Philippines Apparel and Footwear Market Report 2020 PDF

# Philippines Apparel and Footwear Market Report - 2020: Ken Research ## Philippines Apparel and Footwear Industry - The Philippines apparel and footwear industry has been largely driven by the demand for various local and international branded products in the country. - The native population ha...

# Philippines Apparel and Footwear Market Report - 2020: Ken Research ## Philippines Apparel and Footwear Industry - The Philippines apparel and footwear industry has been largely driven by the demand for various local and international branded products in the country. - The native population has majorly used crude weaving in order to manufacture garments since the Spanish era. - The apparel/garment industry is the second largest export industry in the country and majorly comprises of subcontracting operations for international brands. - The country has a costly labour that has affected the manufacturing sector, resulting in the majority of retailers purchasing imported products from other countries such as Thailand and Hong Kong. - The market has been largely dominated by various local players such as Bench and Penshoppe and international brands such as Uniqlo, H&M, Nike and Marks and Spencer. ## Products - The Philippines apparel and footwear market comprises of the sale of menswear, women's wear and children wear. - These further include apparel and footwear products on the basis of: - Formal wear - Casual wear - Active wear - Others ## Local Manufacturing - Local manufacturing organizations produce apparel products that have been largely exported to international markets. - Higher demand in countries such as the USA and Japan has enabled traders to thrive in the Philippine apparel market. ## Import - Import has been one of the major factors that have driven sales in the local Filipino apparel market. - Imports have showcased significant growth over the years 2009-2014 because of the higher demand of foreign products with high brand image. - The apparel industry in the Philippines has been considered as one of the most steadily growing markets in the country. - The apparel market has observed a number of key events which have shaped its growth in the country, with a CAGR of ~% recorded during the time frame 2009-2014. ## Indigenous Textile and Clothing - Due to the presence of a large number of natural fibers such as abaca, pina, silk and ramie, the indigenous textile and clothing industry has performed well in the past decade. - The rise in personal disposable income and a keen fashion sense of the young urban population to keep updated with the latest international fashion trends has increased the per capita expenditure on apparel in the Philippines from USD ~ in 2009 to USD ~ in 2014. ## Footwear - Footwear production in the Philippines has been majorly propagated through manual and semi-mechanized processes. - A large number of domestic companies have utilized leather as the prime raw material for footwear. - Low quality of locally produced leather has impelled firms to import leather from foreign nations, which has added to the cost of production. - Two major organizations, namely the Philippine Footwear Federation and Sigla ni Kapitan Moy, operate in the industry and act as business support organizations for footwear manufacturers. - The footwear market in the Philippines has expanded at a CAGR of ~% from 2009-2014 and registered revenue from sales at USD ~ million in the year 2014. ## International Brands - Customers have been observed to purchase international brands more in comparison to local products. - The presence of companies such as Nike, Adidas and Puma, which provide both casual wear and sportswear, has provided a thrust to customers to purchase high-valued international products at affordable prices. - Global brands have realized the importance of the growing Philippines market of apparel and footwear. - The rapid expansion of the economy has boosted customer sentiment which has in turn encouraged foreign enterprises to enter the Philippine market for apparel and footwear products. ## Store Specialists - Store specialists in the Philippines have reacted to the increase in purchasing power of the people and have brought these brands to improve shopping preferences of Filipinos. - The personal disposable income of Philippines has observed a significant inflation over the years 2009-2014. - This excess income has allowed Filipino customers to transform their preferences to branded goods in modern retail chains. - The growing young population of Philippines has showcased a changing lifestyle with an emphasis on convenience and one-stop shops. ## Hypermarkets and Supermarkets - Hypermarkets and supermarkets have registered a CAGR of ~% and ~% respectively during 2010-2012, whereas small scale domestic retailers have shrunk. ## Philippines Textile Industry - The Philippines textile industry has focused its efforts to exports to the United States of America mostly through the SAVE Act. - The SAVE Act has led to the expansion of textile trade between the US and the Philippines by elimination of duties on apparel products. ## Distribution Channels - Distribution channels of apparel and footwear products have majorly comprised of a large number of small scale retailers. - The establishment of hypermarket and supermarkets has diversified the retailing process. - The apparel industry of Philippines has been a vital part of the economy. - The increase in diversity of apparel products with higher brand value has encouraged Filipino customers to spend more on quality products. - During the time period 2009-2014 this market has registered a CAGR of ~%. ## Global Apparel Companies - The onset of international apparel companies such as H&M has been one of the major variables which have impacted the apparel market in the Philippines. - Local customers have showcased a strong preference for international brands and cheaper products. - The demand for apparel products which include several varieties has been growing at a near-consistent rate in the Philippines. - In 2014, a major proportion of apparel sales in the Philippines were observed to be made for women apparel products. - Retailing of apparels by females in the country had accounted for ~% of the total apparel sales in 2014. ## Sales - During that year, apparels worth USD ~ million were purchased by females. - On the other hand, the purchase of apparels by men only accounted for USD ~ million which comprise of ~% of total apparel market share. - The sales of apparel products to the population above the age of 14 years were recorded as USD ~ million in the same year. - The population below 14 years of age comprises majorly of school children who generate a higher demand of clothes in comparison to the older population. - Traditionally, Filipino consumers have been purchasing apparel products majorly during the months of May, November and December. - The month of May corresponds to the Yuletide season that involves opening of schools and introduction of freshly manufactured apparels from local/native fibers such as abaca and ramie. ## Source https://www.kenresearch.com/consumer-products-and-retail/tkextile-apparel-and-footwear/philippines-apparel-footwear-market/5245-95.html ## Contact Ken Research Ankur Gupta, Head Marketing & Communications [email protected] +91-9015378249 ## Website www.kenresearch.com