Research Report on Apparel in Venezuela

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Research Report on Apparel in Venezuela
Discover the latest market trends and uncover sources of future market growth for the Apparel
industry in Venezuela with research from Euromonitor's team of in-country analysts.
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apparel-in-venezuela.html

Report Details:

Published: July 2012

Price Single User License: US $ 1900








The Apparel in Venezuela market research report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volumes and values, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
What is the market size of Apparel in Venezuela?
What are the major brands in Venezuela?
How dynamic is the growth of clothing and footwear internet sales?
What is the performance of women's clothing vs men's clothing?
What % of clothing and footwear sales goes through grocery retailers?
Why buy this report?
Gain competitive intelligence about market leaders
Track key industry trends, opportunities and threats
Inform your marketing, brand, strategy and market development, sales and supply functions


EXECUTIVE SUMMARY
Domestic textile and clothing manufacturing is limited
Venezuela experienced a drop in consumption of approximately 4% in 2011. Limitations imposed
on clothing and footwear companies have had a negative impact on the supply of products in 2011.
The process to import raw materials as well as finished goods is complicated and delays production
causing shortages of certain items. Access to foreign currency is the most important factor closely
followed by the process to obtain a certificate of "No National Production" required to import raw
materials. The Venezuelan Textile Association reports that manufacturers are producing at 30%
capacity. The Venezuelan Chamber of the Clothing Industry (CAVEDIV) estimates that sales of local
manufacturers have fallen by approximately 25% in value terms during 2011.
Implementation of new Law for Costs and Prices
The recently implemented law that controls costs and prices allows the government to implement a
set of maximum retail prices on all goods and services sold in the country. The government is also
legally able to obtain the cost structures of firms as a means to analyse price regulation of a sector.
Privately held companies could have their business operation costs, profit margins, and other
financials reviewed by the government. This has discouraged many private manufacturers and has
only added another obstacle that could severely cripple the apparel industry. Fedecamaras
(National Chamber of Commerce) strongly believes that this law will severely cripple the private
sector and has suggested that it will take the necessary legal action to stop this new law. The
Venezuelan Chamber of the Clothing Industry (Cavediv) believes that manufacturers will reduce
their production, thus increasing unemployment and reducing the supply of apparel products.
Informal markets achieve significant sales
The apparel market in Venezuela is quite fragmented. An important part of consumers fall in the
lower income bracket, and tend to buy clothing from informal markets, which mean lost sales for
brands such as Zara, adidas, Nike, La Senza, Levi's, and Tommy Hilfiger, among others. Consumers
in the lower income population tend to visit popular markets (mercados populares), since such
outlets offer lower unit prices compared to branded domestic or international outlets. Illicit
merchandise is allegedly distributed in these commercial areas, which let consumers buy high
fashion products at affordable prices. Recognised brands are commonly found, but are not
authentic. Despite this trend, brands are still looking to increase their presence in Venezuela, as is
the case of the new Esprit collection and the recent opening of a Victoria's Secret store in Caracas.
Victoria's Secret is attempting to capitalise on the fact that its products are popular among
Venezuelan women, which are mostly purchased through the Internet.
Apparel distribution includes internet retailing
Department stores and clothing and footwear specialist retailers are still the most important
distribution channels in Venezuela. The inclusion of additional services in department stores, such
as a cafeteria area, and the increased security at shopping centres is a key factor that promotes


visits of Venezuelan consumers. Promotions for clothing and footwear on the internet have been
well received through the use of virtual coupons. The usage of internet sites like MercadoLibre.com,
which is a peer-to-peer site, is popular. Newer sites such as traetelotodo.com continue to grow and
are sites that sell products purchased in the US.
Local brands gain as inflation and import limitations are major concerns
Apparel retail sales are expected to continue growing in general, despite some categories being
impacted by high inflation rates or devaluation, more than others, for example, jeans and adults
footwear have reached maturity over the years and have become very necessary. Promotional
campaigns based on price discounts will drive positive volume performance over the forecast
period, consequently benefit sales value performance. Growth looks to be stable as the Venezuelan
consumer always wants to be as presentable and fashionable as possible. Another factor is the
growth of the franchise business model and the support that consumers are giving to independent
fashion designers and clothing accessories created by artisans in Venezuela.
Table of Contents
Apparel in Venezuela - Industry Overview
EXECUTIVE SUMMARY
Domestic textile and clothing manufacturing is limited
Implementation of new Law for Costs and Prices
Informal markets achieve significant sales
Apparel distribution includes internet retailing
Local brands gain as inflation and import limitations are major concerns
KEY TRENDS AND DEVELOPMENTS
Inflationary environment impacts apparel pricing
Internet retailing and the Venezuelan consumer
Sportswear is growing popularity
Apparel market monitors the impact of "costs and fair prices" law
Venezuelans support local designs and brands
MARKET DATA
Table 1 Sales of Apparel by Category: Volume 2006-2011


Table 2 Sales of Apparel by Category: Value 2006-2011
Table 3 Sales of Apparel by Category: % Volume Growth 2006-2011
Table 4 Sales of Apparel by Category: % Value Growth 2006-2011
Table 5 Apparel Company Shares 2007-2011
Table 6 Apparel Brand Shares 2008-2011
Table 7 Sales of Apparel by Distribution Format: % Analysis 2006-2011
Table 8 Sales of Apparel by Category and Distribution Format: % Analysis 2011
Table 9 Sales of Clothing by Category and Distribution Format: % Analysis 2011
Table 10 Forecast Sales of Apparel by Category: Volume 2011-2016
Table 11 Forecast Sales of Apparel by Category: Value 2011-2016
Table 12 Forecast Sales of Apparel by Category: % Volume Growth 2011-2016
Table 13 Forecast Sales of Apparel by Category: % Value Growth 2011-2016
DEFINITIONS
SOURCES
Summary 1 Research Sources
Apparel in Venezuela - Company Profiles
adidas de Venezuela SA in Apparel (Venezuela)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 2 adidas de Venezuela SA: Competitive Position 2011
INTERNET STRATEGY
El Palacio del Blumer in Apparel (Venezuela)


STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 El Palacio del Blumer: Competitive Position 2011
INTERNET STRATEGY
Nike Venezuela SA in Apparel (Venezuela)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Nike Venezuela SA: Competitive Position 2011
INTERNET STRATEGY
Ovejita SA in Apparel (Venezuela)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Ovejita SA: Competitive Position 2011
INTERNET STRATEGY
Rori Internacional SA in Apparel (Venezuela)
STRATEGIC DIRECTION


KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Rori Internacional SA: Competitive Position 2011
INTERNET STRATEGY
Tiendas Gina in Apparel (Venezuela)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Tiendas Gina: Competitive Position 2011
INTERNET STRATEGY
Tiendas Traki SA in Apparel (Venezuela)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Tiendas Traki SA: Competitive Position 2011
INTERNET STRATEGY
Zara Venezuela SA in Apparel (Venezuela)
STRATEGIC DIRECTION
KEY FACTS


COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Zara Venezuela SA: Competitive Position 2010
INTERNET STRATEGY
Childrenswear in Venezuela - Category Analysis
HEADLINES
TRENDS
During 2011, imports of childrenswear increased over local production, since local consumer
demand dictated cheaper products but wide availability. The government prioritised international
trade with China, as this country is Venezuela's biggest credit holder. Imports from other countries
such as the US and other Latin American countries continued to be negatively affected by the
bureaucracy of the import process.
COMPETITIVE LANDSCAPE
Tiendas Traki SA continues leading Venezuelan childrenswear in 2011 with a value share of 11%,
followed by Grupo Los Principitos CA, Groupe Zannier, Don Regalon-Dinosaurio CA and Zara. The
market is quite fragmented with `others' accounting for 63% of value sales. Purchasing trends
indicate that consumers prefer to buy children's clothes based on price and quality and not based
on brands. Consumers mainly look for low prices since children grow out of clothes quickly.
PROSPECTS
Imports from Asian countries are expected to increase due to Venezuelan consumers' expected lack
of interest in childrenswear brands and their continuing to buy based on prices, primarily. The
government continues to prioritise Chinese trade relations in order to meet increasing consumer
demand for cheaper products.
CATEGORY DATA
Table 14 Sales of Childrenswear by Category: Volume 2006-2011
Table 15 Sales of Childrenswear by Category: Value 2006-2011
Table 16 Sales of Childrenswear by Category: % Volume Growth 2006-2011
Table 17 Sales of Childrenswear by Category: % Value Growth 2006-2011
Table 18 Childrenswear Company Shares 2007-2011


Table 19 Childrenswear Brand Shares 2008-2011
Table 20 Sales of Childrenswear by Distribution Format: % Analysis 2006-2011
Table 21 Forecast Sales of Childrenswear by Category: Volume 2011-2016
Table 22 Forecast Sales of Childrenswear by Category: Value 2011-2016
Table 23 Forecast Sales of Childrenswear by Category: % Volume Growth 2011-2016
Table 24 Forecast Sales of Childrenswear by Category: % Value Growth 2011-2016
Clothing Accessories in Venezuela - Category Analysis
HEADLINES
TRENDS
Since Venezuelan consumers (male and female) are fans of fashion and like to look good, they
continue to buy accessories. Caps are worn throughout the year by younger people in particular,
however, during the baseball season, both adults and children buy and wear them. Ties are still
worn, even though the dress code in most companies is more relaxed these days.
COMPETITIVE LANDSCAPE
Venezuelan clothing accessories is still highly fragmented with no clear players or brands with a
remotely dominant value share. Due to this, no significant company was registered in 2011.
PROSPECTS
Venezuelan consumers could change their purchasing habits over the forecast period, if the
inflation rate continues to rank as one of the highest in the world; also if there are other
devaluations of the currency, since purchasing power tends to decrease in such instances. However,
consumption is expected to remain stable and the focus will primarily be on economy and mid-
priced accessories.
CATEGORY DATA
Table 25 Sales of Clothing Accessories by Category: Volume 2006-2011
Table 26 Sales of Clothing Accessories by Category: Value 2006-2011
Table 27 Sales of Clothing Accessories by Category: % Volume Growth 2006-2011
Table 28 Sales of Clothing Accessories by Category: % Value Growth 2006-2011
Table 29 Sales of Clothing Accessories by Distribution Format: % Analysis 2006-2011
Table 30 Forecast Sales of Clothing Accessories by Category: Volume 2011-2016


Table 31 Forecast Sales of Clothing Accessories by Category: Value 2011-2016
Table 32 Forecast Sales of Clothing Accessories by Category: % Volume Growth 2011-2016
Table 33 Forecast Sales of Clothing Accessories by Category: % Value Growth 2011-2016
Footwear in Venezuela - Category Analysis
HEADLINES
TRENDS
In 2011, Venezuelan consumers continued to buy footwear regularly, driven by their high sense of
fashion and constant attention to their personal image. In footwear, Venezuelan people, especially
women, tend to have shoes for specific occasions and typically have more than two pairs of shoes.
Regular purchases are seen in shoes with semi-formal and informal designs, used daily for work or
social events. Due to their daily usage, women tend to renew footwear items at least once annually.
COMPETITIVE LANDSCAPE
Venezuelan footwear is fragmented with a diverse range of independent outlets nationwide, selling
imported and locally-produced shoes. In men's footwear, the Massimo Dutti and Inglese brands
secured value shares of 7% and 3% respectively, while adidas and Nike held 2% and 1%
respectively. The leading brands in women's footwear are Basinger, Vic Matie and Gran Turismo.
PROSPECTS
Despite the critical economic situation, volume growth of footwear is expected to continue with a
very good sales performance; benefitting from the regular purchase trend by both male and female
consumers. Men's sports footwear and women's sports footwear will continue driving value sales
due to the high unit prices and consumers from different income groups continuing their
purchasing behaviour.
CATEGORY DATA
Table 34 Sales of Footwear by Category: Volume 2006-2011
Table 35 Sales of Footwear by Category: Value 2006-2011
Table 36 Sales of Footwear by Category: % Volume Growth 2006-2011
Table 37 Sales of Footwear by Category: % Value Growth 2006-2011
Table 38 Footwear Company Shares 2007-2011
Table 39 Footwear Brand Shares 2008-2011
Table 40 Sales of Footwear by Distribution Format: % Analysis 2006-2011


Table 41 Forecast Sales of Footwear by Category: Volume 2011-2016
Table 42 Forecast Sales of Footwear by Category: Value 2011-2016
Table 43 Forecast Sales of Footwear by Category: % Volume Growth 2011-2016
Table 44 Forecast Sales of Footwear by Category: % Value Growth 2011-2016
Hosiery in Venezuela - Category Analysis
HEADLINES
TRENDS
Decreasing purchasing power due to the adverse economic scenario forced local consumers to
switch to economy products; as happened in other apparel categories. Consumers are continuing to
demand cheaper products, leaving aside brand loyalty.
COMPETITIVE LANDSCAPE
Montecristo SA continues leading Venezuelan hosiery with a value share of 7.3%, followed by
Limited Brands Venezuela with a 7.1% share. In the case of Montecristo, the company enjoys strong
historical tradition, supported by a strong network of outlets nationwide. adidas and Nike are very
well recognised brands in the country.
PROSPECTS
Venezuelan consumers could change their purchasing habits over the forecast period, if the
inflation rate continues to rank as one of the highest in the world, and if there are other
devaluations of the currency, since purchasing power tends to decrease in these cases. However,
consumption is expected to be stable and average annual spending may even increase, with the
focus primarily on economy and standard price products.
CATEGORY DATA
Table 45 Sales of Hosiery by Category: Volume 2006-2011
Table 46 Sales of Hosiery by Category: Value 2006-2011
Table 47 Sales of Hosiery by Category: % Volume Growth 2006-2011
Table 48 Sales of Hosiery by Category: % Value Growth 2006-2011
Table 49 Hosiery Company Shares 2007-2011
Table 50 Hosiery Brand Shares 2008-2011
Table 51 Sales of Hosiery by Distribution Format: % Analysis 2006-2011