October 19, 2009
Issue 493
just-style.com editor's weekly highlights
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US clothing giant Gap Inc last week revealed a number of new ideas to try to stem slumping sales at its namesake brand and regain market share, including opening its first store in China next year.
The San Francisco based firm is also planning a return to television advertising in November following a two-year absence, as well as expanding its outlet stores, and launching online businesses in Canada and the United Kingdom in 2010. It also said it intends to reduce square footage by 10% over the next five years.
The moves, which were unveiled ahead of a presentation to investors, have been spurred by the success of its Old Navy brand this year, where same-store sales rose 13% in September.
INSIGHT: Gap eyes China, TV ads to regain market share
The UK’s Marks & Spencer has also been hosting its own investor day – where expanding its international operations was also hailed as a “fantastic” opportunity for growth, with plans to build its business in China, India and Eastern Europe in the next few years.
Director Kate Bostock also stuck by the company's clothing strategy and hailed the recent launch of its Indigo brand. She also said the company was looking to maintain its lion's share of the men's wear and women's wear markets in the UK, whilst trying to bring children's wear up to speed as well.
INSIGHT: M&S reinforces strategy for fashion growth
UK: Marks & Spencer eyes further international growth
Retailers can take some comfort from forecasts that suggest apparel is set to be a bright spot in this year's holiday shopping, even though sales will be largely driven by value. But there are also worries that moves by US retail chains to cut back savagely on inventory amid falling consumer spending and the economic downturn could, in fact, be setting them up for trouble in the run-up to the holiday season.
ANALYSIS: Do lean inventories mean retail holiday woes?
US: Apparel set to be a bright spot in holiday spending
More worries for the industry come in the form of the European Commission's reported plans to extend anti-dumping duties against footwear imports from China and Vietnam. The Foreign Trade Association (FTA) has called upon EU member states to reject the proposed 15-month extension to the measures when they meet to make the final decision on the plan later this year.
EUROPE: Reject anti-dumping extension, EU ministers told
EUROPE: Anti-dumping taxes on shoes to continue – reports
Retailers are also coming under renewed pressure to pay a living wage to the workers making their garments. While many firms say they agree in principle with the idea, one of the biggest problems has been trying to put an actual figure on the amount that should be paid. But all this could be about to change with a new Asia Floor Wage campaign that wants to see the equivalent of a $475 a month minimum wage throughout Asia.
ANALYSIS: Asian campaign takes wage talks to the next level
CHINA: Garment exporters baulk at Asian living wage plans
Until next time...
Leonie Barrie, Managing Editor
Web: www.just-style.com
Email: editor@just-style.com
Twitter: juststyle
With the global fashion and apparel industry embracing green practices and responsible commerce, Sri Lanka Apparel shows the way by introducing the world's first ECO-Apparel Plants
- Global market review of active sportswear and athletic footwear – forecasts to 2016
- Global apparel markets: business update, 2nd quarter 2009 (download)
- Leather and Leather Substitute Product Manufacturing in Indonesia (download)
- World Markets for Textile Machinery, 2009: Part 2 -- Woven Fabric Manufacture (download)
- Online clothing retailing: profiles of six companies (download)
- US: Hanesbrands inks plus-size deal with Walmart [MEM]
- ANALYSIS: Do lean inventories mean retail holiday woes? [MEM]
- INSIGHT: M&S reinforces strategy for fashion growth [MEM]
- INSIGHT: Gap eyes China, TV ads to regain market share [MEM]
- US: Textile group calls for wider export financing [MEM]
- US: Apparel set to be a bright spot in holiday spending [MEM]
- US: Retail clothing sales edge up despite overall decline [MEM]
- UK: Mothercare H1 sales up 8% on international growth [MEM]
- BANGLADESH: Diversification helps apparel firms weather slump [MEM]
- INSIGHT: Sizing up the global market [REG]
- US: Timberland cuts emissions but misses renewables goal [MEM]
- UK: N Brown plots US launch as H1 profits rise 13% [MEM]
- EUROPE: Reject anti-dumping extension, EU ministers told [MEM]
- ANALYSIS: Asian campaign takes wage talks to the next level [MEM]
- BANGLADESH: Garment makers launch scheme to boost quality [MEM]
- UK: Cautious reaction to September retail sales upturn [MEM]
- CHINA: Garment makers eye recovery as orders pick up [MEM]
- CANADA: Government plans to drop textile import duties [MEM]
- US: Nike names Michael Spillane as new Converse CEO [MEM]
- JAPAN: Yohji Yamamoto to be sold after bankruptcy filing [MEM]
- SRI LANKA: Apparel exports show signs of recovery [MEM]
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ANALYSIS: Do lean inventories mean retail holiday woes? [MEM]
As consumer spending has fallen amid the economic downturn, US retail chains have cut back savagely on inventory to save cash. An understandable reaction, but one that could spell trouble for suppliers and retailers alike in the run-up to the holiday season, reports Richard Woodard.
- SWEDEN: H&M Q3 profit up 4% despite August slowdown [MEM]
- Retailers and suppliers brace for slow recovery [REG]
- US: Perry Ellis narrows Q2 loss, sees FY profit [REG]
Clothing culture - International designers cut their cloth to suit local tastes
It almost seems common sense to say that an industry providing such a human product as clothing has to take account of cultural sensibilities in target markets. But it is not as simple as that. It’s not only Italians who appreciate Italian suits and shoes. Women worldwide appreciate French couture. And British tailoring has respect far beyond the shores of the UK. But one-size does not fit-all consumers. There are a bewildering variety of body shapes and sizes in different countries, and although respect for Italian design may be universal, some export markets will like certain aspects more than others. The best clothing companies will know how to balance the brand of their design with the need to satisfy local tastes. just-style writers around the world have investigated how they do it.
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