Clothing & Footwear Wholesaling in the UK Industry Market Research Report Now Updated by IBISWorld

The Clothing and Footwear Wholesaling industry experienced a convergence of factors in recent years, which negatively affected revenue growth. The industry is heavily dependent upon demand from clothing and footwear retailers and downstream demand from the industry's major markets has weakened in recent times. Larger industry players are increasingly looking to bypass wholesalers. The industry was hit hard by the financial crisis, which caused consumer spending in clothing and footwear retail stores to drop, heavily affecting demand for inventory. Over the five years through 2012-13 industry revenue is anticipated to decline at an annualised 2.2% to reach £10.6 billion. Revenue is expected to rise a modest 0.7% in 2012-13. Over the five years through 2017-18, IBISWorld anticipates the industry will continue to face challenges in terms of overcoming wholesale bypass and subdued downstream demand, as overall economic growth remains sluggish. Industry revenue is expected to grow only marginally. For these reasons, industry research firm IBISWorld has updated its report on the Clothing & Footwear Wholesaling in the UK industry.

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IBISWorld Market Research

IBISWorld Market Research

This industry is heavily dependent upon demand from clothing and footwear retailers

London, United Kingdom (PRWEB) May 15, 2012

The Clothing and Footwear Wholesaling industry experienced a convergence of factors in recent years, which negatively affected revenue growth. According to IBISWorld industry analyst Kiera Outlaw, “the industry is heavily dependent upon demand from clothing and footwear retailers and downstream demand from the industry's major markets has weakened in recent times”. Larger industry players are increasingly looking to boost profits and attract consumers by offering lower prices through bypassing wholesalers and creating greater vertical integration.

Outlaw adds, “the industry was hit hard by the financial crisis, which caused consumer spending in clothing and footwear retail stores to drop, heavily affecting demand for inventory”. Real personal disposable income and consumer confidence are major factors influencing consumer spending on clothing and footwear. Low interest rates, temporary cuts to the VAT and heavy discounting did little to entice customers back to retail stores between 2008 and 2009. From 2010 through 2011, the industry experienced some growth, which subsided after it received another hit in January 2011 as the government increased the VAT to 20%. As a result of the increase, revenue contracted significantly during 2011-12.

Over the five years through 2012-13 industry revenue is anticipated to decline at an annualised 2.2% to reach £10.6 billion. Revenue is expected to rise a modest 0.7% in 2012-13.
Over the five years through 2017-18, IBISWorld anticipates the industry will continue to face challenges in terms of overcoming wholesale bypass and subdued downstream demand, as overall economic growth remains sluggish. Industry revenue is expected to grow only marginally.

The Clothing & Footwear Wholesaling industry has a low level of market share concentration, with no major players. Industry players usually specialise in a certain type of stock, whether it be clothing or shoes, which means concentration is low. Although industry concentration remains low, trends across other wholesale industries suggest the industry may experience increased concentration levels in the future. Greater consolidation within the industry would allow companies to achieve greater economies of scale and to function more profitably.

For more information on the Clothing & Footwear Wholesaling industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Clothing and footwear wholesalers purchase a wide range of clothing and footwear from domestic and foreign manufacturers and distribute the goods to downstream retailers. Most wholesalers in this industry do not undertake any alterations or further development of the goods.
Industry participants are involved in sales and administrative activities and ensure the reliable supply of stock, marketing and advertising of products and storage and transportation of goods.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.


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