US Fashion Industry Research

Part
01
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Part
01

US Fashion Industry: State of Department Stores

At present, the US clothing stores includes about 95,000 establishments with combined annual revenue of almost $200 billion in 2019.

CURRENT STATE OF FASHION/APPAREL/CLOTHING STORES IN US

OVERVIEW
  • The US clothing store industry includes about 95,000 establishments with combined annual revenue of almost $200 billion.
  • The key US clothing stores include TJX (TJ Maxx, Marshalls), Gap, and L Brands. The US industry is concentrated, with 50 of the largest companies accounting for about 70% of the industry revenue.
  • At present, the U.S. apparel market is the largest in the world, with retail sales regularly exceeding $15 billion on a monthly basis.
  • "In May 2019, U.S. apparel retail store sales amounted to approximately $16.75 billion."
SEGMENTATION :
  • Women clothing stores in the US have had a positive growth in the number of stores. The total number of stores is currently 61,014, with a total revenue of $43 billion.
  • Family clothing stores consist of retail establishments that sell apparel for men, women and children without a clear specialization in gender or age. There are around 49,440 stores with a total revenue of $112 billion.
  • Children clothing stores consists of establishments that specialize in apparel for children under the age of 17. There are around 16,324 stores with a total revenue of $10 billion.

DISTRUPTION IN THE SEGMENT AND WHY

FLUCTUATING DISPOSABLE INCOME
  • The fluctuations in the household disposable income disrupts the demand for clothing. An increase in the per-capital disposable income allows consumers to increase their discretionary spending, including spending on high-end clothing. In 2019, the per-capita disposable income is expected to increase, representing a potential opportunity for the industry.
  • The women clothing stores are facing a potential threat from supercenters and online stores that are consistently providing clothing at a large discount to consumers.
ECOMMERCE
  • The increase in the number of ecommerce players is also disrupting the clothing retail store business, as the percentage of services conducted online is expected to increase in the next few years.
  • Amazon is expected to make a big leap in the apparel market this year, posing a potential threat to the traditional apparel department stores, which are already losing market share.
  • With Amazon's discounts on clothes, "Prime shoppers are now two times more likely than non-Prime shoppers to buy clothes on Amazon.com".
USED CLOTHES MARKET:
  • The used clothes market is expected to reach $24 billion industry, potentially disrupting the major clothing department stores such as Zara and H&M.
  • It is predicted that, "around 13 percent of the clothes in women’s closets are likely to be second hand, up from 6 percent in 2018."
  • "As sustainable fashion becomes a necessity as well as a trend, shoppers are looking to fill their closets in different ways", moving towards second hand apparel, which means that there will be a decline in browsing through thrift stores. This also makes it easier for people to buy and sell used clothing through online sites.

WHERE THE BUSINESS IS GOING AND WHY

  • The US family clothing stores have experienced moderate growth of 0.9% in revenue over the last five years, including a 0.8% growth in 2019 alone.
  • The growth is driven by the emergent trend of luxury malls and specialty clothing stores at the expense of traditional malls with stores such as Sears and J.C. Penny.
  • There has also been a decline in the women's clothing stores segment revenue by 1.4% in the past five years, decreasing to $43.1 billion. The sector has also seen a decline of 1.1% in 2019. The decline is caused by the declining mall traffic and competition from thriving superstore retailers.
  • Children and infant clothing stores have seen a decline in the growth over past five-year1.5% wherein, "while macroeconomic growth has encouraged shoppers to splurge on high-end children's clothing, many apparel purchases have been captured by industries that directly compete for consumer dollars such as online clothing stores.(Source 5)
  • With the growing ecommerce apparel stores, Morgan Stanley is predicting that "department stores will only comprise about 8 percent of the total U.S. apparel market in 2022, compared to 24 percent in 2006".
  • It is predicted that, "by 2028, the used-fashion market [will] skyrocket in value to $64 billion in the U.S., while fast-fashion will only reach $44 billion."


Part
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Part
02

US Fashion Industry: Athleisure Trends

Casualization of workplaces, the sensitivity of the sustainable product, and social media influence on customers expressed by celebrity influence are the three major trends impacting the athleisure fashion market in the United States.

ATHLEISURE TRENDS; US FASHION INDUSTRY

The Casual Workplace Trend

  • More US employers introduce a less formal workplace dress code to make the environment less formal and more productivity-driving for their employees.
  • Although financial institutions are still comparatively conservative, Goldman Sachs and JP Morgan have introduced a less formal dress code already.
  • This trend represents a huge opportunity for activewear brands to attract new customers and more specifically, professionals seeking comfortable athleisure clothing.
  • This workplace dress code trend means the new market audience for the athleisure fashion industry.
  • To incorporate this new trend into their product portfolio, Lululemon created the office, travel, and commute line which offers trend-tailored men and women athleisure clothing.
  • The traditional brand of Levi Strauss is also impacted by the athleisure market growth. CEO Chip Bergh and designers saw the chance to weave in denim style, casual-clothing demand, and comfort-seek into a new product — stretchier and softer jeans pair.
  • The result of this was an estimated $200 million sales increase.
  • Cohen is aware the athleisure clothing has passed from workout only to an adopted way of wearing comfortable and durable fashion.

The Sustainability Streaks

  • The sustainability awareness is a modern attitude of young customers applied to their whole lifestyles like the clothing they buy, thus pushing the manufacturers to introduce eco-friendly technologies and production.
  • Ecologically conscious living drives the athleisure market — especially of luxury brands towards the implication of sustainable materials and collections.
  • As athleisure fashion customers are often devoted to the wellness lifestyle, the incorporation of ethical attitude towards the environment is a brand-promoting factor.
  • The millennials and Generation Z customers are sensitive when it comes to sustainability and brand values.
  • About 85% of these demographics make purchase decisions influenced by brand values.
  • The sustainability trend is currently incorporated by key players Adidas's collection of clothing and footage made of recycled ocean plastics.
  • The technology of recycling used plastics is applied in the production of Teeki's leggings.
  • Bamboo, sustainable material is used by Jilla Active for the production of seam-free athleisure.

Athleisure and Social Media

  • Social media trend involves celebrities and influencers promoting a health-conscious lifestyle like promoting athleisure clothing.
  • Social media trend influences the market for athleisure — celebrities and influencers have high influence over their followers' decisions. Some celebrities start their athleisure brands like Kate Hudson, Khloe Kardashian, and Beyonce.
  • About 38% of millennial and Generation Z customers were reported to be highly influenced by social media on what they buy, the brands they embrace, and their attitude toward athleisure.
  • As the health-conscious lifestyle get trendier by the day, there is a real push on social media active people on how to look properly when sharing photos, videos, and stories.
  • Social media trend makes more people living the health-conscious way of life to invest in athleisure brands caring for their appearance.
  • A real proof is the logomania sub-trend which is getting even hotter in 2019 displaying the label of your athleisure clothing.
  • More athleisure companies use collaboration as a form of reaching their follower's audience like the collaboration of Kelly Rowland & Kate Hudson design and the collaboration for Kate Hudson's Fabletics.
  • Another expected design collaboration is the one of Nike with LA-based designer Eli Russel Linnetz for a capsule collection titled ERL.
  • The collection is expected to be inspired by 90's Pixar movies. Adidas also seems to be keen on collaborating with designers like Alexander Wang and Stella McCartney.
  • Promotion collaboration is also an adopted practice. Reebok has made collaboration with rapper Cardi B to attract the rapper's audience attention towards their nineties apparel.

HELPFUL INSIGHT

Athleisure Place In The Fashion Industry

  • Athleisure has gone a long way from workout-themed clothing to a style encompassing a whole lifestyle's fashion.
  • Today athleisure or activewear in the US is ranging from yoga clothes to specifically designed leisure clothing for a new audience.
  • The athleisure trend is considered by many rather a lifestyle change expressed by clothing — athleisure is supposed to be seen not mainly in the gym, but also workplaces and other venues.
  • The introduction of athleisure is due mainly to the social norms changes in the US in recent years like casualization of work environment and embracing the health-conscious lifestyle.
  • Athleisure is considered to bring more comfort and peace into people's generally hectic lives.
  • Activewear has found its huge place in the fashion industry because of the comfort and the intriguing designs it can offer to modern customers. It is considered to be a key part of the US fashion industry by analysts' reviews of consumer insights.
  • Activewear is the fastest growing section of the US fashion industry with an expected market worth of $547 billion by 2024.
  • Activewear is popular among the consumers not only because of the comfort it provides but also because it puts no boundaries of the age and demographic factor.

Research Strategy

To locate the three major trends impacting the athleisure fashion market in the United States, we began by combing through credible reports from industry expert for precompiled reports regarding the athleisure market in the United States. Our research team defined major trends as trends leading to new designs from manufacturers, trends driving customers purchases, and trends regarding new target audience like eco-conscious buyers. This strategy was successful as we were able to locate the required information. We went further to provide helpful insight regarding athleisure place in the fashion industry in the United States.
Part
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Part
03

US Fashion Industry: Fashion Retail Trends

Some trends impacting the fashion retail market in the United States include the rise of second-hand retail, "digital land" grabbing in the fashion industry, improved on-demand fashion capabilities, and a rise in personalized services.

DIGITAL LAND GRABBING

  • A 2019 McKinsey publication on trends to watch in the fashion industry for 2019 reveals that "digital land grab" will be prevalent in the fashion industry. Brands will seek to grow their dominance of the digital retail space for superior convenience while increasing their segment coverage.
  • E-commerce retailers experience stiff competition from the dominance of Amazon.com Inc. and numerous online rivals such as TJX’s chains. Marshalls, (a TJX chain), has maintained its allure and is set to grab its place in digital (online) retail.
  • TJX is a leading retailer of "off-price apparel and home fashions"in the United States.
  • Companies operating in the fashion industry are using "data analytics at scale" to capture a vital share of the market.
  • Marshalls, a discount store owned by TJX Cos. Inc., known for its random assortments such as clothes and other products is set to go for digital sales.
  • Another company expanding its ground in digital sales is Inditex.
  • Inditex, the owner of Zara, has been thriving in the last decade as several other retailers in the fashion sector have faced dwindling sales or stagnant growth. Inditex has grown by more than 220% in its annual revenue since 2004.
  • Zara is turning the fashion industry on its head through the use of data and analytics to track apparel demand in real-time. Zara has localized analytics to monitor changing inventory levels to respond appropriately to customer demand.
  • Zara's owner, Inditex, has about 100 stores in the United States.
  • The United States marketing analytics market size is $847.81 million and is anticipated to grow with a CAGR of 12.9% between 2019-2024.
  • The use of digital analytics in marketing will be driven by companies which are becoming highly aware of its apparent benefits. Digital analytic eases the strive to retain customers which has "become a necessity" for businesses.
  • United States consumers are expected to spend about $586.92 billion online, representing over one in every ten dollars of their total retail spending. By the year 2023, online spending will hit $969.70 billion per year.
  • The changing macroeconomic landscape of the United States will motivate companies to seek e-commerce solutions/measures to protect themselves from slow growth, thereby implementing "shockproofing." McKinsey refers to these shock proofing measures as digital land grabbing. The primary aim of such actions will be to boost productivity, achieve greater efficiency, and cut costs.

SECOND-HAND RETAIL

  • Apparel and fashion retailers including Zara and H&M, dominate the fast fashion space, with Zara owner Inditex raking a revenue of $3.9 billion in 2018. However, online sales of Inditex increased by 12%. This increase is less than the United States average of 27%, indicative that consumer demand for "brand-new clothing may be waning."
  • By 2028, about 13% of the clothes found in women’s wardrobes would be second-hand, representing an increase of 6% from 2018.
  • People are willing to purchase more second-hand fashion over new clothes. The United States second-hand fashion market was estimated to be worth $24 billion in 2018. Fast-fashion was worth $35 billion in 2018.
  • The leader in the United States upscale resale is The RealReal, which has two stores and a SoHo outlet.
  • In 2019, The RealReal announced a 51% year-over-year growth in revenue while its total revenue for the year was $71.0 million.
  • Another second-hand fashion retailer ThredUp revealed that over half of its retail-resale customers intend to spend more for the next five years. Thredup is altering consumers perception of second-hand clothing purchases.
  • A recent report on the possibility of second-hand fashion supplanting fast fashion within a decade, reveals that ThredUp and The RealReal are making sharp ripples in the space.
  • ThredUp is one of the organizations responsible for about 56 million women that bought second-hand fashion products in 2018. ThredUp experienced an 80% rise in the demand for its "Clean Out Kits," after its first airing of the Marie Kondo's show on Netflix.
  • The headquarters of Thredup is located at San Francisco, United States.
  • The second-hand retail market uniquely satisfies consumers’ preference like variety, value as well as sustainability. Unique satisfaction of consumer preferences will continue to drive "high growth" for second-hand retail fashion.

ON-DEMAND & PERSONALIZED SERVICES

  • A 2019 McKinsey publication predicts that there is a rising demand for on-demand capabilities in the United States fashion industry. This demand is leading to a sharp increase in personalization and also birthing a "new generation of customized clothing start-ups." These new start-ups have a new definition for personalized fashion referred to as “made to measure.”
  • One brand moving "personalized marketing to the next" level is Nike.
  • After obtaining consumer analytic capabilities from Zodiac, Nike has targeted consumers from different regions and uses "personalized content for mobile devices."
  • The Nike sports fashion brand offers customers personalized shopping experience through the use of a product personalization app and the NikeID.
  • Calvin Klein and Nike rank among the 20 most successful fashion brands in American.
  • Spreadshirt provides customized (personalized) clothing and accessories in the United States. Customers can order and specify the messaging printed on clothes.
  • About 22.5% of the revenue of Spreadshirt comes from its U.S. consumers. Spreadshirt is striving to be the top "contender in the crowded printed T-shirt" market of the United States. Other competitors operating in the market include Threadless, SunFrog Shirts, Redbubble, CafePress Inc, and Zazzle Inc.
  • According to Philip Rooke, the CEO of Spreadshirt, the United State-centric strategy of Spreadshirt is providing results as it is rapidly gaining visitors as well as traction of this crucial market.
  • Spreadshirt is a web-only T-shirt retailer, and its sales grew by 18.5% in 2017 over 2016.
  • Reduced lead times, advances in automation, intellectual property, and patent approvals will be critical success factors driving the growth of the on-demand and personalized fashion sector.
  • The willingness of consumers to pay more for personalized fashion, especially by affluents and millennials, will motivate companies to provide more personalized fashion solutions. About 34% of millennials have made "personalized apparel purchases." End-users were prepared to spend over $1,000 for personalized apparels in 2018.

RESEARCH STRATEGY

The research included market reports, credible media publications, e-commerce articles such as Forbes, McKinsey web, CNBC web reports, etc. McKinsey web revealed some trends impacting the fashion retail market in the United States. We have verified that the published trends are practiced by companies that operate in the United States fashion industry.
Part
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Part
04

US Fashion Industry: Sustainable Fashion Trends

Three major trends in sustainable fashion right now are capsule wardrobes, sustainable fabrics, and clothing rental services.

Capsule wardrobes

  • The philosophy behind a capsule wardrobe is simplicity and sustainability. Capsule wardrobes have a limited number of plain, simple items that can be worn together and accessorized to create an individual's person style.
  • Advocates of capsule wardrobes say that they reduce the stress of getting ready by simplifying outfit decisions, they are less expensive than regularly buying new clothes to follow trends, and most importantly they are more sustainable and environmentally friendly because they reduce waste associated with fast fashion.
  • The trend for capsule wardrobes are driving the market for clothes that are neutral in tone and have clean, simple lines so that the pieces can easily be mixed and matched with one another.
  • VETTA is a clothing company that specializes in capsule wardrobes. They offer five different styles of capsules, from casual to refined, and boast that five pieces can make 30 different outfits. Their fabrics are sustainable and they have one family run factory in New York.
  • Joon + Co. are another capsule wardrobe company, bearing the tagline "modern style with a conscience." They have four capsule wardrobes, each with 10 pieces, and describe their clothes as sustainable and timeless.

Sustainable materials

  • Another sustainable fashion trend is for designers and brand to incorporate sustainable materials into their products. Whether these are produced differently in the first place, such as ethically sourced wools, or are made from recycled materials that would otherwise pollute the environment, they aim to minimize their carbon footprint throughout the entire production cycle.
  • The trend for sustainable fabrics is driving the market for textiles and other materials, such as organic cotton, that have less of an environmental impact that chemically treated cotton and oil-based plastics.
  • As one of the largest clothing retailers in the world, it is notable that H&M have introduced a line of sustainable clothes called Conscious. They say that all of their Conscious clothes are made from at least 50% recycled material, and often 100%, with the only exception being their cotton items. These are made from sustainably-sourced organic cotton.
  • Another international brand that has introduced sustainable materials into their products is Adidas. With their Adidas and Parley collection, shoes are made from upcycled plastic trash that is collected from remote beaches and coastal communities.
  • Finally, the women's clothing designer Eileen Fischer has introduced "recycled and reclaimed" fibers. These include yarn that has been respun from factory scraps and cotton that has been recycled, as well as polyester that is made from recycled water bottles and old clothes.

Renting Clothes

  • Lastly, renting clothes is quickly gaining popularity as a sustainable fashion trend. By renting high quality items multiple times companies reduce the overall production demand while allowing their customers to try a range of styles without buying clothes they may only wear a few times.
  • The trend for clothing rentals is driving the market for special occasion outfits that women would not be able to afford to purchase but can rent, as well as business clothes that keep a professional wardrobe looking new and interesting.
  • One of the best established clothing rental companies is the New York based Rent the Runway. Founded in 2009, they initially specialized in formal wear before expanding to professional and casual outfits as well. Pieces can be rented on an individual basis or as part of an ongoing subscription package.
  • Infinite Style by Ann Taylor is the rental service by the popular women's workwear retailer Ann Taylor. It is a subscription service that allows customers to rent a set number of pieces per month, with the option of switching them out or purchasing them at a discounted price

Insights

  • According to CarbonTrust, there are three sustainability trends that are shaping the fashion industry.
  • Shift to sustainable materials — as materials such as water become more scarce, thus impacting the growth of cotton, and petrol-based fabrics like polyester get more expensive and are increasingly recognized as less environmentally friendly, sustainable materials will be used more widely in the fashion industry. Lyocell is one example, as it is a wood pulp based fabric that is less water intensive than carbon.
  • Clothing designed for longevity — designers and companies will increasingly introduce higher quality, longer lasting clothing to their collections that is meant to be used for more than one season. According to WRAP's Sustainable Clothing Action Plan, by making clothes last even a few months longer consumers can cut 3% from carbon, water, and waste in the fashion supply chain.
  • The adoption of circular economy principles — this includes creating new clothes with recycled materials, encouraging customers to wear second hand or vintage items, and growing the clothing rental sector. Major retailers have introduced incentive programs for customers to hand in old clothes for example, and H&M offers a garment recycling program.

Research strategy

We began by looking at various industry publications and fashion blogs to determine the most popular trends in sustainable fashion. We then looked at each trend individually to see which companies are following the trends and implementing sustainable strategies most successfully and what is driving the growth.

We were able to find sources that explained the reasons behind the market growth for all three trends; however, after searching for industry reports and news articles we were unable to find exact figures for the estimated market growth for capsule wardrobes and sustainable fabrics. This could be because dedicated companies to these trends are still small, and large companies that follow them do not itemize them in their profits.
Part
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Part
05

US Fashion Industry: Children Apparel

The children apparel market in the US is defined as the clothing sold to children below the ages of 17 years, including babies and toddlers. The market is being differentiated by the emergence of online retail, subscription boxes, and premium children's apparel.
Here are the key findings:

Overview — US Children Apparel Industry

  • Carter's Inc., The Children's Place Inc., and Ascena Retail Group Inc. dominate the Children's and Infants' Clothing Stores industry in the US.
  • 16,324 businesses operate in the industry as of 2019.
  • The industry has employed 74,487 people as of 2019.
  • The growth of online shopping has siphoned demand from the brick-and-mortar establishments in the industry.
  • Sales of children’s clothing are expected to reach $39.8 billion at the end of 2019, at a growth rate of 2% per year. Bankruptcies of chains like Gymboree and Toys R’ Us have created space for new entrants into the market.
  • In 2018, childrenswear performed better than both menswear and womenswear in terms of retail current value growth, as a combination of demographic, macroeconomic, and social trends boosted sales in the category.

Market definition — US Children Apparel Industry

  • The 'Children's & Infants' Clothing Stores Industry in the US-Market Research Report' of 2019 states that this industry includes all establishments that specialize in retailing apparel for children under the age of 17.
  • The US Children's Clothing Market Report of 2019 defines the market age-wise as follows: infant (1 year), toddler/preschool (1-5 years) and young boys and girls/preteen (6-11 years).

Product Categories — US Children Apparel Industry

  • The Children's & Infants' Clothing Stores in the US industry consists of girls' clothing, infants' and toddlers' clothing, and boys' clothing, among others.
  • The US Children's Clothing Market Report of 2019 identifies the following categories of children's clothing: sleepwear, underwear, daywear, and outerwear.
  • Carter's Inc. has the following categories of clothing: Baby-Boys and Girls (Preemie to 24 months), Toddler-Boys and Girls (2-5 years) , and Kids-Boys and Girls (4-14 years). In the Baby category, they sell Socks, Tights, Hats, Gloves, Sleep Bags, and Apparel. In the Toddler category, Carter's Inc. sells Tights, Nightgowns, Hats, Gloves, Belts, and Apparel. They also sell kids shoes for all ages.
  • The Children's Place has the following categories of children's clothing: Girls (3-13 years), Boys (3-13 years), Toddler-Girls/Boys (6 months to 5 years), and Baby (0-24 months). They also sell shoes and accessories for all age groups.

Market differentiation — US Children Apparel Industry

  • Subscription boxes for babies and children clothing are gaining popularity, as children’s retailers continue to enter the increasingly crowded space. These subscription boxes offer convenience for parents who find it difficult to shop for their ever-growing children.
  • In February 2018, Target launched a quarterly subscription box for its popular Cat & Jack brand for newborn to 24 months sizes, whilst Stitch Fix began to offer boxes for children sized 2T-14 in July 2018.
  • In 2019, Walmart partnered with Kidbox, a children’s clothing subscription founded in 2016. The Kidbox subscription offered through Walmart will allow parents to receive a box of four to five garments for $48.
  • Walmart announced that it will be broadening its assortment of premium kids’ brands to include offerings from brands like Betsey Johnson and Levi’s. (Source 3)
  • Target has emphasized style and trendiness in the new face of its children’s clothing lines in 2019. Target announced that it would expand its kids’ clothing line, Art Class, to add items for babies and toddlers. Target has positioned that line as more “on trend,” compared to its other children’s clothing line, Cat & Jack, which it markets as more basic and inclusive.
  • Amazon has made similar moves to Target. It has launched a line with J.Crew’s kids’ brand, CrewCuts, in March as part of its push into exclusive brands.
  • As wealthier parents are increasingly trading up to high-end childrenswear, designer brands and retailers alike are expanding their current childrenswear lines or beginning to offer childrenswear for the first time.
  • Leading mass retailers, including Amazon, Target, and Walmart, enjoyed strong sales of their private label childrenswear lines after investing in them in recent years.
  • Although Amazon’s Simple Joys by Carter’s and Walmart’s No Boundaries were popular, the performance of Target’s Cat & Jack brand, launched in 2016, was especially notable, with sales exceeding USD2 billion in just over a year after its launch.

Research Strategy:

We could answer all the client's questions in this request. However, we found that more relevant information is hidden behind a paywall.

We have assumed here that the definition of children includes infants.

With regard to the product categories, in addition to the standardized categories we found, we looked at the product categories of two of the biggest children's apparel retailers: Carter's Inc and The Children's Place. We included information from their websites.

With respect to the differentiation in the market, we found that in recent years, the growth of online retail has been a major factor with major online retailers like Amazon launching their own children's clothing lines. We also found that brands were differentiating by launching subscription boxes and premium children's apparel.


Part
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Part
06

US Fashion Industry: Houseware


Research shows the houseware industry is broken into four general categories: tabletop, cooking/kitchen, small appliances, and home. Each of those categories has at least one subcategory. More information on this industry and some helpful insights have been included below.

HOUSEWARE PRODUCT CATEGORIES

  • Housewares MarketWatch has the industry differentiated by four categories: tabletop, cooking/kitchen, small appliances, and home.
  • The tabletop category is separated into the three subcategories: dinnerware, beverageware, and flatware.
  • Cooking/kitchen has been broken into three subcategories, which are cookware, bakeware, and cutlery.
  • Small appliances has a few subcategories: kitchen electrics, personal care, and floor care.
  • Home only has one subcategory, which is kitchen & dining textiles.
  • Housewares are defined as small articles of household equipment."

HOUSEWARE INSIGHTS

  • In 2017, US mass merchants and supercenters channels were the sales leader in all houseware categories.
  • In 2017, housewares sales gains were realized mostly among smaller retailers. These channels include specialty stores, warehouse clubs, and variety stores.
  • The top five retailer's where consumers bought housewares were Walmart, Costco, Target, Bed Bath & Beyond, and Sam’s Club.
  • In-store sales account for approximately two-thirds of houseware sales while the other one-third of sales are online.



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Part
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US Fashion Industry: Athleisure

The percentage of sales for the USA athleisure fashion market that came through e-commerce in 2018 was 25% while the market was worth $79 billion. A figure for the in-store/related channel sales and percentage would be calculated in the analytical section.

THE MARKET SIZE ATHLEISURE FASHION MARKET USA

  • The USA athleisure market in 2018 was worth $79 billion according to Coresight Research.

USEFUL FINDINGS

  • The Athleisure market was approximately worth $46 billion in the USA in 2016, and the market is expected to reach $83 billion by the year 2020.
  • Currently, the athleisure market accounts for 24% of all the USA apparel sales in the country.
  • E-commerce had 16% of sales in 2014 and grew to 21% in 2017. In 2017, online apparel sales grew by 4%.

RESEARCH STRATEGY

Your research began by exploring global options in a drive to find the breakdown/percentage of sales that come from in-store sales. Market Research had data on classification of the apparel market, and further details were behind a paid wall. Next, we consulted regional and local publications to see if we could find relevant data within the region. The local news publications in the USA only had articles around the market size of children apparel in the USA and no details regarding the breakdown/percentage of sales that come from in-store sales.

We also searched for the statistics on Statista, a statistical database that has data on millions of topics. Statista had data on the market size for the USA athleisure fashion market. However, none of its statistics were on the percentage of sales that come from in-store sales on apparel specifically. We evaluated the information collected through our research and could not find data that was sufficiently reliable and could be used to triangulate the requested information. After applying the above strategies, we concluded that the requested information was not available on the public domain.

ANALYTICAL SECTION

Since year 2017 the e-commerce segment of athleisure market had 21% sales and grew by 4% from 17% of 2016.
Assuming the e-commerce segment also grew by another 4% between year 2017 and 2018, then the e-commerce segment will represent 25% sales of the athleisure market in the USA through the e-commerce channel.

CALCULATION

25% Sale of $79 billion dollars is calculated below as:

$79 billion *0.25=$19.75 billion

Hence, the remaining part of the market share can be assumed to represent the in-store sales/related channels.

Hence, in-stores/related channel will represent $59.25 billion.

The above figure was calculated thus:

Market Share of the athleisure fashion market- e-commerce sales of the athleisure fashion market=($79-$19.75) billion= $59.25 billion.

The percentage for in-store/related sales will be calculated as 100%-25%=75%

Part
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Part
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US Fashion Industry: Fashion Retail

The market size of the fashion retail market between $323.75 billion to $333.22 billion. The e-commerce sales for 2019 is estimated to be $110,605 million.

FASHION RETAIL MARKET

  • The US fashion retail market was worth $292 billion In 2016.
  • According to Internet Retailer, "online apparel sales grew 18.5% in 2018 and represented 34.4% of U.S. apparel sales, up from 30.6% in 2017."
  • According to Mckinsey, the growth rate for the fashion industry is projected to be 3.5% to 4.5%.
  • In 2018, online revenue from fashion is estimated to be $102 billion.
  • U.S. fashion and accessories e-retail revenue for 2019 is approximated to be $110,605 million.
  • The calculated market size for fashion retail in 2019 is between $323.75 billion to $333.22 billion.
  • The in-store sales is estimated to be between $213.1 billion to $222.57 billion.

RESEARCH STRATEGY

In order to fulfill this request, we first looked for research reports for precompiled data for the market size and sales from e-commerce and in-store. However, we found no such report and we only found a report stating that apparel market size in 2016. Following this, we looked for research reports specific to the North American and United States markets. We looked into reports by agencies such as Ameco Research, Grand View Research, Market Research Place. Using this strategy we were able to find CAGR of the US fashion industry. We also looked into database sites such as Statista and Statistics Brain. Although we were able to find data on e-commerce sales, we did not find data on in-store sales. Given the above limitations, we triangulated an estimate for the market size of the fashion retail market.

CALCULATIONS
Market Size in 2016: $292 billion
CAGR:3.5% to 4.5%
Number of years:3
Formula: Market size in 2019= Market Size in 2016 (1 + CAGR) ^ years
Market size in 2019 = 292 billion(1+3.5)^3 to 292 billion(1+4.5)^3 = $323.75 billion to $333.22 billion.

In-store sales was calculated by Market size — Online sales = $323.75 billion — $110.65billion or $333.22 billion-$110.65 billion= $213.1 billion to $222.57 billion



Part
09
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Part
09

US Fashion Industry: Women Apparel

The market size of the women's apparel market in the U.S. is approximately $132 billion as of 2019. An estimated 34% of sales in this market come from e-commerce, while an estimated 66% come from brick-and-mortar retail.

Findings

  • According to Euromonitor International, the U.S. women's apparel market was worth $128 billion in 2017.
  • The women's apparel market in the U.S. has been growing at a CAGR of 1.5%. Assuming this growth rate continues, we can estimate the 2019 market size to be $132 billion.
  • This represents roughly 38% of the overall U.S. apparel market, which was worth $334 billion in 2017.
  • The apparel market in the U.S. is growing at a CAGR of 1.9%. Based on this, we can estimate the 2019 market size to be $347 billion.
  • In the U.S., e-commerce now represents 34.4% of sales in the apparel market. Based on the market size above, we can estimate that the e-commerce apparel market is worth $119.4 billion (34.4% of $347 billion).
  • If we assume that the market share of women's apparel in e-commerce will be roughly equivalent to the segment's overall market share (38%), we can calculate the size of the e-commerce women's apparel market: 38% of $119.4 billion = $45.4 billion.
  • Based on these calculations, we can further estimate the size of the brick-and-mortar women's apparel market: $132 billion (total women's apparel market) - $45.4 billion = $86.6 billion. This represents 66% of the market.
  • E-commerce apparel sales in the U.S. are growing rapidly. This segment grew 18.5% in 2018, faster than the average for e-commerce in the U.S., which is 15%.
  • A recent survey found that women are more likely to shop online than men. The survey found that 40% of women regularly shop on mobile devices, but only 22% of men do the same. It also found that 44% of men prefer to shop in-store so they can touch and feel a produce before buying, compared with 33% of women.
Part
10
of eighteen
Part
10

US Fashion Industry: Children Apparel Market Size

The market size of the children's apparel market is estimated at $21 billion. The e-commerce sales for 2018 were $3 billion. In-store sale were triangulated to be $18 billion, accounting for 85.7% of the children apparel market.

MARKET SIZE

  • The total revenue of the US children's apparel market is expected to reach $21 billion in 2019.
  • The US is one of the largest consumer of children apparel with a 21% share of the global market. The global children apparel market is projected to be worth $142 Billion by 2025.

SALES FROM ECOMMERCE

RESEARCH STRATEGY

We began by looking for industry reports detailing the market size and sales of the e-commerce and in-store children apparel market. We looked for research reports specific to North American and the United States. We looked into reports by agencies such as Ameco Research, Grand View Research, and IBIS Word Research. Although we were able to find data on e-commerce sales, we did not find data on in-store sales. Therefore, given the above limitations, we triangulated an estimate for the market size of the in-store children apparel market.
CALCULATIONS
  • Market Size in 2018: $21 billion 
  • E-commerce sales in 2018: $3 billion
  • Percentage of e-commerce sale: $3 billion / $21 billion = 14.3%.
  • In-store sales: Market size — Online sales = $21 billion — $3 billion = $18 billion
  • The percentage of in-store sales was estimated as 85.7% (100% — 14.3%) in 2018.
Part
11
of eighteen
Part
11

US Fashion Industry: Houseware Market Size

The homeware market size attributed to the fashion industry is approximately $226 million in the U.S., and is currently being eyed by the “fashion-first retailers” of the country. E-commerce’s share was 21.9%, and In-store sales share was 78.1% of the total home goods/housewares/home furnishings sales.

US FASHION INDUSTRY: HOUSEWARE MARKET SIZE

  • The U.S. housewares market size attributed to fashion industry is estimated at $226 million. The market is currently being eyed by the “fashion-first retailers” of the country, who intent to shake up the industry.
  • According to One Click Retail, the overall housewares sales in the U.S. was estimated at $80 billion in 2016.

E-COMMERCE AND IN-STORE SALES

  • The share of total e-commerce sales of home goods/housewares/home furnishings sales was 21.9% in 2017. Hence, the share of in-store sales of the total home goods/housewares/home furnishings was 78.1% based on calculations included below.

INDUSTRY LEADERS SHARE AND ADDITIONAL INSIGHTS

RESEARCH STRATEGY

To provide the market size of the housewares market and a breakdown of e-commerce and in-store sales, we scoured many credible industry reports and media publications such as IBIS World, Business Wire, Retail dive, Mckinsey, Digital Commerce 360, Statista, among other market research and consulting companies. We found the overall housewares market size in the U.S. and the housewares market size attributed to the fashion industry in the U.S. However, we made some assumptions before calculating the breakdown of e-commerce versus in-store sales.

First, we assumed that the only means to sell housewares in the U.S. is through e-commerce or in-store channels; hence, these two sales channels account for 100% of the industry sales. Second, we assumed that the homeware market, home goods, and home furnishings market all relate to the housewares market. We arrived at this assumption because these terms are used interchangeably across multiple reports such as those published by Mckinsey and Digital Commerce 360.

The e-commerce’s share of the total home goods/housewares/home furnishings sales was 21.9% in 2017; therefore, to determine the share of in-store sales of the total home goods/housewares/home furnishings, we took 100% of the market sales from both channels, then subtracted the share of e-commerce sales. Thus, 100% — 21.9% = 78.1%, which represents the share of total sales via in-store channels.
Part
12
of eighteen
Part
12

US Fashion Industry: Athleisure Top Players

The top three players in the US athleisure fashion market are Under Armour, Nike, and Outdoor Voices.

UNDER ARMOUR

  • According to its 2018 annual report, Under Armour's yearly revenue is around $5.2 billion.
  • Headquartered in Baltimore, Maryland, Under Armour, Inc, is a premier distributor, marketer, and of trademarked performance athletic accessories, footwear, and apparel for young individuals, women, and men.
  • Its pledges to empower, stimulate, and facilitate human performance by employing innovative athletic items and fascinating experiences.
  • Under Armour's performance footwear and apparel are constructed in numerous styles and designs for use in any type of climate to supply a performance alternative to more traditional items.
PRODUCTS
COMPETITIVE ADVANTAGE
  • Under Armour's competitive advantage is its sizable market share, along with a customer base that is very loyal.
MARKETING MESSAGING
ADVERTISING CHANNELS

NIKE

  • According to Macro Trends, Nike's revenue in 2019 was $39.117 billion.
  • Nike was established in 1962, and its headquarters is located in Beaverton, Oregon.
  • Nike has since emerged developed into the most aggressive sports and fitness business in the industry.
  • The company's mission is to completely commit to advancing human potential through the development of cutting-edge sport innovations, producing its products more sustainably, assembling a diverse and imaginative global crew, and having a productive impact on its community.
PRODUCTS
COMPETITIVE ADVANTAGE
MARKETING MESSAGING
ADVERTISING CHANNELS
  • Nike's advertising channels include, TV ads, YouTube ads, social media ads, digital display advertising, desktop videos, mobile advertising, and branded content.

OUTDOOR VOICES

  • As listed by ZoomInfo, Outdoor Voices' estimated revenue is $23 million.
  • Outdoor Voices's current headquarters is in Austin, Texas.
  • The company refers to itself as the resource for recreation and is encouraging people to get moving.
  • Outdoor Voices collaborates with its manufacturing partners to offer high-grade quality and bestow its values for environmentalism and human rights.
PRODUCTS
  • Outdoor Voices' products include athletic apparel, footwear, and accessories for both males and females.
COMPETITIVE ADVANTAGE
  • Outdoor Voices is revered for the design and style of its products.
  • Through the development of a product that traverses the rift between casual wear and active wear, the company has been able to unearth a blossoming new market and cement its position within it.
  • The company has also disrupted the overall fashion industry by making a distinction between its brand and other businesses operating in the athleisure sector.
  • Through the hashtag #DoingThings, Outdoor Voices is able to place advertisements on social media channels from its users free-of-charge.
MARKETING MESSAGING
  • The brand employs the hashtag #DoingThings as the company's means of connecting with its shoppers.
  • On Instagram, the hashtag has been utilized approximately 150,000 different times, and the majority of the posts are linked to the company.
  • Outdoor Voices reiterates low-key workouts and daily exercise as opposed to using world-class athletes engrossed in extreme training or intense competition.
  • Through the implementation of the hashtag, its users enable the label to promote their candidly posted #DoingThings pictures in ads.
ADVERTISING CHANNELS
  • Outdoor Voices' advertising channels include the Google Display network, social media, and user-generated content.

Research Strategy:

To identify the top three players in the US athleisure fashion market, we leveraged industrial reports such as MarketWatch with an aim of finding top players based in the United States. Fortunately, we were able to find six such businesses in the US athleisure fashion market. The companies are Under Armour, Inc., Nike, Inc., Eysom, Outdoor Voices, Ten Thousand, Inc., and Isaora.

We then observed each companies' revenues from either annual reports. We also consulted third-party sources, such as ZoomInfo and Macro Trends, for those that do not publicly disclose their financial statements as they are private and not obligated to publish there financial earnings each year. Under Armour, Inc. had a revenue of $5.2 billion in 2018, while Nike's estimated annual revenue in 2019 is $39.117 billion and Eysom's is $5 million. Outdoor Voices generates an annual revenue of $23 million, Ten Thousand Inc. produces $4.2 million in yearly earnings, and Isaora's revenue is $5.4 million.

Based on the information outlined above, we concluded that the top three players in the US athleisure fashion market according to revenue are Nike, Under Armour, Inc., and Outdoor Voices. We then conducted additional research to provide the requested details on each company.
Part
13
of eighteen
Part
13

US Fashion Industry: Fashion Retail Top Players

According to Business Insider, the top players in the fashion industry in the US are TJX Companies ($35.9 billion in annual sales), Nike ($35.3 billion in annual sales), and GAP Inc ($15.9 billion in annual sales).

#1: TJX COMPANIES

  • TJX is considered as the #1 off-price apparel fashion retailer in the US.
  • It has more than 4,900 stores in nine different countries, three e-commerce sites, and 270,000 associates.
  • The company was founded in 1976.
  • It invests a great quantity of time and effort in training its employees, resulting in a great customer relationship.

PRODUCTS

  • The brands under the company are TJ Maxx, Marshalls, Home Goods, Sierra, Winners, HomeSense, TK Maxx, and TJX.

COMPETITIVE ADVANTAGE

  • TJX offers quality, fashionable, designer merchandise 20-60% below the price and rapidly updates its products. With this, it reaches a broad range of customers across many geographies and income levels.
  • It is constantly trying new ideas, seeking the right categories and fashion trends.
  • Its financial strength gives it the ability to invest in the growth of the business.

MARKETING

  • "If you love it, grab it". It does not replenish stock often. It uses this to motivate consumers to make purchases since they may never see specific stock again.
  • It uses loyalty programs to drive more frequent visits.

ADVERTISING CHANNELS

#2: NIKE

  • Nike was founded in 1962 in Oregon.
  • Its core values are innovation, team empowered, social and community impact, sustainability.
  • Nike is a brand for high loyalty customers. According to analyst Jay Sole, customers of Nike intend to keep buying from the brand.

PRODUCTS

  • Nike brands include Nike, Converse, Hurley and Jordan.
  • Its main products are shoes, clothing, sports accessories.

COMPETITIVE ADVANTAGE

MARKETING

ADVERTISING CHANNELS

  • Channels include TV ads, YouTube ads, social media ads, digital display advertising, desktop videos, mobile advertising, and branded content with 128 partners.

#3: GAP INC.

  • Doris and Don Fisher founded Gap Inc. in 1969.
  • It operates as a global apparel retail company based in San Francisco, California.
  • The company has 3,500 operating stores.

PRODUCTS

  • The company "offers apparel, accessories, and personal care products for men, women and children."
  • The company offers jeans, t-shirts, clothes for use in sports and daily life, eyewear, footwear, bags, and jewelry.
  • Gap Inc brands include Gap, Banana Republic, Old Navy, Athleta, Intermix, Hill City, and Janie & Jack.

COMPETITIVE ADVANTAGE

  • Gap Inc invests a lot in big data to know its customers; it knows who its most valuable customers are and target them.
  • It offers fashionable, trendy and stylish products at very competitive prices.
  • The company is dedicated towards constant development in terms of expansion of its product portfolio, entering new markets, and fulfilling the fashion needs of its customers.
  • It offers high-quality clothing at low costs.

MARKETING

  • Gap Inc's digital marketing strategy is increasingly personalized as each consumer has a unique reason to shop.
  • Using a customer data platform, Gap targets customers and their cohorts across the digital advertising channel; they personalize ads based on data.

ADVERTISING CHANNELS

  • Its main advertising channel is social media, personalized to each customer.

RESEARCH STRATEGY

During our search for the top three brands by revenue, we found Business Insider's list of the top three in the US, which was derived from Forbes' Global 2000 list of the largest public companies in the world. We then went ahead to provide the required details on each of the companies on the list.
Part
14
of eighteen
Part
14

US Fashion Industry: Women Apparel Top Players

The top three players in the US women's apparel market are TJX companies, Gap Inc., and Nordstrom Inc. TJX companies 2018 annual revenue was $35.9 billion, Gap Inc. 2018 annual revenue was $15.9 billion, Nordstrom Inc 2018 annual revenue was $15.5 billion.

TJX COMPANIES

  • TJX is an off-price apparel fashion retailer in the US.
  • According to Business Insider, Its 2018 annual sales were $35.9 billion.
  • It has more than 4,900 stores in nine different countries, three e-commerce sites, and 270,000 associates.
  • The company was founded in 1976.
  • TJX invests a great quantity of time and effort in training its employees, resulting in a great customer relationship.

PRODUCTS

  • The brands under the company are TJ Maxx, Marshalls, Home Goods, Sierra, Winners, HomeSense, TK Maxx, and TJX.
  • They offer products such as women clothing, shoes, and handbags.

COMPETITIVE ADVANTAGE

  • TJX offers quality, fashionable, designer merchandise 20-60% below the price and rapidly updates its products. With this, it reaches a broad range of customers across many geographies and income levels.
  • It is constantly trying new ideas, seeking the right categories and fashion trends.
  • Its financial strength gives it the ability to invest in the growth of the business.

MARKETING

  • The company uses taglines with wordings such as "If you love it, grab it". It does not replenish stock often. It uses this to motivate consumers to make purchases since they may never see specific stock again.
  • TJX uses loyalty programs to drive more frequent visits.

ADVERTISING CHANNELS

  •  TJX advertises through targeted Mobile ads .
  •  The company also uses TV and digital commercials.
  • TJX makes an integrated marketing approach by engaging consumers in all digital channels: television, digital, mobile and social media.

GAP INC.

  • Gap Inc. is an apparel retail company. It offers accessories, apparel, and personal care products.
  • According to Business Insider, Its 2018 annual sales were $15.9 billion.
  • The company was founded by Doris and Don Fisher in 1969 when they opened the first Gap store.
  • Gap Inc. went public in 1976 and offered 1.2 million of stock.

PRODUCTS

  • Products offered by Gap include jeans, t-shirts, clothes for use in sports and daily life, eyewear, footwear, bags, and jewelry.
  • The company's brands include Gap, Banana Republic, Old Navy, Athleta, INTERMIX, Hill City, and Janie and Jack.

COMPETITIVE ADVANTAGE

  • Gap Inc invests a lot in big data to know its customers; it knows who its most valuable customers are and target them.
  • It offers fashionable, trendy and stylish products at very competitive prices.
  • The company is dedicated to constant development in terms of expansion of its product portfolio, entering new markets, and fulfilling the fashion needs of its customers.
  • Gap Inc. offers high-quality clothing at low costs.

MARKETING

  • The company uses wordings such as "Unique..." and "Distinct..." to portray that its products are different from the others and stand out.
  • Gap Inc's digital marketing strategy is increasingly personalized as each consumer has a unique reason to shop.
  • Using a customer data platform, Gap targets customers and their cohorts across the digital advertising channel; they personalize ads based on data.

ADVERTISING CHANNELS


NORDSTROM INC.

  • The company is publicly traded on the NYSE.
  • According to Business Insider, Its 2018 annual sales were $15.5 billion.
  • It is a leading fashion retailer that offers compelling apparel to women and men since 1901.
  • The company serves customers in 40 states of the U.S. and Canada.
  • Nordstrom, Inc. partners with HauteLook to operate an online retail store that serves customers in 96 countries.

PRODUCTS

COMPETITIVE ADVANTAGE

  • Nordstrom, Inc. is committed to providing its customers with the best possible services. The company is also committed to improving its services every day.
  • Nordstrom, Inc. believes that "fashion is a business of optimism and in that spirit", and they continue to grow and evolve.
  • It offers free shipping and returns, mobile shopping, and their partnership with HauteLook provides the company with an opportunity to serve its customers in more relevant and exciting ways.

MARKETING

  • The company uses messaging taglines such as "As Easy As…" to advertise outfit ideas. This portrays the simplicity of the idea that motivates customers to make purchases.
  • Nordstrom communicates to customers their commitment to providing the best customer care services.

ADVERTISING CHANNELS

  • The company has an active presence on social media. They promote their brands on Instagram, Facebook, Twitter, and Pinterest.
  • Nordstrom has a monthly news-letter that is made available to those willing to purchase.
  • They also have gift card subscriptions. Stores offer certain points on purchases when customers reach a certain number of points they get $20 coupon to use in the Nordstrom store.
  • Nordstrom also promotes its products through newspapers and billboards.

RESEARCH STRATEGY

To identify the top three players in the US women's apparel market, we looked into market reports from credible firms such as Business Insider, Grand View Research, and Market Research Place. We were able to find a report by Goldstein Research that listed key players in the global women's apparel market. The report listed Gap, TJX companies, and Nordstrom, Inc among other companies as key players in the women's apparel market. We also came across another report by Business Insider that listed the top players in the apparel U. S market. We looked into each company to determine their market share in the US women apparel market and ranked them according to their revenue. We were able to determine that TJX companies, Gap Inc., and Nordstrom are the top three players in the US women's apparel market by their revenue. We then went ahead to provide the required details on each of the companies.



Part
15
of eighteen
Part
15

US Fashion Industry: Children Apparel Top Players

According to Euromonitor International, the children's apparel industry in the United States was valued at $33.9 billion at the end of 2018. Three of the top players in the children's apparel market, based on market share, and the last available data from 2017 and 2018, are Carter's, Old Navy, and Nike. Two other large children's apparel retailers are Children's Place and Target.

Carter's

  • Carter's is a large children's apparel designer in the U.S. that sells clothing through the Carter's, Osh Kosh B'gosh, and Skip and Hop brands and has exclusive clothing lines with Walmart, Target, and Amazon.
  • Carter's sells clothing for children ages 0 to 14, including activewear, swimwear, shoes, and accessories.
  • Carter's held 10.4% of the children's apparel market share in 2017, which decreased to 9.4% of the children's apparel market in 2018.
  • The company reported $3.5 billion in earnings in 2018, and based on revenue rather than market share, its closest competitor is Children's Place, which reported $1.9 billion in earnings last year.
  • Experts say that Carter's competitive advantage comes from its longevity as a 154-year-old retailer and from its exclusive lines with Walmart, Target, and Amazon, as well as from focusing on the 4-year-old and younger demographic.
  • Carter's marketing messaging includes the hashtag #lovecarters for social media sharing and the company advertises on Facebook, Instagram, Pinterest, YouTube, and Twitter.

Old Navy

  • Owned by Gap, Old Navy is a large U.S. seller of clothing and accessories, including kid's wear.
  • Old Navy sells clothing for all ages, including outerwear, plus and slim sizes, school uniforms, and NFL, MLB, College, NBA, and NHL kid's apparel.
  • Old Navy held 5.7% of the U.S. children's apparel market share in 2017, which increased to 6.2% of the U.S. children's apparel market in 2018.
  • Gap reported net sales of $16.6 billion in 2018, but because Old Navy children's clothing is not sold under its own separate brand, the revenue from children's apparel individually is not known.
  • Gap CEO Art Peck said the company's brand merchandise, focus on low prices, an easy-to-use mobile app, and the opening of 60 new stores this year in locations outside of malls have created a competitive advantage for the Gap and Old Navy brands.
  • Old Navy's marketing messaging includes using the hashtag #ONtrend for social media sharing and advertises on Facebook, Pinterest, Instagram, Twitter, Tumblr, and Snapchat.

Nike

Research Strategy

Because earnings for kid's clothing, specifically, were unavailable for some companies, market share was used as the defining factor when selecting the three top children's apparel players in the U.S.
Part
16
of eighteen
Part
16

US Fashion Industry: Houseware Top Players

The top three players in the US houseware market based on revenue are Walmart, Amazon, and Home Depot.

#1: WALMART

REVENUE:

COMPANY OVERVIEW:

  • Walmart US is a mass merchandiser of consumer products which operates under the "Walmart" and "Walmart Neighborhood Market" brands, e-commerce brands such as Walmart.com and jet.com.

PRODUCTS:

  • Apart from toys, video games, electronics, sports products, groceries, and beauty products, Walmart's houseware products include furniture, home decor, kitchen & dining, kitchen appliances, bedding & mattresses, appliances, storage products, bath, lighting, rugs, and products for patio & garden.

COMPETITIVE ADVANTAGE:

  • Walmart is known for its ability to offer cheap products and has expanded its omnichannel experience with online ordering and in-store pickup. The consumers that shop online at Walmart are drawn to low prices, one-stop convenience, brand selection, and curbside service.

MARKETING MESSAGING:

ADVERTISING CHANNEL:

  • The company uses a diversified array of advertising media, including TV ads, billboards, social media, and its e-commerce platforms.

#2: AMAZON

REVENUE:

COMPANY OVERVIEW:

  • The online platform offers a range of products and services through its websites. Its products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers.

PRODUCTS:

  • Amazon's houseware product categories include Kids' Home Store, Kitchen & Dining, Bedding, Bath, Furniture, Home Décor, Wall Art, Lighting & Ceiling, Fans, Seasonal Décor, Event & Party Supplies, Heating, Cooling & Air Quality, Irons & Steamers, Vacuums & Floor Care, Storage & Organization, and Cleaning Supplies apart from the wide range of product offerings on the platform.

COMPETITIVE ADVANTAGE:

  • Customer purchase criteria (CPC) for consumers who buy products on the Amazon platform include price, fast delivery, and reliable service as the most important factors, and Amazon does better than its competitors on those factors.

MARKETING MESSAGING:

  • Amazon has used TV commercials featuring cute animals in order to associate the brand image with qualitative values.
  • An ad targeting mothers for Amazon Echo says, "Mom's here."
  • The company used "print advertisement messages, pictures and cartoon characters from the 'Minions' movie on its shipping boxes."

ADVERTISING CHANNEL:

  • Amazon has broadcast television commercials, web-based advertising, and also uses advertising networks online.

#3: HOME DEPOT

REVENUE:

COMPANY OVERVIEW:

  • The home improvement retailer, headquartered at Atlanta, GA, specializes in the sales of building materials and home improvement products.

PRODUCTS:

  • The products include building materials, home improvement products, lawn and garden products, and decor products along with home improvement installation services, and tool and equipment rental.

COMPETITIVE ADVANTAGE:

  • The relentless focus on affording innovative products, boosting interconnected customer experience, and driving productivity has helped Home Depot to tackle competition from the e-commerce giant, Amazon, after the latter expanded into the Home Depot's core gardening business.

MARKETING MESSAGING:

ADVERTISING CHANNEL:

  • TV commercials, print media, and online media are mainly used for highlighting its services and products amongst consumers.

RESEARCH STRATEGY

In order to identify the top three players in the US houseware market, we garnered a list of the major players in the industry identified in Research and Markets' Global Homeware Market Report (2019-2023). The report identified Amazon, Bed Bath & Beyond, Home Depot Product Authority, Target Brands, and Walmart as the major companies in the industry.

Next, we looked for the revenues generated in the US in the latest annual reports of each of the five companies and selected Walmart, Amazon and Home Depot as they had the highest revenue generated in the US. We then leveraged their individual company websites, press releases, mentions in news and media and case studies by marketing websites for the required details on each company.
Part
17
of eighteen
Part
17

US Fashion Industry: Loyalty

The impacts of loyalty on a fashion brand's business include boosting the amount of high-spenders, increase of expenditure visits, high frequency visits, greater revenue and achieving a sustainable competitive advantage.

IMPACT OF CUSTOMER LOYALTY

  • Branding Strategy Insider reports that loyalty programs for luxury products can boost the amount of high-spenders from 10% to 15-20%.
  • Research company Access Development revealed that within a week of bad client service, 79% of clients would take their business to a rival.
  • Customers who are loyal to specific brands come back again and again. Achieving this type of retention of customers is a huge victory for business.
  • Loyal customers spend 67% more than first-time customers.
  • The estimated cost of clients switching companies because of bad service is $1.6 trillion.
  • Chris Luo, VP of Marketing of loyalty technology company FiveStars reports that Loyalty programs have been proven to boost the value of client life by up to 30% or more by increasing the frequency of visits, increasing expenditure per visit and recovering lost clients.
  • Research indicates loyal clients account for 20% of a business's entire client base for an average company, and 72% of total visits to the business.
  • Mac Cosmetics, a luxury brand, rolled out 3-tier rewards structures, which are strong incentives for repeat purchases and drive over 80% of revenue.
  • Customer loyalty enables companies to gain a sustainable competitive advantage.
  • Companies gain considerable benefits from retaining an existing customer.
  • The capacity to sustain long-term relationships with customers helps to boost revenue.

FASHION MARKET SECTORS/SEGMENTS CUSTOMERS ARE MOST LOYAL TOWARDS

FASHION MARKET SECTORS/SEGMENTS CUSTOMERS ARE LEAST LOYAL TOWARDS

  • Plastic clog shoes by the famous US shoe retailer, Crocs, has battled claims that their clog shoe is actually bad for the wearer’s health which has seen a downfall in their customer base.
  • The clothing material sector of J.Crew Company, which is a leading U.S. apparel company, has left customers confused and uninterested after rebranding from trendy and affordable to high-end.

RESEARCH STRATEGY

In an attempt to determine how much customer loyalty impacts the US fashion brand industry sales, we leveraged a compilation of news articles, company websites, leading publications, industry and market reports, and journals. We were unable to find pre-compiled information on how much customer loyalty impacts the US fashion brand industry sales.

We looked through reputable US fashion industry reports such as JustStyle and Fashion United, but none of these sources mentioned the impact of loyalty on a fashion brand's business. We went further to compile a list of key players in the US fashion industry which include Zara, Nike, Michael Kors and Calvin Klein, from leading industry reports, such as Business Insider, in order to find out if any of these companies have impacted their sales as a direct result of customer loyalty through their respective websites. Unfortunately, there was no mention on the requested topic rather than a general overview of their insights, trends, market growth and size.

We tried to widen the scope to include US luxury brands, but after consulting industry reports such as Deloitte, MarketResearch and Forbes, we were unable locate relevant data that was specific on the impact of loyalty on a fashion brand's business. The research team had to get creative and looked into economics scholarly articles with study citations such as MDPI to get a more insightful understanding of customer loyalty. We were able to determine that customer loyalty is based upon customer satisfaction, since satisfaction enhances commitment. Satisfied customers are more likely to continue shopping with the brand. Armed with this information, we made an assumption that loyal fashion brand customers are very likely to behave in the same way as other loyal customers of other industries, since they share the same economical niche, keeping in mind satisfaction is the driving force behind every loyal customer irrespective of the industry. It is at this point we provided general impacts of brand loyalty on a wider perspective as this information was publicly available.



Part
18
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Part
18

US Fashion Industry: TJ Maxx and Homegoods

Those who shop regularly at T.J. Maxx or HomeGoods believe that an item on the shelves one day might not be found the following day, let alone next week; this provides a sense of urgency to commit and purchase, rather than simply browse as in the case of digital shopping. TJ Maxx has a cumulative annual growth rate (CAGR) of 6.83% (calculations below) over the past decade, while Homegoods has a CAGR of 13.90% (calculations below) within the same period.

Factors Behind Recent Success

  • TJX Companies, the parent company of TJ Maxx and Homegoods stores allows the buyers to find a brand-name designer product at a bargain price, just like a treasure hunt.
  • TJ Maxx locations average 30,000 square feet and typically don’t have any walls. This allows the stores to quickly rearrange the layout as needed.
  • TJX Companies, the parent company of TJ Maxx and Homegoods has about 1,100 retail buyers and more than 21,000 vendors to buy from. The buyers constantly buy inventory rather than only a few times a year and therefore, allows TJ Maxx to deliver better deals and be more responsive to trends.
  • TJ Maxx has a motto “door to floor in 24.” Their goal is to get the product out on the floor within 24 hours of being delivered to the store.

Competitive Advantage

  • Those who shop regularly at T.J. Maxx or HomeGoods believe that an item on the shelf one day may not be found the following day, let alone next week.
  • "Eclecticism, combined with unpredictability and cut-rate prices, provides an ambiance of surprise on each shopping visit."
  • This provides a sense of urgency to commit and purchase, rather than simply browse as in case of digital shopping.

TJ Maxx — Revenue and Growth

  • TJ Maxx's revenue was $24.06 billion, as of February 2, 2019.
  • TJ Maxx's revenue grew from $11.97 billion in 2008 to $13.27 billion in 2010.
  • The company's CAGR between 2008 and 2010 was 5.31% (calculations below), while its CAGR between 2010 and 2019 is 6.83% (calculations below).

Homegoods — Revenue and Growth

  • Homegoods' revenue was $5.79 billion as of February 2, 2019.
  • Homegoods' revenue grew from $1.48 billion in 2008 to $1.79 billion in 2010.
  • The company's CAGR between 2008 and 2010 was 10.10% (calculations below), while its CAGR between 2010 and 2019 is 13.90% (calculations below).

Research Strategy:

TJ Maxx and Homegoods are subsidiaries of parent company The TJX Companies. As per the research conducted, news and media coverage of the retail industry has often identified the same factors of success and competitive advantage for both of them as they have the same governance and work ethics.

The annual report of The TJX Companies has been used to identify the revenues of both companies. We also used the annual report of the full year ending in 2010 to identify the revenue for 2008 and 2010 and calculated CAGR as a metric to show how the companies have grown in the last few years.

The following calculations were used to evaluate growth in the past decade. An online CAGR calculator was used to evaluate each company's growth rate.

CALCULATIONS

TJ Maxx Growth Rate

2008-2010

Using the online CAGR calculator and inputting the following variables:
The CAGR between 2008 and 2010 was estimated to be 5.31%.

2010-2019

The CAGR between 2008 and 2010 was estimated to be 6.83%.

Homegoods Growth Rate

2008-2010

The CAGR between 2008 and 2010 was estimated to be 10.10%.

2010-2019

The CAGR between 2008 and 2010 was estimated to be 13.90%.
Sources
Sources

From Part 02
Quotes
  • "Existing athleisure brands are closely associated with comfort, and there are signs they are pivoting to relaxed fits with less of an outwardly casual look. One opportunity lies in serving professionals as the casualisation of the workplace continues."
Quotes
  • "Affluent Millennials and Generation Z consumers are particularly sensitive to the sustainable values of a brand. Over 85 percent of them say indeed that their purchase decisions are influenced by a brand’s values"
  • "Indeed, 38 percent of Millennial and Generation Z consumers are reported to be highly affected by what social media influencers wear and the brands they decide to embrace."
  • "Social media not only provides new ways for people to share their experiences and wellness regimens but also adds pressure on them to look good and to be seen as living fulfilling lives."
Quotes
  • "This trend, which some say is more an evolution than a trend, is dictionary-defined as athleisure and it took hold gradually as societal norms changed, like casual dress in offices, raised health and fitness consciousness, and the want for comfort and versatility eclipsing the need to dress up. "
From Part 03
From Part 04
From Part 12
From Part 13
From Part 14