Specialty apparel stores have been adversely affected by rising production expenses
Los Angeles, CA (PRWEB) August 19, 2012
Lingerie, Swimwear and Bridal Stores industry revenue is expected to decline at an average annual rate of 1.8% over the five years to 2012. The industry has battled through some volatile ups and downs in demand. Until 2007, the combination of job growth, lower savings and easy access to credit allowed high discretionary spending, leading to strong sales of specialty apparel like lingerie, swimwear and bridal gowns. This trend quickly reversed in 2008, though. Low income due to the recession caused consumers to tighten their purse strings and cut purchases of nonessential goods, leading demand and revenue to fall substantially. Sales of wedding gowns declined as consumers delayed their marriage plans or opted for cheaper or secondhand goods. Encroaching competition within the retail market has also slowed industry growth, as department stores, discount retailers and internet retailers have increasingly grabbing market share by offering consumers convenience and low prices. In 2012, Revenue will increase 0.4% to $13.0 billion, thanks to improvements in economic conditions, according to IBISWorld industry analyst Nikoleta Panteva. Specialty apparel stores have also been adversely affected by rising production expenses over the five years to 2012. This trend has mainly occurred because of fluctuations in the price of cotton, which increased more than 65.0% in 2010 alone. This added cost, combined with competition and poor industry performance, has decreased profit within the industry. With profitability faltering, many underperforming operators have been forced to exit the industry or merge with other players. Over the five-year period, the number of companies has decreased.
Fortunately for players, continued economic recovery will likely aid growth in the five years to 2017. Equipped with deeper pockets, consumers are anticipated to increase their spending on high-end discretionary items, such as those sold by industry operators, leading to increased demand and sales. Nonetheless, the Lingerie, Swimwear and Bridal Stores industry will continue to face competition from department stores and other retail outlets that attract consumers with added convenience and discounted prices. Consequently, IBISWorld forecasts that revenue will increase at a modest rate over the five years to 2017, Panteva says.
The Lingerie, Swimwear and Bridal Stores industry exhibits a moderate level of market share concentration. IBISWorld estimates that in 2012, the four largest players in the industry will account for more than half of the industry's total revenue, with the largest player (i.e. Victoria's Secret) representing most of that. While the industry remains somewhat concentrated at the top, the remainder of the industry is characterized by a large number of small players. In fact, most establishments are non-employers or employ fewer than 10 workers. For more information, visit IBISWorld’s Lingerie, Swimwear & Bridal Stores in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Operators in this industry retail specialized lines of clothing, including bridal gowns, costumes, lingerie, uniforms and swimwear. These products are purchased from domestic and international manufacturers and wholesalers, and then retailed to the general public. Industry operators also often provide basic alterations such as hemming, taking in or letting out seams, or lengthening or shortening sleeves.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.