Clothing And Footwear in Mexico
Euromonitor International's Clothing And Footwear in Mexico 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: 55 | Publication date: Oct 2009
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Executive summary
Clothing and footwear impacted by macroeconomic performance
The macroeconomic conditions of high unemployment and high inflation rates, as faced by the Mexican consumers, had a direct impact on the sector’s performance; the sector experienced the lowest growth rate of the period from 2003 to 2008 both in terms of value and volume. The increase of unemployment generated an overall lower residual income; as a consequence of the consumer limiting their purchases of clothing and footwear products. Not only the actual macroeconomic performance had an impact on the market but also consumers are facing an uncertain situation in 2009. Another factor affecting the market is the consumer confidence index decrease; this index has dropped to its lowest level since its creation in 2003.
Imported products change the market structure
The increasing percentage of imported products entering Mexico has caused a change in the market structure (formal vs. informal) of the sector; in this sense domestic manufacturers have complained against the government because of the relatively easy process in which clothing and footwear products are imported into Mexico. The problem with these imported products is that even though they are imported legally, paying the correspondent taxes and duties, most of them are marketed in the informal market in small non-legally established stores located in large flea markets at a local level. Most of the retailers established in these markets do not report their incomes to SAT (Servicio de Administracion Tributaria, Fiscal Management Service). These sales have affected the market structure shifting the consumers’ purchases from the formal market to the informal market.
Clothing accessories not affected by macroeconomic conditions
Mexican consumers are becoming more involved in global fashion trends; as a consequence the clothing accessories subsector has maintained a growing trend regardless of the overall sector slowdown. The growth of clothing accessories is also supported by the fact that consumers are finding an economic solution to increase the number of outfits by using new clothing accessories together with their previously purchased clothes, without purchasing new ones. Although the clothing accessories subsector does not represent a large share of the sector it is expected to increase as consumers follow new fashion trends.
Catalogue sales emerge as self employment option
Catalogue sales were already in the market before the period of high unemployment rates. With a large increase in the unemployment rate, the catalogue sales have increased during 2008 and they are expected to play a key role to sustain the market during 2009. Catalogue sales are direct sales made by an independent distributors who offers the manufacturers’ products through a catalogue; typically the distributor pays a small fee for the catalogue. The distributor performs the order, collect and delivery processes. There are a large number of companies using this strategy offering consumers a large variety of products through their catalogues at affordable prices since they do not pay large store operation costs. The time of delivery is relatively short since the distribution strategies allow them to deliver the products to the final customers in less than two weeks.
Sector expects recovery by mid-2010
The expected performance of the sector will be characterised by a strengthened presence of domestic brands, since imported products are already becoming more expensive because of the exchange rate increase. Not only the increase in the acquisition price is increasing but also the international transportation and logistics costs affect the imported products presence in the domestic market. The expectations for economic recovery has been a major concern for all consumer related market analysts, the strategies of domestic manufacturers have concentrated on developing innovative products in terms of design and materials, domestic manufacturers are trying to increase their sales to international markets given the temporary weakness of the domestic market, the effects of these innovations are expected to have a positive impact on the domestic market once the products are consolidated in the international market.
Table of contents
CLOTHING AND FOOTWEAR IN MEXICO : MARKET INSIGHT
EXECUTIVE SUMMARY
Clothing and footwear impacted by macroeconomic performance
Imported products change the market structure
Clothing accessories not affected by macroeconomic conditions
Catalogue sales emerge as self employment option
Sector expects recovery by mid-2010
KEY TRENDS AND DEVELOPMENTS
Mexican manufacturers seek to maintain position through innovation and design
Clothing / footwear ratio increasing
Macroeconomic performance affects both clothing and footwear
Financing options used to retain retailer market share
Domestic manufacturers oppose trade liberalisation
Catalogue sales keep growing with an expansion to the clothing industry
MARKET DATA
Table 1 Sales of Clothing and Footwear by Sector: Volume 2003-2008
Table 2 Sales of Clothing and Footwear by Sector: Value 2003-2008
Table 3 Sales of Clothing and Footwear by Sector: % Volume Growth 2003-2008
Table 4 Sales of Clothing and Footwear by Sector: % Value Growth 2003-2008
Table 5 Clothing and Footwear Company Shares 2004-2008
Table 6 Clothing and Footwear Brand Shares 2005-2008
Table 7 Sales of Clothing and Footwear by Distribution Format: % Analysis 2003-2008
Table 8 Forecast Sales of Clothing and Footwear by Sector: Volume 2008-2013
Table 9 Forecast Sales of Clothing and Footwear by Sector: Value 2008-2013
Table 10 Forecast Sales of Clothing and Footwear by Sector: % Volume Growth 2008-2013
Table 11 Forecast Sales of Clothing and Footwear by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - MEXICO
CíA MANUFACTURERA DE CALZADO EMYCO SA DE CV - CLOTHING AND FOOTWEAR - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 2 CIA MANUFACTURERA DE CALZADO EMYCO SA DE CV Key Facts
Summary 3 [Company Name]: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 CIA MANUFACTURERA DE CALZADO EMYCO SA DE CV]: Competitive Position 2008
EDOARDO MARTIN SA DE CV - CLOTHING AND FOOTWEAR - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Edoardo Martín SA de CV: Key Facts
Summary 6 EDOARDO MARTIN SA DE CV: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Edoardo Martín SA de CV: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 8 EDOARDOS MARTIN SA DE CV Competitive Position 2008
FáBRICAS DE CALZADO ANDREA SA DE CV - CLOTHING AND FOOTWEAR - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 9 FABRICAS DE CALZADO ANDREA SA DE CV: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 FABRICAS DE CALZADO ANDREA SA DE CV Competitive Position 2008
INDUSTRIAL ZAPATERA JR SA DE CV - CLOTHING AND FOOTWEAR - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Industrial Zapatera JR: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Industrial Zapatera JR: Competitive Position 2008
MARSEL SA DE CV - CLOTHING AND FOOTWEAR - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 13 MARSEL SA DE CV: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 14 MARSEL SA DE CV: Competitive Position 2008
PROYECCIONES DE LA MODA SA DE CV - CLOTHING AND FOOTWEAR - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 15 PROYECCIONES DE LA MODA SA DE CV Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 PROYECCIONES DE LA MODA SA DE CV: Competitive Position 2008
CLOTHING IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
New Product Developments
Summary 17 New Product Launches 2008- 2009
SECTOR DATA
Table 12 Sales of Clothing by Subsector: Volume 2003-2008
Table 13 Sales of Clothing by Subsector: Value 2003-2008
Table 14 Sales of Clothing by Subsector: % Volume Growth 2003-2008
Table 15 Sales of Clothing by Subsector: % Value Growth 2003-2008
Table 16 Sales of Men’s Outerwear by Type 2003-2008
Table 17 Sales of Women’s Outerwear by Type 2003-2008
Table 18 Sales of Childrenswear by Type 2003-2008
Table 19 Clothing Company Shares 2004-2008
Table 20 Clothing Brand Shares 2005-2008
Table 21 Sales of Clothing by Distribution Format: % Analysis 2003-2008
Table 22 Forecast Sales of Clothing by Subsector: Volume 2008-2013
Table 23 Forecast Sales of Clothing by Subsector: Value 2008-2013
Table 24 Forecast Sales of Clothing by Subsector: % Volume Growth 2008-2013
Table 25 Forecast Sales of Clothing by Subsector: % Value Growth 2008-2013
FOOTWEAR IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
New Product Developments
Summary 18 New Product Launches 2008- 2009
SECTOR DATA
Table 26 Sales of Footwear by Subsector: Volume 2003-2008
Table 27 Sales of Footwear by Subsector: Value 2003-2008
Table 28 Sales of Footwear by Subsector: % Volume Growth 2003-2008
Table 29 Sales of Footwear by Subsector: % Value Growth 2003-2008
Table 30 Sales of Footwear by Type 2003-2008
Table 31 Footwear Company Shares 2004-2008
Table 32 Footwear Brand Shares 2005-2008
Table 33 Sales of Footwear by Distribution Format: % Analysis 2003-2008
Table 34 Forecast Sales of Footwear by Subsector: Volume 2008-2013
Table 35 Forecast Sales of Footwear by Subsector: Value 2008-2013
Table 36 Forecast Sales of Footwear by Subsector: % Volume Growth 2008-2013
Table 37 Forecast Sales of Footwear by Subsector: % Value Growth 2008-2013