RETAIL BRAND UPDATE

from Imprint Canada November/December 2022

Canada’s Lululemon Athletica posts revenue growth of 28% in third quarter

Lululemon Athletica’s revenue has grown 28 per cent to $1.9 billion in the third quarter of fi scal 2022, ended October 30, compared to the same quarter last year. The company’s total comparable sales increased 22 per cent in the third quarter of this year.

Lululemon Athletica’s net revenue increased by 26 per cent in North America and by 41 per cent internationally, compared to the third quarter of fi scal 2021.

The company’s comparable store sales in increased 14 per cent, or 17 per cent on a constant dollar basis, compared to the same quarter last year. Direct-to-consumer net revenue increased 31 per cent, or 34 per cent on a constant dollar basis, Lululemon Athletica said in a press release.

For 2022, Lululemon Athletica expects net revenue to be in the range of $7.944–$7.994 billion, representing a three-year compound annual growth rate of approximately 26 per cent.

Global cotton consumption to decline 3.3 million bales in Dec ‘22

China’s consumption is also projected down 1 million bales this month to 35.5 million, marginally above the previous year but over fi ve million bales less than 2020.

Ongoing COVID-19 lockdowns, slowing domestic purchases of apparel, declining yarn prices relative to cotton lint, and signifi cantly lower cotton product exports have drastically slowed China’s consumption over the past two years. The US, the world’s largest importer of cotton products, showed lower imports of products from China by more than 40 per cent during the fi rst three months of the marketing year (August – October 2022).

Pakistan’s consumption is estimated at its lowest level in over 20 years, forecast down 700,000 bales this month to 9 million, dropping nearly 2 million from the previous year mostly because of lower supplies. Pakistan’s production is projected at the lowest level in nearly 40 years at 3.7 million bales.

Global production is down 700,000 bales from the previous month to 115.7 million, largely owing to lower production in Pakistan. This is the fourth consecutive month that Pakistan production has fallen and is supported by weak arrivals data.

Global cotton consumption is now projected at its secondlowest level in nearly a decade, with an estimated decline of 3.3 million bales to 111.7 million in December 2022, as per the data by US Department of Agriculture (USDA).

Factors like declining supplies, falling yarn orders from fabric and apparel companies, lower profi t margins for spinning mills, and higher infl ation levels are all pressuring consumption.

Signifi cant challenges for the three largest consumers - China, India, and Pakistan - are expected to lower global consumption signifi cantly below the previous two years.

India’s consumption is projected down one million bales this month to 23 million, falling more than two million from Emblemtek_Imprint_Nov-Dec-2022-1.pdf 1 10-26-2022 11:28 Athe previous year and the largest year-over-year decline for M all cotton consumers.

Jersey & T-shirts to be top performing apparel products globally by 2025

Jerseys and T-shirts will be the top performing products in the apparel segment during 2020-2025, according to Fibre2Fashion’s market insight tool TexPro. The global jersey market is expected to grow at a compound annual growth rate of 6.78 per cent in this period, while that of T-shirts may grow at an annual rate of 6.55 per cent. The global apparel market is expected to grow at 4.50 per cent to reach $1,574 billion by the end of 2025. The global market of jerseys will grow to $311.78 billion by 2025. The product’s market size was $226.16 billion in 2017, according to data obtained from Fibre2Fashion’s market insight tool TexPro.

As for T-shirts, the global market is expected to reach $220.75 billion by 2025 from $157.10 billion in 2017.

Trousers and shorts will remain the largest category of apparel in terms of global market size. But the growth rate will be mild compared to the some of the other categories. Its market size will grow at the rate of 3.84 per cent to reach $403.68 billion by 2025 from $354.38 billion of 2017.

PVH extends license agreements with G-111 Apparel group

PVH has announced that it has extended most of its license agreements with G-III Apparel group for Calvin Klein and Tommy Hilfi ger in the US and Canada, largely pertaining to the women’s North America wholesale business. Both the Calvin Klein and Tommy Hilfi ger agreements will now have staggered expirations from 2025 through 2027. “This action is an important next step as part of the PVH+ Plan, PVH’s multi-year strategic growth plan, to unlock the full potential of our two iconic brands in the North America market. By bringing these core product categories in-house over time, we will be able to draw on the power and expertise of our global brand teams and have them fully connected to the demand driven supply chain we are developing. We are grateful to G-III for their partnership and long-term commitment to Calvin Klein and Tommy Hilfi ger in North America,” Stefan Larsson, chief executive offi cer, PVH, said.

“The multi-year transition period will enable us to bring these core product categories, which represented approximately one-third of our global licensing revenue, and less than 10 per cent of our consolidated EBIT in 2021, back in-house in a disciplined and methodical way. G-III will continue to be a key partner as we work together over the next few years to internalise the direct operations of these businesses,” Zac Coughlin, chief fi nancial offi cer, PVH, said.

Experience, continued from Page 1

You may even make experience promises about your brand and products, but for now it’s imperative we focus on customer and employee experiences. As you will quickly understand, the singular experience - i.e. the transaction - is just as important as the plural, which collectively de ne experiences.

Before we touch upon the three crucial steps to focus on, let’s be clear that customer and employee experience does not mean hugging your haters, nor does it mean surprising your customers/employees with champagne and caviar.

Each of these steps applies to customers and employees equally. If you don’t know where to begin, start with your employees’ experiences. Investing in improving your employees’ experience will undoubtedly result in increased productivity and improved customer experiences.

Step 1 - De ne the Promise

Step one actually comes in two parts. It starts with de ning what you mean by the words customer and employee experience.

De ne what you mean by the term(s) and ensure every team member understands the concept is crucial. Part two is to de ne what you promise to deliver for your customers/employees.

Every day people check in to two-star hotels, and y lowcost airlines, while others simultanueously check-in to ve-star hotels and y rst class.

In both instances, there are companies in those spaces that make a pro t and those that don’t. While some companies compete on price, others de ne themselves by delivering consistently on an expected experience that their ideal customers are drawn to and are willing to pay for.

Don’t be afraid of de ning your promise and sharing it broadly. ere are customers who will choose your company over your competitors if you consistently deliver on your promise.

But beyond prospects and customers being drawn to your promise, the superpower of de ning your promise is that every employee will understand that their priority is to deliver on the promise to your customers.

Step 2 - Measure the Gap(s)

So you’ve de ned what you promise to deliver to your customers. ere may in fact be multiple promises, and now is the time to measure the gap between the promise(s) and the reality.

To get started, measure the gap between your main promise. For example, if you promise to deliver your product within three business days, start measuring how o en you actually deliver within it that timefram. If you company delivers this promise 100 per cent of the time, then start measuring the gap of the next promise.

The singular experience - i.e. the transaction - is just as important as the plural, which collectively define experiences.

However, if you aren’t delivering on your main promise, then your mission is to focus on closing the gap, every day being one per cent closer to delivering on your promise.

If you are wondering where to start to measure, it is as simple as asking your customer or employee “Did we deliver on (insert your promise)?” en follow up by asking what was the impact of us delivering/not delivering as expected?

Step 3 - Share the Stories

Companies around the globe send out surveys, and you probably will too, as you attempt to measure the gap. But don’t

There are customers who will choose your company over your competitors if you consistently deliver on your promise.

be one of those companies that send out surveys and then keep all the data locked up. e power of step three is in sharing the stories with your team and celebrating the impact of delivering on your promise. e celebration of delivering on your promise reinforces what great looks like and the behaviours required to achieve success.

However, it is also important to share, just as broadly, the stories and the impact on customers when you fail to deliver on your promise. is is what accountability looks like.

By doing this, you are not only reinforcing the commitment to delivering on your promise, but it also provides a clear coaching point; an opportunity to identify, and x, what processes, systems or tasks create the break in delivering on your promise.

By following these three steps you will build a pipeline of potential business while establishing a loyal fan base - both employees and customers - that continues to evolve, stays relevant and grows.

About the Author:

Jason started his rst business at the age of 14, di erentiating himself by the service he provided. For the last three decades, he has worked with some of the world’s most recognizable brands, improving the experience to transform the business. Jason is a best-selling author and is considered a global guru on customer experience and a leading authority on experience management. www.jasonsbradshaw.com.