Global Market Review of Performance Outdoor Apparel – Forecasts to 2018 2012 Edition
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Global market review of performance outdoor apparel – forecasts to 2018 2012 edition Global market review of performance outdoor apparel – forecasts to 2018 2012 edition Author: Writing Solutions Published by just-style.com November 2012 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: +44 (0)1527 573 600 Fax: +44 (0)1527 577 423 Web: www.just-style.com/market-research/ Registered in England no: 4307068 i Single-user licence edition This report is provided for individual use only. If you would like to share this report with your colleagues, please order additional copies or sign up for a multi-user licence by contacting: Claire Cole Research manager, just-style.com Tel: +44 (0)1527 573 738 Email: [email protected] Copyright statement © 2012 All content copyright Aroq Limited. All rights reserved. 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As well as this impressive list of members’ only reports, you also gain one year’s access to a constantly-updated stream of news, feature articles and analysis. Established in 1999, just-style has rapidly evolved into the premier source of global apparel industry news, analysis and data for busy senior executives. For details of the current special joining offer visit: www.just-style.com/offer.aspx *Prices correct at time of publication. iii Table of contents Table of contents List of tables Definition What is performance outdoor apparel? Chapter 1 Introduction Size of the global performance outdoor apparel market Regional overview Import/export Drivers of performance outdoor apparel sales Changing lifestyles New product categories Women driving sales Ageing market Fashion and functionality Chapter 2 United States Size of performance outdoor apparel market The outdoor industry Trends in outdoor recreation Participation New growth areas Tourism Legislation Made in the USA Industry consolidation Major manufacturers Champion Columbia Sportswear Company INVISTA Mountain Equipment Co-Op (MEC) The North Face Patagonia Recreational Equipment Inc (REI) Chapter 3 Asia Pacific Size of performance outdoor apparel market China Market trends Consumption trends Japan South Korea Australia iv Sourcing hotspot New Zealand Major manufacturers Driza-Bone Icebreaker NEPA Speedo Tonton Sportswear Vantage Garment Enterprise (VGE) Chapter 4 Europe Size of performance outdoor apparel market Challenges Regional markets UK France Germany Switzerland Scandinavia Consumption trends Functionality Performance outdoor apparel moving to mainstream Major manufacturers Berghaus Blacks Ellesse Fjällräven Helly Hansen Jack Wolfskin Karrimor Mammut Norrøna Peter Storm Schoeller Textiles Chapter 5 Latin America Size of the market Brazil Protectionism Consumption patterns Major manufacturers Doite Páramo Chapter 6 Future outlook Size of global performance outdoor apparel market by 2018 Future trends Increased competition v R&D focus Re-shoring Impact of fluctuating commodity prices . Adventure travel Emerging markets Future style trends Future technology trends vi List of tables Table 1: Total performance outdoor apparel sales, by major market 2007-2018 (US$bn) Table 2: Total performance outdoor apparel sales, US 2007-2018 (US$bn) Table 3: Outdoor product sales in the United States, January-July 2011 (US$m) Table 4: Columbia Sportswear Company sales, 2009-2011 (US$m) Table 5: Total performance outdoor apparel sales, China & Japan 2007-2018 (US$bn) Table 6: Chinese outdoor products market by sector 2011, (%) Table 7: The numbers of domestic and foreign brands for outdoor products in China, 2009-2011 Table 8: Total performance outdoor apparel sales in Western Europe, by major markets 2007-2018 (US$bn) Table 9: Western European outdoor product sales by segment, 2011 (%) Table 10: Performance outdoor apparel sales in major markets worldwide, 2007-2018 (US$bn) Table 10: Most recognized brands by adventure travellers, 2010 vii Chapter 1 Introduction Table 1: Total performance outdoor apparel sales, by major market 2007-2018 (US$bn) 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F 2018F Total US China Japan Europe Rest of the World Source: just-style, industry interviews Size of the global performance outdoor apparel market Outdoor apparel is the fastest-growing segment of the global sports apparel market. just-style estimates that in 2011, global performance outdoor apparel reached a value of US$xxxx bn, and should grow to a value of US$xxxxbn by 2018. As a whole, the sector weathered the economic recession that began in 2008 relatively well. Europe, however, continued to suffer economically in 2012 as a result of the ongoing Eurozone sovereign debt crisis, which hindered consumer spending across the continent as confidence dwindled. However, we forecast slowing growth in 2012 for Europe rather than a decline, with a return to strength in 2013. One of the strongest areas for growth, going forward, will be China, which benefits from a booming economy, a growing middle-class, and increasing consumer consumption patterns. Regional overview The top three markets for performance outdoor apparel are North America, Europe and Asia, with the US being the single largest and most developed market. Outdoor leisure activities such as hiking, fishing and skiing typically require a great deal of costly additional equipment and accessories as well as the right clothing. As such, the biggest markets for all outdoor goods are those that are affluent and developed and boast of wealth of spectacular natural scenery. Key markets for this sector therefore include Canada, the UK, France, Germany, Scandinavia (particularly Sweden and Norway), Australia and New Zealand. However, Asia is developing fast, driven by rapid economic growth and expanding middles classes in China, South Korea and Hong Kong. Latin America is also a growing market, with Brazil in particular one of the world’s leading emerging markets and an economic powerhouse. Many of its citizens are now wealthy enough to pursue outdoor leisure hobbies and sales of suitable apparel should boom. Mexico, Argentina, Chile and Colombia could also contribute. 1 Chapter 2 United States Table 2: Total performance outdoor apparel sales, US 2007-2018 (US$bn) 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F 2018F US Source: just-style, industry interviews Size of performance outdoor apparel market The performance outdoor apparel market in the US has grown by approximately xx% between 2004 and 2010, and this growth is expected to continue until 2018. According to the US Outdoor Industry Association, the seven-month fall/winter period, which tracks sales between September 2011 and March 2012, saw relatively limited growth with overall outdoor product sales up by xx% to US$xxxxbn. In July 2012, the industry reported sales of US$xxxxxm, compared to US$xxxxbn in June. Meanwhile sales of apparel fell to US$ xxxxxm from US$xxxxxm in June. The outdoor industry Unsurprisingly, the US is one of the largest outdoor industries worldwide. A report commissioned by the Outdoor Industry Association in June 2012 found that the outdoor industry, as a whole, grew by around x % per year between 2005 and 2011, and was the third largest industry in the US, with annual spending (including the manufacture and sale of gear and equipment, tourism spending and industry development) reaching US$xxxbn in direct sales in 2011. In addition, the report was limited to US consumers and so did not take into account foreign and tourist spending on outdoor activities and equipment, suggesting that the actual potential market could be much larger. In total, the economic impact of the outdoor industry is estimated at around US$ xxxtn. Table 3: Outdoor product sales in the United States, January-July 2011 (US$m) January xxxx February xxxx March xxxx April xxxx May xxxx June xxxx July xxxx Source: Outdoor Industry Association 4 Chapter 3 Asia Pacific Table 5: Total performance outdoor apparel sales, China & Japan 2007-2018 (US$bn) 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F 2018F China Japan Source: just-style, industry interviews Size of performance outdoor apparel market The biggest markets for performance outdoor apparel in Asia in terms of value are China and Japan, with US$xxx m and US$xxxm in 2011, respectively.