Global market for Luxury denims:
Global luxury market foresees strong growth and is predicted to grow and reach USD2.4 trillion by the end of 2012, and USD 3.22 trillion by 2017. Russia, India, Australia, and Middle East are considered as fast growing markets for luxury, and China to dominate the scene with a 10 fold growth in the coming 5 years. A report by Global Industry Analysts, Inc (GIA) states that worldwide market for denims is predicted to grow and reach USD 65 billion by 2015. Demand for denim fabrics are growing by 5% and supply by 8%.
The industry has several thousand companies targeting numerous customer segments. Manufacturers face fierce competition, and hence need to invest heavily in differentiating their merchandise, and marketing efforts. Customers from the Western markets such as US and Europe are less loyal to brands than their Eastern counterparts. US and EU shoppers consider luxury as an experience, while customers of the Eastern countries consider luxury merchandise as status symbols, and iconic. Overall all customers; generally are willing to pay a premium price for brand, cachet, service, and design.
Notable players of the denim industry are Aarvee Denims, Diesel S.p.A, Gap, Lee, Wrangler, Flying Machine, 7 For All Mankind, Black Peony (Group), True Religion Apparel Inc., and Levi Strauss & Co are a few to name.
Trends:
What is considered as luxury today may become a necessity for tomorrow. Luxury market is always dynamic, and getting more luxurious. Market for denims is more consumer driven, cyclical in nature, and sensitive to productivity, celebrity endorsements, fashion trends, lifestyle, income status and many other factors. As fashion trends keep changing at the drop of a hat, manufacturers and retailers are under constant pressure. Manufacturers need to come up with innovative styles, and concepts to capture the shoppers' attention, and retailers need to keep abreast of the current fashion trends, and customer preferences, and fill their store rack accordingly.
Brand Naked and Famous Denim has come up with men's jeans that give an odor of raspberry candy. Mini micro capsules are used for creating a special coating on the fabric to give the scent to the fabric. Hardcore denim lovers are habituated of not washing their jeans often so as to get an individual look. The brand claims that the fabric would retain the scent even after multiple washes, and is also planning for other scents such as banana, mint, and apple.
Increasing concern for environmentalism has made eco friendly denims more preferable for their intrinsic worth. A report states that, a pair of jeans consumes approximately 3,480 liters of water during the course of its lifecycle. Around 15-20 chemicals are used in the manufacturing process for a pair of jeans. More than its manufacturing process, much environmental impact is caused by the consumption of water and energy during the laundering of jeans at homes. Currently, manufacturers focus much on minimizing wastages, and eliminating toxic chemicals during their manufacturing process. Global brands such as Kuyichi, Levi's, Serfontaine, Arne & Carlos, Linda Loudermilk, and Loomstate offer renowned eco denims.
Marketing Trends:
Today's shoppers have numerous options than ever before. Popularity of denim is based on the customer's desire to show off. Jeans would give them a feeling of style icon, and as a part of the fashion host. It is the general nature of a consumer to wish for an ego boost. Especially, if it is a woman deciding on luxury purchases, she would be more complement seeking.
Fashion trends tend to spread rapidly, even crossing the country's boundaries; at times. The desire of customer's to look and feel good is reflected in their clothing choice. This is cashed in by the customer centric retailers, targeting customers who are ready to shell out a fortune in buying branded clothing.
Brand ambassadors with strong personalities are used to provide unique promotion to brands. But care needs to be taken while going in for a celebrity endorsement, based on the geographic area, and the customer psychology. Customers from Malaysia and South Africa notice celebrities in denim brands, while Canadians and French customers do not pay attention to celebrity endorsements. On the contrary, they are more interested in street fashion. Globally, approximately 25% of denim customers keep an eye on celebrity endorsements and street fashions.
Denims for the Teen:
No doubt, denim is the favorite choice of teenagers. But, with their rebellious nature, and their aspiration for new styles, teen population would not prefer to be seen dead in anything the older generation is wearing. They still wear denim, but with different finishes, cuts, shapes, etc. Manufacturers focus on this segment of population and have come up with new fashion. Styles such as skinny, stretch, boot-cut, boyfriend, flared, and rolled up jeans inspire the teen population. Fabrics such as ripped, bleached and dirty wash are used.
In any competitive market survival would be only for the fittest. In case of luxury denims, recognizable names, investor money, retail support, and presence of branded stores are required to create a well established market.
References:
1) Denimsandjeans.com
2) designboom.com
3) News.yahoo.com
Image courtesy:
Neckedjeans.com
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