COVID-19 has directly affected the production in this category in the country, creating an interruption in the market and having a financial impact on companies in the sector. Additionally, even though e-commerce has grown significantly, this category is dominated by sales in the country's major retailers, which have had to close their stores due to the pandemic.
Although there is no doubt that the category has suffered a significant decrease due to COVID-19, in its favour it must be said that hosiery, as an inelastic category, does not suffer large falls or increases in its sales, maintaining average ticket value in the category. Hosiery continues to be purchased relatively frequently because socks, tights and stockings, etc are subject to significant damage through the wear and tear of constant use.
For established brands in the market, the pandemic has made them rethink the business in the sense that some physical stores will close in 2020 and 2021. The category had already been dragging losses since 2018, a situation that was aggravated by the social unrest in 2019 and later by the pandemic, which has resulted in the reduction of investment in the sector even migrating to other garments.
E-commerce has seen significant growth in hosiery due to the pandemic, and it is expected that in 2021 it will continue to be very important, and this is why the main companies in the field (which in this case are local) continue working on the development of their online platforms to give visibility to their products, understanding that a, perhaps permanent, change has occurred in the way consumers buy.
In a market that is not characterised by its variety, companies have for some time started to introduce elements of differentiation and innovation, such is the case of products made with copper fibre that provide antibacterial properties, or socks made of bamboo that can absorb moisture better and are ideal for sensitive skin. In 2021, innovative products will undoubtedly be the spearhead of companies in the category to win customers.
It is expected that during 2021 the economy will emerge from the recession caused by the effects of COVID-19. Additionally, the gradual return to school and sports activities could be a boost to category growth.
While the pandemic led the company to use part of its production capacity to manufacture face masks, the domestic company Industria Textil Monarch strengthened its clear lead in hosiery in 2020. The company continued to benefit from extensive distribution and considerable brand recognition in Chile.
The German multinational adidas Group with its eponymous adidas brand is another, very important player in the hosiery category; despite hosiery not being its focus, the company has managed to capitalise on Chilean consumers’ taste for the kind of comfort its sportswear products have to offer. Currently ranked third within the Chilean hosiery competitive landscape, adidas has a strong offer that includes a wide range of tights, socks, leggings and other hosiery.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Hosiery industry in Chile with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Hosiery industry in Chile, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Hosiery research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page