Apparel and Footwear Specialist Retailers in the Philippines

PROSPECTS

Fast fashion brands continue to thrive

While they saw growth slow at the end of the review period, global fast fashion giants, such as Fast Retailing and H&M, continued to thrive in the Philippine apparel and footwear specialist retailers channel. Market-leader, Fast Retailing opened a global flagship store under its Uniqlo brand in Manila, the brand’s largest in Southeast Asia, in October 2018.

Fast fashion undermines bazaar culture, while luxury brands see potential

Global fast fashion brands, Uniqlo and H&M, hold the largest value shares amongst apparel and footwear specialist retailers. However, in terms of store networks, local apparel brands, Penshoppe and Bench, still have the broadest presence in the Philippines.

Local chains responding to international competition

Demand for global fast fashion brands is set to persist during the forecast period, supported by the increasing influence of international trends and rising consumer purchasing power. However, while some brands will see store closures or even withdrawal from the market, local apparel chains are not being totally overwhelmed by this competition.

COMPETITIVE LANDSCAPE

Fast Retailing extends lead as it benefits from opening of global flagship store

Japanese retailer, Fast Retailing, owner of the Uniqlo brand, remained the largest player in apparel and footwear specialist retailers in 2019. Indeed, having opened a global flagship store in Manila in October 2018, the company extended its lead over second-placed, H&M, in the final year of the review period.

H&M anticipates rising concern about sustainable fashion

While other markets are witnessing the decline of fast fashion brands as rising environmental awareness makes sustainability an increasingly prominent issue for consumers, this is not yet a common concern amongst Filipinos. Nonetheless, with international trends exerting a growing influence on Filipino consumers, H&M is strengthening its communication about sustainable fashion.

Domestic player continues to expand

Domestic company, Golden ABC, owner of popular local brands such as Penshoppe and Oxygen, expanded rapidly in 2019. The company’s expansion is involving investment in e-commerce, as well as growing its physical store network.

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