Womenswear in Israel

2021 DEVELOPMENTS

Womenswear benefits from consumers returning to pre-pandemic lifestyles in 2021

Womenswear suffered from many disruptions in 2020, especially during the two lengthy closures, as the industry was not considered essential under the Israeli government officials. Furthermore, consumers spent less time outside their homes and therefore had less need of buying new clothing.

E-commerce benefits from less travel and strong sites during 2021

E-commerce benefited from lockdown regulations in 2020 and registered a steep increase in retail value sales and a rise in value share at the expense of apparel and footwear specialist retailers and mixed retailers. Furthermore, womenswear prices through e-commerce are attractive, while Israelis increasingly appreciated the convenience of shopping online due to home delivery.

Fox Wizel remains the leading player, while Zara tops brands in 2021

Fox Wizel Ltd retained its overall leadership of womenswear in 2021, offering a wide variety of brands covering both its own labels Fox and Yanga, in addition to distributing global names such as Mango and American Eagle Outfitters, whilst also running successful e-commerce store Terminal X. Furthermore, Fox lost value share to smaller players under “others” in 2020, due to an increasingly tough trading environment.

PROSPECTS AND OPPORTUNITIES

E-commerce set to see sales growth during the forecast period as it gains in popularity

A greater shift towards e-commerce is anticipated during the forecast period, following on from trends witnessed during the pandemic, although this distribution channel was already gaining in popularity due to offering convenience and competitive prices pre-pandemic. The online move allows companies to reduce many overhead costs to protect their profit line, whilst also offering the possibility of lowering the final price for consumers.

Terminal X will create exposure by opening a physical store during the forecast period

Terminal X (Fox Wizel Ltd) stated during 2021 that it will open a brick-and-mortar store for the first time at the end of the year. The store will open in Tel Aviv and be spread over two floors and will be designed in the shape of an airport with an emphasis on new digital technologies for user experience and giant screens.

Unstable outlook due to the pandemic will necessitate players to invest in e-commerce during the forecast period

Despite strong vaccination uptake in Israel, there are still outbreaks of COVID-19 due to new variants of the virus entering the country. As a result, store closures are still possible, and some stores will need to limit the amount of people that enter the store without notice.