Global Apparel Markets: Business Update, 1st Quarter 2011
This report provides an update of business news -- and markets -- in the following categories: acquisitions, divestments and mergers; company strategies; corporate social responsibility (CSR); financial results; joint ventures, cooperation, licensing and distribution; manufacturing facilities; market forecasts; markets; new brands; new stores; online retailing; and research and development (R&D). Companies, organisations and brands analysed in the report include Abercrombie & Fitch, Adidas, A?ropostale, Arvind Mills, Asos, Athleta, Benetton Group, Bosideng International Holdings, Diesel, Esprit, Fast Retailing, Gap, Gildan Activewear, g.u., Hanesbrands, H&M, Inditex, Invista, JC Penney, Keds, Labour Behind the Label, Lanboxing Company, Levi Strauss & Co, Li & Fung USA (LF USA), Marks & Spencer (M&S), Monsoon, Naturally Advanced Technologies (NAT), New Look, Next, Perry Ellis International, Phillips-Van Heusen, Primark, Quiksilver, Reliance Brands, Replay, RMIT University, Sainsbury’s, Sustainable Apparel Coalition, Teijin, Tesco, TJX Companies, USA Legwear, VF Corporation, Worldwide Responsible Accredited Production (WRAP) and Zara.
SUMMARY
ACQUISITIONS, DIVESTMENTS AND MERGERS
Bosideng International Holdings will acquire a 51% share in Lanboxing Company
COMPANY STRATEGIES
JC Penney has unveiled its long-term growth and profitability strategy
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Adidas has unveiled its Environmental Strategy
A group of apparel and footwear organisations and academic experts have established the Sustainable
Apparel Coalition
Esprit has announced a ban on the use of sandblasting in its global production chain
Labour Behind the Label is urging brands and retailers to ban the use of sandblasting in their
manufacturing processes
Teijin has joined the United Nations (UN) Global Compact initiative
Human rights
Labour
Environment
Anti-corruption
Worldwide Responsible Accredited Production (WRAP) has opened a new office in Bangladesh
EVENTS
The first shopping festival in Istanbul, Turkey, has taken place
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased by 18% in 2010/11
Fourth quarter 2010/11
2010/11
Asos: group revenues soared by 55% in the third quarter of 2010/11 thanks to strong international sales
Benetton: net sales were static in 2010 but net income fell
Gap: net income rose by 9% in 2010/11 as net sales increased by 3%
Fourth quarter 2010/11
2010/11
Gildan Activewear: net sales and net earnings reached record levels in the first quarter of 2010/11
Outlook
H&M: sales rose by 7% in 2009/10 but sales fell by 1% in the first quarter of 2010/11
Fourth quarter 2009/10
2009/10
First quarter 2010/11
New stores
Inditex: net sales increased by 13% in 2010/11 while net income soared by 32%
Stores
JC Penney: total sales rose by just 1% in 2010/11 but net income soared by 55%
Fourth quarter 2010/11
2010/11
Levi Strauss & Co: net income increased by 3% in 2009/10 thanks to a 7% rise in net sales
Fourth quarter 2009/10
2009/10
Marks & Spencer (M&S): total sales rose by 4% in the third quarter of 2010/11 thanks partly to strong
online sales
Perry Ellis International: net income surged by 81% in 2010/11 as total revenues rose by 5%
Fourth quarter 2010/11
2010/11
Outlook
TJX Companies: net income rose by 11% in 2010/11 as net sales increased by 8%
Fourth quarter 2010/11
2010/11
JOINT VENTURES, COOPERATION, LICENSING AND DISTRIBUTION
Li and Fung USA (LF USA) and Keds have signed an exclusive licensing agreement relating to Keds
branded apparel
Naturally Advanced Technologies (NAT) and Hanesbrands have signed a licensing agreement relating
to Crailar fibre
Phillips-Van Heusen (PVH) and Arvind Mills have signed a licensing agreement relating to the IZOD
brand in 14 countries
Phillips-Van Heusen (PVH) and USA Legwear have signed a licensing agreement relating to Van
Heusen branded hosiery
Reliance Brands and Quiksilver have signed a licensing agreement relating to the launch of the
Quiksilver and Roxy brands in Bangladesh, India, Nepal and Sri Lanka
MANUFACTURING FACILITIES
Benetton Group is planning to open a garment manufacturing facility in Serbia
MARKET FORECASTS
Clothing market demand in Asia and Oceania is forecast to grow by 11.5% per annum between 2010 and 2015
MARKETS
Global production of organically grown cotton increased by 15% during the 2009/10 crop year
Sales of apparel in the USA were up in value by 1.9% in 2010
Sales of athletic apparel in the USA increased by 12% in 2010
Athletic apparel
Licensed apparel
Accessories
Innerwear
Outerwear
NEW BRANDS
Invista has introduced its new Lycra Style fibre brand for the ready-to-wear market
NEW STORES
A?ropostale is planning to establish around 25 stores in South-East Asia
Athleta has opened its first store, in San Francisco, USA
Fast Retailing has opened its first g.u. flagship store in Tokyo, Japan
Inditex will open a flagship Zara store in New York, USA
ONLINE RETAILING
Two of Gap's online stores will deliver to an additional eight European countries
Inditex's online Zara store is now open to consumers in 16 European countries
RESEARCH AND DEVELOPMENT (R&D)
Adidas and RMIT University have set up a Sustainable Manufacturing research project
ACQUISITIONS, DIVESTMENTS AND MERGERS
Bosideng International Holdings will acquire a 51% share in Lanboxing Company
COMPANY STRATEGIES
JC Penney has unveiled its long-term growth and profitability strategy
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Adidas has unveiled its Environmental Strategy
A group of apparel and footwear organisations and academic experts have established the Sustainable
Apparel Coalition
Esprit has announced a ban on the use of sandblasting in its global production chain
Labour Behind the Label is urging brands and retailers to ban the use of sandblasting in their
manufacturing processes
Teijin has joined the United Nations (UN) Global Compact initiative
Human rights
Labour
Environment
Anti-corruption
Worldwide Responsible Accredited Production (WRAP) has opened a new office in Bangladesh
EVENTS
The first shopping festival in Istanbul, Turkey, has taken place
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased by 18% in 2010/11
Fourth quarter 2010/11
2010/11
Asos: group revenues soared by 55% in the third quarter of 2010/11 thanks to strong international sales
Benetton: net sales were static in 2010 but net income fell
Gap: net income rose by 9% in 2010/11 as net sales increased by 3%
Fourth quarter 2010/11
2010/11
Gildan Activewear: net sales and net earnings reached record levels in the first quarter of 2010/11
Outlook
H&M: sales rose by 7% in 2009/10 but sales fell by 1% in the first quarter of 2010/11
Fourth quarter 2009/10
2009/10
First quarter 2010/11
New stores
Inditex: net sales increased by 13% in 2010/11 while net income soared by 32%
Stores
JC Penney: total sales rose by just 1% in 2010/11 but net income soared by 55%
Fourth quarter 2010/11
2010/11
Levi Strauss & Co: net income increased by 3% in 2009/10 thanks to a 7% rise in net sales
Fourth quarter 2009/10
2009/10
Marks & Spencer (M&S): total sales rose by 4% in the third quarter of 2010/11 thanks partly to strong
online sales
Perry Ellis International: net income surged by 81% in 2010/11 as total revenues rose by 5%
Fourth quarter 2010/11
2010/11
Outlook
TJX Companies: net income rose by 11% in 2010/11 as net sales increased by 8%
Fourth quarter 2010/11
2010/11
JOINT VENTURES, COOPERATION, LICENSING AND DISTRIBUTION
Li and Fung USA (LF USA) and Keds have signed an exclusive licensing agreement relating to Keds
branded apparel
Naturally Advanced Technologies (NAT) and Hanesbrands have signed a licensing agreement relating
to Crailar fibre
Phillips-Van Heusen (PVH) and Arvind Mills have signed a licensing agreement relating to the IZOD
brand in 14 countries
Phillips-Van Heusen (PVH) and USA Legwear have signed a licensing agreement relating to Van
Heusen branded hosiery
Reliance Brands and Quiksilver have signed a licensing agreement relating to the launch of the
Quiksilver and Roxy brands in Bangladesh, India, Nepal and Sri Lanka
MANUFACTURING FACILITIES
Benetton Group is planning to open a garment manufacturing facility in Serbia
MARKET FORECASTS
Clothing market demand in Asia and Oceania is forecast to grow by 11.5% per annum between 2010 and 2015
MARKETS
Global production of organically grown cotton increased by 15% during the 2009/10 crop year
Sales of apparel in the USA were up in value by 1.9% in 2010
Sales of athletic apparel in the USA increased by 12% in 2010
Athletic apparel
Licensed apparel
Accessories
Innerwear
Outerwear
NEW BRANDS
Invista has introduced its new Lycra Style fibre brand for the ready-to-wear market
NEW STORES
A?ropostale is planning to establish around 25 stores in South-East Asia
Athleta has opened its first store, in San Francisco, USA
Fast Retailing has opened its first g.u. flagship store in Tokyo, Japan
Inditex will open a flagship Zara store in New York, USA
ONLINE RETAILING
Two of Gap's online stores will deliver to an additional eight European countries
Inditex's online Zara store is now open to consumers in 16 European countries
RESEARCH AND DEVELOPMENT (R&D)
Adidas and RMIT University have set up a Sustainable Manufacturing research project
LIST OF TABLES
Table 1: Asia and Oceania: clothing market demand, selected markets, 2006-15
Table 1: Asia and Oceania: clothing market demand, selected markets, 2006-15
