Apparel and Footwear Specialist Retailers in Costa Rica

PROSPECTS

Fast and casual fashion continues to boost growth as consumers update their looks and range of clothes, based on seasonality and fashion trends

Focusing on middle- and higher-income consumers’ expectations, fast fashion and casual fashion concepts continued to gain momentum in 2019, with players such as Zara and Benetton setting the pace. These retailers capitalised on brand recognition among economically-advantaged consumers seeking relatively affordable, yet trendy clothing alternatives, that can be updated yearly.

Sports apparel is perceived as inspirational, as global sports players boost sales in apparel and footwear specialist retailers

As a result of the globalised media and fashion trends that characterise the apparel and footwear industry, in 2019, there were high rates of brand loyalty for global flagship brands regardless of socioeconomic status. This trend was particularly prevalent among sports-related brands such as Nike, Adidas, New Balance and Puma, which continued to appeal a broader base of mid-lower income consumers in 2019, with sales boosted by the clothing links to an aspirational lifestyle.

E-commerce is anticipated to gain momentum across the forecast period, responding to consumers growing demands

As a broader base of consumers drive demand for e-commerce options, especially in the case of cross border sites like Amazon, the popularity of e-commerce is set to gain additional relevance over the forecast period. Local retailers, such as Extremos and leader Arenas Skate and Surf, will increase their attention in e-commerce expansion and invest further in the maintenance of modern e-commerce sites.

COMPETITIVE LANDSCAPE

Global players remain competitive through strong, aspirational positionings, celebrity endorsements and appealing online content

Conceptual stores continued to gain momentum in 2019, with these stores offered by global players, such as Nike, as a way to illustrate aspirational lifestyles’ concepts. Celebrities endorsement is also used by global players to remain competitive and further highlight their inspiration brand positionings.

Players use seasonal activations, discounts and campaigns to boost value sales

Seasonal activation campaigns boosted sales in 2019, with campaigns focused on offering specific summer and winter goods being particularly popular, despite Costa Rica only having two major seasons - dry and rainy. Vacation focused campaigns were used by players to boost sales for swim and beachwear, and cold weather, Christmas oriented apparel continued to sell through seasonal promotions, in stores such as Gap and Zara.

E-commerce is set to shake-up the competitive landscape, as players move from building stores, to building online platforms

E-commerce is expected to keep boosting the demand for apparel and footwear specialists’ sales over the forecast period. Most local players have opted to stop investing in new outlet openings - also as a result of the ongoing uncertain economic scenario - and are instead beginning to set up their e-commerce platforms.

Files are delivered directly into your account within a few minutes of purchase.