Executive Summary - Canadian Women's Fashion Market
The total fashion market in Canada, which comprises numerous segments discussed in detail below, has an annual revenue of $6.812 billion and it is expected to grow at a CAGR of 8.3% between 2019 and 2023. Note that much of the market segmentation data was not publicly available and had to be triangulated from the existing data. In order to maintain a clean executive summary, we have provided all calculations in the attached project document.
- The market size of handbags market in Canada is $1.024 billion, expected to grow at a CAGR of 2.19%.
- A significant number of consumers have shifted to eCommerce, siphoning money away from the brick-and-mortar stores and this, combined with expansion by mass marketers like Walmart, is increasing competition for low- and mid-range products.
- Bentley Leather is Canada’s largest specialty retailer of handbags, luggage, small leather goods and related accessories with over 300 stores.
- Trending design styles for handbags in Canada include Crossbody, Backpack, Bucket Bag, Clutch, Hobo, Duffle, and Saddle; other popular handbag segments include Vegan/Eco-Friendly, Handmade, Ephemeral/Seasonless and the Luxury segment.
- In particular, vegan leather handbags are growing in popularity in Canada with more companies using this textile for their handbags.
Women's Small Leather Goods
- The market size of the women's small leather goods market in Canada is approximately $129.78 million and is estimated to grow at CAGR 8.3% to reach $193.35 billion by 2023.
- Michael Kors, whose products retail from $45 to $250, leads in this market segment in Canada, with other key players including Bentley Leathers and Gucci.
- Michael Kors, established in 1981 and since growing into a global company, generated revenue of USD $1.678 billion in 2018 in North and Latin America; their annual report does not contain sufficient information to determine their Canadian revenue.
- Bentley Leathers began manufacturing leather handbags, luggage, accessories, and small leather goods in 1987 in St. John's, Newfoundland, Canada, going on to become one of the most significant retailer of luggage and travel accessories in Canada, with over 300 stores and generating revenue of USD $203.4 million in 2018.
- Gucci, a subsidiary of Kering which claims to be the Italian pinnacle of craftsmanship and is known for its quality and attention to detail, generated USD $3.4 billion in Q1 2019 alone, of which 21% ($714 million) came from North America (figures for Canada are unavailable).
Women's Scarves, Hats, and Gloves
- The total market size for women's scarves, hats, and gloves in Canada is approximately USD $1.85 billion and is segmented as follows:
- Revenue in the gloves segment in Canada was USD $977 million in 2019 and is projected to grow at a CAGR of 3.7% until 2023.
- Revenue in the shawls and scarves segment in Canada was USD $238 million in 2019 and is projected to grow at a CAGR of 1.1% until 2023.
- Revenue in the hats and caps segment in Canada amounts to USD $599 million in 2019 and is projected to grow at a CAGR of 1.4% until 2023.
- For the overall apparel market in Canada, the market size is estimated to be USD $33.7 billion in 2019, with the largest segment being Women's Apparel with a share of USD $13.5 billion in 2019.
- Stylish hats were a hit accessory in Canada during spring 2019, with domestic brands known to perform well in cold weather. However, the market is highly fragmented in Canada with a range of small and large domestic and global manufacturers, with competition largely based on brand recognition, quality, price, style and functionality.
Women's Hair Accessories
- The women's hair accessories market in Canada is worth $612 million and is growing at a CAGR of 15.2%.
- For comparison, the global hair accessories market size, however, stood at $20 billion in 2018 with North America holding the largest share (over 30%); it is expected to grow to $53.6 billion by 2025.
- This market includes clips and pins, headbands, wigs and extensions, elastics and ties, etc.
- Key players in the global market include J&D Beauty Products, Goody Products, Claire's, LATADA, Conair Corporation, Diana Enterprise North America, and Hairline Illusions.
- Canada's socks market size is $1.057 billion and is expected to grow at a CAGR of 3% between 2019 and 2023.
- The average revenue per person is $28.25, with the average volume of socks per person in the country being 7.17 pairs, with Canada's total volume of socks is anticipated to reach 283.95 million pairs by the year 2023.
- By the year 2024, the global hosiery (including socks, stockings) market for men and women is predicted to amount to 29.5 billion pairs, with socks expected to have the highest growth among both men and women.
- Some key players in the Canadian market include:
- The Great Canadian Sox Shop
- AYK International
- Gildan, which bought the former leading Canadian socks distributor, Doris Inc., for $110 million in 2014.
- Overall, hypermarkets and supermarkets contribute the most to the global socks market revenue, with online sales accounting for only about 10% of revenue.
- The market size of women's loungewear/sleepwear market in Canada was CAD $2.03 billion in 2018 and is growing at a CAGR of 4.54%. Key players include:
- Gap Canada, a fashion "powerhouse" founded in 1969 with its current headquarters in San Francisco, California.
- Simons, founded by Peter Simons in 1840, is one of the biggest online retailers in Canada, with brands that range from sellers of women’s sleepwear to other types of apparel; currently, they have over 2,500 employees.
- Laura Canada, founded in 1930 by Laura Wolstein as a family-owned and operated company, is one of the fastest-growing women’s clothing stores in the region and consists of two brands, Laura and Melanie Lyne. In 2019, they opened five new stores and are scheduled to open six more.
Women’s Travel Accessories
- The market size of the luggage and bags segment, aka travel accessories, in Canada was USD $2,276 million in 2019 and is expected to grow at a CAGR of 1.6% from 2019 to 2023.
- The bags and containers segment alone generated revenue of $631 million in 2017, with an average per capita revenue of $17.26.
- The key players in the handbag, luggage, and accessory stores segment in Canada include Bentley Leathers Inc. and Michael Kors Holdings Limited, with the latter holding 20% of the market.
- The sales of women's clothing and accessories amounts to approximately CAD $3.38 billion in the first quarter of 2019, and includes the following segments:
- Blazers (women & girls) are worth USD $400 million and is experiencing negative growth of -0.4% (CAGR 2019-2023).
- Suits & Ensembles (women & girls) are worth USD $116 million and is also experiencing negative growth of -4% (CAGR 2019-2023).
- Blouses (women & girls) are worth USD $1,775 million and is growing at a CAGR of 1.6%.
- Trousers (women & girls) are worth USD $3,868 million and are growing at a CAGR of 2.7%.
- Dresses & Skirts (women & girls) are worth USD $2,224 million and are growing at a CAGR of 3.2%.