Although the economic downturn has suppressed the purchasing desire of North American consumers, due to the inclusion of the United States, the world’s largest clothing consumer market, North America’s position in the global clothing retail market will still be difficult to shake for a period of time. According to statistics from Euromonitor International, North America was the third largest apparel market in the world in 2012, with sales reaching US$400 billion. Compared with the Western European market, the recovery of the North American market shows a positive trend. Among them, although the Canadian market is relatively small, its sustained and stable growth has sent a positive signal to the North American retail market. In addition to expanding sales through retail channels, various businesses are also looking for development opportunities in the personalized design and sportswear markets.
The battle for share between domestic and foreign brands
According to Euromonitor Intelligence, in the next few years, apparel sales growth in North America will be higher than that of the Western European market, and is expected to surpass the Western European market in 2017, while the United States will remain the hub of retail innovation and fashion development. When consumers’ clothing spending begins to pick up, well-known clothing brands hope to win the favor of this “protagonist”.
Japan’s Fast Retailing Group plans to become the world’s largest retailer by 2020. To this end, the group has launched fruitful expansion measures in the North American market: setting up large flagship stores in important commercial streets in major cities and launching an e-commerce platform in the United States. At the same time, H&M has also accelerated its expansion of the number of stores in the United States. As of February 2013, the brand has more than 260 stores in the United States. It is worth noting that H&M did not copy the online sales strategy in the Asian market, but once again postponed its plan to build an online sales platform in the United States. Inditex has adopted a multi-brand strategy in order to expand sales coverage. The 45 stores of its brand ZARA in the United States have not yet reached market saturation. Inditex launched another brand, Massimo Dutti, in October 2012, targeting the wealthy class of the United States. Consumer groups.
Facts have proved that no matter what achievements international brands have achieved in other markets, they cannot rely on a “one size fits all” approach to capture market share in North America. On the other hand, the diversified market strategies of these “fast fashion” brands have inevitably intensified competition with local brands in North America. Under this circumstance, local clothing brands began to adjust their strategies and make changes that were in line with market characteristics. American brand Gap has regained its brand status by streamlining its sales lines in North America and increasing marketing and product development, effectively reversing its sales decline. Abercrombie & Fitch has been fighting in the domestic market in the United States, but now, the brand’s ubiquitous stores and high product prices are no longer sought after by young consumer groups. To this end, the company has decided to control the number of stores by closing some stores and actively expand its reach in overseas consumer markets.
The growth temptation of the Canadian market
Economic stability is the most important factor that attracts international clothing brands to Canada, and it is also the reason why American retailers love to compete here. Now, nothing can stop American retailer Target from entering Canada. The company expects to open as many as 120 stores in Canada from 2013 to 2014. Although the market is showing a positive trend, in the North American clothing market, consumers still show such a consumption psychology: pursuing low prices and being value-oriented and willing to purchase clothing. The Canadian market is no exception. There is a real problem that American brands must deal with when entering the Canadian market. The JCrew brand encountered this embarrassment in 2011. Import tariffs and logistics costs made the price of the brand’s products in Canada generally higher than those in the United States, further causing Canadian consumers to be more willing to drive to American stores to shop instead of buying locally. its clothing products. Fortunately, the Canadian government recently plans to reduce existing tariffs on baby clothing and sporting goods. This move may help foreign brands lower their prices in Canada.
In response to the incoming U.S. retail armies such as Target, Canadian retailers have also begun to re-examine their development strategies and focus on their own advantages, products and characteristics of consumer groups. In 2012, Canadian clothing brand Loblaws’ Joe’s new product line saw sales growth. The brand, which successfully operates independent stores across Canada and on Fifth Avenue in New York, has transformed from a well-managed Canadian fashion retail brand into an international lifestyle brand firmly occupying the North American market. The newly added product lines have helped to stabilize it. Sales growth.
Advocating personalization or pursuing sports style
Since North American consumers are still sensitive to clothing prices, department stores whose main business is clothing sales are under greater pressure. What is different from the past is that some department store owners have not adopted greater intensity and frequent discount promotions, but have begun to invest in private brands and exclusive series to make up for the losses caused by the growth of Internet sales and professional clothing channel sales.
American department store chain JCPennny is making product adjustments. The company has launched a “store-within-a-store” concept in 700 stores in the United States to meet the needs of consumers from different classes. Cooperation with high-end designers has also become a key to winning the market.�� key. High-end department store Neiman Marcus teamed up with Target and 24 designers in the United States to design a clothing line for the 2012 holiday collection, which was sold out within three weeks of being put on the shelves.
In addition to more personalized designs, another key driving force in the North American apparel sales market is the sales of sportswear. Consumer demand for activewear has increased due to the boom in personal sports such as running, cycling, yoga and Pilates. In 2012, U.S. sportswear sales increased by 8.3%, higher than the overall apparel sales growth of 2.2%. Although price is still an important consideration, consumers who buy sportswear pay more attention to product quality, innovative design and functionality. This willingness to consume has led to increased sales of brands such as lululemon. In addition, sports brands have also begun to focus on female consumers. The design of sportswear not only focuses on functionality, but also enhances the fashionability of the clothing.
