Apparel & Textiles Industry Globalization Continues, 4/27/2007
Globally, the World Trade Organization reports that international trade in apparel totaled $276 billion during 2005 (the latest data available), or about 2.7% of all world merchandise trade. World trade in textiles totaled about $203 billion during 2005, or 2.0% of world merchandise trade. Meanwhile, the manufacture of basic synthetic textiles, such as polyester fabrics, is facing a global manufacturing glut, combined with rising prices of basic materials due to the high cost of petroleum. Demographic changes will offer immense opportunities to U.S. fashion merchandisers. To begin with, the nation's 77 million Baby Boomers are beginning to enter the 60+ age category. As more and more of these people become seniors, their tastes and needs will bring great revenues to savvy apparel sellers. Meanwhile, the rapid growth of ethnic consumer groups in America, Hispanics in particular, will offer superb marketing and product development opportunities. This is an arena where great changes may happen swiftly. Some of the trends driving the changes include:
- Globalization: China Dominates Apparel & Textiles But Its Explosive Growth is Checked.
The U.S. imported $26.01 billion in clothes and textiles from China in 2005, up from $7.44 billion in 1996. In the U.S., a landmark pact was signed in November 2005 and took effect in January 2006. Under this agreement, Chinese textile import growth was capped at between 10% and 15% in 2006; between 12.5% and 16% in 2007; and between 15% and 17% in 2008. The accord effectively replaces the safeguard quotas put into place in mid-2005
- Baby Boomers Dominate the Apparel Market.
Americans aged 55 years or older are the fastest-growing segment of the population. The apparel industry is quickly evolving to meet the needs and tastes of the people in this population segment. Retailer Chico's FAS, Inc. targets older women and if Chico's success is any indication (2006 annual sales reached $1.40 billion), this market is a profitable one.
- Mass Designers and Retailers Speed Up for Fast Fashion.
Several European mass retailers are experimenting with a new business model known as "fast fashion." For these retailers, success comes from designing trendy, inexpensive clothes that mimic high-end fashion and that are delivered to consumers at lightning speed-two to four weeks after conception.
To find out more about these exciting trends and more, check out Plunkett's Apparel & Textiles Industry Almanac 2007, just released, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett's completely up-to-date online database!
About Plunkett Research, Ltd.
Plunkett Research, Ltd. is a leading publisher of complete business research and analysis resources, designed to enable professionals in marketing, research and finance to access complete trends analysis, statistics, technology analysis and financial analysis of the world's most exciting industries. For more information, visit www.plunkettresearch.com, or call 713.932.0000.