement (KORUS FTA) has met with mixed responses from the textile and apparel industries in the USA
JOINT VENTURES, COOPERATION, LICENSING AND DISTRIBUTION
Brandix has selected Tukatech software for digital pattern-making, grading and markermaking
Huntsman Textile Effects has formed a strategic partnership with the China National Textile and Apparel Council (CNTAC)
Fast Retailing has established a joint venture with SM Investments relating to its Uniqlo brand
Lenzing has entered into an agreement with Smartfiber relating to the production of smartcel and SeaCell fibres
Marni will develop an apparel collection for H&M
Tommy Hilfiger has entered into a licensing agreement with Ittierre relating to Tommy
Hilfiger men’s and women’s apparel
MARKET FORECASTS
The apparel market in Eastern Europe grew by 46.0% between 2005 and 2010 and is set to grow by 68.1% between 2010 and 2015
The apparel market in Western Europe is set to grow by 15.2% between 2010 and 2015
MARKETS
EU clothing imports rose by 12.3% in value in the first nine months of 2011
France’s apparel retail sales fell for the third consecutive year in 2010
US clothing imports were up in value by 10.6% in the first ten months of 2011
NEW STORES
A?ropostale is planning to establish around 30 stores in Turkey
American Eagle Outfitters has opened stores in Jordan, Morocco and Egypt
Fast Retailing has opened its first Uniqlo flagship store in South Korea, and will open two
Uniqlo flagship stores in Japan in 2012
Gap has opened its first Gap store in Chile and its first Gap and Banana Republic stores in
Panama
Gap will open its first Gap and Banana Republic stores in Colombia
Gap has opened its first Gap store in Hong Kong
Inditex has opened its first Zara store in South Africa
Inditex has opened its first Zara store in Taiwan
Pull&Bear has launched its first eco-store in the Netherlands
ONLINE RETAILING
Inditex has launched its online Zara store for consumers in Japan
STORE CLOSURES
Arcadia Group is planning to close around 260 stores in the UK by 2014
TEXTILE ORGANISATIONS
The first European Sector Council on Education, Training and Employment has been
launched for the textile, clothing and leather sectors
LIST OF TABLES
Table 1: Eastern Europe: apparel retail sales by type, 2005-10
Table 2: Western Europe: market size and growth for men’s and women’s apparel, 2005-15
Table 1: Eastern Europe: apparel retail sales by type, 2005-10
Table 2: Western Europe: market size and growth for men’s and women’s apparel, 2005-15
