Industry operators will likely need to raise prices, which may deter demand.
New York, NY (PRWEB) April 02, 2014
Over the five years to 2014, the Online Original Design T-Shirt Sales industry is expected to soar. Operators in the industry sell T-shirts for men and women via company-owned online outlets (e-tailers). Demand for online original design T-shirts has been rising as consumers increasingly shop at e-tailers for the added convenience of shopping at home and the ability to compare prices at the click of a mouse. Moreover, industry operators are expected to benefit from a rise in the number of broadband connections, which will increase accessibility to industry operator's online storefronts. Despite these positive trends, the industry is expected to face some challenges that will likely hinder profit growth. For example, the world price of cotton, a major industry input, is expected to increase over the five-year period. As a result, industry operators will likely need to raise prices, which may deter demand, or absorb the costs themselves. Nevertheless, IBISWorld expects industry revenue to significantly grow at an annualized rate, lifted by an estimated increase in 2014.
There has been a growing trend toward utilizing a social commerce business model. For example, the industry's largest player, Threadless, utilizes this business model and has experienced significant success. According to IBISWorld Industry Analyst Brandon Ruiz, “Threadless crowdsources designs for apparel and has its online community vote on each design.” The company then prints T-shirts with the designs that received the highest reviews. “This new type of open sourced business model alleviates the risk associated with product development because each product produced already has inherent demand,” says Ruiz.
This industry exhibits a medium to high level of concentration, with the top four players generating the majority of industry revenue in 2014. In the five years to 2019, industry operators are expected to continue to expand, bolstered by a rising number of broadband connections and disposable income. As the number of broadband connections rises, the total pool of potential customers increases, benefiting industry operators. Additionally, rising disposable income levels are expected to increase consumer's propensity to purchase new T-shirts and other clothing items. Moreover, industry operators are expected to enter the growing mobile space to increase accessibility to their online storefronts. As a result of these trends, industry revenue is expected to increase at a high annualized rate of over the next five years.
For more information, visit IBISWorld’s Online Original Design T-Shirt Sales 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 Online Original Design T-Shirt Sales industry sells T-shirts for men and women via company-owned outlets online. These items are typically offered exclusively through the company's websites. Some websites require membership and send monthly T-shirt selections to members.
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.