The Apparel Industry consists of companies that design and sell clothing, footwear, and accessories. Product categories include everything from basics, such as underwear, to luxury items, for example, cashmere sweaters and alligator-skin handbags. Traditionally, apparel companies were wholesalers, selling large quantities of goods to retailers, which then marked-up items and sold them to consumers at a profit. However, it's become more difficult to draw a line between wholesalers and retailers; most apparel companies now have both types of operations.
By the early 20th century, the industry in the developed world often involved immigrants in "sweatshops", which were usually legal but were sometimes illegally operated. Although globalization saw manufacturing largely outsourced to overseas labor markets, there has been a trend for the areas historically associated with the trade to shift focus to the more white collar associated industries of fashion design, fashion modeling, and retail. Areas historically involved heavily in the "rag trade” include London and Milan in Europe and the SoHo district in New York City.
The garment industry is a major contributor to the economies of many countries. Western Europe and China own over 50% Apparel Industry Market Share. You can find Apparel Industry Market Size, Apparel Industry Market Share, and other trends and statistics below and you can get help with additional Apparel Industry market research here.
The chart shows the Apparel Industry Market Size from 2019 to 2022. In 2019, the size of the Apparel Industry Industry was $850B and is projected to grow 4% in 2020. From 2019 to 2022 the Apparel Industry Industry growth is projected to average 4% per year. Over half of Apparel Industry Market Share is concentrated in Western Europe and China. These estimates were made before the Coronavirus (COVID-19) pandemic. The short term impact of COVID-19 on the Apparel Industry market growth will likely be High because as consumers face the prospect of weeks at home, there has been a huge drop in the demand for apparel. Many brands and retailers have canceled or put orders on hold, or are demanding retroactive price reductions for goods already in production or completed and ready to ship. In some cases, brands have demanded large rebates, even on orders already in transit from the supplier. The long term impact of COVID-19 on the Apparel Industry market growth beyond the COVID-19 pandemic will likely be Medium because, in the long term, the industry will recover at a slow pace, but at a huge cost in price reductions needed to incentivize the demand. Request help with obtaining the source for this data and additional Apparel Industry market research here.
The chart shows the Apparel Industry Market Share in 2019. The Apparel Industry Market is Concentrated among a few regions. The leading Region in the Apparel Industry was Western Europe with 35% market share in 2019, followed by China with 31% Apparel Industry market share, USA with 5% Apparel Industry market share, India with 4.2%, Korea with 4.1%, Turkey with 3.9%, Japan with 3.1%, Arab Countries with 2.9%, Pakistan with 2.4%. Get help with market research for the Apparel Industry market, including the source for this Apparel Industry Market Share chart and other data here.
The apparel market growth is driven by the disposable income and the overall economic well-being of the region, rising per capita income, favorable demographics, and a shift in preference to branded products. The adoption of the luxury lifestyle among consumers has influenced the purchasing power to opt for luxury wear among millennials. The increasing fashion trends coupled with the evolving retail landscape across brands have been the key factor for the booming apparel market despite it already being a mature market. As competition is steep, apparel companies often create alliances to present a stronger front. The growth in online apparel sales is mainly attributed to web-only startups. A boosted exposure to the internet and e-commerce has improved the fashion consciousness and availability of high-end brands and limited edition products. Using influencers has made an impact on how beauty companies market their products and look to increase sales.Access These Reports & More
Apparel Industry is a Mature market composed of a few competitors. Western Europe market share was 35.2% of the Apparel Industry market in 2019. Emerging markets are set to overtake the west in the USD 2.5 trillion fashion industry, where nearly 50% of apparel sales will originate from continents out of Europe and North America. China's market share was 31% of the Apparel Industry market in 2019. The China market is expected to perform better as consumers get used to newer trends in fashion, apparel, and lifestyle. The Chinese apparel market will see a 25% increase in apparel sales in 2019 as compared to only a 3-4% increase in the US apparel market. USA market share was 5% of the Apparel Industry market in 2019. In the US, sportswear drove the overall apparel and footwear sales in 2019. The growth in health awareness and the increase in the adoption of sports and physical activities among consumers drove the growth of sportswear in 2019. India's market share was 4.2% of the Apparel Industry market in 2019. In countries like India and Vietnam, there is a significant lead in terms of labor cost per hour over developed countries like the US and newly industrialized economies like Hong Kong, Taiwan, South Korea, and China.
T4's research team can help you learn more about the Apparel Industry with market analysis, competitive analysis, commercial Due Diligence, and other market research needs. This includes deeper analysis on competitors in the Apparel Industry market, including: Nike, Adidas, Under Armor, PVH, Puma, Anta, VF Corporation, Gap, Columbia Sportswear; research into related topics such as Footwear, Sportswear, Fashion, Accessories, Smartwear, Watches; or additional support in the Apparel Retail Sector or other Sectors. Find more information about T4's services here.