China is the dominant country in the industry in terms of both apparel produced and revenue generated.
Los Angeles, CA (PRWEB) July 22, 2012
After several years of strong revenue growth, the Global Apparel Manufacturing industry suffered weaker demand conditions in 2008 and 2009. As the global recession hit, demand for higher priced apparel weakened in markets such as Europe, the United States and Japan. While demand for apparel in some emerging markets, such as China, continued to grow over this period, it did little to buffer the industry from the effects of the global recession. Industry demand is forecast to grow strongly in 2012. Much of this demand is expected to come from emerging markets, which have rebounded strongly from the economic crisis, according to IBISWorld industry analyst Kiera Outlaw. Demand from developed markets, led by the United States, is increasing at a more subdued rate. IBISWorld expects that over the five years through 2012, industry revenue will grow at an annualized 0.1%. The industry is forecast to generate revenue of $557.9 billion in 2012, a 2.0% increase from 2011. Key factors affecting the industry over the past five years were population growth, disposable income levels and international trade levels. Consumers need clothing for practical reasons, causing demand to grow as the global population increases.
International trade is high in this industry. Companies are increasingly opening manufacturing operations in low-wage countries or sourcing their products from independent contractors in these regions. China is the dominant country in the Global Apparel Manufacturing industry in terms of both apparel produced and revenue generated. However, as incomes rise in China, production is moving to other low-cost producers such as Vietnam and Bangladesh. IBISWorld expects that international trade will account for most of the industry’s revenue in 2012.
Industry revenue is forecast to grow strongly over the five years through 2017, as demand from growing middle classes in emerging economies becomes even stronger, Outlaw says. In contrast, demand from developed economies is expected to remain relatively steady. Industry growth will be accompanied by increased international trade, higher participation levels and wages growth. There are some large global companies in the industry, yet none of them are expected to account for more than 1.0% of industry revenue. The high labor intensity of most of the industry's production lends itself to many small operations. Although some large-scale manufactures operate in the industry, developing countries have a large number of micro businesses that manufacture clothing. Concentration in the industry has increased slightly over the past five years due to mergers and consolidation of industry participants. The level of industry concentration is expected to increase in the next five years as firms merge or consolidate operations. For more information, visit IBISWorld’s Global Apparel Manufacturing industry report page.
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IBISWorld industry Report Key Topics
The Global Apparel Manufacturing industry covers the activity of manufacturing men's, women's and children's cut and sewn apparel, with fabrics being the primary raw material. The industry includes manufacturers that purchase fabrics and those that manufacture fabrics themselves and have fixed operational facilities. Manufacturing of leather, plastic or balata apparel is not covered by this report.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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