The consumer’s love of all things luxury once again positions LVMH as the leader of the Apparel, Footwear and Accessories manufacturing market in 2014. LVMH’s multi-year growth spurt — propelled by $2.6 billion acquisition and integration of cashmere clothier Loro Piana, along with the disposal of its stake in Hermes — is indicative of the Luxury Goods market overall. By comparison, Luxury Goods continues to outpace other sub-segments with revenues in excess of $317 billion, according to Euromonitor’s “State of the Luxury Goods Market in 2014” report.
The undeniable force that is omnichannel is also driving global market growth of late, with U.S. retail e-commerce revenues from apparel and accessories sales amounting to $52.2 billion in 2014, up 14 percent from 2013, according to Statista. Another hot trend, the rising consumer interest in health and wellness, boosted sportswear’s global retail value by 7 percent, reported Euromonitor.
Nike appears to be the leading beneficiary of both trends. With revenues up 10 percent to $30.6 billion in 2015, the company is optimistic that it will hit a revenue target of $50 billion by 2020. As a trendsetter in the digital sphere, Nike’s e-commerce revenue grew 55 percent to more than $1 billion in 2015, fueled by an expansion into new countries and supported by experience-enhancing infrastructure investments. The company expects that number to grow to $7 billion by 2020.
With a goal of hitting $1 billion in online sales, Ralph Lauren Corporation is another one to watch in omnichannel as it is building a new e-commerce platform in-house that will power its global online stores.
The biggest grower in the Apparel category this year, PVF Corp. made several acquisitions over a decade that have redefined the identity, performance and long-term growth potential of the company – most recently with the acquisition of The Warnaco Group, Inc. in February 2013. Like Nike and Ralph Lauren, capturing the digital opportunity will be a key pillar to the company’s growth strategy moving forward as well.
To see the Top 10 Apparel Companies, click on the attachment below.