EUROPE: Households Spend Less On Apparel
The French industry textile/apparel industry has been submitted to a delayed, but major, impact generated by a deeply disorganized world market.
In parallel with these events, the growth of textile/apparel consumption which was positive in 1997, 1998 and 1999 exhibited a new gap between the production level and the sales level to the benefit of the important distributors.
Indeed more structural changes appeared in 1999. Drawing profit from its increasingly concentrated buying power - through mergers of central buying offices and mergers of distribution outlets - and from opportunities deriving from competitive offers made attractive through the devaluation of Asian currencies, the large distributors seem to be turning to buying from distant and cheap sources capable of delivering global offers.
The general deflation of consumption prices has considerably eroded the producers' profit margins. The effect was shown in the paper "FRANCE: Exports/Imports Up, But Sales Down" of November 14 where the statistics showed that the value of sales increased only slightly. This reflects that the apparel items were sold at low prices with reduced profit margins.
Another important factor is of course the share devoted to apparel buying by households budget. The figures hereafter for France, as well as fro Germany and Italy for comparison, concerning the share devoted to apparel buying by households show that a structural change has occurred. Household budgets are more readily spent on items such as cars, phones, computers, health, holidays and less for garments. Between 1990 and 1998, France has lost 1.3 per cent, Germany 1.4 per cent and Italy, 0.9 per cent.
Apparel share households' budget
France 5.5% 4.2%
Germany 6.3% 4.9%
By Marc de Laroche
Companies: Gap Inc
Help test our new apparel sourcing tool.
In this, her second report on Thailand's textile industry, Niki Tait looks at projects aimed at preparing Thai manufacturers for the global market and assesses the sector's post-quota future....
Textiles and clothing make up Thailand's largest manufacturing industry, with more than 4,500 factories employing over one million people. The sector accounts for approximately 20 per cent of total em...
Feet are going to be warm and cosy next winter. Fur, both real and synthetic, was all around at the latest GDS shoe fair in Germany, on the inside and outside of shoes as well as boots, writes Penny L...
Apparel giant Gap Inc has published its 2004 social responsibility report, in which it underscores its ongoing commitment to improving conditions in both its own sourcing base and throughout the globa...
Gap Inc yesterday said sales at stores open at least one year were flat in June, ending seven straight months of same-store sales declines....
Business analytics company Appian Analytics Inc has signed an agreement with clothing giant Gap Inc to provide business analytics and reporting services for monitoring performance across Gap brands in...
Apparel giant Gap Inc says it will open two branches of its Banana Republic chain in Tokyo later this summer....
US apparel giant Gap Inc has reported a slump in first-quarter income, after its namesake division saw poor sales of women's spring collections....
- US apparel sector braces for potential cost hikes
- Vietnam grows share of US apparel imports in 2016
- Trade Tracker – Trump's first weeks, Brexit agenda
- Key trade issues facing US textiles and apparel
- Does a hard Brexit mean hard times for UK fashion?
- Bangladesh "high threat" for terrorist activity
- VF Corp sees Q4 and FY earnings tumble
- Sales at US clothing retailers jumped in January
- Ralph Lauren new execs to support Way Forward Plan
- US Q4 in brief – VF Corp, Kate Spade, Rocky Brands
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar