1. NEW INSIGHTS IN THE APPAREL AND FOOTWEAR
MARKET IN 2015

2. © Euromonitor International 2
Sustained Global Growth Despite Economic Headwinds
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
150
350
550
750
950
1,150
1,350
1,550
1,750
1,950
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
0
1
2
3
4
5
6
7
US$billion
%year-on-yeargrowth
Market Value Growth 2008-2014
Value Market Size % Value Growth

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6
8
10
12
14
16
2009-10 2010-11 2011-12 2012-13 2013-14
Y-o-y%growth
Growth in China, 2009-2014
Euromonitor’s latest data paints a mixed picture for China:
 In 2014, the country posted its slowest growth for over a decade.
 However, regardless of the slowdown, it is still predicted to take over the US as the
largest apparel and footwear market in 2015.
 It is also expected to continue leading the future global growth contributing over
US$150 billion sales by 2019.
China and the “New Normal" of Slower Growth
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015

4. © Euromonitor International 4
Domestic
brands
International
brands
 The strategic challenge for retail apparel in China’s interior provinces is altogether
different from the coastal regions.
 The interior municipalities account for around two thirds of the population yet only a
fifth of economic output.
 That disparity will narrow significantly over the next five years, however, as
infrastructure investment, retail modernisation and economic incentives to entice
manufacturers empower China’s interior cities and help create a new breed of middle
class consumer.
Boosting Visibility in China’s Lower-Tier Cities
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
Extensive store
network
Deep local
knowledge
Relationships with
local distributors
Support of local
government
Better access to
capital
Management
capabilities
Stronger brand
equity
Weak local market
connections

5. © Euromonitor International 5
Sportswear and the Rise of Athleisure
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
 Surging consumer interest in health and fitness participation, coupled with a big
increase in the number of brands merging sportswear with fashion, pushed up
sportswear’s global retail value by 7%, the category’s strongest performance in seven
years.

6. © Euromonitor International 6
Strong Global Performance of Childrenswear
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
• 2014 Retail Value Sales
US$160 billion
• Value growth 2013-2014
5.7%
• Constant value CAGR 2014-2019
3.0%

7. 0
1
2
3
4
5
WORLD US
%year-on-yeargrowth
Menswear
Womenswear
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
Personal grooming
+
appearance on the
rise
Internet:
a key educational
and transactional
platform
Standalone stores
+
dedicated fashion
weeks
Menswear Outperforms Womenswear

8. © Euromonitor International 8
• A number of luxury brands have found success through
launching dedicated denim lines. For example, Calvin Klein
Jeans is one of the best performing apparel categories of the
brand. Contemporary labels such as Victoria Beckham and Rag
& Bone have also expanded into this category.
Fashion brands launch denim
• On the other hand, denim specialist brands are expanding into
other apparel categories to broaden their revenue streams. For
example, J Brand launched its first ready-to-wear collection in
2012.
Denim specialist brands
diversify into ready-to-wear
• As super-premium denim brands are generally perceived as
coveted fashion items, they are able to access a more fashion-
conscious consumer by leveraging seasonal trends, such as the
demand for coloured and printed denim in 2012.
Alignment to fashion trends
• Fashion collaborations are becoming more varied, moving
away from fashion designers to influencers like models and
actresses. For example, Current/Elliott collaborated with
actress Charlotte Gainsbourg to design a capsule collection,
and AG Jeans has collaborated with Alexa Chung.
Collaborations
Fashion Alignment Supports Premium Positioning in Denim
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015

9. © Euromonitor International 9
The Many Faces of Social Media in Fashion
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
Story-telling tactics
• Due to the importance of context in
selling fashion, an informed social media
strategy is a vital part of selling apparel
and footwear online. In particular, image-
sharing platforms like Instagram and
Pinterest lend themselves well to brand-
building for fashion brands.
A two-way dialogue
• Apart from brand building, social media
enables brands to establish closer and
more intimate contact with customers.
They can also access an existing set of
brand evangelists who are blogging,
tweeting and Instagram-ing about a
particular brand, hence generating
valuable marketing content.
Social unveiling
• Brands have been using online platforms
to launch new collections, capitalising on
the global reach and rapid dissemination
of content possible via social media. J
Crew unveiled its 2013 Fall catalogue
exclusively on Pinterest, enabling
consumers to re-pin their favourite styles
for future reference, share with their
followers, and click-through to buy
online.
S-commerce…?
• Aside from using social media to direct
consumers to e-commerce sites, brands
have been experimenting with
transforming social sites like Pinterest
into transactional platforms themselves.
The challenge lies in providing a
compelling reason for users to shop
though them over the standard web
outlets.

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Joining the Dots for an Omni-Channel Experience
NEW INSIGHTS IN THE APPAREL AND FOOTWEAR MARKET IN 2015
E-commerce
Mobile
In-store
Social media
The merging of social media
and editorial content
provides context and content
for purchasing online.
Social media and stores
serve as important brand-
building mediums.
Mobile devices facilitate
impulse buying when out
and about.
Mobile connects the tactile
in-store experience to the
convenience and greater
variety available online.
Stores let
consumers try
before buying.
Letting consumers
collect and return
online purchases
in stores combines
the convenience
factors of online
and in-store.
Extensive data-
gathered from
online can be used
in-store to provide
an increasingly
personalised
experience to
consumers across
all channels.