The global garments market is growing at a compound annual growth rate of 4.4 per cent. High-end luxury brands are capitalizing on consumers’ inclination toward discretionary expenditure and instant gratification by moving toward a see-now-buy-now model.
Demand for garments is mostly influenced by disposable income and overall economic conditions of a region. Most of the demand for garments is from developed and developing countries due to rising disposable incomes and changes in lifestyle patterns. Consumers prefer to buy garments in bulk at lower prices, which has benefited the global garments market. Key industry players in developed countries have been able to maintain profit margins by offshoring the production process to less developed countries. This has led to a reduction in the cost of production due to the low labor costs which have eventually translated to a fall in the price of garments. The demand for garments has increased significantly due to offshoring.
The global garments market is divided on the basis of gender, type of product and distribution channel. Women’s and men’s garments account for 63.8 per cent of the revenue, and the rest is generated by hosiery, sports and swimwear, intimate apparel, and clothing accessories. The market is still dominated by brick and mortar stores.