Global Apparel Markets: Business Update, 1st Quarter 2012
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; apparel organisations; company strategies; corporate social responsibility (CSR); financial results; international trade policy; investments; joint ventures, cooperation, licensing and distribution; market forecasts; markets; new stores; and online retailing. Companies, organisations and brands analysed in the reports include Abercrombie & Fitch, Asda, Asos, Azadea Group, Banana Republic, Benetton Group, Clariant International, Cos, Debenhams, Debrus, Edizione, Fast Retailing, Farfetch, Fawaz Al Hokair, FiftyOne, Fung Brands, GAAT, Gap, George at Asda, Gildan Activewear, Glamour Sales Holding (HK), g.u., H&M, Iconix Brand Group, Inditex, the International Apparel Federation (IAF), JC Penney, J Crew, Levi Strauss & Co, Mango, Marimekko, Marks and Spencer (M&S), MH Alshaya, Massimo Dutti, Neiman Marcus Group, the Nordic Initiative Clean and Ethical (NICE), Peacocks, Perry Ellis International, Reliance Brands, SandpiperCI, Sidefame, SM Investments, Softlogic, Sonia Rykiel, Stuttafords, Target, Tesco, The Edinburgh Woollen Mill, TJX Companies, T?rkmen Group, the World Trade Organization (WTO), Uniqlo, United Nations (UN) Global Compact and Zara.
SUMMARY
ACQUISITIONS, DIVESTMENTS AND MERGERS
Edizione, an investment firm owned by the Benetton family, has completed its takeover bid for the Benetton Group
Fung Brands has acquired an 80% stake in Sonia Rykiel
George at Asda has entered into an agreement with T?rkmen Group to acquire the sourcing division of GAAT
Inditex has acquired the Massimo Dutti franchises in Belgium and Portugal
The Edinburgh Woollen Mill has acquired the UK fashion retailer Peacocks in a rescue bid
COMPANY STRATEGIES
JC Penney has unveiled a four-year financial plan for growth and profitability
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Clariant International has received the EU Ecolabel for its Advanced Denim Illustration
Collection
Target has announced a ban on the use of sandblasting during the manufacture of apparel products sold in its stores
United Nations (UN) Global Compact and the Nordic Initiative Clean and Ethical (NICE) have launched the first sector-specific initiative for the global fashion industry
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased but net income fell in 2011/12
Fourth quarter 2011/12
2011/12
Asos: group revenues soared by 45% in the third quarter of 2011/12 thanks to strong international sales
Benetton group: net sales and net income declined in 2011
Gap: net sales fell by 1% and net income by 31% in 2011/12
Fourth quarter 2011/12
2011/12
Gildan Activewear: a net loss was incurred as net sales declined in the first quarter of 2011/12
Outlook
H&M: sales increased by 1% in 2010/11 and by 14% in the first quarter of 2011/12
Fourth quarter 2010/11
2010/11
First quarter 2011/12
New stores
Inditex: net sales and net income increased in 2011/12
Stores
JC Penney: a net loss was incurred in 2011/12 due to restructuring charges and a new pricing and promotional strategy
Fourth quarter 2011/12
2011/12
Levi Strauss & Co: net sales increased by 8% but net income fell by 12% in 2010/11
Fourth quarter 2010/11
2010/11
Marks and Spencer (M&S): total sales rose by 2.4% in the third quarter of 2011/12
Perry Ellis International: total revenues were up by 24% as net income rose by 4% in 2011/12
Fourth quarter 2011/12
2011/12
Outlook
TJX Companies: net income rose by 11% as net sales increased by 6% in 2011/12
Fourth quarter 2011/12
2011/12
INDUSTRY ORGANISATIONS
The International Apparel Federation (IAF) has strengthened its team with three new appointments
INTERNATIONAL TRADE POLICY
The Indian government has approved a bill allowing 100% foreign ownership in single-brand retailing
The World Trade Organization (WTO) has approved a waiver request from the European
Union to grant temporary emergency trade preferences to Pakistan
INVESTMENTS
Farfetch has raised US$18 mn in funding from three investors
JOINT VENTUR ES, COOPERATION, LICENSING AND DISTRIBUTION
Asda has entered into two franchise agreements with Azadea Group and Sandpiperci relating to its George brand
Iconix Brand Group and Reliance Brands have formed a joint venture company in India
Marimekko will enter the Chinese market under a franchise agreement with Sidefame
MH Alshaya has entered into a franchise agreement with Cos
Tesco has entered into a franchise agreement with Fawaz Al Hokair relating to its F&F apparel brand
MARKET FORECASTS
The apparel market in Brazil is set for steady growth between 2011 and 2016
The apparel market in Latin America is set for steady growth between 2011 and 2016
The apparel market in North America is set for marginal growth between 2011 and 2016
MARKETS
EU clothing imports rose by 8.3% in value in 2011
US clothing imports were up in value by 8.8% in 2011
NEW STORES
Debenhams is planning to open a new store in Russia
Fast Retailing has opened its second g.u. flagship store in Tokyo, Japan
Fast Retailing will open its first Uniqlo store in the Philippines
Gap has opened its first two Gap stores in South Africa and is planning to open its first gap stores in Azerbaijan, Georgia and Lebanon
H&M is developing a new chain of stores called & Other Stories
Inditex has opened its first Zara store in Lima, Peru
Inditex has opened a new Zara global voncept dtore in New York City, USA
Mango has opened its first store in Sri Lanka
ONLINE RETAILING
J Crew has opened its online store in an additional 76 countries
Neiman Marcus Group will open an online retail store in China
ACQUISITIONS, DIVESTMENTS AND MERGERS
Edizione, an investment firm owned by the Benetton family, has completed its takeover bid for the Benetton Group
Fung Brands has acquired an 80% stake in Sonia Rykiel
George at Asda has entered into an agreement with T?rkmen Group to acquire the sourcing division of GAAT
Inditex has acquired the Massimo Dutti franchises in Belgium and Portugal
The Edinburgh Woollen Mill has acquired the UK fashion retailer Peacocks in a rescue bid
COMPANY STRATEGIES
JC Penney has unveiled a four-year financial plan for growth and profitability
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Clariant International has received the EU Ecolabel for its Advanced Denim Illustration
Collection
Target has announced a ban on the use of sandblasting during the manufacture of apparel products sold in its stores
United Nations (UN) Global Compact and the Nordic Initiative Clean and Ethical (NICE) have launched the first sector-specific initiative for the global fashion industry
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased but net income fell in 2011/12
Fourth quarter 2011/12
2011/12
Asos: group revenues soared by 45% in the third quarter of 2011/12 thanks to strong international sales
Benetton group: net sales and net income declined in 2011
Gap: net sales fell by 1% and net income by 31% in 2011/12
Fourth quarter 2011/12
2011/12
Gildan Activewear: a net loss was incurred as net sales declined in the first quarter of 2011/12
Outlook
H&M: sales increased by 1% in 2010/11 and by 14% in the first quarter of 2011/12
Fourth quarter 2010/11
2010/11
First quarter 2011/12
New stores
Inditex: net sales and net income increased in 2011/12
Stores
JC Penney: a net loss was incurred in 2011/12 due to restructuring charges and a new pricing and promotional strategy
Fourth quarter 2011/12
2011/12
Levi Strauss & Co: net sales increased by 8% but net income fell by 12% in 2010/11
Fourth quarter 2010/11
2010/11
Marks and Spencer (M&S): total sales rose by 2.4% in the third quarter of 2011/12
Perry Ellis International: total revenues were up by 24% as net income rose by 4% in 2011/12
Fourth quarter 2011/12
2011/12
Outlook
TJX Companies: net income rose by 11% as net sales increased by 6% in 2011/12
Fourth quarter 2011/12
2011/12
INDUSTRY ORGANISATIONS
The International Apparel Federation (IAF) has strengthened its team with three new appointments
INTERNATIONAL TRADE POLICY
The Indian government has approved a bill allowing 100% foreign ownership in single-brand retailing
The World Trade Organization (WTO) has approved a waiver request from the European
Union to grant temporary emergency trade preferences to Pakistan
INVESTMENTS
Farfetch has raised US$18 mn in funding from three investors
JOINT VENTUR ES, COOPERATION, LICENSING AND DISTRIBUTION
Asda has entered into two franchise agreements with Azadea Group and Sandpiperci relating to its George brand
Iconix Brand Group and Reliance Brands have formed a joint venture company in India
Marimekko will enter the Chinese market under a franchise agreement with Sidefame
MH Alshaya has entered into a franchise agreement with Cos
Tesco has entered into a franchise agreement with Fawaz Al Hokair relating to its F&F apparel brand
MARKET FORECASTS
The apparel market in Brazil is set for steady growth between 2011 and 2016
The apparel market in Latin America is set for steady growth between 2011 and 2016
The apparel market in North America is set for marginal growth between 2011 and 2016
MARKETS
EU clothing imports rose by 8.3% in value in 2011
US clothing imports were up in value by 8.8% in 2011
NEW STORES
Debenhams is planning to open a new store in Russia
Fast Retailing has opened its second g.u. flagship store in Tokyo, Japan
Fast Retailing will open its first Uniqlo store in the Philippines
Gap has opened its first two Gap stores in South Africa and is planning to open its first gap stores in Azerbaijan, Georgia and Lebanon
H&M is developing a new chain of stores called & Other Stories
Inditex has opened its first Zara store in Lima, Peru
Inditex has opened a new Zara global voncept dtore in New York City, USA
Mango has opened its first store in Sri Lanka
ONLINE RETAILING
J Crew has opened its online store in an additional 76 countries
Neiman Marcus Group will open an online retail store in China
LIST OF TABLES
Table 1: Brazil: apparel retail sales by type, 2006-16
Table 2: Latin America: apparel retail sales by type, 2011-16
Table 3: North America: apparel retail sales by type, 2011-16
Table 1: Brazil: apparel retail sales by type, 2006-16
Table 2: Latin America: apparel retail sales by type, 2011-16
Table 3: North America: apparel retail sales by type, 2011-16
