The apparel and shoes industry is vast, comprising many product categories, ranging from basic to luxury options. The market can be unpredictable and subject to changes in design, consumer demand, and shifting retail strategies. In recent years, there have also been changes in the dynamics of the clothing manufacturing industry, with many companies choosing to outsource production to cheaper locations across the world. As a result, countries such as China, Bangladesh, Turkey, India, and Cambodia, now rank as the leading exporters of clothing.
Despite the current global economic downturn, there has been increased demand in some segments of the apparel market. Specifically, the increased demand for leisure and sportswear throughout the pandemic has aided the industry. The market for second-hand apparel is also expanding, as consumers are becoming more conscious of their environmental footprint and making more sustainable purchases.
In 2021, retail sales of apparel and footwear worldwide amounted to over 1.5 trillion U.S. dollars worldwide. This figure is forecast to increase to almost two trillion dollars by 2026.
Apparel and footwear can be broken down into sub-segments including menswear, womenswear, accessories, bags, and shoes. Within this breakdown there are numerous price categories and styles available to consumers.
The global sportswear market was worth more than 350 billion U.S. dollars in 2021. This figure was forecast to grow by roughly 20 percent by 2026 to an estimated 439 billion U.S. dollars. Similarly, the global athletic footwear market is expected to see strong growth, resulting in revenues close to 70 billion U.S. dollars by 2025. The general footwear market is comprised of shoes, sneakers, luxury footwear, athletic footwear, and sporting shoes.
NikeWhen looking at the share of women worldwide who bought secondhand apparel, footwear, or accessories, Generation Z (ages 18 to 24) and millenials (ages 25-37) led the way. 46 percent of these generational cohorts stated that they had bought secondhand apparel, footwear, or accessories.
Boomers lagged behind their younger counterparts with 20 percent having purchased used apparel items.
With a brand value of around 83 billion U.S. dollars in 2021, Nike was the most valuable clothing brand worldwide. Adidas was the second most valuable clothing brand with a value of about 22.3 billion U.S. dollars that year.
Nike, Inc. is an American multinational corporation and the the world's largest supplier and manufacturer of athletic shoes, apparel, and other sports equipment. Nike is famous for its 'Swoosh' logo as well as its "Just Do It" slogan.
In the United States, the total revenue of the apparel market reached almost 318 billion U.S. dollars in 2021. China followed closely behind, with revenues of around 303 billion U.S. dollars. In third place was the United Kingdom, bringing in significantly less, with a total value of 76.4 billion U.S. dollars.
Within Asia, Japan and India were other key players in the market. Other European countries bringing in substantial revenues were Germany and Italy.
The apparel industry is of great importance to the economy in terms of trade, employment, investment, and revenue all over the world. This industry has short product life cycles, vast product differentiation, and is characterized by rapid change in demand coupled with rather long and inflexible supply processes. Key suppliers in this industry are clothing manufacturers and wholesalers, with retailers able to source from both.
The most obvious segmentation within the clothing and apparel industry is between womenswear, menswear, and clothing produced for babies and children. The industry can be further broken down into more specialist sub-industries, including accessories, jewelry, watches, shoes, leather goods, and bags. Some of the most valuable apparel brands in world include Nike, Zara, Adidas, lululemon, and Uniqlo.
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