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
Clothing and Footwear impacted by the recession
The key trend impacting clothing and footwear sales in the US in 2008 was the
impact of recession on the US. Many consumers stopped shopping or were looking
for deep discounts. During 2008, the housing market collapsed, unemployment
started to rise significantly and consumer confidence fell dramatically. The
downturn of the clothing and footwear industry was being exacerbated by
uninspired fashions in stores. The lack of pressure to conform to one
particular style meant that women did not feel they had to update their
wardrobes..
Consumers unwilling to pay full price
After seeing good growth in 2007, consumers were largely unwilling to pay full
price for products, and retailers obliged by continuing to offer sales.
Despite prolonged sales, US retailers continue to struggle with weak sales.
Retailers are becoming very anxious about how rampant discounts in the last
six months have affected shoppers' psyches and their overall expectations.
Americans are looking to dress up
The "dressing up" trend fuelled sales growth in dresses and skirts and men' s
suits. Dresses are becoming almost a uniform for women whereas men are
ditching casualwear for a more polished look. The emphasis for young females
in dresses is to reveal as much flesh as possible, whereas the shape for the
older market is to emphasise female curves or to hide the female shape
altogether.
Despite their relatively high prices, suits are again becoming something of a
necessity. With unemployment rates climbing, consumers are worried about their
job prospects. As a result, men are ditching the casual Friday look for
dressier apparel. Men, particularly younger ones, wish to look employable and
to ensure they hang on to their jobs are donning suits and ties.
Traditional Players Face New Competition
Both manufacturers and retailers are facing new competitive threats in the US
market. Throughout the early part of the decade, traditional players like
department stores lost share to mass merchandisers such as Wal-Mart and
Target. While both are still significant players in the US clothing and
footwear market, the past few years saw a rise in popularity of specialty
retailers (such as H&M, Zara and Forever 21) that offer more fashionable
clothing at low prices. The success of these retailers offering products under
their own brand names also cut into sales of traditional own-branded retailers
like Gap, and of manufacturers who sell their brands through non-specialty
retail channels. In part due to these changing trends in the market, retailers
are experimenting with merchandise mix and retail formats to offer a new
buying proposition to consumers.
Brighter futures ahead
Sales of clothings are expected to be strong over the forecast period as
people start to recover their financial stability. Manufacturers and retailers
are expected to reduce their level of discount and increase their prices to a
pre-recession level. They are also expected to focus their efforts on meeting
the needs of women aged 35+, who have healthy disposable incomes but are
increasingly dissatisfied with the fashions available to them.
| 
View Cart
