New York, NY (PRWEB) January 03, 2014
The Clothing Boutiques industry comprises small retail stores that offer only a limited range of apparel and accessories. By nature, the industry is highly fragmented because retailers are defined as having only one establishment. Clothing boutiques typically cater to high-end or niche markets and are reliant on strong conditions for consumers. Therefore, the onset of the recession caused the industry to falter as declining per capita disposable income and plummeting consumer confidence precipitated a contraction in consumer discretionary spending on boutique clothing. Industry revenue fell 5.2% in 2009 as consumers reeled in spending or shifted purchases to relatively inexpensive retailers. However, conditions began to improve in 2010 and industry revenue slowly recovered.
According to IBISWorld Industry Analyst Jeremy Edwards, “Despite improving conditions, industry revenue did not recover as rapidly because of rising competition.” New consumer preferences trending toward online shopping have been detrimental to industry performance as clothing boutiques often do not have an online presence or do not have the ability to compete against major retailers. Internet usage has also opened up international markets for consumers, who can now browse overseas wares and order clothing. As a result, industry revenue is only expected to grow at an average annual rate of 0.6% to $25.2 billion over the five years through 2013. The industry is expected to perform better in 2013; industry revenue is forecast to expand 1.9% because of burgeoning retail conditions as unemployment falls and consumer outlook improves.
Over the next five years, retail conditions are expected to improve as per capita disposable income rises and consumer confidence recovers; however, online shopping will mitigate industry gains. Therefore, “industry establishments will focus on providing more online options to customers to compete with major retailers and e-commerce stores,” says Edwards. International competition will also continue to constrain industry growth, as online shoppers will have increasing access to boutique clothing in international markets. Nonetheless, the number of firms in the industry is expected to grow over the five years to 2018 because of rising demand from US households.
For more information, visit IBISWorld’s Clothing Boutiques in the US industry report page.
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IBISWorld industry Report Key Topics
The Clothing Boutiques in the US industry includes small retail stores that offer a limited range of apparel and accessories. The industry is defined as single-establishment stores only. Boutiques can be designer based (i.e. only one designer's collection is sold there), or they may sell a mix of brands that are specifically catered to the local market.
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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