u.s. and the global apparel industry - cottonworks™ · 2020-05-07 · athleisure brands utilize...

U.S. and the Global Apparel Industry

Trends & Challenges

May 2018

© 2018 Cotton Incorporated

COTTON INCORPORATED’S

2

CONSUMER & RETAIL INSIGHTS

625,000+

REVIEWS ANALYZED

1,500,000+

GARMENTS AUDITED

300,000+

INTERVIEWS CONDUCTED

© 2018 Cotton Incorporated3

Global Apparel Spending 2030Growth from 2016 to 2030 (Billions USD)

3

$587+112%

$401+19%

$439+18%

Source: Euromonitor

$25+37%

$14

+49%


Global Trends and ChallengesU.S. consumers’ interest in clothing

4 Source: Cotton Incorporated Lifestyle Monitor™ Survey

Preferred Item to Shop Top Purchase Drivers

Fit

Comfort

Quality

Price

Durability

Food – 33%

Electronics – 25%

Clothes – 25%

Cosmetics – 8%

Shoes – 5%


Colombia and the Global Apparel Industry

5

Outline

Do Better for Self

Do Better for the World

SelfExpression

Retail Experiences


Do Better for Self

6

Do Better for Self

Stress in Modern Life

Smart Clothing for Stress Relief

Performance Technologies

Outline


Problem: Stress in Modern Life

Source: Zipjet

Modern life has brought high stress to many


Performance Features in Apparel – U.S. Consumers want their clothing to do more

Odor Resistant

62%

FadeResistance

54%

Moisture Wicking

54%

Water Repellant

44%ThermalRegulating

48%

Sweat Hiding

54%

Durability Enhancement

52%

WrinkleResistance

55%

Percent saying they are likely to look for the following features in apparel:

Source: Cotton Incorporated Lifestyle Monitor™ Survey


Stress-Relieving PerformanceConsumers are attracted to smart textiles that address physical symptoms of stress

53% 49% 49% 44%37% 34%

51%44% 47%

41% 40% 44%

69% 64% 63% 58%49%

79%

Relieve Stress Monitor HeartRate

MonitorHydration

Alert forIncorrect

Movement

ManageMood/Emotions

MonitorPerspiration

U.S. Mexico Colombia

Percent saying they are likely to purchase clothing with the following features:

Source: Cotton Incorporated’s Lifestyle Monitor and CCI & Cotton Incorporated’s Global Lifestyle Monitor


Apparel for Stress ReliefIntegrating technology in “smart apparel”


Do Better for SelfApparel can help ease burden of modern life

Stress is building for consumers across the globe

Add performance features so that clothing can do more for consumers

Explore smart textiles for stress-relieving performance



12


Environmental Issues

Circular Fashion

Sustainable Purchase Drivers


Environmental Issues Affect Daily Life

China94%

India91%

Mexico94%

Italy91%

Germany81%UK

75%

US75%

Consumers in developing markets are especially concerned with environmental change

Source: CCI & Cotton Incorporated’s Global Environment Survey

© 2018 Cotton Incorporated14 Source: CCI & Cotton Incorporated’s Global Environment Survey

U.S. Rest of World• Water Quality

• Air Quality

• Food Safety

• Depletion of Natural Resources

• Air Quality

• Food Safety

• Water Quality

• Climate Change

Top Environmental ConcernsConsumers across the globe have environmental concerns


Common Sustainable ActionsConsumers take various actions to improve environmental conditions.

Purchase appliances that conserve energy (72%)

Recycle cans, bottles, paper, etc. (82%)

Use refillable water bottle (74%)

Limit water usage at home (69%)

Recycle clothing or textiles (65%)

Purchase locally made products (62%)

Use my own bags while shopping (59%)

Reduce consumption of goods (55%)

Source: CCI & Cotton Incorporated’s Global Environment Survey

© 2018 Cotton Incorporated16 Source: CCI & Cotton Incorporated’s Global Environment Survey

Mexico• Protect the world for

future generations

• Live a healthier lifestyle

• Create a better world for myself

U.S.• It is the right thing to do

• Protect the world for future generations

• Live a healthier lifestyle

Why Take Sustainable ActionsConsumers across the globe have different motivations for seeking sustainability clothing


Effort Finding Sustainability ClothingSustainable clothing matters to consumers

Source: CCI & Cotton Incorporated’s Global Environment Survey and CCI & Cotton Incorporated’s Global Lifestyle Monitor

54%

42%

69%

48%


What Makes Clothing SustainableConsumers describe sustainable clothing as “Natural” and “100%” cotton

100% Cotton

47%

Natural

47% 43%

OrganicDurable or

Long-Lasting

43% 42%

Recycled

40%

High Quality


Brands Partner in SustainabilityBrands connect with consumers over environmental concerns


Circular FashionCommitment to a more sustainable future


Circular Fashion: Increasing Longevity Brands increase clothing durability to reduce industry waste


Circular Fashion: End of lifeBrands looking for end of life uses for garments


Cotton Isn’t Just for ClothingCotton has many uses



Recognize that environmental issues are important to consumers

Connect with consumers by speaking to environmental concerns and purchase drivers

Partner in sustainability with durable clothing and circular fashion


Self Expression

25

Outline

SelfExpression

Athleisure Lifestyles

Denim Reimagined


Value Self-ExpressionConsumers value self-expression

64%68%77%

Percentage of consumers who value self-expression:

Source: Iconoculture Global Values Study


Authentic Clothing Consumers look to clothing to express who they are

Generation

Gen Z Millennial Gen X

72% 66% 59%

Gender

Women Men

62% 50%

Percent saying they wear clothing as a way to express themselves:

38%

Boomers



Global Denim Jeans and Athleisure SalesSales of athleisure levels off but both denim and athleisure are still projected to grow

Source: Global Industry Analysts, Inc. & Euromonitor International

50

52

54

56

58

60

62

64

66

68

2009 2010 2011 2012 2013 2014 2015 2016 2017

Bill

ion

s o

f U

SD

Sports-Inspired Apparel Denim Jeans

+3.5%

+2.5%

+28%


AthleisureBrands utilize cotton-rich collections for their athleisure lines

Percentage of consumers who prefer cotton-rich activewear.

54%

U.S.



Microplastics IssueMicroplastics pollution widespread

Source: Adventurers and Scientists for Conservation Microplastic Study


Microfiber ResearchCotton Research on Microfiber Degradation

Aquatic Biodegradation – Results0

10

20

30

40

50

60

70

80

90

% B

IOD

EGR

AD

ATIO

N

0

Cotton76%

Polyester4%

DAYS

25020015010050


Denim AffinityColombian consumers especially love denim

Percent who love or enjoy wearing denim:

Average days/week wear denim:

55%3.4 days

U.S. Colombia

Source: Cotton Incorporated’s Lifestyle Monitor™ and CCI & Cotton Incorporated’s Global Lifestyle Monitor Surveys

71% 4.6 days

Mexico

4.0 days82%


33% 40%

41%42%

20% 2% 4%

58%

42%33%

33

Preference by Type

Run Errands

Out to Dinner

At Work

Hang OutAt Home

Denim

Activewear

Bottomswear Preferences by Occasion – U.S.Consumers prefer denim jeans outside the home

Do Yardwork



Authentic DenimConsumers view cotton as the only authentic denim

Percent of consumers who say cotton jeans are more ________ compared to jeans made with manmade fibers

Authentic

88%

Sustainable

88%

Comfortable

87%

Quality

85%



Self-Expression

Consumers value self-expression and look to clothing to express themselves

Incorporate cotton into activewearofferings to increase its comfort

Build on denim jeans’ cachet by marketing its versatility and style


All About Retail

36

Outline

All About Retail

Consumer Shopping Journey

In-store Experiences

Online Inspiration


Increased Interest in Clothes Shopping, Mainly Among MenPercent of consumers who love or enjoy shopping for clothes

48% 48%

54%

52%

55%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Love/enjoy clothes shopping

27% 44%

62% 64%

Source: Cotton Incorporated 2017 Lifestyle Monitor™ Survey


Fast Fashion, Off Price, E-Comm CompetitionConsumers still like to shop, but have diversified their spending

Retailers 2016 2017

Mass Merchants 59% 58%

Low-tier Dept. 55% 53%

Department 39% 41%

Specialty 34% 37%

Fast Fashion 15% 21%

Off Price 32% 35%

Online Only 30% 35%



Stores Opening Focus on Price, Convenience, and BeautyOver 4,000 net stores opening

Source: Company Reports & IHL Group

• Rue 21

• Sears & Kmart

• Gymboree

• The Limited

• Bebe Stores Inc.

• Wet Seal

• JCPenney

• BCBG

• American Apparel

• Gordmans Stores, Inc.• Michael Kors• Macy’s• Gap• Guess• Chico’s• Lucy Activewear• Lululemon Athletica

• Dollar General

• Dollar Tree

• 7 Eleven

• Couche-Tard

• Aldi

• TJX

• Tractor Supply

• Sally Beauty

• Casey’s

• Ulta

• Five Below

Stores Closing: Stores Opening:

For Each Company Closing Stores, 2.7Are Opening Stores


U.S. RetailMany traditional retailers are struggling to meet changing shopping behaviors

Department

Sporting Goods

Off Price

Mass Merchants

Online OnlySpecialtyFast Fashion

Department

SpecialtyFast Fashion


Closets Still Full of ClothesU.S. consumers own slightly more than average

World

75

Colombia

103

U.S.

76

Average number of garments owned:



Consumer Shopping JourneyConsumer shopping journey is complex

SEARCH THE WEB

EMAILED ADS

SHOPPING IN STORE

WORD OF MOUTH

PURCHASE

MOBILE SEARCH

ONLINE REVIEWS

SHARE

TV/DIGITAL ADS

ONLINE PURCHASE


Consumer Shopping JourneyMost U.S. consumers prefer to buy in store, but research most research clothes online

45%

66%72%

55%54%

67%74%

61%

Clothing research Pre-purchasequestions

Purchase Repeat purchase

U.S.

World

Percentage of consumers who prefer a physical store for the following:



Where Does the Clothing Search Begin Online?Where do they get ideas when browsing online

SearchEngineswebsites emails apps

41% 24% 18%Retailers

28%

E-Commwebsites

16%

emails

13%

apps

12%

face-book

pinter-est

insta-gram

Social Media

17%

snap-chat

twitter/ tumblr

16% 16% 5% 3%



Where Clothing Ideas Come From: - U.S.Younger consumers focus more online for clothing ideas

45

35+ yrs. old 13-34 yrs. olds

28%Brand or

Ecommerce Sites

27%Television

23%Social Media

53%Already own

and like

50%Already own

and like

40%Television

41%Brand or Ecommerce Sites

44%Social Media



76%

71%

66%

65%

64%

63%

56%

49%

46%

19%

Argentina

United States

UK

China

Mexico

Colombia

Japan

Indonesia

Germany

India

46

Social Media Continues to Influence ConsumersSocial network users by country

Source: Hootsuite & We Are Social’s Digital in 2018


Traditional Retail Is Still Very Much Alive In-store apparel buying is still king

Percentage of consumers who have ever shopped for clothing online:

Colombia

36%

U.S.

89%World

72%



Why Prefer Physical Store – U.S.Consumers want to physically interact with clothing

Percent who prefer physical stores for the following reasons:

9%

23%

28%

31%

42%

54%

64%

69%

Customer service

Shopping experience

No waiting

Easy

No shipping cost

Feel fabric

See item in person

Try on clothes



AmazonShare of the Fashion Market Expanding

Source: Cotton Incorporated 2017 Lifestyle Monitor™ Survey, CommScore, Morgan Stanley


63%

57%

46%

50

Get to Know Customers BetterPersonalize my shopping experience

Source: Cotton Incorporated’s Lifestyle Monitor Survey

U.S. Consumers <35U.S. Consumers

Wish brands knew what I like & how I shop 54%

Offered personalized shopping collections for me


Shopping is about ExperienceConsumers prefer a multifaceted shopping experience

Communication

REI: Climbing Wall, Denver, COB8ta technology “experience” stores

“The best retail environments will create a true sense of arrival, destination, and community”

- Retail Design Collaborative, 2018


Frictionless Payment A new way to bring shopping ease to physical stores

Support Frictionless

Payment Methods

79%

Sensor

Fingerprinting

50%

Facial

Recognition

35%

Retinal

Scanning

31%

Source: Juniper Research report: Future In-store Retail Technologies: Adoption, Implementation & Strategy 2017-2022


Consumers are using digital in-store already….Consumers remain digital even when they are in-store….

Browse clothing at

different retailersLook-up

coupons

31% 58% 44% 52%

U.S. Consumers Chinese Consumers

Compare prices

at different retailers

47% 32%

Source: Cotton Incorporated’s Lifestyle Monitor and CCI & Cotton Incorporated’s Chinese Consumer Survey


Mixing Digital and Physical is Essential Keep your customers focused on your brand and shopping experience

Would like brands to combine

digital in physical stores

43%

Gen Z55%

54% Gen Y

Overall



All about Retail

Preference for physical stores remains strong, especially in Latin America

Invest in consumer experience to combine entertainment and commerce

Seamlessly blend digital in the physical stores to keep consumers engaged

u.s. and the global apparel industry - cottonworks™ · 2020-05-07 · athleisure brands utilize...

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