Clothing And Footwear in Hungary
Euromonitor International's Clothing And Footwear in Hungary market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 10 | Publication date: Jul 2005
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Clothing; Footwear
Executive summary
Clothing and footwear industry showing signs of consolidation
The Hungarian clothing and footwear industry witnessed double digit growth rates throughout the past five years, growing from HuF196 billion in 1999 to HuF336 billion in 2004, which represents a CAGR of more than 11% in current value terms. This strong development can primarily be attributed to the increase in disposable income, which enabled many Hungarians to increase their spending on clothing items. Although this positive tendency is likely to continue, experts believe that the industry has started to consolidate. As a result growth rates are likely to slow down in the coming years.
Increasing spending power
Disposable income in Hungary increased throughout the past decade which resulted in greater spending on clothing items. When disposable incomes first began to increase, consumers initially used their larger spending power to replace durable goods that are usually more expensive. They therefore, held back their spending on basic products such as food or clothing. However, by the end of the 1990s, they started to increase their spending on clothing as well, which led to the strong development of the clothing and footwear industry in recent years.
Imported products clear leaders
Imported products from Asia, North-Africa and some Eastern-European countries clearly lead the Hungarian clothing and footwear industry. Local manufacturers have been rapidly losing share both domestically and abroad as they are unable to meet the challenge from cheap imported products. Industry insiders believe that a serious recession started in 2002 and that failure to take serious measures to combat it has resulted in the industry now being in danger of collapse.
Clothing and footwear manufacturing in Hungary is undercapitalised. It is badly in need of investment, without which it is not only unable to generate profit, but is very unlikely to survive in the fierce competition.
EU accession
Hungary joined the European Union on 1 May 2004. Industry players believe that the accession will contribute to the widening range of goods available and an increased level of competition, which will inspire further demand and will drive future development. In addition, it is also expected that membership of the EU will result in stricter regulations that will reduce the significance of the black economy.
Future development
The Hungarian clothing and footwear industry is expected to witness strong growth in the forecast period. Total industry value sales are expected to reach HuF453 billion at the end of 2009, which equates to a 35% increase at constant prices. The industry has begun to show signs of consolidation, therefore it is expected that the growth rates of the forecast period will be more moderate than in the past five years. The main driver of future development will be the increasing purchasing power of the population. It is projected that the improving standard of living in the country will result in more people attributing greater importance to the way they dress.
Table of contents
CLOTHING AND FOOTWEAR IN HUNGARY : MARKET INSIGHT
EXECUTIVE SUMMARY
CLOTHING AND FOOTWEAR
Market Performance
Table 1 Retail Sales of Clothing and Footwear: Value 1999-2004
Table 2 Retail Sales of Clothing and Footwear: % Value Growth 1999-2004
FORECAST MARKET PERFORMANCE
Table 3 Forecast Retail Sales of Clothing and Footwear: Value 2004-2009
Table 4 Forecast Retail Sales of Clothing and Footwear: % Value Growth 2004-2009
DEFINITIONS
CLOTHING IN HUNGARY
SECTOR PERFORMANCE
Retail sales
Industry structure
Table 5 Retail Sales of Clothing: Value 1999-2004
Table 6 Retail Sales of Clothing: % Value Growth 1999-2004
LEADING COMPANY PROFILES
Benetton Ungheria Kft
Styl Clothing Manufacturer Plc
RETAIL DISTRIBUTION
Single line retailers
Black market/street vendors
Department stores
Hypermarkets
Cash and carry outlets
Mail order
Others
Table 7 Retail Sales of Clothing by Distribution Format: %Analysis 1998/2003
FOOTWEAR IN HUNGARY
SECTOR PERFORMANCE
Table 8 Retail Sales of Footwear: Value 1999-2004
Table 9 Retail Sales of Footwear: % Value Growth 1999-2004
LEADING COMPANY PROFILES
Tisza Cipo Rt
Siesta Shoes Kft
RETAIL DISTRIBUTION
Single line retailers
Black market/street vendors
Department stores
Hypermarkets
Cash and carry outlets
Others
Table 10 Retail Sales of Footwear by Distribution Format: %Analysis 1998/2003