Designer Apparel and Footwear (Ready-To-Wear) in Poland

2020 IMPACT

Casual wear replaces formal wear, as people work from home

Designer apparel and footwear (ready-to-wear) suffered current value decline in 2020, with value sales falling by a about a fifth, due to the effects of COVID-19, with people going out less and therefore not as interested in buying new clothes. When consumers did spend, it was not on suits and ties but on causal wear such as designer loungewear, chino trousers and cashmere sweaters.

Kering SA leads in highly fragmented and competitive landscape

Kering SA is the leading player in a highly fragmented market, with its brands, Yves Saint Lauren and Gucci. In second position is Paradise Group Sp (Burberry), followed by PVH Corp, which offers the best-selling brand in Poland, Calvin Klein.

Most luxury brands rely on a presence in multi-brand luxury department stores

The relatively small size of designer apparel and footwear in terms of value sales in Poland means that many brands rely on distribution through luxury department stores in Warsaw, such as Moliera2 and Vitkac, or through online websites, rather than having stand-alone stores. Many brands do not consider the potential value sales in Poland warrant a stand-alone store.

RECOVERY AND OPPORTUNITIES

If COVID-19 does not cause long-term damage, then value growth will return

It is hoped that COVID-19 will not have a long-term effect on the economy and if disposable incomes continue to rise as they were consistently over the review period, until COVID-19 struck, then consumers will be prepared to spend money on designer apparel and footwear (ready-to-wear). If infection rates hopefully start to fall in 2021 and people can socialise and move around freely, then it is expected that people will want to update their wardrobes after spending so much time at home in 2020 and that value growth will be high, in comparison with the current retail value decline of 2020.

Luxury brands increasingly understand importance of investing in Poland due to its strong growth potential

Overall, access to the most luxurious brands within designer apparel and footwear (ready-to-wear) in Poland remains fairly limited, encouraging wealthy well-travelled Poles to purchase these products in the fashion capitals of the world, such as Paris or Milan. However, the increasing wealth of consumers in Poland is encouraging the largest players to invest in the country, as they begin to recognise the strong growth potential that Poland offers.

Millennials drive demand for more unique and sustainable luxury brands

Younger Poles, particularly millennials, are placing greater importance on products that emphasise their personal style and individuality. Young designers appeal to Poland’s youth as they are perceived to take more of an unconventional approach to fashion by producing clothes in small batches, often in response to local demand.