Global market review of swimwear and beachwear - forecasts to edition

Transcription

1 Global market review of swimwear and beachwear - forecasts to edition

2 Page i Global market review of swimwear and beachwear forecasts to st edition by Malcolm Newbery May 2005 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: +44 (0) Fax: +44 (0) Web: Registered in England no:

3 Page ii Single-user licence edition This report is provided for individual use only. If you would like to share this report with your colleagues, please order additional copies or sign up for a multi-user licence by contacting. Rebecca Rice Research manager, just-style.com Tel: +44 (0) Fax: +44 (0) rebecca.rice@just-style.com Copyright statement 2005 All content copyright Aroq Limited. All rights reserved. This publication, nor any part of it, may be copied, reproduced, stored in a retrieval system, or be transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of Aroq Limited. This report is the product of extensive research work. It is protected by copyright under the Copyright, Designs and Patents Act Aroq Limited offers a reward of 1,000 for information leading to the successful prosecution for illegal copying of this document. The authors of Aroq Limited research reports are drawn from a wide range of professional and academic disciplines. The facts within this report are believed to be correct at the time of publication but cannot be guaranteed. All information within this study has been reasonably verified to the author s and publisher s ability, but neither accept responsibility for loss arising from decisions based on this report.

4 Page iii Table of contents Single-user licence edition... ii Copyright statement... ii Table of contents... iii List of tables... vi List of figures... vii Acknowledgements... ix just-style.com membership... x Chapter 1 - Executive summary... 1 Serious about sport and serious about fashion... 1 How many swimsuits in a woman s wardrobe?... 1 The world swimwear and beachwear market The haves and the have nots of swimwear... 2 The world swimwear and beachwear market Wealth, climate and religion... 3 The Western European demographic timebomb... 4 The swimwear supply chain... 5 Brand price points...5 Company and brand market positions... 6 Swimming into an uncertain future... 6 Chapter 2 - Introduction... 8 Serious about sport, or serious about fashion?... 8 Report coverage... 8 Chapter 3 - The market Swimwear and beachwear for serious sport and serious fashion How many swimsuits does a woman need? Market estimate data The world swimwear and beachwear market Regional swimwear and beachwear markets Swimwear and beachwear markets in US$ by region Swimwear and beachwear markets in units by region Swimwear and beachwear US$ values within the rest of the world The world swimwear and beachwear market in US$ in Swimwear and beachwear markets in US$ by region Swimwear and beachwear markets in US$ and units The swimwear and beachwear markets in US$ and units within the Rest of the World

5 Page iv Price changes in regions and sub-regions Forecast summary Chapter 4 - The European swimwear time bomb Swimming against the European demographic tide European demographics Retail competition Holidays outside Europe How to excite an aging market? What s new? Chapter 5 - Supply and distribution...46 Retailers, brands and no-name merchandise A supply chain with blurred edges Estimates of the value of supply Added value in the supply chain Imports and exports Price and fashionability Chapter 6 - Company profiles Warnaco...59 The company and its market positioning The company and its brand offers La Perla (Malizia) The company and its market positioning The company and its brand offers Jantzen The company and its market positioning The company and its brand offers Speedo The company and its market positioning The company, its brand and technical attributes Gottex The company and its market position The company and its brand offers Eveden The company and its market position The company and its brand offers TYR The company and its market position The company and its brand technology O Neill The company and its market position Seaspray...72 The company and its market position The company and its brands Chapter 7 - Swimming into an uncertain future The swimwear and beachwear market worldwide... 74

6 Page v The best growth prospects within the world Alternative scenarios Online sources of information Free newsletters Other research reports Global news and feature articles Search the web Your feedback... 81

7 Page vi List of tables Table 1: Estimated average prices for swimwear and beachwear, by region Table 2: Swimwear market 2003 and 2012, Western Europe and Rest of World... 4 Table 3: Exchange rates used in this report...16 Table 4: Estimated average prices for swimwear and beachwear by region, Table 5: Regional consumption per person per year (numbers of garments) Table 6: Consumption of swimwear & beachwear, and population, in sub-regions of the rest of the world, Table 7: The Western European problem: swimwear & beachwear market 2003 and 2012 (m's of units)...29 Table 8: The Western European problem: swimwear & beachwear market 2003 and 2012 (US$m value) Table 9: Rest of the world percentage price increases and mid-point US$ prices, 2003 to Table 10: Swimwear & beachwear unit volumes (millions), Western Europe and the Rest of the World, 2003 and Table 11: Swimwear & beachwear US$ (millions) market values, Western Europe and the Rest of the World, 2003 and Table 12: Swimwear & beachwear US$ at average retail prices, Western Europe and the Rest of the World Table 13: Clothing Inflation UK 1994 to Table 14: Added value in the supply chain Table 15: just-style's swimwear & beachwear product pricing onion... 54

8 Page vii List of figures Figure 1: Swimwear & beachwear consumption (US$m) in the main regional markets, Figure 2: Population (m s) in the main regional markets, Figure 3: Swimwear & beachwear consumption units (m s) in the main regional markets, Figure 4: Value and volume comparisons of swimwear & beachwear between the developed and developing world Figure 5: Swimwear & beachwear market values and volumes per person in sub-regions of the rest of the world Figure 6: World population and world swimwear & beachwear market value (units and US$), percentage growth between 2003 and Figure 7: Main regional swimwear and beachwear markets in US$m, Figure 8: Main regional swimwear & beachwear markets by population (m's), Figure 9: Main regional swimwear & beachwear markets by units (m's), Figure 10: Swimwear & beachwear unit growth % by sub-region of the rest of the world, between 2003 and Figure 11: Swimwear & beachwear US$ value growth % by sub-region of the rest of the world, between 2003 and Figure 12: Swimwear & beachwear unit share % by sub-region of the rest of the world, 2003 and Figure 13: Swimwear & beachwear US$ value share % by sub-region of the rest of the world, 2003 and Figure 14: Retail price changes by major region 2003 and 2012, (US$) Figure 15: Western European % population by age groups, 2003 and Figure 16: Long term enlarged Europe population by age groups 2004, 2012 and Figure 17: The swimwear & beachwear supply chain - producer to consumer Figure 18: just-style's price/fashion matrix for women s one-piece swimsuits Figure 19: Value growth of the global swimwear & beachwear market, as US$ and as an index from 2003 to

9 Page viii Figure 20: Volume growth of the global swimwear & beachwear market, in units from 2003 to Figure 21: World population and world swimwear & beachwear market value (units and US$), percentage growth between 2003 and

10 Page ix Acknowledgements The publishers would like to thank the following for their assistance in compiling this report: Malcolm Newbery, author of this report Pamela Scott, Managing Editor of Underlines magazine Bettina Goebels, of Up & Down Marketing, and writer on the European Bodywear market for Textiles Outlook International Geraldine Crowley of Lejaby (Warnaco) Tracy Lewis of Eveden (Fantasie and Freya) Tricia Jones, Managing Director of Seaspray Susan Mahy of Hornvale (La Perla/Malizia) Pauline Lewis of Alba Associates (Gottex) David Holland of Nylatex

11 Page x just-style.com membership As a 'consumer' of apparel, footwear and retailing research, just-style.com site membership will be especially valuable to you. For just 125 a year (approx* $195/ 175) you will gain access to a growing portfolio of exclusive management briefing reports, and also receive at least 12 new reports for each year you are a member. * Exchange rate correct at time of writing, subject to fluctuation. GBP price correct at time of writing. These reports are between 5,000 and 10,000 words and give you fresh insight into diverse sectors such as maternity wear, designerwear, technology, merchandising optimisation and sourcing. As well as this impressive list of members' only reports, you also gain one year s access to a constantly updated stream of news, feature articles and analysis at Established in 1999, just-style.com has rapidly evolved into the premier source of global apparel news, analysis and data for busy senior executives. In addition, membership gives you full access to four years of news and feature archives, key news headlines from around the web and your own alerting tool AMANDA. In short, a one-stop shop for global apparel, footwear and retailing intelligence. For further details of this month s special joining offer visit

12 Chapter 1 - Executive summary Page 1 Chapter 1 - Executive summary Serious about sport and serious about fashion Swimwear and beachwear apparently polarises into two groups: Serious fashion Serious sportswear In fact, in the view of just-style, there are really four constituencies that are addressed by both the brands, and to a lesser degree by the private labels. They are: 1. Glamorous fashion swimwear as epitomised by La Perla or Gottex 2. Practical fashion swimwear; Catalina, Fantasie or Seaspray 3. Serious performance sportswear; Speedo and Tyr 4. Attitude (surf); O Neill, Quicksilver, Billabong This report from just-style continually refers to these groups. How many swimsuits in a woman s wardrobe? The swimwear brands have an estimate of what the average women will have in her wardrobe. It is quite similar for USA and for Western Europe. The average woman buys 0.6 swimsuits per year. That figure rises to 1 per year for young women. She has in her wardrobe between four and eight outfits, some of which no longer fit, thus encouraging more buying, often on holiday. In this situation, only population growth or fashion needs can drive the volume sales of swimwear. The US population is still growing, but growth is in the less affluent ethnic and geographic areas. The population in Western Europe and in Japan is static or falling. This is a problem for the swimwear sector, which is addressed in this report.

13 Chapter 2 - Introduction Page 8 Chapter 2 - Introduction Serious about sport, or serious about fashion? Swimwear and beachwear polarises into two groups: Serious fashion Serious sportswear In fact, in the view of just-style, there are really four constituencies that are addressed by both the brands, and to a lesser degree by the private labels. They are: 1. Glamorous fashion swimwear as epitomised by La Perla or Gottex 2. Practical fashion swimwear; Catalina, Fantasie or Seaspray 3. Serious performance sportswear; Speedo and Tyr 4. Attitude (surf); O Neill, Quicksilver, Billabong But in reality, the genuinely international brands are using design to address all consumer groups because the serious sports consumer regards the sports styles as fashion. They are also competing with some big-hitting private label retailers, although the brands command the higher ground of the higher price points. The sector is also characterised by purchases made on individual women s preferences for herself and for her family as much as on budgetary and cost reasons. In this, the seventh product sector report from just-style, swimwear and beachwear is reviewed worldwide, providing insightful analysis of an industry that has become global. Report coverage Chapter 3 looks at the swimwear and beachwear market, which is valued for 2003 at US$XX.XXbn. The fundamental marketing issue is the dichotomy between the developed and the developing world. Consequently, the market has been split into the main global developed and developing regions. Forecasts are made for swimwear and beachwear consumption, to 2012.

14 Chapter 3 - The market Page 10 Chapter 3 - The market Swimwear and beachwear for serious sport and serious fashion Most clothing product groups are a mix of fashion and function. Swimwear and beachwear are an opportunity to fuse the two and carry the mix of function and fashion to extremes. Take for example this quote from the Israeli swimwear company Gottex on the subject of what makes a Gottex : Gottex elevates swim and beachwear from being a functional product into a fashion category. We literally put beachwear on the fashion map all over the world. No one else devotes as much time, energy and money on true creation as us. Each print we create is associated with profound cultural influences as well as very innovative and daring technical execution. This makes us different. Every season we are proud to surprise our customers as well as the industry. We don t just design a collection, we create a new concept with love, passion, and the highest standards of quality paying attention to every detail. If that is not being serious about fashion, then what is! But in swimwear and beachwear, it is easy to have a passion for fashion, because, unencumbered by the conventions of clothing that has to conform, swimwear and beachwear can be over the top, regardless of whether it is serious for sport or frivolous for fashion. Especially as far as women are concerned, the product can be worn: To please the wearer (swimwear has regularly been proved by consumer studies to be a personal treat buy) To please someone else (the sex buy factor) To make a serious statement or simply be outrageous on the beach or by the pool, and to be seen as being in fashion But, at the same time, there is a powerful element of function in both men s and women s swimwear. The product has to perform. Performance can mean a number of things, such as:

15 Chapter 4 - The European swimwear time bomb Page 37 Chapter 4 - The European swimwear time bomb Swimming against the European demographic tide In Chapter 3 the stagnating state of the Western European swimwear market was contrasted with the vigorously flowing tide of the Rest of the World. This of course is in terms at first of volume. Table 10 is a reminder of volume losses in Western Europe contrasted with strong volume growth in the rest of the World. Table 10: Swimwear & beachwear unit volumes (millions), Western Europe and the Rest of the World, 2003 and 2012 Volume millions 2003 Volume millions 2012 Volume Growth % Western Europe XXX XXX -X.X% Rest of the World XXX XXX +XX.X% Source: just-style.com But the comparison gets no better if, instead of volume, US$ value is used, as shown in Table 11. Table 11: Swimwear & beachwear US$ (millions) market values, Western Europe and the Rest of the World, 2003 and 2012 US$ millions 2003 US$ millions 2012 US$ Growth % Western Europe XXXX XXXX -X.X% Rest of the World XXXX XXXX +XX.X% Source: just-style.com Western Europe is set for a tough time. The only thing that Western Europe has got in its advantage is high prices, and therefore, presumably, high profits for the manufacturers, wholesalers and retailers. Table 12 is a reminder of current average prices.

16 Chapter 5 - Supply and distribution Page 46 Chapter 5 - Supply and distribution Retailers, brands and no-name merchandise The clothing industry is unlike many others, in that there is a blurring of brand identity. In the automobile industry brands are immediately recognisable, and retailers and distributors sell those brands to consumers. The car is either a Ford or a Toyota. It is not the name of the retailer that happens to sell it. However, in the clothing industry, the consumer has come, particularly in the last sixty years since the Second World War, to accept and to associate ideas about price, quality and reliability of merchandise with the image of the retailer, as much as with the originator of the product. This applies particularly in food supermarketing, and clothing. The consumer buys Walmart, Target or Victoria s Secret in the US. In the UK, they can buy Marks & Spencer, Next or BhS. This is in contradistinction to going to a department store or an independent retailer for a brand. In the UK, Hennes & Mauritz is also a significant player, as well as being dominant in its native Sweden. In France it could be Carrefour; in Germany C & A; in Holland, it could be Hunkemoller. Most of these mass market retailers sell clothing, including swimwear, under their own retail brand, or an own label which has developed the status of a brand. More recently mass-market retailers have carried the same philosophy into electricals, music and computers. This trend and philosophy is important, because it sets a framework in which the consumer decides what brand means in terms of price, fashionability and quality, and what brand they are loyal to. As in most apparel categories, there is also no name anonymous merchandise. Just because it is no name, its volumes and share of any market are generally understated by market research companies. In the UK, for example, for all clothing, it is believed by just-style to constitute X% by volume and X% by value. But anonymous merchandise in the UK is under threat from recognised labels being sold by discount retailers such Matalan, Peacocks and George at Asda (Walmart).

17 Chapter 6 - Company profiles Page 58 Chapter 6 - Company profiles There are many swimwear brands across the world. It is one of the clothing product groups that is not dominated by a few multinationals. Consequently, just-style has chosen to pick a variety of brands to profile, because they illustrate different approaches to the marketing of swimwear. Broadly they fall into three groups: 1. Large companies with a stable of brands designed to appeal to different segments of the consumer market 2. Companies driven by a single product and lifestyle ethic. Most of these are more recent start-ups in the performance swimwear, surf and water sports arenas 3. Smaller niche players The company profiles are: 1. Warnaco 2. La Perla/Malizia 3. Jantzen 4. Speedo 5. Gottex 6. Fantasie 7. Tyr 8. O Neill 9. Seaspray Of the suppliers profiled here, four are from the US, three are from Europe, and one each is from Israel and Australia. Some are privately owned and do not release much financial information. Yet their widespread retail presence and promotional activity indicate their leadership. These profiles concentrate upon: Their marketing and market positioning Their brands and what each brand offers

18 Chapter 7 - Swimming into an uncertain future Page 74 Chapter 7 - Swimming into an uncertain future The swimwear and beachwear market worldwide Of the just-style reports covering product categories to date, this is one of the less optimistic in terms of volume and value growth. As Figure 19 shows, value growth will be sluggish, adding only X.X% to the value of the market over a nine-year period. Figure 19: Value growth of the global swimwear & beachwear market, as US$ and as an index from 2003 to US$ Index US$ growth

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