The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Economic uncertainty in the wake of the Covid-19 pandemic is driving consumers to seek value for money, and a new report from GlobalData released today says the Asia-Pacific region is set to emerge as the epicentre of the “value” apparel market by 2024.
Within the next few years, the APAC region will account for nearly 50 percent of worldwide value apparel sales, compared with Europe’s 26 percent, the Americas’ 22 percent and the Middle East and Africa’s 3 percent. Between 2019 and 2024, value apparel sales are set to grow worldwide by $42.2 billion, according to GlobalData estimates.
China was the largest value apparel market in terms of sales in 2019, followed by the US and the UK. While China will retain its top spot through to 2024, India is expected to surpass the UK, becoming the third largest and the fastest growing value apparel market by 2024.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.