Performance apparel on a fast track for growth?

5 November 2009 | Source: just-style.com

The global economic downturn, coupled with an absence of major sporting events this year, means the performance apparel market is likely to see a "significant and painful" drop in 2009. But despite this short-term slump, the long-term prospects for the sector are good, a new report from just-style has found.

According to the 2009 edition of just-style's 'Global market review of performance apparel - forecasts to 2016,' the falling market will not only hit sales, but also cash flow, business planning and the ability to invest in capital and research and development projects.

The report looks at performance apparel in sportswear (including non-traditional sports/outdoor pursuits such as walking/climbing, mountain biking and skiing) and performance apparel in protectivewear.

It estimates performance apparel in sportswear will be down by US$0.3bn in 2009, which is a 4.6% reduction on 2008 - taking a double hit from lower spending after an Olympics year and the unwillingness of consumers to part with their cash.

Performance apparel in protectivewear, meanwhile, is forecast to be down by US$0.04bn as businesses cut back, which is a drop of 2.4%.

Looking ahead, however, just-style believes that both segments will continue to outperform their larger (parent) product categories, active sportswear and workwear.

The value of the performance sportswear sector will grow across the period 2012-2016 by US$0.80bn, which is a rise of 11.9% - and is significantly higher than the growth rate for the previous four years.

And the performance protectivewear apparel market will grow by US$0.13bn, which is 7.6%, over the same four years.

Technological developments
In times of economic and commercial difficulties, innovation goes 'quiet'.

There is already evidence of this, in the absence of big exhibition stands and groundbreaking technical announcements at Techtextil Frankfurt in June 2009.

However, one exciting area appears to be the remote monitoring of human beings' vital signs.

From a military point of view, this means a soldier's fighting capability. From a patient's point of view, it is how they are recovering or dealing with medication in their homes.

The integration of electronics into textiles also opens new opportunities in the areas of sports, fashion, safety, medicine and healthcare.

Potential applications are entertainment and communication for sport and leisure; safety combined with fashion through integrated LEDs; and the monitoring of physical data in sports and medicine.

The type of garments created include firefighters' equipment with vital sign and global positioning sensors; clothes which monitor the status of an individual's blood pressure, heart rate, stress levels and other signs; and smart bandages, which monitor how a wound is healing.

Commercial consolidation
However, all the technological excitement should not divert the industry from commercial reality, the just-style report says.

The aftermath of the credit crunch will almost certainly be sector consolidation. In the face of economic recession, many medium-sized typical performance apparel companies will merge or be acquired.

Certainly, the next two years could see a flurry of merger and acquisition activity.

Click here for more information on the report 'Global market review of performance apparel - forecasts to 2016.'

View more just-style.com research articles