Global Apparel Markets: Business Update, 2nd Quarter 2011
This report provides an update of business news -- and markets -- in the following categories: acquisitions, divestments and mergers; company restructuring and organisation; corporate social responsibility (CSR); financial results; international trade policy; investments; joint ventures, cooperation, licensing and distribution; labelling; market forecasts; markets; new stores; and online retailing. Companies, organisations and brands analysed in the report include Abercrombie & Fitch, Al Tayer Insignia, American Apparel, Aksal Group, Apranga Group, Asos, Benetton Group, Bloomingdale’s, Bonnie Togs, Carter’s, Cecil Gee, Delta Sport, Diane von Furstenberg, Fast Retailing, Fiba Holding, Fourlis Holdings, Gap, Gildan Activewear, GrupoM, Hampshire Designers, H&M, Inditex, JD Sports Fashion (JD), JC Penney, Kurt Geiger, Levi Strauss & Co, Li & Fung, Loyaltex Apparel, Macy’s, Marimekko, Marinopoulos Group, Marks & Spencer (M&S), Mitsubishi Corporation, Moss Bros Group, New Look, Perry Ellis International, PPR, Prada, PVH Corp, Ram Pacific, Sprinter, The Bay, Fawaz Alhokair Group, International Textile, Garment and Leather Workers’ Federation (ITGLWF), The Jones Group, TJX Companies, Tommy Hilfiger, Tukatech, TVMania, UNICEF, Uniqlo, Volcom, Weihai Dishang Fashion Brands and Zara.
SUMMARY
ACQUISITIONS, DIVESTMENTS AND MERGERS
Carter’s will acquire its Canadian licensee, Bonnie Togs
Inditex has acquired six of its franchised retail brands in Serbia and Montenegro from Delta
Sport
JD Sports Fashion (JD) has acquired Sprinter and Cecil Gee
Li & Fung has acquired three clothing companies
The Jones Group has acquired Kurt Geiger
PPR has acquired Volcom
COMPANY RESTRUCTURING AND ORGANISATION
Gap will merge its international operations into one division based in London, UK
CORPORATE SOCIAL RESPONSIBILITY (CSR)
H&M has published its conscious actions sustainability report for 2010
H&M will launch a children’s wear collection to support its All for Children initiative
Levi Strauss & Co has unveiled new terms of engagement for its suppliers
The International Textile, Garment and Leather Workers’ Federation (ITGLWF) has called
for a global ban on the use of sandblasting in the garment industry
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased by 22% in the first quarter of 2011/12
Asos: revenues rose by 52% in 2010/11 thanks to the continuation of strong international sales
Fourth quarter 2010/11
2010/11
Benetton Group: net sales and net income declined in the first quarter of 2011
Gap: net income and net sales declined in the first quarter of 2011/12
Gildan Activewear: net sales and net earnings reached record levels in the second quarter of 2010/11
Outlook
H&M: sales rose by a marginal 0.5% but gross profit fell by 5.9% in the first half of 2010/11
Second quarter 2010/11
First half of 2010/11
New stores
Inditex: net sales and net income rose in the first quarter of 2011/12
New stores
JC Penney: total sales remained static but net income rose by 7% in the first quarter of 2011/12
Levi Strauss & Co: net sales rose by 8% in the first quarter of 2010/11 but net income
decreased by 28%
Marks and Spencer (M&S): sales rose by 4.2% in the whole of 2010/11
Fourth quarter of 2010/11
010/11
Perry Ellis International: net income increased by 37% in the first quarter of 2011/12 as total
revenues rose by 31%
TJX Companies: net sales grew by 4% but net income fell by 20% in the first quarter of 2011/12
INTERNATIONAL TRADE POLICY
A group of US senators has re-introduced the Save Our Industries Act of 2011 (SAVE ACT)
to the US Senate
India’s Apparel Export Promotion Council (AEPC) has signed a memorandum of
understanding (MOU) with Russian Textile Entrepreneurs
The European Commission has announced a proposal for a reform of its Generalised System
of Preferences (GSP) Scheme
Changes to GSP
Changes to the graduation principle
Changes to the GSP+ scheme
Next step
The European Parliament has supported a decision to grant emergency trade preferences to
Pakistan
Turkey has imposed provisional safeguard duties on imports of woven fabrics and apparel
INVESTMENTS
American Apparel has received US$14.9 mn in investments
JOINT VENTURES, COOPERATION, LICENSING AND
DISTRIBUTION
Fast Retailing and Mitsubishi Corporation will establish a joint venture company in Thailand
Gap and Diane Von Furstenberg will develop a new children’s wear collection for the
GapKids and babyGap brands
GrupoM is using Tukatech software for digital pattern-making, grading and marker-making
Inditex has extended its franchise agreement with Apranga Group relating to four of its
brands, and has signed a new agreement relating to its Massimo Dutti brand
Levi Strauss & Co is planning to introduce its Denizen brand in Mexico and the USA
New Look has entered into a franchise agreement with Fourlis Holdings
PVH Corp and Ram Pacific have signed a licensing agreement relating to the marketing of
the IZOD brand in three countries
PVH Corp and Weihai Dishang Fashion Brands have signed a licensing agreement relating to
the marketing of the IZOD brand in four countries
Prada has signed a distribution agreement with Al Tayer Insignia
Tommy Hilfiger and The Bay have signed an agreement relating to the distribution of Tommy
Hilfiger branded men’s wear in Canada
LABELLING
The European Parliament and the Council of Ministers have approved new textile labelling
rules and have agreed to an update of the EU Clothes Labelling Scheme
MARKET FORECASTS
Clothing market demand in the Americas is forecast to grow by 5.8% per annum between 2010 and 2015
MARKETS
Online clothing sales in the UK increased by 152% between 2005 and 2010
Sales of men’s apparel in the USA increased in value by 12% during December 2010-
February 2011
US clothing imports were up in both value and volume terms during January-April 2011
NEW STORES
Fast Retailing will open its first Uniqlo store in Bangkok, Thailand
Fast Retailing has announced plans to open two Uniqlo stores in New York, USA
Fast Retailing will open its first Uniqlo flagship store in Taipei City, Taiwan
Gap has opened its first Gap store in Ukraine and its first outlet store in Italy, and will open
its first Gap store in Serbia
Gap has opened its first Gap store in Egypt, and will open its first Gap store and Banana
Republic store in Morocco
H&M has opened its first two stores in Croatia
Inditex has opened its first Zara store in Australia
Marks and Spencer (M&S) is planning to open a new store in Paris, France
Tommy Hilfiger has opened a Tommy Hilfiger Childrenswear flagship store in Punjab, India
ONLINE RETAILING
Two online stores belonging to Macy’s are now open to an additional 88 countries
Marimekko has opened its first online store for consumers in the USA
List of tables
Table 1: Americas: clothing market demand, selected markets, 2006-15
Global apparel markets: business update
ACQUISITIONS, DIVESTMENTS AND MERGERS
Carter’s will acquire its Canadian licensee, Bonnie Togs
Inditex has acquired six of its franchised retail brands in Serbia and Montenegro from Delta
Sport
JD Sports Fashion (JD) has acquired Sprinter and Cecil Gee
Li & Fung has acquired three clothing companies
The Jones Group has acquired Kurt Geiger
PPR has acquired Volcom
COMPANY RESTRUCTURING AND ORGANISATION
Gap will merge its international operations into one division based in London, UK
CORPORATE SOCIAL RESPONSIBILITY (CSR)
H&M has published its conscious actions sustainability report for 2010
H&M will launch a children’s wear collection to support its All for Children initiative
Levi Strauss & Co has unveiled new terms of engagement for its suppliers
The International Textile, Garment and Leather Workers’ Federation (ITGLWF) has called
for a global ban on the use of sandblasting in the garment industry
FINANCIAL RESULTS
Abercrombie & Fitch: net sales increased by 22% in the first quarter of 2011/12
Asos: revenues rose by 52% in 2010/11 thanks to the continuation of strong international sales
Fourth quarter 2010/11
2010/11
Benetton Group: net sales and net income declined in the first quarter of 2011
Gap: net income and net sales declined in the first quarter of 2011/12
Gildan Activewear: net sales and net earnings reached record levels in the second quarter of 2010/11
Outlook
H&M: sales rose by a marginal 0.5% but gross profit fell by 5.9% in the first half of 2010/11
Second quarter 2010/11
First half of 2010/11
New stores
Inditex: net sales and net income rose in the first quarter of 2011/12
New stores
JC Penney: total sales remained static but net income rose by 7% in the first quarter of 2011/12
Levi Strauss & Co: net sales rose by 8% in the first quarter of 2010/11 but net income
decreased by 28%
Marks and Spencer (M&S): sales rose by 4.2% in the whole of 2010/11
Fourth quarter of 2010/11
010/11
Perry Ellis International: net income increased by 37% in the first quarter of 2011/12 as total
revenues rose by 31%
TJX Companies: net sales grew by 4% but net income fell by 20% in the first quarter of 2011/12
INTERNATIONAL TRADE POLICY
A group of US senators has re-introduced the Save Our Industries Act of 2011 (SAVE ACT)
to the US Senate
India’s Apparel Export Promotion Council (AEPC) has signed a memorandum of
understanding (MOU) with Russian Textile Entrepreneurs
The European Commission has announced a proposal for a reform of its Generalised System
of Preferences (GSP) Scheme
Changes to GSP
Changes to the graduation principle
Changes to the GSP+ scheme
Next step
The European Parliament has supported a decision to grant emergency trade preferences to
Pakistan
Turkey has imposed provisional safeguard duties on imports of woven fabrics and apparel
INVESTMENTS
American Apparel has received US$14.9 mn in investments
JOINT VENTURES, COOPERATION, LICENSING AND
DISTRIBUTION
Fast Retailing and Mitsubishi Corporation will establish a joint venture company in Thailand
Gap and Diane Von Furstenberg will develop a new children’s wear collection for the
GapKids and babyGap brands
GrupoM is using Tukatech software for digital pattern-making, grading and marker-making
Inditex has extended its franchise agreement with Apranga Group relating to four of its
brands, and has signed a new agreement relating to its Massimo Dutti brand
Levi Strauss & Co is planning to introduce its Denizen brand in Mexico and the USA
New Look has entered into a franchise agreement with Fourlis Holdings
PVH Corp and Ram Pacific have signed a licensing agreement relating to the marketing of
the IZOD brand in three countries
PVH Corp and Weihai Dishang Fashion Brands have signed a licensing agreement relating to
the marketing of the IZOD brand in four countries
Prada has signed a distribution agreement with Al Tayer Insignia
Tommy Hilfiger and The Bay have signed an agreement relating to the distribution of Tommy
Hilfiger branded men’s wear in Canada
LABELLING
The European Parliament and the Council of Ministers have approved new textile labelling
rules and have agreed to an update of the EU Clothes Labelling Scheme
MARKET FORECASTS
Clothing market demand in the Americas is forecast to grow by 5.8% per annum between 2010 and 2015
MARKETS
Online clothing sales in the UK increased by 152% between 2005 and 2010
Sales of men’s apparel in the USA increased in value by 12% during December 2010-
February 2011
US clothing imports were up in both value and volume terms during January-April 2011
NEW STORES
Fast Retailing will open its first Uniqlo store in Bangkok, Thailand
Fast Retailing has announced plans to open two Uniqlo stores in New York, USA
Fast Retailing will open its first Uniqlo flagship store in Taipei City, Taiwan
Gap has opened its first Gap store in Ukraine and its first outlet store in Italy, and will open
its first Gap store in Serbia
Gap has opened its first Gap store in Egypt, and will open its first Gap store and Banana
Republic store in Morocco
H&M has opened its first two stores in Croatia
Inditex has opened its first Zara store in Australia
Marks and Spencer (M&S) is planning to open a new store in Paris, France
Tommy Hilfiger has opened a Tommy Hilfiger Childrenswear flagship store in Punjab, India
ONLINE RETAILING
Two online stores belonging to Macy’s are now open to an additional 88 countries
Marimekko has opened its first online store for consumers in the USA
List of tables
Table 1: Americas: clothing market demand, selected markets, 2006-15
Global apparel markets: business update
