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
Dynamic and promising market
The Polish footwear and clothing market is one of the most dynamic and
promising markets in Europe. Although ranked only 12th position among all
European countries in terms of outerwear consumption, it remains the largest
and the most promising market amongst the new 12 EU countries. Within the last
two years, it experienced double digit sales growth, which reflects the
enormous potential of the Polish market.
Economy growth boosts sales
Despite economic turbulences registered all over the world, Poland has been
quite resistant with its economy remaining in relatively good condition. The
retail market recorded a dynamic growth in 2008 and was not affected by the
global recession. Since EU accession in May 2004, the Polish economy has been
experiencing a dynamic GDP growth of around 6-7%. At the same time the
inflation rate has remained at around 3% while the unemployment rate has
dropped significantly to around 10%, both of which being clear signs that the
Polish economy has been improving steadily. Also, a considerable increase in
the average salary and higher disposable incomes have strengthened consumption
confidence among customers and lead to higher spending, including footwear and
clothing products.
Higher demand for accessories
Clothing accessories experienced the strongest growth during the review
period. Accessories have become a vital part of general outfits and have
started to be considered the best way to express the customers' own style or
emphasis individuality. It is also worth noting that many footwear
manufacturers have successfully extended their brands into the accessories
market as well. What was initially introduced just as an incentive to attract
more consumer traffic into the shops, has now become a vital part of the
overall products offered, mainly due to higher disposable incomes. Customers
are increasingly eager to spend money on fashionable accessories, often out of
an impulsive and unplanned purchases.
A highly fragmented market
The clothing and footwear market is highly fragmented. Although there are two
companies that have won unquestionable leadership, clothing company LPP S.A.
and footwear company NG2 S.A., neither of them managed to attain more than a
five percent share of both the clothing and footwear markets. This situation
is mainly brought about by the successful entry of new, foreign brands, such
as Top Shop, Armani or Kenzo, which clearly show there is still a lot of
available market space for new retailers. In response to that new situation,
key market players have started to merge in order to strengthen their
position, as happened with Vistula and Wólczanka in 2006 or with LPP S.A. and
Artman S.A.
Optimistic prospects for future growth
The global recession, which has spread across all global markets, has not
significantly affected the Polish market. Much as the word "crisis" seems to
be avoided by clothing and footwear companies, most of them admit witnessing
an economy slow down in the last quarter of 2008. However, 2009 started with a
dramatic drop of the Polish currency against the euro and US dollar; this
could harm consumer optimism and dynamic sales in the sector. Despite this,
sales forecasts for the clothing and footwear industry seem to be optimistic.
Most companies forecast slower but still considerable sales growth. The
significant sales increase is expected in 2011 and 2012, due to the European
Football Championship - Euro 2012 - which will be held in Poland and the
Ukraine. It is predicted by the leading clothing and footwear companies that
sportswear and casual items will record the highest sales growth.
| 
View Cart
