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What is the market size and growth potential for men's ties?
Hello! Thanks for your question about the market size and growth potential for men's ties. The short version is that the market size of the men's necktie business in the US is about $700 million in 2017 with an annual growth rate of 7.1 percent between 2017 and 2020. The main reasons for an overall downturn of the necktie industry are the reduction in floor space by retailers, the discomfort experienced by consumers while wearing neckties and the inability of consumers to match their tie to their outfit. Below you will find a deep dive of my findings.
MEN'S TIE INDUSTRY
Ties are accessories worn as a part of men's formal wear. According to a report by WGSN, the neckwear market was valued at $850 million in 2013. According to a report by Statista, in 2017, the total US neckwear market (ties and bow ties) is valued at $812 million with an annual growth rate of 7.1 percent between 2017 and 2020. According to Allyson Lewis, president of The Tie Bar, consumers are buying neckwear either for work or occasions like formal parties and weddings. Niyi Okubuyejo, the founder of the tie brand Post Imperial, believes that more people are purchasing ties either for novelty purposes or they want to look more casual.
Even with a steady demand for neckties, the men's necktie industry is experiencing a downward trend. According to the Menswear Industry's magazine, the market size of necktie business in the US has reduced to about $700 million in 2017 in comparison to the market size of almost $1.2 billion in the 1990's. This downward trend in revenue is also reported by Statista.
There are many reasons why the industry is experiencing a downturn.
* This downward trend is mainly due to the 15-20 percent reduction in floor space by retailers leading to a fall in overall sales.
* A survey by Randa found that 56 percent men find ties uncomfortable leading to only 37 percent of them wearing ties every day.
* Another reason men are not purchasing ties is that 48 percent of them do not know where to purchase ties from and 47 percent find it hard to match their ties with their outfits.
TRENDS:
* Fashion-conscious men are purchasing ties with directional prints and bolder colors as a way of trying out new fabrications and textures. The most popular color is burgundy and the most popular pattern is stripes. According to a survey by Randa, the biggest factor affecting the sale of ties are color (44 percent), fabric (33 percent) and pattern (32 percent).
* Companies are employing “phygital” strategy to attract consumers. These companies are combining their online direct-to-consumer strategies with sales through physical retail spaces. For example, Stoffa hosts a range of pop-up stores around the world in addition to their online store. Almost 80 percent of visitors at the pop-up stores purchase a tie and another 50 percent purchase a tie online after their visit. The Tie Bar is also employing a similar strategy by opening a pop-up store in Chicago where customers can place online orders using the iPads placed inside the store.
* The popularity of skinny, 2 to 2.5 inches wide ties is being replaced by wider ties with a width of 3 to 3.5 inches. This trend can be observed from the ties sold by retailers like J. Crew and Frank & Oak.
OTHER NOTES:
* The top countries in the neckwear industry by revenue are the US ($812 million), UK ($298 million), Germany ($124 million), France ($81 million) and Italy ($67 million).
* The UK neckwear industry is struggling with a growth rate of only 2.7 percent between 2017 and 2020. According to a report by Plimsoll, out of the 53 leading Ties & Neckwear companies in the UK, 8 are in danger, 16 are on the verge of a takeover, 14 are making a loss and 1 is making a loss almost equal to a quarter of its value.
SUMMARY
* According to the Menswear Industry's magazine, the market size of the necktie business in the US is about $700 million in 2017.
* According to a report by Statista, the annual growth rate of the US neckwear (necktie and bow tie) industry is estimated to be 7.1 percent between 2017 and 2020.
* The main reasons for an overall downturn of the necktie industry are the reduction in floor space by retailers, the discomfort experienced by consumers while wearing neckties and the inability of consumers to match their tie to their outfit.
* The main trends in the necktie industry are the popularity of bolder colors and fabrics, the use of a "phygital" strategy and the increasing popularity of wider (3 to 3.5 inches) ties.
* The top countries in the neckwear (necktie and bow tie) industry by revenue are the US ($812 million), UK ($298 million), Germany ($124 million), France ($81 million) and Italy ($67 million).
CONCLUSION
To wrap it up, the market size of the men's necktie business in the US is about $700 million in 2017 with an annual growth rate of 7.1 percent between 2017 and 2020. The main reasons for an overall downturn of the necktie industry are the reduction in floor space by retailers, the discomfort experienced by consumers while wearing neckties and the inability of consumers to match their tie to their outfit. Thanks for using Wonder! Please let us know if we can help with anything else!