Philippines apparel and footwear market report 2020

Philippines apparel and footwear industry has been largely driven by the demand for various local and international branded products in the country. The native population has majorly used crude weaving in order to manufacture garments since the Spanish era. The apparel/ garment industry is the second largest export industry in the country and majorly comprises of subcontracting operations for international brands.

Philippines has a costly labour that has affected the manufacturing sector in the country and therefore majority of the retailers in the country purchase imported products from other countries such as Thailand and Honk Kong.The market has been largely dominated by various local players such as Bench and Penshoppe and international brands such as Uniqlo, H&M, Nike and Marks and Spencer.

The Philippines apparel and footwear market has comprised of the sale of menswear, women’s wear and children wear. These have further included apparel and footwear products on the basis of the formal wear, casual wear, active wear and others.Local manufacturing organizations which produce apparel products have majorly exported their products to international markets. Higher demand in countries such as the USA and Japan has enabled traders to thrive in the Philippine apparel market

Import has been one of the major factors that have driven sales in the local Filipino apparel market.

With a higher demand of foreign products that possess high brand image, imports have showcased significant growth over the years 20092014. The apparel industry in Philippines has been considered as one of the most steadily growing markets in the country. With a CAGR of ~% recorded during the time frame 2009-2014, the apparel market has observed a number of key events which have shaped its growth in the country.

Due to presence of a large number of natural fibers such as abaca, pina, silk and ramie, indigenous textile and clothing industry has performed well in the past decade. With rise in personal disposable income and a keen fashion sense of the young urban population to keep updated with the latest international fashion trends, the per capita expenditure on apparel in the Philippines has increased from USD ~ in 2009 to USD ~ in 2014.

Footwear production in the Philippines has been majorly propagated through manual and semimechanized processes. A large number of domestic companies have utilized leather as the prime raw material for footwear.

However, low quality of locally produced leather has impelled firms to import leather from foreign nations, which in turn has added to the cost of production. Two major organizations, namely, the Philippine Footwear Federation and Sigla ni Kapitan Moy operate in the industry and have acted as business support organizations for footwear manufacturers. The footwear market in the Philippines has expanded at a CAGR of ~% from 2009-2014 and registered revenue from sales at USD ~ million in the year 2014.

Moreover, customers have been observed to purchase international brands more in comparison to local products. The presence of companies such as Nike, Adidas and Puma, which provide both casual wear and sportswear, has provided a thrust to customers to purchase high valued international products at affordable prices. Global brands have realized the importance of the growing Philippines market of apparel and footwear. The rapid expansion of economy has boosted customer sentiment which has in-turn encouraged foreign enterprises to enter the Philippine market for apparel and footwear products.

Store specialists in Philippines have reacted to the increase in purchasing power of the people and have brought these brands to improve shopping preferences of Filipinos.The personal disposable income of Philippines has observed a significant inflation over the years 2009-2014. This excess income has allowed Filipino customers to transform their preferences to branded goods in modern retail chains. The growing young population of Philippines has showcased a changing lifestyle with an emphasis on convenience and one-stop shops.

Hypermarkets and supermarkets have registered a CAGR of ~% and ~% respectively during 20102012, whereas small scale domestic retailers have shrunk.The Philippines textile industry has focused its efforts to exports to the United States of America mostly through the SAVE Act. The SAVE Act has led to the expansion of textile trade between the US and the Philippines by elimination of duties on apparel products.

Distribution channels of apparel and footwear products have majorly comprised of a large number of small scale retailers. However, with the heightened international investments and players, the establishment of hypermarket and supermarkets has diversified the retailing process.

The apparel industry of Philippines has been a vital part of the economy. The increase in diversity of apparel products with higher brand value has encouraged Filipino customers to spend more on quality products. During the time period 20092014 this market has registered a CAGR of ~%.

The onset of international apparel companies such as H&M has been one of the major variables which have impacted the apparel market in the Philippines. Local customers have showcased a strong preference for international brands and cheaper products. The demand for apparel products which include several varieties has been growing at a near-consistent rate in the Philippines. In 2014, a major proportion of apparel sales in the Philippines were observed to be made for women apparel products. Retailing of apparels by females in the country had accounted for ~% of the total apparel sales in 2014.

During that year, apparels worth USD ~ million were purchased by females. On the other hand, the purchase of apparels by men only accounted for USD ~ million which comprise of ~% of total apparel market share. The sales of apparel products to the population above the age of 14 years were recorded as USD ~ million in the same year. It must be noted that the population below 14 years of age comprises majorly of school children who generate a higher demand of clothes in comparison to the older population.

The sales of apparel products to the population above the age of 14 years were recorded as USD ~ million in the same year. It must be noted that the population below 14 years of age comprises majorly of school children who generate a higher demand of clothes in comparison to the older population. Traditionally, Filipino consumers have been purchasing apparel products majorly during the months of May, November and December. The month of May corresponds to the Yuletide season that involves opening of schools and introduction of freshly manufactured apparels from local /native fibers such as abaca and ramie.

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Source: https://www.kenresearch.com/consumer-productsand-retail/tkextile-apparel-and-footwear/philippinesapparel-footwear-market/5245-95.html

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