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
Product coverage
Clothing; Footwear
Executive summary
Strongest increase in retail ever
A strong economic upswing is underway, outpacing the eurozone by a wide
margin. This is mainly due to increasing domestic demand; however growth in
exports is also rising. The strong increase in disposable incomes, spurred by
the Swedish government, facilitated rising consumption. As a result the retail
industry reported record growth in recent year reflecting on all areas of
retail. The positive outlook for the coming years further stimulates optimism
amongst consumers and facilitates further growth.
Continuing growth
The clothing and footwear market for continued its rapid growth in 2006. The
highly expansive economy gave consumers confidence to increase their spending.
Rising disposable incomes boosted consumer expenditure increases even further.
This led to more purchases driving up volumes as well as value sales as
customers are willing to invest more money in fashion. While the clothing
market continues to grow, the pace is slowing slightly.
Shoes worth their money
Footwear on the other hand saw an astonishing increase causing clothes
retailers to venture into this sector. As shoes are considered more of an
investment due to their higher price they are less often subject to impulse
purchases. However the improved personal economy meant that consumers showed a
heightened willingness to invest in shoes, of good quality and en vogue.
Changing demographics challenges market players
As one of the most advanced countries regarding gender equality Sweden has a
high rate of women following a career. University education is also strongly
promoted, leading to entry into the employment market at an older age. As a
result Swedes are starting families rather late, which leads to a delayed baby
boom and an ageing population. However, parents are comparably well off, which
has a positive effect on the market for children' s clothing. Not only are more
products bought for children but their value also increased. This trend offers
great potential for companies operating in this area.
A new focus on fashion
Fashion gained increasing importance in Sweden. Men and children in particular
were increasingly targeted. Media coverage arouses interest among those that
previously were passive. This led not only to increased purchases but also to
more educated consumers, who have higher demands that retailers are eager to
meet. An increasing demand for quality drives prices up and challenges
producers to raise their standards.
An optimistic outlook
Positive economic development is expected to increase further as the
unemployment situation is likely to improve. These are bright prospects for
the market under review offering much potential to market players. The
importance of fashion will only increase as more consumers educate themselves.
Companies that meet consumer demands best are most likely to succeed.
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