Mexico and the Global Apparel Industry May 2018 · Global Denim Jeans and Athleisure Sales Sales of...

Mexico and the Global Apparel Industry

Trends and Challenges

May 2018

COTTON INCORPORATED’S

CONSUMER & RETAIL INSIGHTS

625,000+

REVIEWS ANALYZED

1,500,000+

GARMENTS AUDITED

300,000+

INTERVIEWS CONDUCTED

Global Apparel Spending 2030Growth from 2016 to 2030 (Billions USD)

$587+112%

$401+19%

$439+18%

Source: Euromonitor

$25+37%

Global Trends and ChallengesMexican consumers have a strong interest in clothes

4 Source: CCI & Cotton Incorporated’s Global Lifestyle Monitor

Preferred Item to Shop

Food – 33%

Clothes – 32%

Shoes – 13%

Electronics – 12%

Cosmetics – 5%

Top Purchase Drivers

Comfort

Durability

Quality

Style/ Price/ Fit

Outline

Do Better for Self

Do Better for the World

SelfExpression

Retail Experiences

Do Better for Self

Stress in Modern Life

Smart Clothing for Stress Relief

Performance Technologies

Outline

Problem: Stress in Modern Life

Source: Zipjet

Modern life has brought high stress to many

Performance Features in Apparel - MexicoConsumers want their clothing to do more

TemperatureControl

Fade Resistant

EasyCare

UV Protection

70%Moisture Management

OdorResistant

Stain Resistant

Wrinkle Resistant

Percent saying they are likely to look for the following features in apparel:

Source: CCI & Cotton Incorporated’s Global Lifestyle Monitor

Stress-Relieving PerformanceConsumers are attracted to smart textiles that address physical symptoms of stress

53% 49% 49% 44%37% 34%

51%44% 47%

41% 40% 44%

69% 64% 63% 58%49%

Relieve Stress Monitor HeartRate

MonitorHydration

Alert forIncorrect

Movement

ManageMood/Emotions

MonitorPerspiration

U.S. Mexico Colombia

Percent saying they are likely to purchase clothing with the following features:

Source: Cotton Incorporated’s Lifestyle Monitor and CCI & Cotton Incorporated’s Global Lifestyle Monitor

Apparel for Stress ReliefIntegrating technology in “smart apparel”

Do Better for SelfApparel can help ease burden of modern life

Stress is building for consumers across the globe

Add performance features so that clothing can do more for consumers

Explore smart textiles for stress-relieving performance

Environmental Issues

Circular Fashion

Marketing Sustainable Fashion

Environmental Issues Affect Daily Life

China94%

India91%

Mexico94%

Italy91%

Germany81%UK

Consumers in developing markets are especially concerned with environmental change

Source: CCI & Cotton Incorporated’s Global Environment Survey

Common Sustainable ActionsConsumers take various actions to improve environmental conditions.

Purchase appliances that conserve energy (87%)

Recycle cans, bottles, paper, etc. (85%)

Use refillable water bottle (91%)

Limit water usage at home (88%)

Purchase locally made products (80%)

Use my own bags while shopping (71%)

Recycle clothing or textiles (78%)

Buy clothing made from sustainable or natural materials (67%)

Reduce consumption of goods (78%)

Mexico• Protect the world for

future generations

• Live a healthier lifestyle

• Create a better world for myself

U.S.• It is the right thing to do

• Protect the world for future generations

• Live a healthier lifestyle

Why Take Sustainable ActionsConsumers across the globe have different motivations for seeking sustainability clothing

Influence of Sustainability on Clothing PurchasesSustainability clothing matters to consumers

Influence of Sustainability on Clothing PurchasesSustainability is especially influential in the Baja and Gulf regions.

Percent saying environmental friendliness influences clothing purchases

North 67%

Gulf, 75%

Pacific, 67%

Central, 67%

Baja Peninsula

Gulf Coast

Mexico City

Central

Pacific Coast

Yucatán PeninsulaYucatan, 65%

Mexico City, 70%

Peninsula, 77%

More influence

Less influence

Brands Partner in SustainabilityBrands connect with consumers over environmental concerns

Circular FashionCommitment to a more sustainable future

Circular Fashion: Increasing Longevity Brands increase clothing durability to reduce industry waste

Circular Fashion: End of lifeBrands looking for end of life uses for garments

Cotton Isn’t Just for ClothingCotton has many uses

Recognize that environmental issues are important to consumers

Connect with consumers by speaking to environmental concerns and motivations

Partner in sustainability with durable clothing and circular fashion

Self Expression

Outline

SelfExpression

Athleisure Lifestyles

Denim Reimagined

Global Denim Jeans and Athleisure SalesSales of athleisure levels off but both denim and athleisure are still projected to grow

Source: Global Industry Analysts, Inc. & Euromonitor International

2009 2010 2011 2012 2013 2014 2015 2016 2017

Sports-Inspired Apparel Denim Jeans

AthleisureAthleisure has slowed but is still projected to grow as consumer interest remains strong

Source: CCI & Cotton Incorporated’s Activewear Survey

U.S. MEXICO

56%67%

44%61%Activewear is my new casual wear

Athleisure will be around for a while

AthleisureBrands utilize cotton-rich collections for their athleisure lines

Percentage of consumers who prefer cotton-rich activewear.

54% 71%

U.S. Mexico

Microplastics IssueMicroplastics pollution widespread

Source: Adventurers and Scientists for Conservation Microplastic Study

Microfiber ResearchCotton Research on Microfiber Degradation

Aquatic Biodegradation – Results0

Cotton76%

Polyester4%

25020015010050

Source: North Carolina State University

Denim AffinityMexican consumers especially love denim

Percent who love or enjoy wearing denim:

Average days/week wear denim:

4.6 days

3.4 days

U.S. Mexico

22% 21%

36% 37%

8% 30% 8%

49%32%

Preference by Type

At Work

RunErrands

Out toDinner

Hang OutAt Home

Activewear

Bottomswear Preferences by Occasion – MexicoConsumers prefer denim jeans outside the home

Just Be Comfortable

Authentic DenimConsumers view cotton as the only authentic denim

Source: Cotton Incorporated’s Lifestyle Monitor

Percent of consumers who say cotton jeans are more ________ compared to jeans made with manmade fibers

Authentic

Sustainable

Comfortable

Quality

Self-Expression

Consumers value self-expression and look to clothing to express themselves

Incorporate cotton into activewearofferings to increase its comfort

Build on denim jeans’ cachet by marketing its versatility and style

All About Retail

Outline

All About Retail

Consumer Shopping Journey

In-store Experiences

Online Inspiration

Consumer Shopping JourneyConsumer shopping journey is complex

SEARCH THE WEB

EMAILED ADS

SHOPPING IN STORE

WORD OF MOUTH

PURCHASE

MOBILE SEARCH

ONLINE REVIEWS

TV/DIGITAL ADS

ONLINE PURCHASE

Stores Opening Focus on Price, Convenience, and BeautyOver 4,000 net stores opening

Source: Company Reports & IHL Group

• Rue 21

• Sears & Kmart

• Gymboree

• The Limited

• Bebe Stores Inc.

• Wet Seal

• JCPenney

• BCBG

• American Apparel

• Gordmans Stores, Inc.• Michael Kors• Macy’s• Gap• Guess• Chico’s• Lucy Activewear• Lululemon Athletica

• Dollar General

• Dollar Tree

• 7 Eleven

• Couche-Tard

• Aldi

• TJX

• Tractor Supply

• Sally Beauty

• Casey’s

• Ulta

• Five Below

Stores Closing: Stores Opening:

For Each Company Closing Stores, 2.7Are Opening Stores

Mexicans and ShoppingDespite its changes, Mexican consumers still enjoy the retail experience

I love/like clothes shopping

I enjoy the experience of shopping for clothes

in a physical store

I would rather spend my money on things other than clothes

Closets Full of ClothesMexicans own more clothes

Mexico

Average number of garments owned:

Consumer Shopping JourneyMexicans spend more of their shopping journey in physical stores

73% 69%77% 77%

66%72%

55%54%

67%74%

Clothing research Pre-purchasequestions

Purchase Repeat purchase

Mexico

Percentage of consumers who prefer a physical store for the following:

Online is an emerging source of ideas for younger consumers

35+ yrs. old 15-34 yrs. olds

8%Brand or RetailerSites/Emails/Apps

26%Traditional

9%Social Media

48%OtherPeople

58%OtherPeople

26%Traditional

13%Brand or RetailerSites/Emails/Apps

17%Social Media

Where Clothing Ideas Come From: - Mexico

Argentina

United States

Mexico

Colombia

Indonesia

Germany

Social Media Continues to Influence ConsumersSocial network users by country

Source: Hootsuite & We Are Social’s Digital in 2018

Traditional Retail Is Still Very Much Alive In-store apparel shopping still king

Percentage of consumers who have ever shopped for clothing online:

Mexico

Enjoy Most About Shopping – MexicoConsumers find much to like about their favorite stores

Ease of Shopping

Convenient Location

18% Styles16%

Sales/Promotions

Percent saying they like the following features about their most-shopped clothing store

Quality of clothing

Prices28%Selection36%

AmazonShare of the Fashion Market Expanding

Shopping is about ExperienceConsumers prefer a multifaceted shopping experience

Communication

REI: Climbing Wall, Denver, COB8ta technology “experience” stores

“The best retail environments will create a true sense of arrival, destination, and community”

- Retail Design Collaborative, 2018

Frictionless Payment A new way to bring shopping ease to physical stores

Support Frictionless

Payment Methods

Sensor

Fingerprinting

Facial

Recognition

Retinal

Scanning

Source: Juniper Research report: Future In-store Retail Technologies: Adoption, Implementation & Strategy 2017-2022

Mixing Digital and Physical Is Essential Keep your customers focused on your brand and shopping experience

Would like brands to combine

digital in physical stores

Gen Z55%

54% Gen Y

Overall

Source: Cotton Incorporated’s Lifestyle Monitor™

Searching for CottonEasing the Search for Cotton Clothes

Aggregates Cotton Collections

Shoppable Cotton Runway

All about Retail

Preference for physical stores remains strong, especially in Latin America

Invest in consumer experience to combine entertainment and commerce

Seamlessly blend digital in the physical stores to keep consumers engaged

cottonworks.com

Trends and Challenges

May 2018

Mexico and the Global Apparel Industry May 2018 · Global Denim Jeans and Athleisure Sales Sales of...

Documents

Shoulder - Tellason Denim · Shoulder Sleeve Neck CLAMPDOWN SHIRT Denim Canvas Denim Canvas Denim Canvas. Center Front Chest (1” below underarm seam X 2) Fleece Sweatshirts Back

Denim Brands From Denim Expert Bangladesh

Putnam Variable Trust · The fund’s top contributor was German sportswear manufacturer adidas. Sales of the firm’s shoes and athleisure clothing [trendy workout apparel] rose,

MoveSo, move. I Move MAVIOLOGY F/W 2016 1. INDIGO Move. MAVIOLOGY FW 2016 3 Elevated lifestyle & athleisure denim collection. MAVIOLOGY FW 2016 4. Focused on the concept of an active

JULY 6, 2016 Gym Clothes Are Making Their Way Out of the ... Primer on Athleisure by... · Gym Clothes Are Making Their Way Out of the Gym: A Primer on Athleisure •Athleisure is

Ball Warping Rope Dyeing L.C.B Sizing Weaving Finishing Inspection Raw Denim Stretch Denim Cotton Serge Denim Printed Denim Colored Denim Ecru Denim Dobby Denim Tencel Den. 219000

The new frontier of the intimate apparel athleisure

eventtaiwan.lenzing.comeventtaiwan.lenzing.com/.../MLR...AthleisureWoven.pdf · ATHLEISURE woven AW 19/20 DENIM NEW DENIM COMPACT STRETCH PINSTRIPE CANVAS WORKWEAR Tencel Feels so

DENIM PRESENTATION

PURE VINTAGE PURE DENIM AMERICAN VIBEPURE VINTAGE PURE DENIM AMERICAN VIBE 82 East Marie Street Hicksville, NY 11801 Tel: 646-436-0173 Fax: 212 658 9801 e-mail: sales@yashimports.comCOMBO

· INDUSTRY Source: The Wall Street Journal, NPD Group GROWTH RATES Athleisure Total Apparel w/ Athleisure Total Apparel w/o Athleisure THE APPAREL INDUSTRY IS SHRINKING WITHOUT

Denim Glossary

DENIM - Threads...denim,” “Cone mills,” “Japanese denim,” or “raw denim” may turn up retailers with yardage to sell. ˛ e narrow width means you’ll need nearly twice

VAV TECHNOLOGY SUSTAINABLE DENIM FINISHING … · ogies for denim producers and laundries. VAV DENIM ACADEMY — VAV Technology has been established VAV Denim Academy in 2016 to train

Luxury Brands Stretching Into Athleisure 2017

Century Denim participated in Denim Feature powered by Fibre2Fashion.com

XENO FW 2015 SS 2016 ATHLEISURE - The …preview.thenewsmarket.com/Previews/ADID/DocumentAssets/...COVER: TEE ATHLEISURE AO3585 TRACKPANT ATHLEISURE AO3584 RIGHT: XENO HOOdIE AP1730

CUSTOM ATHLEISURE - Merchandise Essentials · CUSTOM ATHLEISURE CUSTOM ATHLEISURE There is a new trend in the fashion world these days. It’s fierce, stretchy and ... W e a re ro

Denim Jacket-26.indd - Husqvarna Viking projects/denim... · Denim Jacket Designed & Created ... Ours was a ﬁ tted style. Sewing Supplies · Husqvarna Viking Designer SE · Denim

XENO FW 2015 SS 2016 ATHLEISURE - The NewsMarketcover: tee athleisure ao3585 trackpant athleisure ao3584 right: xeno hoodie ap1730 tee athleisure ao3585 xeno leggings ap1732 adidas