Global market review of swimwear and beachwear - forecasts ... · of swimwear and beachwear - forecasts to 2012 2005 edition. Page i Global market review of swimwear and beachwear

Global market review of swimwear and

beachwear - forecasts to 2012

2005 edition

Page i

Global market review of swimwear and beachwear – forecasts to 2012 1st edition

by Malcolm Newbery

May 2005

Published by

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Page ii

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decisions based on this report.


Page iii

Table of contents

Single-user licence edition............................................................................................................. ii Copyright statement ......................................................................................................... ii

Table of contents ........................................................................................................................... iii

List of tables ................................................................................................................................... vi

List of figures ................................................................................................................................ vii

Acknowledgements ....................................................................................................................... ix

just-style.com membership............................................................................................................ x

Chapter 1 - Executive summary..................................................................................................... 1 Serious about sport and serious about fashion ................................................................ 1 How many swimsuits in a woman’s wardrobe? ................................................................ 1 The world swimwear and beachwear market 2003 .......................................................... 2 The “haves” and the “have nots” of swimwear ................................................................. 2 The world swimwear and beachwear market 2012 .......................................................... 3 Wealth, climate and religion ............................................................................................. 3 The Western European demographic timebomb.............................................................. 4 The swimwear supply chain ............................................................................................. 5 Brand price points.............................................................................................................5 Company and brand market positions.............................................................................. 6 Swimming into an uncertain future ................................................................................... 6

Chapter 2 - Introduction ................................................................................................................. 8 Serious about sport, or serious about fashion? ................................................................ 8 Report coverage ............................................................................................................... 8

Chapter 3 - The market ................................................................................................................. 10 Swimwear and beachwear for serious sport and serious fashion .................................. 10 How many swimsuits does a woman need?................................................................... 11 Market estimate data ...................................................................................................... 13 The world swimwear and beachwear market 2003 ........................................................ 14 Regional swimwear and beachwear markets 2003 ........................................................ 15 Swimwear and beachwear markets in US$ by region 2003........................................... 16 Swimwear and beachwear markets in units by region 2003 .......................................... 18 Swimwear and beachwear US$ values within the rest of the world 2003 ...................... 22 The world swimwear and beachwear market in US$ in 2012......................................... 25 Swimwear and beachwear markets in US$ by region 2012........................................... 26 Swimwear and beachwear markets in US$ and units 2012 ........................................... 27


The swimwear and beachwear markets in US$ and units within the Rest of the World

2012................................................................................................................................ 30

Page iv

Price changes in regions and sub-regions ..................................................................... 34 Forecast summary.......................................................................................................... 35

Chapter 4 - The European swimwear time bomb....................................................................... 37 Swimming against the European demographic tide ....................................................... 37 European demographics ................................................................................................ 38 Retail competition ........................................................................................................... 42 Holidays outside Europe................................................................................................. 43 How to excite an aging market? ..................................................................................... 44 What’s new? ................................................................................................................... 44

Chapter 5 - Supply and distribution ............................................................................................46 Retailers, brands and no-name merchandise................................................................. 46 A supply chain with blurred edges.................................................................................. 47 Estimates of the value of supply..................................................................................... 49 Added value in the supply chain..................................................................................... 52 Imports and exports........................................................................................................ 53 Price and fashionability................................................................................................... 53

Chapter 6 - Company profiles ...................................................................................................... 58 Warnaco ......................................................................................................................... 59

The company and its market positioning ............................................................... 59 The company and its brand offers ......................................................................... 60

La Perla (Malizia)............................................................................................................ 61 The company and its market positioning ............................................................... 61 The company and its brand offers ......................................................................... 62

Jantzen ........................................................................................................................... 63 The company and its market positioning ............................................................... 63 The company and its brand offers ......................................................................... 63

Speedo ........................................................................................................................... 64 The company and its market positioning ............................................................... 64 The company, its brand and technical attributes ................................................... 67

Gottex ............................................................................................................................. 68 The company and its market position.................................................................... 68 The company and its brand offers ......................................................................... 68

Eveden ........................................................................................................................... 69 The company and its market position.................................................................... 69 The company and its brand offers ......................................................................... 69

TYR ................................................................................................................................ 70 The company and its market position.................................................................... 70 The company and its brand technology................................................................. 71

O’Neill ............................................................................................................................. 71 The company and its market position.................................................................... 71

Seaspray ........................................................................................................................ 72 The company and its market position.................................................................... 72 The company and its brands ................................................................................. 72


Chapter 7 - Swimming into an uncertain future ......................................................................... 74 The swimwear and beachwear market worldwide.......................................................... 74

Page v

The best growth prospects within the world ................................................................... 78 Alternative scenarios ...................................................................................................... 79

Online sources of information ..................................................................................................... 80 Free email newsletters ................................................................................................... 80 Other research reports ................................................................................................... 80 Global news and feature articles .................................................................................... 80 Search the web............................................................................................................... 80

Your feedback ............................................................................................................................... 81


Page vi

List of tables

Table 1: Estimated average prices for swimwear and beachwear, by region 2003......................... 3

Table 2: Swimwear market 2003 and 2012, Western Europe and Rest of World............................ 4

Table 3: Exchange rates used in this report...................................................................................16

Table 4: Estimated average prices for swimwear and beachwear by region, 2003........................ 18

Table 5: Regional consumption per person per year (numbers of garments)................................ 21

Table 6: Consumption of swimwear & beachwear, and population, in sub-regions of the rest of the

world, 2003 ............................................................................................................... 23

Table 7: The Western European problem: swimwear & beachwear market 2003 and 2012 (m's of

units) .........................................................................................................................29

Table 8: The Western European problem: swimwear & beachwear market 2003 and 2012 (US$m

value) ........................................................................................................................ 29

Table 9: Rest of the world percentage price increases and mid-point US$ prices, 2003 to 2012 .35

Table 10: Swimwear & beachwear unit volumes (millions), Western Europe and the Rest of the

World, 2003 and 2012 .............................................................................................. 37

Table 11: Swimwear & beachwear US$ (millions) market values, Western Europe and the Rest of

the World, 2003 and 2012 ........................................................................................ 37

Table 12: Swimwear & beachwear US$ at average retail prices, Western Europe and the Rest of

the World 2003 ......................................................................................................... 38

Table 13: Clothing Inflation UK 1994 to 2004 ................................................................................ 42

Table 14: Added value in the supply chain .................................................................................... 52

Table 15: just-style's swimwear & beachwear product pricing onion ............................................. 54


Page vii

List of figures

Figure 1: Swimwear & beachwear consumption (US$m) in the main regional markets, 2003 ...... 16

Figure 2: Population (m’s) in the main regional markets, 2003...................................................... 17

Figure 3: Swimwear & beachwear consumption units (m’s) in the main regional markets, 2003 ..19

Figure 4: Value and volume comparisons of swimwear & beachwear between the developed and

developing world....................................................................................................... 21

Figure 5: Swimwear & beachwear market values and volumes per person in sub-regions of the

rest of the world 2003 ............................................................................................... 24

Figure 6: World population and world swimwear & beachwear market value (units and US$),

percentage growth between 2003 and 2012 ............................................................ 26

Figure 7: Main regional swimwear and beachwear markets in US$m, 2012 ................................. 27

Figure 8: Main regional swimwear & beachwear markets by population (m's), 2012 .................... 27

Figure 9: Main regional swimwear & beachwear markets by units (m's), 2012 ............................. 28

Figure 10: Swimwear & beachwear unit growth % by sub-region of the rest of the world, between

2003 and 2012.......................................................................................................... 31

Figure 11: Swimwear & beachwear US$ value growth % by sub-region of the rest of the world,

between 2003 and 2010 ........................................................................................... 31

Figure 12: Swimwear & beachwear unit share % by sub-region of the rest of the world, 2003 and

2010.......................................................................................................................... 33

Figure 13: Swimwear & beachwear US$ value share % by sub-region of the rest of the world, 2003

and 2010................................................................................................................... 33

Figure 14: Retail price changes by major region 2003 and 2012, (US$) ........................................ 34

Figure 15: Western European % population by age groups, 2003 and 2012 ................................. 39

Figure 16: Long term enlarged Europe population by age groups 2004, 2012 and 2025............... 40

Figure 17: The swimwear & beachwear supply chain - producer to consumer............................... 50

Figure 18: just-style's price/fashion matrix for women’s one-piece swimsuits ................................ 56


Figure 19: Value growth of the global swimwear & beachwear market, as US$ and as an index

from 2003 to 2012..................................................................................................... 74

Page viii

Figure 20: Volume growth of the global swimwear & beachwear market, in units from 2003 to 2012

.................................................................................................................................. 76

Figure 21: World population and world swimwear & beachwear market value (units and US$),

percentage growth between 2003 and 2012 ............................................................ 77


Page ix

Acknowledgements

The publishers would like to thank the following for their assistance in

compiling this report:

○ Malcolm Newbery, author of this report

○ Pamela Scott, Managing Editor of Underlines magazine

○ Bettina Goebels, of Up & Down Marketing, and writer on the European

Bodywear market for Textiles Outlook International

○ Geraldine Crowley of Lejaby (Warnaco)

○ Tracy Lewis of Eveden (Fantasie and Freya)

○ Tricia Jones, Managing Director of Seaspray

○ Susan Mahy of Hornvale (La Perla/Malizia)

○ Pauline Lewis of Alba Associates (Gottex)

○ David Holland of Nylatex


Page x

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Chapter 1 - Executive summary

Chapter 1 - Executive summary

Page 1


Serious about sport and serious about fashion

Swimwear and beachwear apparently polarises into two groups:

○ Serious fashion

○ Serious sportswear

In fact, in the view of just-style, there are really four constituencies that are

addressed by both the brands, and to a lesser degree by the private labels.

They are:

1. Glamorous fashion swimwear as epitomised by La Perla or Gottex

2. Practical fashion swimwear; Catalina, Fantasie or Seaspray

3. Serious performance sportswear; Speedo and Tyr

4. Attitude (surf); O’Neill, Quicksilver, Billabong

This report from just-style continually refers to these groups.

How many swimsuits in a woman’s wardrobe?

The swimwear brands have an estimate of what the average women will have

in her wardrobe. It is quite similar for USA and for Western Europe. The

average woman buys 0.6 swimsuits per year. That figure rises to 1 per year for

young women. She has in her wardrobe between four and eight outfits, some

of which no longer fit, thus encouraging more buying, often on holiday.

In this situation, only population growth or fashion “needs” can drive the

volume sales of swimwear. The US population is still growing, but growth is in

the less affluent ethnic and geographic areas. The population in Western

Europe and in Japan is static or falling. This is a problem for the swimwear

sector, which is addressed in this report.

Chapter 2 - Introduction

Chapter 2 - Introduction

Page 8


Serious about sport, or serious about fashion?

Swimwear and beachwear polarises into two groups:

○ Serious fashion

○ Serious sportswear

In fact, in the view of just-style, there are really four constituencies that are

addressed by both the brands, and to a lesser degree by the private labels.

They are:

1. Glamorous fashion swimwear as epitomised by La Perla or Gottex

2. Practical fashion swimwear; Catalina, Fantasie or Seaspray

3. Serious performance sportswear; Speedo and Tyr

4. Attitude (surf); O’Neill, Quicksilver, Billabong

But in reality, the genuinely international brands are using design to address all

consumer groups because the serious sports consumer regards the sports

styles as fashion. They are also competing with some big-hitting private label

retailers, although the brands command the higher ground of the higher price

points. The sector is also characterised by purchases made on individual

women’s preferences for herself and for her family as much as on budgetary

and cost reasons.

In this, the seventh product sector report from just-style, swimwear and

beachwear is reviewed worldwide, providing insightful analysis of an industry

that has become global.

Report coverage

Chapter 3 looks at the swimwear and beachwear market, which is valued for

2003 at US$XX.XXbn. The fundamental marketing issue is the dichotomy

between the developed and the developing world. Consequently, the market

has been split into the main global developed and developing regions.

Forecasts are made for swimwear and beachwear consumption, to 2012.

Chapter 3 - The market

Chapter 3 - The market

Page 10


Swimwear and beachwear for serious sport and serious fashion

Most clothing product groups are a mix of fashion and function. Swimwear and

beachwear are an opportunity to fuse the two and carry the mix of function and

fashion to extremes. Take for example this quote from the Israeli swimwear

company Gottex on the subject of ‘what makes a Gottex’:

“Gottex elevates swim and beachwear from being a functional product into a

fashion category. We literally put beachwear on the fashion map all over the

world. No one else devotes as much time, energy and money on true creation

as us. Each print we create is associated with profound cultural influences as

well as very innovative and daring technical execution. This makes us

different.

Every season we are proud to surprise our customers as well as the industry.

We don’t just design a collection, we create a new concept with love, passion,

and the highest standards of quality paying attention to every detail.”

If that is not being serious about fashion, then what is! But in swimwear and

beachwear, it is easy to have a passion for fashion, because, unencumbered

by the conventions of clothing that has to conform, swimwear and beachwear

can be over the top, regardless of whether it is serious for sport or frivolous for

fashion.

Especially as far as women are concerned, the product can be worn:

○ To please the wearer (swimwear has regularly been proved by consumer

studies to be a “personal treat” buy)

○ To please someone else (the “sex buy” factor)

○ To make a serious statement or simply be outrageous on the beach or by

the pool, and to be seen as being “in fashion”

But, at the same time, there is a powerful element of function in both men’s

and women’s swimwear. The product has to perform. Performance can mean

a number of things, such as:

Chapter 4 - The European swimwear time bomb

Chapter 4 - The European swimwear time bomb

Page 37


Swimming against the European demographic tide

In Chapter 3 the stagnating state of the Western European swimwear market

was contrasted with the vigorously flowing tide of the Rest of the World. This of

course is in terms at first of volume. Table 10 is a reminder of volume losses in

Western Europe contrasted with strong volume growth in the rest of the World.

Table 10: Swimwear & beachwear unit volumes (millions), Western Europe and the Rest of the World, 2003 and 2012

Volume millions 2003 Volume millions 2012 Volume Growth %

Western Europe XXX XXX -X.X%

Rest of the World XXX XXX +XX.X%

Source: just-style.com

But the comparison gets no better if, instead of volume, US$ value is used, as

shown in Table 11.

Table 11: Swimwear & beachwear US$ (millions) market values, Western Europe and the Rest of the World, 2003 and 2012

US$ millions 2003 US$ millions 2012 US$ Growth %

Western Europe XXXX XXXX -X.X%

Rest of the World XXXX XXXX +XX.X%

Source: just-style.com

Western Europe is set for a tough time. The only thing that Western Europe

has got in its advantage is high prices, and therefore, presumably, high profits

for the manufacturers, wholesalers and retailers. Table 12 is a reminder of

current average prices.

Chapter 5 - Supply and distribution

Chapter 5 - Supply and distribution

Page 46


Retailers, brands and no-name merchandise

The clothing industry is unlike many others, in that there is a blurring of brand

identity. In the automobile industry brands are immediately recognisable, and

retailers and distributors sell those brands to consumers. The car is either a

Ford or a Toyota. It is not the name of the retailer that happens to sell it.

However, in the clothing industry, the consumer has come, particularly in the

last sixty years since the Second World War, to accept and to associate ideas

about price, quality and reliability of merchandise with the image of the retailer,

as much as with the originator of the product. This applies particularly in food

supermarketing, and clothing. The consumer buys Walmart, Target or

Victoria’s Secret in the US. In the UK, they can buy Marks & Spencer, Next or

BhS. This is in contradistinction to going to a department store or an

independent retailer for a brand. In the UK, Hennes & Mauritz is also a

significant player, as well as being dominant in its native Sweden. In France it

could be Carrefour; in Germany C & A; in Holland, it could be Hunkemoller.

Most of these mass market retailers sell clothing, including swimwear, under

their own retail brand, or an “own label” which has developed the status of a

brand. More recently mass-market retailers have carried the same philosophy

into electricals, music and computers. This trend and philosophy is important,

because it sets a framework in which the consumer decides what “brand”

means in terms of price, fashionability and quality, and what brand they are

loyal to.

As in most apparel categories, there is also “no name” anonymous

merchandise. Just because it is no name, its volumes and share of any market

are generally understated by market research companies. In the UK, for

example, for all clothing, it is believed by just-style to constitute X% by volume

and X% by value. But anonymous merchandise in the UK is under threat from

“recognised” labels being sold by discount retailers such Matalan, Peacocks

and George at Asda (Walmart).

Chapter 6 - Company profiles

Chapter 6 - Company profiles

Page 58


There are many swimwear brands across the world. It is one of the clothing

product groups that is not dominated by a few multinationals. Consequently,

just-style has chosen to pick a variety of brands to profile, because they

illustrate different approaches to the marketing of swimwear. Broadly they fall

into three groups:

1. Large companies with a stable of brands designed to appeal to

different segments of the consumer market

2. Companies driven by a single product and lifestyle ethic. Most of these

are more recent start-ups in the performance swimwear, surf and

water sports arenas

3. Smaller niche players

The company profiles are:

1. Warnaco

2. La Perla/Malizia

3. Jantzen

4. Speedo

5. Gottex

6. Fantasie

7. Tyr

8. O’Neill

9. Seaspray

Of the suppliers profiled here, four are from the US, three are from Europe,

and one each is from Israel and Australia. Some are privately owned and do

not release much financial information. Yet their widespread retail presence

and promotional activity indicate their leadership. These profiles concentrate

upon:

○ Their marketing and market positioning

○ Their brands and what each brand offers

Chapter 7 - Swimming into an uncertain future

Chapter 7 - Swimming into an uncertain future

Page 74

©

The swimwear and beachwear market worldwide

Of the just-style reports covering product categories to date, this is one of the

less optimistic in terms of volume and value growth. As Figure 19 shows, value

growth will be sluggish, adding only X.X% to the value of the market over a

nine-year period.

Figure 19: Value growth of the global swimwear & beachwear market, as US$ and as an index from 2003 to 2012

100.0

101.0

102.0

103.0

104.0

105.0

106.0

98.0

99.0

2004 2005 2006 2007 2008 2009 2010 2011 2012

US$ Index

2005 All content copyright Aroq Ltd. All rights reserved.

12200

12400

12600

12800

13000

13200

13400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

US$ growth

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Global market review of swimwear and beachwear - forecasts ... · of swimwear and beachwear - forecasts to 2012 2005 edition. Page i Global market review of swimwear and beachwear