April 6, 2018
The Global apparel retail industry in recent years has experienced healthy growth, especially in Asia Pacific region highest growth rate which currently accounts for 38.3% of the total industry value. The growth of the economy slowed down in China in 2017, overall apparel continued to grow, especially in the fast fashion category. Growth is encouraged by the shift of the global economic power base; population growth, urbanization and the expansion of middle-class citizens in the Asia-Pacific region will drive growth in the industry.
Fast fashion retailers are filling the gap in the market for mainstream consumers who want to wear fashionable clothing style at a lower price. The quick manufacturing at an affordable price, companies can create scarcity value, leading customers to visit stores more often. By changing their offering quickly even as luxury brands such as Gucci and Burberry have reported slower growth in markets such as China, fast fashion retails brands such as Zara, H&M, and Uniqlo (part of Fast Retailing) are set to expand further in China in order to capture a market that blurs the distinction between mid-market apparel and low-end luxury.
As the Asia-Pacific market continues to expand at a strong rate. The trend is expected to continue into the forecast period 2018 – 2022. The global apparel retail industry is expected to generate total revenues of $1,416.4bn in 2017, representing a compound annual growth rate (CAGR) of 4.4% between 2013 and 2017. The womenswear segment is expected to be the industry’s most lucrative in 2017, with total revenues of $749.5bn, equivalent to 52.9% of the industry’s overall value.