Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Executive summary
Slow market growth
Over the last few years the clothing and footwear market has been growing as
hypermarkets and global clothing brands offered goods at better pricing
levels. However, the popularity of second-hand clothing stores in Hungary has
slowed down market growth. The global economic crisis, which just started at
the end of 2008 in Hungary also impacted on the consumer demand for clothing
and footwear products. Due to the uncertain economic situation consumer demand
for high end luxury products has slowed considerably.
Significant extension of International Clothing and Footwear Retailers
At the beginning of the review period only a handful of hypermarkets and
clothing and footwear retailers were available in the Hungarian market
nowadays however its number has grown significantly. Global retailers such as
H&M, C&A, Zara, Deichman, Humanic opened stores in Hungary attracting custom
with their value for money approach taking share from traditional, independent
clothing and footwear retailers. Far-Eastern suppliers also exist in the
market offering very low unit price products.
Two-pole clothing market
The Hungarian clothing market has a bipolar feature. Those people with little
or no disposable income tend to purchase Far Eastern low-priced apparel at
indoor and outdoor markets. For these consumers the price is more important
than the quality. In contrast, a number of global, luxury brands have opened
outlets recently in Hungary like Tommy Hilfiger, Roccobarocco, Lacoste, S.
Oliver, Karl Lagerfeld, Hugo Boss and Louis Vuitton. These outlets opened
mainly in the capital Budapest where the living standards are higher than the
rest of Hungary and where many expats and foreigners reside.
International players dominance
The clothing and footwear market has changed significantly. At the beginning
of the review period the apparel market was characterised by lots of small,
independent specialist stores. However, their numbers have decreased in
response to the entry and competition from hypermarkets and global retailers
like H&M, C&A, Zara, Benetton, Humanic or Deichman with their larger product
assortments and affordable unit prices. Luxury outlets also appeared in the
market at the end of the review period.
Strong global affect of financial crisis
The clothing and footwear market in Hungary is forecasted to register a slight
decline in value over 2009 and then a slight increase by the end of 2013.
Disposable income is expected to fall significantly over the forecast period
and this will negatively impact on sector demand. Consumers will postpone
their purchasing to a time when incomes and employment levels begin to rise
again. Manufacturers and retailers are likely to stimulate market growth by
strong product innovation and fierce price competition.
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