Columbus based global management consulting and market research firm specializing in retail intelligence and strategies, Retail Formward says there is some good news for global apparel brands and apparel specialty stores, which face a threat from a growing wave of no-name store brands sourced in China and other low-cost countries and sold at hypermarkets and supercenters.
Consumers in developing countries-particularly China, India, Russia, Mexico and Brazil- are buying and paying more for well-known or familiar apparel brands, a recently released study by Retail Forward reports.
The Global Softgoods Shopper Update also finds that the beneficiary of the robust apparel spending in developing markets is clothing specialty stores more so than department stores, hypermarkets and supercenters. The study was based on surveys conducted for Retail Forward by Global Market Insite Inc. (GMI).
The impact of new shopping alternatives-notably hypermarkets and supercenters from Carrefour, Wal-Mart and Tesco for example - is being felt primarily in certain countries and categories.
The impact of online and non-store retailers in the apparel sector appears to be strongest in France, Germany, Japan and the United Kingdom. Despite the new alternatives, however, the study finds that shopping frequency at clothing specialty stores and traditional department stores appears to be holding up in most countries.
Retail Forward's Global Softgoods Shopper Update report is based on the GMIPoll online Omnibus survey of 1,000 consumers in 13 select countries. Retail Forward's report analyzes the responses of those consumers to questions about their shopping frequency, behavior and attitudes related to shopping for apparel.
"Our research indicates that shoppers are buying more apparel-more often higher quality apparel-from apparel specialty stores and to a lesser extent from traditional department stores," states Frank Badillo, author of the Global Softgoods Shopper Update and Manager of the Global Retailing Program of the Retail Forward Intelligence System. "Conversely, demand for apparel at hypermarkets and supercenters is less robust in less developed retail markets."
Consumers surveyed in less-developed retail markets also indicated a strong interest in buying and paying more for well-known or familiar clothing brands than shoppers in more well-developed markets.
At the same time, a high share of shoppers surveyed across most countries is willing to try an unfamiliar clothing brand if it is recommended by someone or if the price or style is right.
Among the findings from the Shopper Update report:
Clothing and department stores remain favored, but face challengers.
Clothing, specialty and department stores are holding up well across most countries as the store types where most consumers prefer to buy clothing and accessories most often.
But alternative formats-most notably hypermarkets and supercenters in Japan, the United Kingdom and the United States-are making competitive inroads. The pressure is most evident in teen and children's clothing.
Also feeling the impact are women's and men's casual clothing and shoes.
Shopping frequency shifts evident in developed markets. Despite the growing impact of hypermarkets and supercenters, shopping frequency at clothing and other specialty stores is holding up well in less developed retail markets and some European markets.
Slippage at traditional department stores is evident primarily in the developed markets of Japan, the United Kingdom and the United States.
Online and non-store apparel retailing is strongest in Europe and Japan. Consumer interest in online apparel retailers-and more broadly in non-store apparel retailers including catalogs and personal selling-is strongest in France, Germany, Japan and the United Kingdom.
Non-store retailers in the European countries, particularly France and Germany, have benefited from regulations that limit store hours and store development.
Canada is among the laggards in terms of interest in online and other non-store retailers. The United States is between the extremes.
Retail Forward company's syndicated research and executive development program known as the Retail Forward Intelligence System, provides members with an authoritative perspective on the retail and consumer products industries.
