Industry Analysis & Industry Trends
The economic recession has had a dismal effect on men's and boys' apparel wholesalers. With decreased discretionary spending in 2008 and 2009, retailers have been offering discounts to consumers to retain sales. Due to weak downstream demand, wholesalers were left with excess inventories and slashed prices to move stock. In their ongoing quest to cut expenditures and sustain margins, retailers have been sourcing directly from manufacturers, causing wholesalers to cut prices to remain relevant in the apparel supply chain. Meanwhile, due to cheap foreign labor, retailers are enticed with low-cost imports. As a result, wholesalers are left with lower demand... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
IBISWorld estimates that the Men's and Boys' Apparel Wholesaling industry has consistently grown at rates below that of the general economy. Industry value added (IVA), the industry's contribution to the economy, is expected to grow at an average annual rate of 1.5% over the 10 years to 2019, slower than the average annual growth of gross domestic product (GDP), which is forecast to be about 2.5% over the same time frame. This factor is a clear indicator that the industry is in the decline stage of its life cycle.
The industry's market segments are well defined and developed, and technological advancement is low. These factors further signify a declining life cycle stage. While new fashion trends are continually introduced, the basic product categories remain relatively unchanged... purchase to read more