preview

Essay about Industrial Analysis of Apparel Industry

Better Essays

Industry Analysis 1: Apparel Manufacturing NAICS 315

Part 1. Environmental Analysis

The Apparel Manufacturing industry is a sub-sector of the Manufacturing sector. It is composed of two distinct manufacturing processes (cut and sew using purchased fabric and fabric manufacturers that then cut and sew) and three industry groups (apparel knitting mills, cut and sew apparel manufacturing and apparel accessories and other apparel manufacturing).[1]

The projected global revenue in 2010 for the apparel manufacturing industry is $ 1,781.7 billion[2] while for the US it is about $20 billion[3]. Globally there are about 256,000 companies3, while in the US, there are about 8,000 companies1. The top 5 companies globally are YMK Trading …show more content…

This would fall under the NAIC sector Retail (NAICS 44-45) and subsector Clothing and Clothing Accessories Stores (NAICS 448).

Finished products for the apparel manufacturing industry include kids, mens and womens clothing, bridal wear, mens wedding wear and intimate apparel. The products are sold through three channels – brick and mortar stores, catalogs and online sales (Table 2).[5]

|Category |Sales $ Billion |Market Share (%) |
|Brick & Mortar Store |169.256 |92.9 |
|Catalogs |7.177 |3.9 |
|Online |5.873 |3.2 |
|Total |182.306 |100.00 |

Table 2. Apparel Sales by Channel

The size of the global industry is over 1,002,522 companies, while the US clothing stores industry includes about 100,000 stores with combined annual revenue of about $150 billion. Globally, the top companies are Christian Dior, Louis Vuitton, PPR, TJX, and Industria de Diseño Textil.[6] In the US, large companies include TJX Companies (TJ Maxx, Marshalls); Gap; Limited Brands; Ross; and Abercrombie & Fitch.

Personal income and fashion trends drive demand for clothing thus the profitability of individual companies depends

Get Access