Home | Others | Full text issue week 37-2015

Full text issue week 37-2015

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ISSN 1994-2419

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Issue Week 37-2015

 Summary of news published in Week 36-2015

jpa4Sibil220THE ANNOUNCEMENT by Swimoutlet that it has concluded a licensing deal that allows it to use Angry Birds characters for its products is a timely reminder that such deals serve the interests of the licensor as well as those of the licensee. While the advantages for the licensee are obvious, the licensors also benefit from the publicity provided by the licensee’s products. Although some manufacturers reject the principle of licensing other brands because they are averse to paying royalties, they could have much to gain from a review of their principles within the context of a cross-licensing agreement that produces a win-win situation. Obviously, the opportunities for a cross-licensing deal involving a bodywear brand are limited, but those that are available well merit close consideration.

Jean-Pierre Adeline

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ACKGROUND – developments to bear in mind

 

STYLING: new bodyfashion trend identified

USA: new report focuses on lingerie e-commerce

FRANCE: July apparel sales dipped marginally

MEN’S UNDERWEAR: global market quantified

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SUPPLIERS – information from the upstream sector

 

COTTON: modest price rise predicted

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THE APPAREL SCENE – news of brands and labels

                                                                                                                       

VAN DE VELDE: strong half year growth reported

SEAFOLLY: Isola brand being returned to founder

BJORN BORG: first half sales and profit declined

MAISON CLOSE: first flagship store to open in US

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DISTRIBUTION – evolution of chains and channels

                                                           

ETAM: first half net profit decline recorded

BILLABONG: impressive turnaround achieved

SWIMOUTLET: licence for Angry Birds secured

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PEOPLE – corporate personalities

 

MICHELLE MONE: resigns from Board of Ultimo

FRANCESC JIMENEZ: engaged by Nylstar

MATHIAS KERP: joins Board of Huber Holding

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EXHIBITIONS – what to see and where to trade

 

LONDON: V&A to mount underwear exhibition

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FINISHING TOUCH – the smile for this week

 

LIFEBRA: underwire saves woman from stray shot

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BACKGROUND – developments to bear in mind

 

STYLING: new bodyfashion trend identified

 

PUBLISHED at the end of the holiday season, the latest report from specialist bodyfashion consultancy Concepts Paris describes a recent styling direction being adopted by influential designers. Titled Modern Sumptuousness, and circulated exclusively to subscribers to the consultancy’s services, the report discusses designers’ growing appreciation of beautiful but wearable hand-made garments that feature original prints and exclusive details. It concludes that Leavers laces and guipure embroideries combined with simple classic shapes mark the way forward for lingerie creations.

 

Concepts Paris

Concepts Paris

As the worlds’ only consultancy specialising exclusively on bodyfashion styling and marketing, Concepts Paris consistently provides unusually valuable information to creative personnel in the intimate apparel supply chain.

 

USA: new report focuses on lingerie e-commerce

 

PUBLISHED recently by QYResearch Reports and distributed by Report Bazzar, a new study covers all significant aspects of the online lingerie sector in the USA. Under the title The United States Online Lingerie Industry Report 2015, the study provides a basic overview of the sector, including import/export consumption, supply and demand figures, cost, price, revenue and gross margins. It also covers upstream raw materials and equipment as well as downstream demand analysis. Click here for a more detailed description.

 

Bare Necessities

Bare Necessities

Since we believe that the online channel will account for a growing proportion of lingerie sales in the coming years, the report promises to be particularly valuable for brands seeking to grow their business in the US.

 

FRANCE: July apparel sales dipped marginally

 

ACCORDING to figures published by the Ifm, apparel consumption in France stabilized in July, when sales dipped by 0.1 per cent year-on-year. While textile sales by department stores rose by 5.6 per cent, specialized chains suffered a 2.4 per cent setback. For the first seven months of 2015, textile sales lag 2014 figures by 0.3 per cent.

 

Lou

Lou

Considering the continuing lack of confidence on the part of French consumers, the July textile sales figure could have been appreciably worse.

 

MEN’S UNDERWEAR: global market quantified

 

ACCORDING to a new report published by Persistance Market Research, the global market for men’s underwear will have reached a value of USD 8.42bn by the end of 2015. Titled Global Market Study on Men’s Underwear: BRIC to Witness Highest Growth by 2020, the report forecasts that the market for tops and bottoms will grow at a CAGR of 5.8 per cent from 2015 to 2020 to reach a value of USD 11bn. Currently dominating the market with a share of 35 per cent, the BRIC region is expected to retain its lead in the coming five years. In Europe and North America, the market is predicted to expand at a CAGR of 5.1 per cent and 3.9 per cent respectively. Click here to access more details of the report.

 

Hom

Hom

While less valuable than that of women’ underwear and lingerie, the men’s underwear sector continues to provide promising growth prospects.

 

SUPPLIERS – information from the upstream sector

 

COTTON: modest price rise predicted

 

A RECENT report from the ICAC notes that consumption growth will be limited during the current season while production will also be restrained. Consequently, ending stocks are expected to decline only marginally, by 0.54 per cent to 20.42m tons. As a result, the report predicts that the Cotlook A Index will rise to USD 0.76 in 2015/16 from an average of USD 0.71 in the preceding season.

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The projected rise of USD 0.05 this season is unlikely to have a significant impact on underwear production costs and related retail prices.

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THE APPAREL SCENE – news of brands and labels

 

VAN DE VELDE: strong half year growth reported

 

LUXURY lingerie concern Van de Velde reported first half results that show an 8.2 per cent increase in like-for-like consolidated sales, to EUR 113.4m. Wholesale sales rose by 8.3 per cent, with forward orders for the second half up against those of the preceding year at the same time. But sales of the Intimacy retail chain continued to flag, by 10.3 per cent like-for-like in local currency, although the stronger dollar boosted sales in EUR by 17.1 per cent. In Europe, like-for-like retail sales excluding store closures rose by 4.3 per cent. Recurrent EBITDA rose by 6.3 per cent to EUR 36.4m and the recurrent profit rose by 3.2 per cent to EUR 22m.

 

Marie Jo by Van de Velde

Marie Jo by Van de Velde

The further strengthening of the wholesale business confirms the validity of the company’s strategy.

 

SEAFOLLY: Isola brand being returned to founder

 

DIFFICULTIES encountered in registering the Isola swimwear brand internationally, and notably in the US, prompted Seafolly, now majority owned by LVMH subsidiary L Capital Asia, to return the rights to the label to its founder, model and actress Megan Gale who is also the brand’s creative director. This year, the label booked orders worth AUD 4m from around 100 stores in Australia. Seafolly CEO Anthony Halas explained: “Under our new partnership [with L Capital], we need brands with a global reach. We had issues with the trademarking of the Isola brand internationally, so sadly we have made the decision to discontinue that relationship.” Halas added that the group is considering buying or starting a new brand to compensate for lost Isola sales. For her part, Megan Gale has yet to make a decision regarding the future of her label but says she has received many offers from potential partners. For the time being, Ms Gale is taking a break of indefinite length from the label but she has assured all concerned that the range would return at some time in the future.

 

Isola

Isola

The trademarking problems that prompted Seafolly’s decision are likely to discourage some other major global players from developing the brand. But, even without the US, there are enough potential world markets to provide considerable potential for expansion.

 

BJORN BORG: first half sales and profit declined

 

WITH underwear accounting for 57 per cent of its turnover, Swedish brand Björn Borg said its first half sales and profit had both declined. Sales dipped by 4 per cent to SEK 230.3m while post-tax profit slumped by 28 per cent to SEK 12.6m. CEO Henrik Bunge said that the lower earnings were due largely to a combination of higher costs for key management personnel, marketing expenditure and investment in the e-commerce platform. He added that the Netherlands was the brand’s most important market, accounting for 28 per cent of sales.

 

Björn Borg

Björn Borg

The high proportion of sales in a single export market makes the brand uncomfortably vulnerable to economic conditions there.

 

MAISON CLOSE: first flagship store to open in US

 

FRENCH lingerie brand Maison Close is to open its first mono-brand flagship store this month. But the opening will take place in New York, rather than in France, because founder and designer Nicolas Busnel says the location reflects the international character of the label’s consumers. The store, located in the Soho district, will propose 12 ranges in a luxurious boudoir-inspired setting. It will also host exclusive lingerie events as well as sample sales and will provide made-to-measure garments on request.

 

Maison Close

Maison Close

The erotic character of the label and its designs is well in line with US trends in consumer demand and the flagship store promises to win sales from comparable brands.

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DISTRIBUTION – evolution of chains and channels                                                               

 

ETAM: first half net profit decline recorded

 

FRENCH distribution concern Etam, which is active mainly in the lingerie sector, recorded a 17 per cent decline in net profit at the end of its first half, to EUR 8.4m, on sales that were up by 7.8 per cent, to EUR 645.3m. Excluding the impact of stock clearance losses in China, where sales have begun to recover after three years of decline, the situation there is said to be much improved. In Europe, sales of the Etam and Undiz brands were maintained at a satisfactory level but those of the 1,2,3 outerwear brand disappointed again. The group noted that the stronger USD had raised the price of merchandise sourced abroad during the period.

 

Undiz by Etam

Undiz by Etam

The first half results again raise questions regarding the validity of the 1,2,3 brand, which could be utilizing resources that might be used more profitably by the intimate apparel chains.

 

BILLABONG: impressive turnaround achieved

 

RESULTS of the 2014/15 fiscal year of once troubled global surfwear specialist Billabong showed clear evidence of a very successful turnaround. Sales rose by 2.6 per cent to AUD 1.05bn producing a net profit of AUD 4.2m against a loss of AUD 233.7m loss in the preceding year. CEO Neil Fiske commented: “Two years into our turnaround, Billabong is back to full-fiscal profit and back to doing what it does best, building great global brands. Challenges remain, but this result confirms our confidence in the resilience of our brands and provides the conviction to see through the complex changes we’re undertaking globally to deliver sustained profitable growth. For fiscal 2015, Billabong brand witnessed strong growth in the US wholesale market, with sales up 13.1 per cent and accelerating in the second half.” Friske added that Element continues its growth in its largest market of Europe and the forward order book in the US indicates the brand is on the way back. According to Billabong, the Group returned to full-year EBITDA growth for the first time since 2008 with the first full-fiscal profit since 2011.

 

Billabong

Billabong

Now that corrective measures have been implemented successfully, the company will again exert considerable competitive pressure on its competitors worldwide.

 

SWIMOUTLET: licence for Angry Birds secured

 

US SWIMWEAR e-tailer SwimOutlet signed an agreement with Rovio Entertainment allowing it to produce and market children’s swimwear featuring Angry Birds characters under the label of the popular mobile game. In October 2015, the e-tailer will start selling and promoting a full range of Angry Birds swimwear and accessories, targeting the 6 to 15 year-old age group. In 2014, SwimOutlet grew its sales by 81 per cent, to an estimated USD 68m.

 

Angry Birds

Angry Birds

The licensing agreement breaks new ground for a distributor since most similar deals are made by manufacturers. But others are sure to follow where SwimOutlet led.

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PEOPLE – corporate personalities

 

MICHELLE MONE: resigns from Board of Ultimo

 

CO-FOUNDER in 1996 of the UK bra brand Ultimo, which is now 80 per cent owned by MAS Holdings in Sri Lanka, Michelle Mone resigned from the Boards of both Ultimo and parent company MJM International. Ms Mone said that her recent appointment to a government post to promote start-ups left too little time for other activities.

 

Michelle Mone

Michelle Mone

FRANCESC JIMENEZ: engaged by Nylstar

 

SPANISH fibre to apparel concern Nylstar, a subsidiary of the Praedium group, announced the appointment of Francesc Jiménez as head of its Meryl Fabrics Women business. Jiménez had been Development Project Leader with DBApparel for more than 11 years.

 

Francesc Jiménez

Francesc Jiménez

MATHIAS KERP: joins Board of Huber Holding

 

AUSTRIAN bodywear group Huber Holding announced the appointment of Mathias Kerp to its Board, with responsibility for the fabric production subsidiary Arula. The move marks a return to Huber Holding for Kerp after a spell with a subsidiary of Triumph International.

 

Mathias Kerp

Mathias Kerp

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EXHIBITIONS – what to see and where to trade

 

LONDON: V&A to mount underwear exhibition

 

UNDER the title Undressed: A Brief History of Underwear, the Victoria & Albert Museum in London is to open in April 2016 a comprehensive exhibition reviewing the evolution of bodywear. Exhibits will illustrate the practicalities of underwear and its role in the fashionable wardrobe while highlighting its sensual and erotic appeal. They will also explore the dress reformers and designers who argued for the beauty of the natural body as well as the entrepreneurs, inventors and innovators who have had a significant influence on the evolution of underwear. Parts of the display will also highlight the changing concepts of the ideal body. The exhibition will close in February 2017.

V&A Museum

V&A Museum

 

The duration of the exhibition promises to provide most designers around the world with an opportunity to visit what promises to become a must in their professional development.

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FINISHING TOUCH – the smile for this week

 

LIFEBRA: underwire saves woman from stray shot

 

WALKING in a forest in the Eastern part of her country, a German holidaymaker came within rifle range of a party hunting wild boar and was hit in the chest by a stray shot. The shot was deflected by the underwiring of her bra, leaving the woman with no worse than a bruise.

 

"Do I look like an underwire?"

“Do I look like an underwire?”

At a time when the Internet is buzzing with reports of the harmful effects of wearing a bra, this is a useful reminder that the garment provides protection as well as support.        

 

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