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DRIVING Demand for Denim Jeans

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DRIVING Demand for Denim Jeans COTTON INCORPORATED SUPPLY CHAIN INSIGHTS DRIVING DEMAND FOR DENIM JEANS Denim jeans represent an estimated $60 billion global KEY INSIGHTS market1 for retailers, but recent cost-cutting measures (e.g., thinner fabrics, changes in fiber content, etc.) have caused • Cost-cutting measures implemented throughout the supply chain have resulted in avoidable performance issues. significant performance issues and dissatisfaction among • Customer dissatisfaction is the highest when synthetic fibers are consumers. Ownership of denim jeans reached a peak in substituted for cotton in denim jeans. 2005/2006 due to the premium denim trend, which allowed • Consumers are frustrated with jeans fading, shrinking, stretching, shoppers to purchase higher quality jeans at multiple price- and falling apart. points. Following that peak, economic pressures and the fast- • Issues with clothing durability have been noticed most in denim jeans. fashion movement compelled clothing retailers to sacrifice quality and cotton. As apparel prices began to rise at retail, the majority of shoppers indicated that they were paying DENIM JEANS ALLOCATION AT RETAIL DECLINES more for inferior quality and began to scrutinize clothing by Women’s Denim Active Active a different standard–and jeans were no exception. Jeans Pants Shorts Pants Shorts Dresses Skirts 2011-2012 2012-2013* FIERCE COMPETITION Denim jeans can be found in the wardrobes of 96% of U.S. 27% consumers who, on average, own seven pairs. Despite high 25% consumer favor, jeans have lost a significant amount of retail floor space to other bottomswear items like dresses 17% and athletic pants, according to Cotton Incorporated’s Retail Monitor™ Survey. The popularity of women’s dresses has 9% 8% 9% increased in the past five years, while athleticwear’s presence 5% at retail has grown, in recent years, due to its popularity as a -2% -2% +1% +3% +1% multifunctional apparel item among men and women. More than 9 out of 10 consumers report that they wear athletic Men’s Denim Active Active apparel for activities other than exercise. Retailers across Jeans Pants Shorts Pants Shorts Over the past year, the various channels have responded to consumer demand by allocation of adding more fashionable and functional athletic clothing to jeans at retail 38% their product lines, thereby reducing available floor space for has declined due to increases knit tops and jeans. 31% in floor space The competition that denim jeans are facing from for other bottomswear other product categories is intensified by shoppers being categories. disappointed about recent changes in the quality of fabric 14% *Year-ending data: and fiber content of apparel products. The majority of 10% 7% Q1 2011 to Q1 2012 consumers say that clothing purchases do not last as long and Q1 2012 to Q1 -4% (59%) and that the quality of clothing has declined from +2% +1% +1% 2013 last year (52%). Almost three out of four apparel shoppers Cotton Incorporated’s Retail Monitor™ survey INFO: [email protected] lifestylemonitor.cottoninc.com © 2013 SUPPLY CHAIN INSIGHTS DRIVING DEMAND FOR DENIM JEANS (72%) also say that clothing prices have increased since last fibers in their jeans, negative ratings increase nearly four year. Paying more for less does not meet consumers’ value times. Consumers indicate that new fibers do not perform expectations and Cotton Incorporated’s Customer Comment as well as cotton in their jeans and that they are getting less Research™ reveals that dissatisfaction with clothing quality is value for their money. These factors explain why more than the highest for denim jean purchases. Denim jeans accounted 6 out of 10 consumers say they are bothered retailers would for nearly 30% of negative customer ratings–higher than substitute synthetic fibers for cotton in their jeans. any other apparel product studied. In fact, compared to all other clothing categories, customers were most likely to RECOVERY OPPORTUNITIES mention poor quality (25%), disappointment (28%), and With limited disposable income, today’s pragmatic shoppers returns made due to dissatisfaction (28%) in their denim are looking to make an investment in their clothing. When jean reviews. Because consumers have more brand loyalty jeans fail to meet customers’ expectations, they may respond when purchasing jeans, many notice changes in jean quality by purchasing other brands or apparel items. The success of and indicate feeling betrayed by their favorite brand. the 2005/2006 premium denim trend, which contributed to significant increases in jean imports, sales, and consumer PERFORMANCE ISSUES ownership, demonstrates that apparel shoppers desire better The performance issues that customers have experienced quality jeans and will pay more. Addressing common textile in recent denim jean offerings may be hurting the problems to resolve denim jean performance issues and competitiveness and sales of jeans. Customer reviews of providing the proven quality that cotton-rich jeans deliver jeans purchases reveal that fading (23%), shrinking (22%), will be essential to improve jeans sales and to ensure that stretch recovery (19%), wear and tear (16%), and odor jeans remain competitive with other apparel products. (10%) were the top performance issues. Many of these performance problems could have been avoided with proper textile processing, such as the use of better or CUSTOMER COMMENT: DENIM JEANS correctly prepared dyes to avoid fading and heat-setting WOMEN’S DENIM JEANS, FIBER CONTENT: Tencel®/Cotton/ to avoid stretch recovery issues. Performance issues Elastane, PRICE: $245.00, RATING: 1 Star could be motivating consumers to postpone new jean “[Two Brands] are both using Tencel/Lyocell in some of their purchases out of concerns about lower quality options. jeans now. Read the labels & stay away from this fabric if at all Nearly 6 in 10 consumers (58%, up significantly from possible. It is made of wood pulp. This fabric stretches more than 49% last year) say they buy new jeans for need-based Spandex & doesn’t keep it’s shape. I bought my normal size & they reasons (i.e., their old jeans were worn out). While stretched & wrinkled horribly. I will stay with a cotton/spandex keeping costs low is important, customer dissatisfaction, combination from this point forward.” ~Department Store Customer hesitation about purchasing, and resolve never to shop (Posted online February 2013) at a retailer again because of quality concerns clearly outweigh any marginal savings. Consumers are more than twice as likely to rate denim jeans negatively if they experience pilling, READ MORE CUSTOMER COMMENTS ONLINE itching, or durability issues. While durability issues may be linked to improper textile processing, pilling About the Research and itching issues may be the result of blending Cotton Incorporated’s Retail Monitor™ survey is a quarterly retail audit of apparel products at 26 major U.S. retailers, in-store and online. Each year synthetic fibers into jeans. The addition of non- data on over 100,000 apparel products is collected and analyzed. traditional fibers, such as polyester, contribute to Cotton Incorporated’s Customer Comment Research™ includes analysis of over 200,000 customer reviews, posted from 2010 to 2013, on nearly the most problematic jean textile issues and when 25,000 apparel products. consumers notice less cotton and more synthetic External Source: just-style.com1 INFO: [email protected] lifestylemonitor.cottoninc.com © 2013.
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