Blog: High hopes for Hanesbrands
Leonie Barrie | 30 October 2009
Inventory cutbacks by retailers determined not to be stuck with unwanted merchandise eating into gross margins this year have had a decimating impact on the brands and manufacturers who supply them.
But perhaps heeding concerns that merchandise levels at many of the hardest-pressed retailers are now perilously low, and that they need to be ready for the much-anticipated uptick in consumer demand, there are signs that some are re-stocking rather than risking missing out on desperately needed sales.
One supplier that is particularly optimistic about its potential next year is Hanesbrands, which says it has signed distribution deals that should result in 5%, or $200m of sales growth, in 2010.
Target, Walmart, Macy's, Kohl's, Dollar General and JC Penney have all committed to space gains for Hanesbrands’ men's underwear and intimate apparel lines like Bali, Playtex, Hanes and Barely There; while Walmart’s plans to expand the Just My Size brand could provide an extra $75.0m in casualwear sales in 2010, growing to $150.0m over time.
Hanesbrands says the growth is not dependent on an increase in consumer spending, but will come from gains in shelf-space allocation and distribution even if spending patterns continue at today’s recessionary levels.
And it believes the moves endorse its efforts in new-product innovation, such as underwear T-shirts with lay-flat collars, dyed underwear briefs, and briefs with ComfortSoft waistbands.
The company also made the point during a conference call that retailers are now looking for strong national brands with broad appeal to bring people in their stores, instead of a shift towards private label. And it says it has been helped by a strong desire on a lot of retailers' parts to drive moderate-price brands.
All of which seems to fly in the face of conventional wisdom which had retailers seeking out proprietary brands as a point of differentiation.
“Importantly though, retailers aren't looking at this as sort of a short-term reaction to the recession, they're really looking at it as a way to build their business long term,” said chairman and chief executive officer Richard A Noll.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Why collaboration is key to fashion supply chains
- Rana Plaza four years on – Timeline of change
- Industry groups reaffirm commitment to Bangladesh
- Trump and Brexit get a dose of pragmatism
- Where does VF supply chain sit in growth strategy?
- Adidas to digitalise Speedfactory concept
- Nike filed patent for "reinforced denim"
- M&S extends sourcing deal with Lindsey brothers
- US Q1 in brief – Columbia Sportswear, Amazon
- Gap unveils five-year sustainable fibres pledge
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar