Apparel in Italy , 2011

【About this report】：

 

This market report provides market trend and market growth analysis of the Apparel industry in Italy. With this market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.

The Apparel in Italy market research report includes:

§                        Analysis of key supply-side and demand trends

§                        Detailed segmentation of international and local products

§                        Historic volumes and values, company and brand market shares

§                        Five year forecasts of market trends and market growth  

§                        Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

§                        What is the market size of Apparel in Italy?

§                        What are the major brands in Italy?

§                        How dynamic is the growth of clothing and footwear internet sales?

§                        What is the performance of women’s clothing vs men’s clothing?

§                        What % of clothing and footwear sales goes through grocery retailers?

Why buy this report?

§                        Gain competitive intelligence about market leaders

§                        Track key industry trends, opportunities and threats

§                        Inform your marketing, brand, strategy and market development, sales and supply functions

Each report is delivered with the following components:
Report: PDF and Word
Market statistics: Excel workbook

Sample Analysis

EXECUTIVE SUMMARY

Economic crisis causes demand to shrink

Since 2008 Italian consumers have been reducing their expenditure as a result of the difficult economic situation which enveloped the country. As consumers remained unsure about their future in terms of job and salary security, their expenditure on clothing and footwear was negatively affected. In fact the county suffers from structural problems in its business framework as the Italian economy is based on small and medium size family-based companies. Players such as these do not invest enough in innovation and research and are becoming increasingly less competitive.

Clothing performs ahead of footwear, even during the post-crisis period

The clothing and footwear industry performed quite steadily in 2010 as a whole. The clothing sector remained more stable in value terms after a negative 2009, mainly due to promising categories such as underwear, clothing accessories and hosiery, together with childrenswear that showed very low elasticity to the general reduction in consumer demand. The footwear sector did not register a significantly negative trend although it continued to see a stagnant performance of previous years with no notable improvement likely in the near future. In fact as the economic crisis has been changing consumer purchasing habits, consumer behaviour is expected to become more conservative and careful in terms of disposable income over the next few years.

Boom in childrenswear and underwear categories continues

The childrenswear together with men’s and women’s underwear categories were by far the best performers in 2010. Italian mothers are known for spoiling their children and believe that any goods related to their children are a necessity. Even in an unfavourable economic climate parents are ready to purchase expensive and branded clothing for their children. Furthermore, underwear categories, both for women and men, do not seem to have felt the economic crisis either or the massive increases in cotton unit prices.

Fragmented fashion market

Italy is the country of fashion. The fashion industry started to evolve in Italy some decades ago and since then, many different companies have entered the market. The Italian clothing and footwear sector is still very fragmented despite having some of the most important fashion companies in the world and despite having introduced successful international chains. The market has good prospects as Italians are really passionate about fashion and enjoy buying branded goods, while private label has been taken up in some categories but is still very nascent. It is very important for Italians to wear branded clothing and footwear as this is perceived not only as a status symbol but also a necessity across all social classes.

Clothing and footwear will maintain stability, despite recent financial crisis

The clothing and footwear market will be stable during the forecast period, despite future uncertainty due to the prolonged economic crisis. This will stem mainly from ongoing innovative solutions proposed to Italian consumers by manufacturers and to the increasing expansion of low price retail chains that will favour economies of scale and accessible fashion via expansion of the fast fashion industry. Prices are expected to fluctuate, with the possibility of other price peaks such as the one registered in cotton prices in 2010. The clothing and footwear industry should achieve a stronger and definitely more positive performance once the economy gets back on track.

 

 

 

【Table of Contents】：

 

Apparel in Italy - Industry Overview

EXECUTIVE SUMMARY

Economic crisis causes demand to shrink

Clothing performs ahead of footwear, even during the post-crisis period

Boom in childrenswear and underwear categories continues

Fragmented fashion market

Clothing and footwear will maintain stability, despite recent financial crisis

KEY TRENDS AND DEVELOPMENTS

Poor economy polarises consumer preferences

Unit price reaction to cotton prices reaches historic peaks

Apparel to benefit from an ageing population and rising immigration

Healthy lifestyle and wellbeing trend to favour sportswear

Highly competitive and fragmented market

MARKET DATA

·                 Table 1 Sales of Apparel by Category: Volume 2005-2010

·                 Table 2 Sales of Apparel by Category: Value 2005-2010

·                 Table 3 Sales of Apparel by Category: % Volume Growth 2005-2010

·                 Table 4 Sales of Apparel by Category: % Value Growth 2005-2010

·                 Table 5 Apparel Company Shares 2006-2010

·                 Table 6 Apparel Brand Shares 2007-2010

·                 Table 7 Sales of Apparel by Distribution Format: % Analysis 2005-2010

·                 Table 8 Sales of Apparel by Category and Distribution Format: % Analysis 2010

·                 Table 9 Forecast Sales of Apparel by Category: Volume 2010-2015

·                 Table 10 Forecast Sales of Apparel by Category: Value 2010-2015

·                 Table 11 Forecast Sales of Apparel by Category: % Volume Growth 2010-2015

·                 Table 12 Forecast Sales of Apparel by Category: % Value Growth 2010-2015

Sources

·                 Summary 1 Research Sources

Apparel in Italy - Company Profiles

Benetton Group SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 4 Benetton group Spa: Competitive Position 2010

Brioni SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 7 Brioni SpA: Competitive Position 2010

Calzedonia SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 10 Calzedonia Spa: Competitive Position 2010

Geox SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 13 Geox Spa: Competitive Position 2010

Gruppo Tessile Miroglio SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 15 Miroglio Group Spa: Competitive Position 2010

Hennes & Mauritz Srl in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

COMPETITIVE POSITIONING

·                 Summary 17 Hennes & Mauritz Srl: Competitive Position 2010

INTERNET STRATEGY

Inditex, Industria de Diseño Textil SA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

COMPETITIVE POSITIONING

·                 Summary 19 Inditex, Industria de Diseño Textil SA: Competitive Position 2010

INTERNET STRATEGY

Speedo International Ltd in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 21 Speedo International Limited: Competitive Position 2010

Valentino Fashion Group SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 24 Valentino Fashion Group: Competitive Position 2010

Valleverde SpA in Apparel (Italy)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 27 Valleverde Spa: Competitive Position 2010

Childrenswear in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 childrenswear showed a positive performance with 3% current value growth, in line with the review period CAGR of almost 3%. Despite uncertain performances in some years such 2005 and 2009, the sector was not highly affected by the economic global crisis. Categories related to children, both in the food or non-food industries, are always less sensitive to a decrease in purchasing power as parents wants to ensure their children’s health and happiness before their own and therefore only lower spending on their children in extreme conditions or situations. As such, key operators in the industry knew that they could keep investing in innovation, marketing and trade to continue to maintain dynamism in childrenswear. The top brands in 2010 focused on childrenswear including Moncler, Ralph Lauren, as well as large retail chains such as Zara Kids, Terranova Kids and also H&M.

COMPETITIVE LANDSCAPE

·                 In 2010, the childrenswear sector remained highly fragmented with just 32% of value shares generated by the top 12 players. Chicco by Artsana ranked first with 10% value shares, followed by Imap Export and Benetton. Chicco in 2010 was the leading advertising investor in chidrenswear at EUR1.6 billion, even though it decreased its investment by 30% compared to 2009. Imap Export followed with the Original Marines brand that increased its investments by 50% from 2009 up to EUR1.4 billion. Moncler ranked third in advertising spending, with EUR800 million spent exclusively in childrenswear followed closely by Primigi. What is directly observable in the category is that in childrenswear, sales are almost directly in proportion to advertising and publicity investments. The consumer base is careful and not easily influenced in buying certain items over others, and there is less and less brand loyalty as parents go for the most appealing and convenient product with the best price-quality ratio.

PROSPECTS

·                 The childrenswear category maintained sales year on year in constant value terms from 2005 to 2010 with slight fluctuations only in 2009, primarily as a direct consequence of the general reduction in consumer purchasing power. The sector had not been performing satisfactorily until 2005 when key operators in the industry, such as Chicco or top brands including Armani Junior or D&G Junior boosted their investments in advertising, marketing and innovation. The future looks promising and it will continue quite steadily in the forecast period. The main reason for this is that childrenswear collections are increasingly becoming similar to adult fashion collections, in the way products are marketed and traded, therefore children’s clothing will be seen as an icon of style and social position in the same was as adult collections. In volume terms although the forecast period will be more conservative, in fact, given the increases in selling prices in 2010, retailers will be more cautious about the volumes they order.

CATEGORY DATA

·                 Table 13 Sales of Childrenswear by Category: Volume 2005-2010

·                 Table 14 Sales of Childrenswear by Category: Value 2005-2010

·                 Table 15 Sales of Childrenswear by Category: % Volume Growth 2005-2010

·                 Table 16 Sales of Childrenswear by Category: % Value Growth 2005-2010

·                 Table 17 Childrenswear Company Shares 2006-2010

·                 Table 18 Childrenswear Brand Shares 2007-2010

·                 Table 19 Sales of Childrenswear by Distribution Format: % Analysis 2005-2010

·                 Table 20 Forecast Sales of Childrenswear by Category: Volume 2010-2015

·                 Table 21 Forecast Sales of Childrenswear by Category: Value 2010-2015

·                 Table 22 Forecast Sales of Childrenswear by Category: % Volume Growth 2010-2015

·                 Table 23 Forecast Sales of Childrenswear by Category: % Value Growth 2010-2015

Clothing Accessories in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 the clothing accessories category showed a static performance from 2009 mainly due to the ongoing tough economic climate, although the decrease was less significant than in 2008 and other previous years. Even before the credit crunch, the Italian macroeconomic performance was quite disappointing. After the worldwide banking crisis, the Italian economy was more negatively affected and sales slowed down by the credit reduction across all consumer goods, particularly in clothing. In clothing there were differing dynamics with clothing accessories performing slightly better than clothing overall, increasing, albeit slightly, value sales from 2009. This was because in a period of economic uncertainty with lowered purchasing capacity, consumers tended to focus on low-key accessories to complement their main outfits, usually in the form of scarves or belts.

COMPETITIVE LANDSCAPE

·                 In 2010, the clothing accessories sector remained highly fragmented with only 22% of value shares generated by the top 15 players. Emporio Armani by Giorgio Armani ranked first with a 5% share in current value terms, followed by the low price retail house Inditex, with its Zara, Bershka and Pull & Bear brands. The clothing accessories category in Italy does not yet constitute a compact category in clothing as it would in the UK for example where there are retailer chains used specifically and primarily to sell accessories. The top brands in terms of sales in Italy are still clothing brands, which have extended into accessories. The brands that cover most value shares in the category, belong to premium names and the rest of the market is mostly covered by cheaper brands or private label positioned at the low end of the price ladder. This indicates significant polarisation in clothing accessories. Consumers who have mid-range purchasing power, are now relying on branded and widely-recognised items, since, clothing accessories can create a nice, fashionable look by themselves even when the main outerwear is simple and standard. Consumers with low purchasing power opt directly for unbranded, cheap and convenient items.

PROSPECTS

·                 The clothing accessories sector is very likely to increase sales by a CAGR of 1% compared to a declining CAGR of 1% in constant terms of the review period. The market is expected to increase at the 2010 growth rate. The main reason for this is that accessories are increasingly becoming a statement and an icon. Buying nice accessories will still be more convenient in the overall clothing spending than buying more refined and stylish main outfits.

CATEGORY DATA

·                 Table 24 Sales of Clothing Accessories by Category: Volume 2005-2010

·                 Table 25 Sales of Clothing Accessories by Category: Value 2005-2010

·                 Table 26 Sales of Clothing Accessories by Category: % Volume Growth 2005-2010

·                 Table 27 Sales of Clothing Accessories by Category: % Value Growth 2005-2010

·                 Table 28 Clothing Accessories Company Shares 2006-2010

·                 Table 29 Clothing Accessories Brand Shares 2007-2010

·                 Table 30 Sales of Clothing Accessories by Distribution Format: % Analysis 2005-2010

·                 Table 31 Forecast Sales of Clothing Accessories by Category: Volume 2010-2015

·                 Table 32 Forecast Sales of Clothing Accessories by Category: Value 2010-2015

·                 Table 33 Forecast Sales of Clothing Accessories by Category: % Volume Growth 2010-2015

·                 Table 34 Forecast Sales of Clothing Accessories by Category: % Value Growth 2010-2015

Footwear in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 the footwear sector showed a negative performance mainly due to the ongoing tough economic situation, although the decrease was less significant than in previous years reaching almost 0% growth rate in current value terms. Even before the credit crunch, the Italian macroeconomic performance was quite disappointing. After the worldwide banking crisis, the Italian economy was more negatively affected. Between 2008 and 2009 many companies collapsed and many people lost their jobs. Insecurity about the future made consumers wary of their expenditure. As footwear is considered durable goods, unlike clothing, demand continued to decrease because consumers still reduced their purchases in terms of number of items.

COMPETITIVE LANDSCAPE

·                 In 2010, Tod’s together with Geox contend fiercely for first place in footwear, each holding 5% shares of current value sales. Tod’s by Dellavalle, continues to benefit from its strong brand recognition, as well as from its wide distribution network with multi-brand but especially mono-brand shops. Geox focuses on lower prices as well as quality, comfort and functionality, and has managed to follow the healthy lifestyle and wellbeing trend, proposing collections based on the concepts of comfort combined with good quality, targeting both men and women, but not children.

PROSPECTS

·                 The footwear sector is very likely to record a declining CAGR of 1% in constant value terms over the forecast period. The market is expected to remain fairly flat as Italy is only coming out of the credit crunch and the poor economic climate and key operators in the footwear sector are already setting up innovative collections and aggressive selling strategies in order to reactivate the market. However, there is still a high level of future uncertainty and unemployment that will not diminish soon which will obviously restrain the footwear sector from taking off again. After 2012 the economy is expected to improve and consumer activity will increase.

CATEGORY DATA

·                 Table 35 Sales of Footwear by Category: Volume 2005-2010

·                 Table 36 Sales of Footwear by Category: Value 2005-2010

·                 Table 37 Sales of Footwear by Category: % Volume Growth 2005-2010

·                 Table 38 Sales of Footwear by Category: % Value Growth 2005-2010

·                 Table 39 Footwear Company Shares 2006-2010

·                 Table 40 Footwear Brand Shares 2007-2010

·                 Table 41 Sales of Footwear by Distribution Format: % Analysis 2005-2010

·                 Table 42 Forecast Sales of Footwear by Category: Volume 2010-2015

·                 Table 43 Forecast Sales of Footwear by Category: Value 2010-2015

·                 Table 44 Forecast Sales of Footwear by Category: % Volume Growth 2010-2015

·                 Table 45 Forecast Sales of Footwear by Category: % Value Growth 2010-2015

Hosiery in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 hosiery showed a positive performance with 2% current value growth, especially when compared to the review period that registered a CAGR decline of 3%. After the economic crisis had dampened demand, the sector entirely focused on quality at competitive prices in order to face competition from emerging countries, and in innovation to increase consumer demand. Overall, hosiery has almost come to be considered as a commodity more than a fashion item, which is another reason why key operators in the industry and trading national associations have decided to invest in it, now that Italy is gradually coming out of the credit crunch and consumer purchasing power is on the rebound. In the hosiery sector, tights generally held up better than other textile commodities, thanks to more investment in innovation, advertising and marketing activities enabling the category to boost the performance of the overall sector.

COMPETITIVE LANDSCAPE

·                 In 2010, the hosiery sector was fragmented although less so than other clothing sectors. In fact the top two companies in the sector alone accounted for 25% of the market’s value sales. Calzedonia ranked first with 14% and developed its business through a wide distribution network, opening mono-brand shops starting with Calzedonia and Intimissimi, while also establishing a presence in underwear. The company continues to offer innovation through new brand names such as Tezenis. Calzedonia also managed to be successful throughout the economic downturn by meeting customer demands for very competitive prices, targeting any range of the population and by strengthening the brand image with heavy investments in advertising, marketing activities and targeted promotions. Calzedonia also registered the fastest increase from 2009. The brand managed to meet customer demand on every front. For men, it inspired its 2010 socks line along the English Classic elegant style, and for women it continued offering classic tights of any type, also enticing women to buy burlesque holdups that can be extravagant but also functional and useful. Also important in 2010 were launches of body shaping underwear, which had already spread to other countries such as the UK and which had started to be taken up in Italy. This product line is made in “slide touch” fabric to re-shape the body where needed.

PROSPECTS

·                 The hosiery category will maintain sales year on year in constant value terms from 2010 onwards, even though in the previous five years, the CAGR declined by 5%. The main reason for this is that hosiery items are increasingly becoming a style icon, adding to the fact that they are an essential item with a hint of character and fashion that define the total look.

CATEGORY DATA

·                 Table 46 Sales of Hosiery by Category: Volume 2005-2010

·                 Table 47 Sales of Hosiery by Category: Value 2005-2010

·                 Table 48 Sales of Hosiery by Category: % Volume Growth 2005-2010

·                 Table 49 Sales of Hosiery by Category: % Value Growth 2005-2010

·                 Table 50 Hosiery Company Shares 2006-2010

·                 Table 51 Hosiery Brand Shares 2007-2010

·                 Table 52 Sales of Hosiery by Distribution Format: % Analysis 2005-2010

·                 Table 53 Forecast Sales of Hosiery by Category: Volume 2010-2015

·                 Table 54 Forecast Sales of Hosiery by Category: Value 2010-2015

·                 Table 55 Forecast Sales of Hosiery by Category: % Volume Growth 2010-2015

·                 Table 56 Forecast Sales of Hosiery by Category: % Value Growth 2010-2015

Men's Jeans in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 the performance of the men’s jeans category shifted from that in 2008 and 2009 where the category had registered negative trends in current value terms. The 2010 growth rate was in line with the review period CAGR showing that before the negative fluctuations of 2008 and 2009, the men’s jeans market was progressing year-on-year with no major increases and no significant declines. After the worldwide banking crisis, the Italian economy was more negatively affected and sales slowed because of credit reductions across all consumers goods categories, including clothing. Clothing as a whole was characterised by different dynamics: Men’s jeans performed better than men’s trousers and in line with men’s outerwear although the crisis had the effect of reducing the number of jeanswear brands available and induced a complete re-organisation of the industry. Overall in 2010 jeanswear still suffered from the economic slowdown but the male side of the business reacted more steadily than designer womenswear in terms of domestic sales. What is also giving hope for the future is that exports registered increasing value sales of 2% and decreases in volumes of 1% confirming that Italian jeanswear is still very appealing in the international scene and is seen as an important source of income for the country.

COMPETITIVE LANDSCAPE

·                 In 2010, the men’s jeans sector was led by Diesel with an 8% brand value share. The company started to lead in men’s jeans around 2007, coming up from second place behind Levi’s. Diesel continued to invest in innovation, advertising and marketing (the Diesel website was nominated the best fashion website in 2010) both in the men’s and women’s collections. The main novelty for 2010 was the Safado jeans, with the washed out effect typical of Diesel, in dark denim with very subtle needlework and studs, to make it unique but still simultaneously sporty, trendy and elegant. Also popular was the Spring/Summer 2010 collection that followed three main styles: Storm with dark and bright colours in contrast; Rain that gives the fabric a wet effect; and finally Destroy, a more vintage style conceived with worn-out denim, with rips and frays on the bottom or near the buttons at the front to make it sexy and give it a risqué image.

PROSPECTS

·                 The men’s jeans category is very likely to be more than stable increasing steadily in constant value sales in the forecast period, growing by a CAGR of 1% compared to a declining CAGR of 1% between 2005 and 2010. The main reason for this is that men’s jeanswear reacted faster than other types of apparel to the economic downturn, and key operators already had many resources to improve the category dynamism overall. Sixty, for example, which went through a difficult year in 2009, has since restructured its business, re-launching the brand abroad and reinvesting profits in innovation and advertising for the Italian market. Diesel, the leading player in the category, after years of gradual reconstruction, aims to double its turnover in 2011, again through exports to emerging countries such as India and China and through reinvestments in advertising and innovation in the more mature Italian market.

CATEGORY DATA

·                 Table 57 Sales of Men’s Jeans: Volume 2005-2010

·                 Table 58 Sales of Men’s Jeans: Value 2005-2010

·                 Table 59 Sales of Men’s Jeans: % Volume Growth 2005-2010

·                 Table 60 Sales of Men’s Jeans: % Value Growth 2005-2010

·                 Table 61 Sales of Men’s Jeans by Type: % Volume Breakdown 2005-2010

·                 Table 62 Sales of Men’s Jeans by Type: % Value Breakdown 2005-2010

·                 Table 63 Men’s Jeans Company Shares 2006-2010

·                 Table 64 Men’s Jeans Brand Shares 2007-2010

·                 Table 65 Forecast Sales of Men’s Jeans: Volume 2010-2015

·                 Table 66 Forecast Sales of Men’s Jeans: Value 2010-2015

·                 Table 67 Forecast Sales of Men’s Jeans: % Volume Growth 2010-2015

·                 Table 68 Forecast Sales of Men’s Jeans: % Value Growth 2010-2015

Men's Outerwear in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010, the men’s outerwear sector returned to growth in 2010 from declines of 1% in current value terms seen in 2009. The 2010 growth rate is in line with the review period CAGR indicating that even before the negative fluctuation of 2009, the men’s outerwear sector was still advancing fairly steadily, with no major increases or any significant declines. After the global banking crisis, the Italian economy was more negatively affected and sales slowed down by the credit reduction across all consumer goods categories, but particularly clothing. In clothing there were many different dynamics characterising the sector. For instance, men’s outerwear performed better than women’s outerwear, increasing, albeit slightly, value sales from 2009. This is because, in periods of economic uncertainty, women are usually more inclined than men to shop, although in 2009 and 2010 even they lost interest, mainly because they had to choose between types of clothing due to their lower purchasing power. This encouraged designers and investors to try and focus, at least temporarily, on men’s collections, triggering a trend of more profitability in men’s rather than women’s outerwear.

COMPETITIVE LANDSCAPE

·                 In 2010, men’s outerwear remained considerably fragmented, although less so than other clothing categories, with 40% of value shares generated by well known players as well as private label. Ermenegildo Zegna & Figli ranked second with 4.1% shares in current value terms, behind the leading casual wear brand Diesel which registered 4.3%. Inditex with the world-renowned Zara brand ranked third with 3% of men’s outerwear sales. Zegna continued to lead, even during the economic crisis, as it continued to invest heavily in advertising, innovation and especially in distribution, focusing on digital marketing. In fact, in December 2010, Zegna opened its first e-shop in partnership with Yoox creating the opportunity for consumers to purchase Zegna accessories as well as Zegna Sport and the exclusive Centennial Collection directly on line. The aim of this was to provide an exclusive product together with impeccable service to the client.

PROSPECTS

·                 The men’s outerwear sector is very likely to maintain stability in constant value sales in the forecast period - a positive performance compared to the review period when sales decreased by a CAGR of 1% in constant value terms. This is because men’s outerwear is increasingly becoming more important in Italian fashion compared to the past few years with both manufacturers and retailers very careful in offering a correct mix, introducing more products with strong sales prospects via competitive prices, among men’s but more women’s outerwear. This will increase competitiveness with more events in shops, as well as stronger aesthetic appeal in brands, with the aim of attracting new customers and boosting loyalty of existing customers.

CATEGORY DATA

·                 Table 69 Sales of Men’s Outerwear: Volume 2005-2010

·                 Table 70 Sales of Men’s Outerwear: Value 2005-2010

·                 Table 71 Sales of Men’s Outerwear: % Volume Growth 2005-2010

·                 Table 72 Sales of Men’s Outerwear: % Value Growth 2005-2010

·                 Table 73 Men’s Outerwear Company Shares 2006-2010

·                 Table 74 Men’s Outerwear Brand Shares 2007-2010

·                 Table 75 Sales of Men’s Outerwear by Distribution Format: % Analysis 2005-2010

·                 Table 76 Forecast Sales of Men’s Outerwear: Volume 2010-2015

·                 Table 77 Forecast Sales of Men’s Outerwear: Value 2010-2015

·                 Table 78 Forecast Sales of Men’s Outerwear: % Volume Growth 2010-2015

·                 Table 79 Forecast Sales of Men’s Outerwear: % Value Growth 2010-2015

·                 Table 80 Apparel Size Chart for Men: Ermenegildo Zegna

·                 Table 81 Apparel Size Chart for Men: Emporio Armani

Men's Underwear, Nightwear and Swimwear in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 men’s underwear, nightwear and swimwear showed a positive performance with 3% current value growth, in line with the review period growth of 3%. Despite often uncertain performances in some years such as 2008 and especially 2009, the sector was not affected by the economic global crisis to any great extent. Underwear is something of a commodity, therefore category sales did not drop much, even through significant events such as the credit crunch. Swimwear and nightwear are instead more substitutable and their sales declined in 2008, due to lack of marketing activities and incorrect trading policies, for example. The sector overall is also aided by the presence of healthy international and local operators, such as Calzedonia and Nike that generally dedicate generous sums in their annual budgets to investments to boost specific apparel categories.

COMPETITIVE LANDSCAPE

·                 In 2010, the men’s underwear, nightwear and swimwear sector was considerably less fragmented than the women’s sector, with 58% of sales coming from small manufacturers or niche designer collections. The top five companies cover 30% of market shares in current value terms. The undisputed leader as in the women’s sector was Calzedonia, which also held the lead in men’s categories, in the last 10 years thanks to umbrella brands that target all male demographics, from children to professional adults, with Calzedonia more for professional men, Intimissimi for teenagers and children with Tezenis intended for men in their 20s to 50s. The Tezenis chain was launched in 2003 and proposed a more sportive, plain colours style across the different life stages. Second-ranked Nike held 4% of sector value sales. The Nike brand has been synonymous with strength, challenge and intrepid spirit that are inspiring prerogatives for males. Furthermore Nike is a huge international company that has steadily invested not only in marketing and advertising building a brand image that goes beyond race and geographical boundaries, but also in innovation, often being a pioneer in new trends and fashions.

PROSPECTS

·                 In constant value terms the forecasted CAGR of almost 1% will be much better than the declining CAGR of 1% over the review period. The men’s underwear, nightwear and swimwear categories will see a gradual value increase due to a unit price increase, as operators will increasingly invest in innovation, design but also advertising and marketing. The promotional activity will still be present although it will be kept under control as the market will not want to ruin the category by letting it revolve only around price leverage.

CATEGORY DATA

·                 Table 82 Sales of Men’s Underwear, Nightwear and Swimwear by Category: Volume 2005-2010

·                 Table 83 Sales of Men’s Underwear, Nightwear and Swimwear by Category: Value 2005-2010

·                 Table 84 Sales of Men’s Underwear, Nightwear and Swimwear by Category: % Volume Growth 2005-2010

·                 Table 85 Sales of Men’s Underwear, Nightwear and Swimwear by Category: % Value Growth 2005-2010

·                 Table 86 Men’s Underwear, Nightwear and Swimwear Company Shares 2006-2010

·                 Table 87 Men’s Underwear, Nightwear and Swimwear Brand Shares 2007-2010

·                 Table 88 Sales of Men’s Underwear, Nightwear and Swimwear by Distribution Format: % Analysis 2005-2010

·                 Table 89 Forecast Sales of Men’s Underwear, Nightwear and Swimwear by Category: Volume 2010-2015

·                 Table 90 Forecast Sales of Men’s Underwear, Nightwear and Swimwear by Category: Value 2010-2015

·                 Table 91 Forecast Sales of Men’s Underwear, Nightwear and Swimwear by Category: % Volume Growth 2010-2015

·                 Table 92 Forecast Sales of Men’s Underwear, Nightwear and Swimwear by Category: % Value Growth 2010-2015

Women's Jeans in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 the women’s jeans category still registered a negative performance, confirming the unsatisfactory performances of 2008 and 2009. The negative growth rate in 2010 is clearly below the review period CAGR that showed a positive 1% average increase in current value terms. The women’s jeans market advanced positively year on year up to 2008 when the economic downturn induced a slash in clothing sales overall and particularly in women’s jeans which had been one of the categories with the highest average unit price in retail terms in the country. After the worldwide banking crisis, the Italian economy was more negatively affected and sales slowed because of credit reductions across all consumer goods industries, including clothing. However clothing was under different dynamics. Sales of women’s jeans declined as there were other items that could easily substitute their usage, such as leggings and dresses that were often much cheaper and more comfortable.

COMPETITIVE LANDSCAPE

·                 In 2010, the women’s jeans sector was led by Diesel with a 7% value share. The company started to lead in women’s jeans around 2007, coming up from second place from behind the long established Levi’s brand. Diesel continued to invest in innovation, advertising and marketing (diesel website was nominated the best fashion website in 2010) both in men’s and women’s collections especially throughout the crisis period. The 2010 flagship was in skinny jeans both for day and evening wear, with the chicest models featuring buttons on the ankles for example. Also popular were bell-bottom trousers and imprinted ones with dust effects on standard denim or coloured with black, red and bright blue. Diesel has become synonymous with sensuality in its women’s collections and the brand strengthened its image with impressive advertising.

PROSPECTS

·                 The constant value CAGR for the forecast period will be more promising than that of the review period. Women’s jeans is very likely to be stable and will also increase steadily in value sales in the forecast period - a positive performance compared to the review period where sales were decreasing at an annual compound rate of 1% in constant terms. The main reason for this is that women's jeans has reacted faster than other apparel categories to the economic downturn, and key operators have already many resources to improve the category’s dynamism overall: Sixty for example which went through a difficult year in 2009, has now restructured the business, relaunching first abroad and then reinvesting profits in innovation and advertising for the Italian market. Diesel, the leading player in the category, after years of gradual reconstruction, achieved outstanding results, even in the last few years, doubling its turnover in 2011 through exports to emerging countries such as India and China and through reinvestments in advertising and innovation in the mature Italian market.

CATEGORY DATA

·                 Table 93 Sales of Women’s Jeans: Volume 2005-2010

·                 Table 94 Sales of Women’s Jeans: Value 2005-2010

·                 Table 95 Sales of Women’s Jeans: % Volume Growth 2005-2010

·                 Table 96 Sales of Women’s Jeans: % Value Growth 2005-2010

·                 Table 97 Sales of Women’s Jeans by Type: % Volume Breakdown 2005-2010

·                 Table 98 Sales of Women’s Jeans by Type: % Value Breakdown 2005-2010

·                 Table 99 Women’s Jeans Company Shares 2006-2010

·                 Table 100 Women’s Jeans Brand Shares 2007-2010

·                 Table 101 Forecast Sales of Women’s Jeans: Volume 2010-2015

·                 Table 102 Forecast Sales of Women’s Jeans: Value 2010-2015

·                 Table 103 Forecast Sales of Women’s Jeans: % Volume Growth 2010-2015

·                 Table 104 Forecast Sales of Women’s Jeans: % Value Growth 2010-2015

Women's Outerwear in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010 the women’s outerwear sector showed a static performance, up slightly on the performance in 2009 when it declined by 1% in current value terms. The 2010 growth rate is in line with the review period CAGR showing in fact that even before the negative fluctuations in 2009, women’s outerwear was advancing fairly steadily, with no major increases or significant declines. After the worldwide banking crisis, the Italian economy was more negatively affected and sales slowed due to credit reduction across all consumer goods industries. In clothing the dynamics were variable with men’s outerwear performing better than women’s outerwear: this is because women are usually more inclined than men to shop, although in 2009 and 2010 they lost interest, mainly because they were unable to spend as much money as they had previously. Furthermore, women’s outerwear did not offer the same price-quality ratio as men’s outerwear, leading consumers to lose interest in shopping. The female public is also more careful and has more time to compare convenience across brands and shops. These aspects led to a sales decrease in women’s outerwear.

COMPETITIVE LANDSCAPE

·                 In 2010, women’s outerwear remained fragmented, although much less than other clothing categories, with 44% of value shares generated by brands as well as private label. Max Mara ranked first with a 7% value share, followed by Sixty, Inditex, Mariella Burani Group together with the Miroglio, each with 3% value shares of women’s outerwear. Max Mara maintained its value shares in 2009 and 2010, down compared to turnover in previous years but outperforming the apparel industry in Italy overall. This fashion house continued to offer simplicity combined with unique refined lines and elegance. Across its umbrella of brands, with the original Max Mara brand on top, the group attracts an audience for comfortable overcoats with male-style belts which were one of its key items, together with straight line jackets, sensual knee-length skirts, tailored costumes, tuxedos, Mata Hari dresses and plus fours. Mariella Burani has also continued to offer stylish collections, despite corporate instability throughout 2009 and 2010, with sophisticated dresses accompanied by large and sumptuous belts, covering jumpers, to give the idea of a woman who feels comfortable and at ease.

PROSPECTS

·                 The sector is predicted to record a more promising CAGR in constant value terms compared to that of the previous five years. Women’s outerwear is very likely to decline in constant value sales in the forecast period by a CAGR of 1%, compared to a declining CAGR of 2% during the review period. Women’s outerwear will receive more focus from the industry: with the economic crisis, operators understood that the fashion sector requires renovation, in terms of innovation in style but also and especially in the distribution of assets. Competition will result in more appealing shopping experiences, especially in women’s outerwear, which attracts a more mature public in terms of awareness of trends, styles and products available on the market. As such, any reconstruction of the market will add dynamism to the clothing category overall and reinvigorate women, who will remain the core audience. In terms of styles, both chic in a classic or extravagant way or natural look will define 2011 and 2012 trends. Chic is replacing elegant and the natural look is in line with healthy living, reflecting environmental consciousness that will determine the forecast period.

CATEGORY DATA

·                 Table 105 Sales of Women’s Outerwear: Volume 2005-2010

·                 Table 106 Sales of Women’s Outerwear: Value 2005-2010

·                 Table 107 Sales of Women’s Outerwear: % Volume Growth 2005-2010

·                 Table 108 Sales of Women’s Outerwear: % Value Growth 2005-2010

·                 Table 109 Women’s Outerwear Company Shares 2006-2010

·                 Table 110 Women’s Outerwear Brand Shares 2007-2010

·                 Table 111 Sales of Women’s Outerwear by Distribution Format: % Analysis 2005-2010

·                 Table 112 Forecast Sales of Women’s Outerwear: Volume 2010-2015

·                 Table 113 Forecast Sales of Women’s Outerwear: Value 2010-2015

·                 Table 114 Forecast Sales of Women’s Outerwear: % Volume Growth 2010-2015

·                 Table 115 Forecast Sales of Women’s Outerwear: % Value Growth 2010-2015

·                 Table 116 Apparel Size Chart for Women: Max Mara

·                 Table 117 Apparel Size Chart for Women: Diesel Spa

Women's Underwear, Nightwear and Swimwear in Italy - Category Analysis

HEADLINES

TRENDS

·                 In 2010, women’s underwear, nightwear and swimwear showed a positive performance with 3% current value growth, considerably higher than the review period CAGR of less than 1%. Despite the uncertain performances in some years, including 2008 and especially 2009, the women’s underwear, nightwear and swimwear sector responded promptly and aggressively to the economic crisis, by creating innovative collections that could be worn with the main outerwear collections. This trend treated underwear items, not as separates, but as part of the main outfit, often designing them to be visible or perfectly suitable as outerwear. The category was also aided by the presence of healthy local operators, such as Calzedonia, a retailer that invaded the market with the Initimissimi brand, or Cotonella which as a smaller concern that managed to maintain and increase sales in the market offering quality products in line with the main trends.

COMPETITIVE LANDSCAPE

·                 In 2010, the women’s underwear, nightwear and swimwear category was highly fragmented with more than 70% of sales coming from small manufacturers or niche designer collections. Nevertheless Calzedonia remained the outright leader with a 9% value share, managing to sustain its lead over the past decade thanks to an umbrella of brands that target any type of female customer, from children to professional adults. Its eponymous Calzedonia brand is intended for professional women while Intimissimi is designed for teenagers, young children and women aged in their 20s to 50s. The Tezenis, brand which opened in 2003 initially focused on mono-brand shops, but which now proposes a more sportive style across the different life stages. In second place, Cottonella held a 3% value share in the category, being present especially in underwear and nightwear and distributing mainly through hypermarkets, but also clothing specialist shops. Cottonella is known for its good quality and for its interesting innovations over the years. The company launched a new provocative campaign in 2010 along the lines of an earlier campaign in 2004. This was designed to change the idea in the market of Cotonella not synonymous for more than the white slip, but also sensual, linear lingerie or underwear for men.

PROSPECTS

·                 In constant value terms the forecast CAGR is of 1% will be much higher than the 1% decline of the review period. The women’s underwear, nightwear and swimwear sector will be helped by a gradual value increase mainly aided by the underwear and swimwear categories, which, through constant innovation and targeted marketing activities, will push the sector forwards. On the one hand this will lead to gradually increasing unit prices and sustain a healthy apparel industry not exclusively based on price convenience. On the other hand, this move will maintain consumption levels at an almost stable level in the forecast period, containing raw materials price increases and keeping the category dynamic and receptive to new fashion trends.

CATEGORY DATA

·                 Table 118 Sales of Women’s Underwear, Nightwear and Swimwear by Category: Volume 2005-2010

·                 Table 119 Sales of Women’s Underwear, Nightwear and Swimwear by Category: Value 2005-2010

·                 Table 120 Sales of Women’s Underwear, Nightwear and Swimwear by Category: % Volume Growth 2005-2010

·                 Table 121 Sales of Women’s Underwear, Nightwear and Swimwear by Category: % Value Growth 2005-2010

·                 Table 122 Women’s Underwear, Nightwear and Swimwear Company Shares 2006-2010

·                 Table 123 Women’s Underwear, Nightwear and Swimwear Brand Shares 2007-2010

·                 Table 124 Sales of Women’s Underwear, Nightwear and Swimwear by Distribution Format: % Analysis 2005-2010

·                 Table 125 Forecast Sales of Women’s Underwear, Nightwear and Swimwear by Category: Volume 2010-2015

·                 Table 126 Forecast Sales of Women’s Underwear, Nightwear and Swimwear by Category: Value 2010-2015

·                 Table 127 Forecast Sales of Women’s Underwear, Nightwear and Swimwear by Category: % Volume Growth 2010-2015

·                 Table 128 Forecast Sales of Women’s Underwear, Nightwear and Swimwear by Category: % Value Growth 2010-2015