A recent report has come out with the assessment of likelyimpact of the slowdown in consumer spending on sales, of discretionary productslike swimwear. This is one of the issues covered in a new report on the globalswimwear and beachwear market, which also looks at technology, fit and styling,and competition between private-label retailers and brands. The fall-out fromthe global credit crunch is likely to have an adverse effect on the clothingindustry for sometime.


Overall, it could lower world swimwear growth between 2008and 2014 from 5.32% to 1.69% and leaves the world market at retail worthUS$13.25bn rather than US13.85bn, according to a new report. This worst-casescenario, the report says, is likely to lead to a "considerable reductionin the exceptionally large number" of swimwear brands that exist today.


Retail market in 2008


In its 'Global market review of swimwear and beachwear -forecasts to 2014' (2009 edition), it is estimated the retail market forswimwear and beachwear in 2008 is worth US$13.15bn - a 2.1% rise on the market'svalue of US$12.88bn in 2006. Within this, women's swimwear represents 70% ofthe world total value, followed by men's swimwear 17%), girls' swimwear (10%),and boys' swimwear (4%). Unit sales for 2008 are up 1.4% to 1,058m pieces. Europe and Japan/Korea have seen volume declines, while volume growth in the rest of theworld averages a modest 2.8%. Overall, it is estimated that the average worldretail price for swimwear and beachwear in 2008 is US$12.43. This is onlymarginally up from the 2006 figure of US$12.35.


While the swimwear market in total continues to face a worldof no overall price inflation, the clothing industry is facing unprecedentedlyhigh fuel costs and transport charges; volatile exchange rates; and labourshortages in low-cost economies such as China and India.


Slow Future Growth


Following the Beijing Olympics last year, the next majorevent for swimwear will be the London Olympics in 2012. By then, the retailmarket for swimwear and beachwear is forecast at US$13.51bn-representing growthof 2.7% over a four-year period. Unit sales for 2012 will be 1,099m pieces, agrowth of 41m units from 2008. New demand will be outside Europe, Japan and Korea. It is estimated that the average world retail price for swimwear and beachwear in2012 will be US$12.29. The most expensive parts of the developed world willcontinue to be Japan and Western Europe. This sluggish growth forecast isblamed on the current uncertain economic situation, long-term population stagnation,and the shift in branded manufacturing to lower-cost countries.


Branding diversity


In the developed world, brands account for between 60% and70% of the value of the market, and between 38% and 43% of the units. Although,own-label and anonymous units account for three quarters of the pieces sold inthe world, it is the variety of brands that exist, especially in Western Europethat contribute to the continuing diversity of the swimwear market. Salesthrough private-label retailers are dominated by a relatively few generalist orlingerie/swimwear specialist businesses, such as Victoria's Secret in the US and Marks & Spencer in the UK.


The market and product future


The report also notes that Swimwear fashion in the Western worldwill be driven by the acceptance of swimming as a relaxing pastime for anageing population; among the younger age group, swimwear will be worn away fromthe sea and the pool; figure supporting and enhancing fabrics will encourageolder women to wear swimwear; Western swimwear habits will take hold in the developingworld; Internet sales growth will outstrip that of traditional retailing; andthe London Olympics will create a swimwear market 'splash' in 2012, as an antidoteto the gloom and doom forecast for 2009-2010.


Originally published in The Stitch Times; May 2009


ImageSource: http://www.frenchlingerieshop.com