Women's and Children's Apparel Wholesaling in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) September 10, 2013 -- The Women's and Children's Apparel Wholesaling industry is slowly recovering from a recession-driven drop in demand. In 2008 and 2009, high unemployment and weak consumer sentiment resulted in annual revenue declines. Even as consumer sentiment begins to rebound, vertical integration and import competition continue to threaten demand. As a result, over the five years to 2013, industry revenue is estimated to increase at a marginal 0.3% annualized rate to $63.0 billion. In 2013 alone, revenue is expected to grow 3.6% due to increasing downstream demand from women's clothing stores as per capita disposable income rises.
Vertical integration and high import levels are detrimental to this industry. Since the onset of the recession, large retailers have incorporated the wholesale step of the supply chain into their operations to save on distribution costs. This strategy has forced wholesalers to slash their own prices to remain competitive. Similarly, the infiltration of low-cost imports has intensified price competition for domestic wholesalers. Lower prices have ultimately led to diminished profit. “This was especially the case during the recession as apparel costs jumped along with the world price of cotton,” says IBISWorld analyst Caitlin Newsom. However, increased automation in the wholesaling process and recent workforce reductions have been helping wholesalers grow profit margins back to prerecession levels.
With revenue growth slowing, many wholesaling firms have had to exit the industry or merge with larger wholesalers. At the same time, nonemployer wholesalers with niche operations have been entering the industry, helping to offset the decline in companies with employees.
A steady recovery is forecast for the industry over the five years to 2018. The rebounding economy will continue bolstering downstream demand for discretionary items, such as clothes. Nevertheless, integration and increasing imports will keep apparel prices low, limiting growth during the period. IBISWorld anticipates that import penetration into the manufacturing sector will rise over the five years to 2018. As a result, the number of companies will remain fairly stable.
The Women's and Children's Apparel Wholesaling industry has a low level of concentration, meaning the top four players account for less than 40.0% of industry revenue. This low concentration reflects the fragmented nature of the industry, which has a large number of small participants. According to Newsom, “A large number of participating establishments are nonemployers, meaning they are owner-operated and do not hire additional staff.” Nonemployer companies are entering the market, offsetting the number of larger companies exiting the market or merging with other wholesalers.
For more information, visit IBISWorld’s Women's and Children's Apparel Wholesaling 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
The Women's and Children's Apparel Wholesaling industry purchases and resells women's, children's, infants' and unisex clothing and accessories. Operators purchase apparel from manufacturers and sell these products to retailers, with minimum or no further development of the product. Most wholesalers in this industry undertake sales and administrative activities, such as establishing relationships with manufacturers and retailers, marketing and advertising, and storage and transportation of stock.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
Share this article