Global Apparel, Accessories & Luxury

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Global - Apparel, Accessories & Luxury Goods 0199 - 2006 - 2010

© Datamonitor. This profile is a licensed product and is not to be photocopied

INDUSTRY PROFILE

Global Apparel,

Accessories & Luxury Goods

Reference Code: 0199-2006

Publication Date: April 2011

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The global apparel, accessories and luxury goods market grew by 2.7% in 2010 to reach a value of $1,439.7 billion.

Market value forecast

In 2015, the global apparel, accessories and luxury goods market is forecast to have a value of $1,696.7 billion, an increase of 17.8% since 2010.

Market segmentation I

Womenswear is the largest segment of the global apparel, accessories and luxury goods market, accounting for 41.9% of the market's total value.

Market segmentation II

Europe accounts for 33.8% of the global apparel, accessories and luxury goods market value.

Market share

Wal-Mart is the leading player in the global apparel, accessories and luxury goods market, generating a 1.8% share of the market's value.

Market rivalry

The market is fragmented with a large numbers of smaller players, alongside the large incumbents, including: Inditex; Gap, Wal-Mart and H&M.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7 Research highlights 8 Market analysis 9

MARKET VALUE 10

MARKET SEGMENTATION I 11

MARKET SEGMENTATION II 12

MARKET SHARE 13

FIVE FORCES ANALYSIS 14

Summary 14 Buyer power 15 Supplier power 17 New entrants 19 Substitutes 20 Rivalry 21

LEADING COMPANIES 22

GAP 22 H & M Hennes & Mauritz AB 26 Industria de Diseño Textil, S.A. 30 Wal-Mart Stores, Inc. 34

MARKET FORECASTS 38

Market value forecast 38 APPENDIX 39

Methodology 39 Industry associations 40 Related Datamonitor research 40 Disclaimer 41

CONTENTS



ABOUT DATAMONITOR 42

Premium Reports 42 Summary Reports 42 Datamonitor consulting 42

CONTENTS



LIST OF TABLES Table 1: Global apparel, accessories and luxury goods market value: $ billion, 2006–10 10

Table 2: Global apparel, accessories and luxury goods market segmentation I:% share, by value, 2010 11

Table 3: Global apparel, accessories and luxury goods market segmentation II: % share, by value, 2010 12

Table 4: Global apparel, accessories and luxury goods market share: % share, by value, 2010 13

Table 5: GAP: key facts 22

Table 6: GAP: key financials ($) 23

Table 7: GAP: key financial ratios 24

Table 8: H & M Hennes & Mauritz AB: key facts 26

Table 9: H & M Hennes & Mauritz AB: key financials ($) 27

Table 10: H & M Hennes & Mauritz AB: key financials (SEK) 27

Table 11: H & M Hennes & Mauritz AB: key financial ratios 28

Table 12: Industria de Diseño Textil, S.A.: key facts 30

Table 13: Industria de Diseño Textil, S.A.: key financials ($) 31

Table 14: Industria de Diseño Textil, S.A.: key financials (€) 31

Table 15: Industria de Diseño Textil, S.A.: key financial ratios 32

Table 16: Wal-Mart Stores, Inc.: key facts 34

Table 17: Wal-Mart Stores, Inc.: key financials ($) 36

Table 18: Wal-Mart Stores, Inc.: key financial ratios 36

Table 19: Global apparel, accessories and luxury goods market value forecast: $ billion, 2010–15 38

CONTENTS



LIST OF FIGURES Figure 1: Global apparel, accessories and luxury goods market value: $ billion, 2006–10 10

Figure 2: Global apparel, accessories and luxury goods market segmentation I:% share, by value, 2010 11

Figure 3: Global apparel, accessories and luxury goods market segmentation II: % share, by value, 2010 12

Figure 4: Global apparel, accessories and luxury goods market share: % share, by value, 2010 13

Figure 5: Forces driving competition in the global apparel, accessories and luxury goods market, 2010 14

Figure 6: Drivers of buyer power in the global apparel, accessories and luxury goods market, 2010 15

Figure 7: Drivers of supplier power in the global apparel, accessories and luxury goods market, 2010 17

Figure 8: Factors influencing the likelihood of new entrants in the global apparel, accessories and luxury goods market, 2010 19

Figure 9: Factors influencing the threat of substitutes in the global apparel, accessories and luxury goods market, 2010 20

Figure 10: Drivers of degree of rivalry in the global apparel, accessories and luxury goods market, 2010 21

Figure 11: GAP: revenues & profitability 24

Figure 12: GAP: assets & liabilities 25

Figure 13: H & M Hennes & Mauritz AB: revenues & profitability 28

Figure 14: H & M Hennes & Mauritz AB: assets & liabilities 29

Figure 15: Industria de Diseño Textil, S.A.: revenues & profitability 32

Figure 16: Industria de Diseño Textil, S.A.: assets & liabilities 33

Figure 17: Wal-Mart Stores, Inc.: revenues & profitability 37

Figure 18: Wal-Mart Stores, Inc.: assets & liabilities 37

Figure 19: Global apparel, accessories and luxury goods market value forecast: $ billion, 2010–15 38

MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The apparel, accessories and luxury goods market consists of mens, womens and childrens clothing, jewelry, watches and leather goods. The leather goods sector consists of handbags, wallets and luggage.

The market has been valued at retail selling price (RSP) and includes all applicable taxes.

Any currency conversions used in this report have been calculated using constant annual 2010 average exchange rates.

MARKET OVERVIEW



Research highlights

The global apparel, accessories & luxury goods market had total revenues of $1,439.7 billion in 2010, representing a compound annual growth rate (CAGR) of 2.7% for the period spanning 2006-2010.

The womenswear segment was the market's most lucrative in 2010, with total revenues of $602.7 billion, equivalent to 41.9% of the market's overall value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.3% for the five-year period 2010-2015, which is expected to drive the market to a value of $1,696.7 billion by the end of 2015.

MARKET OVERVIEW



Market analysis

The global apparel, accessories & luxury goods market has experienced only a modest growth in recent years. This trend is set to continue over the forecast period.

The global apparel, accessories & luxury goods market had total revenues of $1,439.7 billion in 2010, representing a compound annual growth rate (CAGR) of 2.7% for the period spanning 2006-2010. In comparison, the European and Asia-Pacific markets grew with CAGRs of 1.5% and 4% respectively, over the same period, to reach respective values of $487.3 billion and $393.1 billion in 2010.

The womenswear segment was the market's most lucrative in 2010, with total revenues of $602.7 billion, equivalent to 41.9% of the market's overall value. The menswear segment contributed revenues of $370.1 billion in 2010, equating to 25.7% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.3% for the five-year period 2010-2015, which is expected to drive the market to a value of $1,696.7 billion by the end of 2015. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 2.4% and 4.7% respectively, over the same period, to reach respective values of $549 billion and $494.1 billion in 2015.

MARKET VALUE



MARKET VALUE

The global apparel, accessories and luxury goods market grew by 2.7% in 2010 to reach a value of $1,439.7 billion.

The compound annual growth rate of the market in the period 2006–10 was 2.7%.

Table 1: Global apparel, accessories and luxury goods market value: $ billion, 2006–10 Year $ billion € billion % Growth2006 1,293.8 974.3 2007 1,353.4 1,019.2 4.6%2008 1,375.9 1,036.2 1.7%2009 1,402.2 1,055.9 1.9%2010 1,439.7 1,084.2 2.7%

CAGR: 2006–10 2.7%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Global apparel, accessories and luxury goods market value: $ billion, 2006–10


MARKET SEGMENTATION I



MARKET SEGMENTATION I

Womenswear is the largest segment of the global apparel, accessories and luxury goods market, accounting for 41.9% of the market's total value.

The menswear segment accounts for a further 25.7% of the market.

Table 2: Global apparel, accessories and luxury goods market segmentation I:% share, by

value, 2010 Category % ShareWomenswear 41.9%Menswear 25.7%Jewelry 13.1%Childrenswear 12.8%Leather Goods 4.4%Watches 2.2%

Total 100%


Figure 2: Global apparel, accessories and luxury goods market segmentation I:% share, by

value, 2010


MARKET SEGMENTATION II



MARKET SEGMENTATION II

Europe accounts for 33.8% of the global apparel, accessories and luxury goods market value.

Americas accounts for a further 33.7% of the global market.

Table 3: Global apparel, accessories and luxury goods market segmentation II: % share, by

value, 2010 Category % ShareEurope 33.8%Americas 33.7%Asia-Pacific 27.3%Rest of the World 5.2%

Total 100%


Figure 3: Global apparel, accessories and luxury goods market segmentation II: % share, by

value, 2010


MARKET SHARE



MARKET SHARE

Wal-Mart is the leading player in the global apparel, accessories and luxury goods market, generating a 1.8% share of the market's value.

H&M accounts for a further 1.2% of the market.

Table 4: Global apparel, accessories and luxury goods market share: % share, by value, 2010 Company % ShareWalmart 1.8%H&M 1.2%Inditex 1.1%GAP 1.0%Other 94.9%

Total 100%


Figure 4: Global apparel, accessories and luxury goods market share: % share, by value, 2010


FIVE FORCES ANALYSIS




The apparel, accessories and luxury goods market will be analyzed taking retailers of men's, women's and children's clothing (clothing accessories are not included) footwear, luxury goods, and textiles as players. The key buyers will be taken as end-users, and apparel, footwear, textile and luxury goods manufacturers and wholesalers as the key suppliers.

Summary

Figure 5: Forces driving competition in the global apparel, accessories and luxury goods market,

2010


The socio-political environments that individuals operate within, coupled with the need for individual and group identities makes clothing and luxury goods retail essential to consumers. Where brand loyalty exists, it is more likely to be geared towards designer clothing than retailer stocks, although this is usually towards the top end of the industry. However, there is a growing industry for 'Discount Apparel Retail' with stores such as Wal-Mart, Costco, H&M and Primark providing low-cost, prolific-output fashion. Fashion, by its very nature, is unpredictable. The products are determined by designers, sub-cultures and creative industries and are subject to sharp and unpredictable changes. Key suppliers in this industry are clothing manufacturers and wholesalers, with retailers able to source from both. Although clothing manufacturing remains a significant part of total manufacturing in certain developed economies the ability of retailers in a given country to source from foreign manufacturers means that the effective supplier fragmentation is made greater. Industry trends include shorter cycles, price deflation, offshore sourcing, diversifying to survive, and following the demographics.




Buyer power

Figure 6: Drivers of buyer power in the global apparel, accessories and luxury goods market,

2010


The global apparel, accessories and luxury goods market consists of mens, womens and childrens clothing, jewelry, watches and leather goods. Main players within the market – companies engaged in the retail sales of apparel and other goods - have a large number of buyers to sell to. Virtually all buyers are individual consumers, which weakens buyer power. Retailers can differentiate themselves quite strongly through the styles of clothing that they offer. This fragments consumers as style is an abstract concept that defines individuals, to a certain degree it is an extension of personality and therefore highly individualized, which significantly weakens buyer power.

Although there are other possible sources of apparel, such as home-made clothing, generally the demographic and psychological bearing of retail garments is highly important to consumers, further weakening buyer power. However, buyers have negligible switching costs. Where brand loyalty exists, it is more likely to be geared towards the designer rather than the retailer, although this is usually towards the top end of the industry. There is however, an increasing trend towards 'Discount Apparel Retail', with stores such as Wal-Mart, Costco, H&M and Primark providing, low-cost, prolific-output fashion. Here brand loyalty is associated with the retailer, and switching costs are low, strengthening buyer power somewhat.




The position of retailers at the end of the value chain make it impossible for them to integrate forwards, meaning that they are obliged to offer buyers what they want, thereby strengthening buyer power. Fashion, by its very nature, is unpredictable. The products are determined by designers, sub-cultures and creative industries and are subject to sharp and unpredictable changes. These factors strengthen buyer power. Overall, buyer power is assessed to be moderate.




Supplier power

Figure 7: Drivers of supplier power in the global apparel, accessories and luxury goods market,

2010


Key suppliers in this market are clothing manufacturers and wholesalers, with retailers able to source from both. Companies are able to act as both manufacturers and retailers. An example of this is the Gap Corporation which manufactures its own products to sell in its stores. Apparel manufacturers have the option of selling their products under their own label or under private-labels. Private-labels provide the manufacturer with additional revenues and the capability to reduce per-unit production costs by utilizing plants at greater capacities. This increases supplier power. Recent significant increases in power costs, dyes & chemical costs and rapidly rising cotton prices have impacted upon supplier power in an industry that relies on the availability of raw material. The wholesale and clothing manufacturing sectors in most countries are fairly fragmented. Although clothing manufacturing remains a significant part of total manufacturing in certain developed economies, the ability of retailers in a given country to source from foreign manufacturers means that supplier fragmentation is made greater.

As international trade liberalizes, supplier power in the global market is decreased through competition from manufacturers in low-wage regions, most notably China. (Apparel manufacturing is almost always labor intensive, due to the difficulty of automating processes such as the sewing of garments.). Switching costs for retailers are not very high: they include the risk that choosing a low-cost supplier involves a more extended supply chain that may not be able to cope with sudden changes in demand in an industry susceptible to changes in fashion.




Suppliers are further weakened by their lack of diversity, which makes the apparel retail industry highly important to their business. Retail is also labor-intensive, and the existence of a minimum wage in the many countries slightly increases the power of suppliers of labor. Overall, there is moderate supplier power in this market.




New entrants

Figure 8: Factors influencing the likelihood of new entrants in the global apparel, accessories

and luxury goods market, 2010


The global apparel, accessories and luxury goods market is forecast to sustain moderate growth over the coming years, making the market more attractive to new entrants. Entry to the clothing and luxury goods retail market does not require large capital outlay; setting up a single, independent apparel retail store is within the means of many individuals, even in countries like India and China, where median incomes are quite low. However, in some countries a few large corporations account for a major share of total industry revenues. Their economies of scale include the ability to build brands in multiple retail outlets, and greater buying power when negotiating with suppliers. Negligible switching costs for consumers mean that they are free to transfer their custom to a new player. However, industry entrants face several other barriers. Retaliation by existing players, such as the launch of a price war, is a possibility, especially where a new entrant moves into a more concentrated segment. The emerging brand strength of the major 'discount' chains is considerable, which may negate much of the effect of low switching costs. Overall there is a strong likelihood of significant new entrants to this market.




Substitutes

Figure 9: Factors influencing the threat of substitutes in the global apparel, accessories and

luxury goods market, 2010


Substitutes for apparel, accessories and luxury goods retail include buying direct from manufacturers, which is facilitated by the growth of online sales. Home-made and custom-made (couture) clothing are also niche alternatives to the retail of ready-made clothes. Counterfeit clothing can be a significant threat to revenues in some countries. However, the socio-political environments that individuals operate within coupled with the need for individual and group identity makes retail clothing essential to consumers. Overall the threat of substitutes to the market is assessed as weak.




Rivalry

Figure 10: Drivers of degree of rivalry in the global apparel, accessories and luxury goods market,

2010


The apparel, accessories and luxury goods market is fragmented. As described above, there is room for large numbers of smaller players. Major increases in capacity may be fairly costly to smaller players, if they require the outlay of opening additional outlets, less so if they can be accomplished by taking on more staff on a flexible basis. While some retailers selling apparel are highly diversified (e.g. Wal-Mart), many retain a strong emphasis on clothing, which intensifies rivalry. Future market performance encourages market entry which will intensify rivalry within the market. Overall, rivalry is assessed to be moderate.

LEADING COMPANIES



LEADING COMPANIES

GAP

Table 5: GAP: key facts Head office: 2 Folsom Street, San Francisco, California 94105, USA Telephone: 1 650 952 4400 Fax: 1 650 952 4407 Website: www.gapinc.com Financial year-end: January Ticker: GPS Stock exchange: New York Source: company website D A T A M O N I T O R

Gap (or "the company") is a specialty retailer that sells casual apparel, accessories and personal care products for men, women and children under the Gap, Old Navy, Banana Republic, Athleta and Piperlime brands. The company operates 3,095 stores throughout the US, Canada, the UK, France, Ireland and Japan. Gap also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in Asia, Europe and the Middle East.

The company primarily conducts business through two business divisions: stores and direct.

The stores segment includes the results of the retail stores for each of the company's brands: Gap, Old Navy, and Banana Republic. Gap was founded in 1969 and they offer an extensive selection of apparel at moderate price points. Products range from wardrobe basics such as denim, khakis, and T-shirts to fashion apparel, accessories, and personal care products for men and women. Gap entered the children's apparel market with the introduction of GapKids in 1986 and babyGap in 1989. These stores offer casual apparel and accessories for children aged from newborn through to pre-teen. Gap also offers maternity apparel. Additionally, GapBody launched in 1998 and offers women's intimate apparel, sleepwear, loungewear, and sports and active apparel. Gap also operates Gap Outlet stores, which carry similar categories of products at lower price points.

Old Navy was launched in 1994 to address the market for value-priced family apparel. Old Navy offers broad selections of apparel, shoes, and accessories for adults, children, and infants, as well as other items, including a maternity line, consumables, and personal care products.

LEADING COMPANIES



Gap acquired Banana Republic in 1983 and this brand offers sophisticated, fashionable collections of casual and tailored apparel, shoes, accessories, and personal care products for men and women at higher price points than Gap. The company also operates Banana Republic Factory Stores, which carry similar categories of products at lower price points.

The direct operating segment includes the results of the online business for each of the company's web-based brands: gap.com, oldnavy.com, bananarepublic.com, piperlime.com, and beginning in September 2008, athleta.com. Online sites of Gap, Banana Republic and Old Navy offer all the products carried in their respective stores as well as extended sizes not found in stores. Piperlime offers customers an assortment of the leading brands in footwear, handbags, apparel, and jewelry for women and footwear for men and kids, as well as tips, trends, and advice from leading style authorities. Athleta offers customers’ performance-driven women's sports and active apparel and footwear for a variety of activities, including golf, running, skiing and snowboarding, tennis, and yoga. Customers can purchase Athleta products, as well as an assortment of products from leading brands in women's active wear, online or through the catalog.

Key Metrics

The company recorded revenues of $14,526 million in the fiscal year ending January 2009, a decrease of 7.8% compared to fiscal 2008. Its net income was $967 million in fiscal 2009, compared to a net income of $833 million in the preceding year.

Table 6: GAP: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 16,023.0 15,943.0 15,923.0 15,763.0 14,526.0Net income (loss) 1,113.0 778.0 778.0 833.0 967.0Total assets 10,048.0 8,821.0 8,544.0 7,838.0 7,564.0Total liabilities 5,112.0 3,396.0 3,370.0 3,564.0 3,177.0Employees 153,000 154,000 150,000 150,000 134,000 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 7: GAP: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 6.9% 4.9% 4.9% 5.3% 6.7%Revenue growth (1.5%) (0.5%) (0.1%) (1.0%) (7.8%)Asset growth (6.2%) (12.2%) (3.1%) (8.3%) (3.5%)Liabilities growth (15.7%) (33.6%) (0.8%) 5.8% (10.9%)Debt/asset ratio 50.9% 38.5% 39.4% 45.5% 42.0%Return on assets 10.7% 8.2% 9.0% 10.2% 12.6%Revenue per employee $104,725 $103,526 $106,153 $105,087 $108,403Profit per employee $7,275 $5,052 $5,187 $5,553 $7,216 Source: company filings D A T A M O N I T O R

Figure 11: GAP: revenues & profitability

Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 12: GAP: assets & liabilities


LEADING COMPANIES



H & M Hennes & Mauritz AB

Table 8: H & M Hennes & Mauritz AB: key facts Head office: Master Samuelsgatan 46A, SE 106 38, Stockholm, SWE Telephone: 46 8 796 55 00 Fax: 46 8 20 80 94 Website: www.hm.com Financial year-end: November Ticker: HMB Stock exchange: Stockholm Source: company website D A T A M O N I T O R

H&M offers fashion and fashion related products for women, men, teenagers and children. The company's business consists mainly of the sale of clothing and cosmetics to consumers. According to H&M's expansion principle, every store is to have the best commercial location. The business is operated from leased store premises, through internet and catalogue sales and on a franchise basis. At the end of the FY2009, the company was present in 35 markets and the operations in eight of these are on a franchise basis.

The total number of stores at the end of FY2009 was 1,988, of which 36 are franchise stores, 23 are operated under the COS banner, 35 are Monki stores, ten are Weekday stores and one is a Cheap Monday store; all of which sell clothes and related accessories. Internet and catalogue sales are offered in Sweden, Norway, Denmark, Finland, the Netherlands, Germany and Austria. The new home textile range, H&M Home, is sold via the internet and catalogues, and at a showroom in Stockholm.

H&M in-house designers work with pattern designers and buyers to create a broad and varied range of merchandise. The company's own design and buying department creates the collections centrally. H&M is increasingly adopting the concept of regional grouping, which means that products are purchased and distributed to a group (region) of sales countries. The products are then allocated to the sales countries in the region according to demand in each market. A regrouping process in 2007 among other things, involved transferring the central design, buying, logistics and stock-keeping functions to a separate company, H & M Hennes & Mauritz GBC AB, as of 1 June 2007. This company owns the products until they are delivered to the stores.

LEADING COMPANIES



H&M operates a production unit in Hong Kong which was made into a central procurement department for the company. H&M outsources product manufacturing to around 700 independent suppliers through H&M's 16 local production offices in Asia and Europe. Tests, such as chemical and laundry tests, are carried out on a continuous basis at the production offices and at external laboratories. The merchandise is subsequently transported by sea, rail, road or air to various distribution centers. The goods are then distributed directly to the stores or to central regional replenishment centers.

Key Metrics

The company recorded revenues of $16,464 million in the fiscal year ending November 2009, an increase of 14.1% compared to fiscal 2008. Its net income was $2,273 million in fiscal 2009, compared to a net income of $2,121 million in the preceding year.

Table 9: H & M Hennes & Mauritz AB: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 9,971.1 11,107.8 12,778.1 14,431.2 16,464.1Net income (loss) 1,282.6 1,497.6 1,884.7 2,121.4 2,272.6Total assets 4,602.7 4,931.7 5,788.8 7,107.8 7,540.5Total liabilities 1,006.9 1,078.6 1,337.3 1,982.5 1,907.2Employees 34,614 40,368 47,029 53,430 53,476 Source: company filings D A T A M O N I T O R

Table 10: H & M Hennes & Mauritz AB: key financials (SEK) SEK million 2005 2006 2007 2008 2009Revenues 71,886.0 80,081.0 92,123.0 104,041.0 118,697.0Net income (loss) 9,247.0 10,797.0 13,588.0 15,294.0 16,384.0Total assets 33,183.0 35,555.0 41,734.0 51,243.0 54,363.0Total liabilities 7,259.0 7,776.0 9,641.0 14,293.0 13,750.0 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 11: H & M Hennes & Mauritz AB: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 12.9% 13.5% 14.7% 14.7% 13.8%Revenue growth 14.1% 11.4% 15.0% 12.9% 14.1%Asset growth 18.0% 7.1% 17.4% 22.8% 6.1%Liabilities growth 22.7% 7.1% 24.0% 48.3% (3.8%)Debt/asset ratio 21.9% 21.9% 23.1% 27.9% 25.3%Return on assets 30.2% 31.4% 35.2% 32.9% 31.0%Revenue per employee $288,065 $275,163 $271,707 $270,095 $307,878Profit per employee $37,055 $37,099 $40,076 $39,704 $42,497 Source: company filings D A T A M O N I T O R

Figure 13: H & M Hennes & Mauritz AB: revenues & profitability


LEADING COMPANIES



Figure 14: H & M Hennes & Mauritz AB: assets & liabilities


LEADING COMPANIES



Industria de Diseño Textil, S.A.

Table 12: Industria de Diseño Textil, S.A.: key facts Head office: Edificio Inditex, Avenida de la Diputacion, 15452 Arteixo, A Coruna,

ESP Telephone: 34 981 18 54 00 Fax: 34 981 18 53 65 Website: www.inditex.com Financial year-end: January Ticker: ITX Stock exchange: Berlin Source: company website D A T A M O N I T O R

Inditex is engaged in activities relating to textiles design, production and distribution. The group is structured into more than 100 different companies, all of which operate in the fashion industry. Each of these 100 companies performs a specialized activity.

Inditex markets its range of products through eight sales formats: Zara, Bershka, Pull and Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque.

Zara is present in 73 countries, with a network of 1,341 stores located in major cities throughout the world. Zara also operates Kiddy's Class stores, which specialize in junior fashion. Kiddy's class stores are located in Spain, Portugal, France, Italy and Greece.

The Bershka sales format has 626 stores in 41 countries. Bershka stores are large and spacious. They are intended to be meeting points for street fashion, music and art. In the store, customers can watch videos, listed to CDs or read magazines.

Pull and Bear format offers casual clothing. It caters primarily to young males and females. Pull and Bear has opened 602 shops in the main streets and shopping centers of 41 countries.

Massimo Dutti offers a range that starts from sophisticated urban fashions to casual wear. It operates 488 stores in 41 countries.

Stradivarius reflects a youthful outlook on fashion. It offers international fashion with cutting-edge designs. There are currently 482 Stradivarius stores in 33 countries.

LEADING COMPANIES



Oysho offers fashion trends in women's lingerie and undergarments. There are currently 382 Oysho stores in 23 countries.

Zara Home specializes in home furnishings. It offers textiles for bed, table and bathroom linens, as well as tableware, cutlery, glassware and decorative items. Zara Home has stores in Spain, Portugal, France, Belgium, Netherlands, the UK, Andorra, Italy, Poland, Greece, Romania, Malta, Cyprus, Russia, Turkey, Mexico, Lebanon, Kuwait, the UAE, Saudi Arabia, Bahrain, Qatar, Jordan, Oman, Morocco and Egypt.

Uterque is the new commercial store format of Inditex. These stores offer fashionable accessories as well as a range of textile and leather garments. Uterque has 31 stores located in Spain, Portugal and Greece.

Key Metrics

The company recorded revenues of $13,786 million in the fiscal year ending January 2009, an increase of 10.0% compared to fiscal 2008. Its net income was $1,661 million in fiscal 2009, compared to a net income of $1,656 million in the preceding year.

Table 13: Industria de Diseño Textil, S.A.: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 8,929.7 10,857.4 12,498.7 12,533.4 13,786.3Net income (loss) 1,074.3 1,338.0 1,666.5 1,656.3 1,660.5Total assets 5,580.8 6,892.3 7,606.8 9,412.9 10,301.8Total liabilities 2,410.4 3,023.0 3,827.1 4,011.3 4,046.9Employees 47,000 58,000 79,517 89,112 92,500 Source: company filings D A T A M O N I T O R

Table 14: Industria de Diseño Textil, S.A.: key financials (€) € million 2005 2006 2007 2008 2009Revenues 6,740.8 8,196.0 9,435.0 9,461.2 10,407.0Net income (loss) 811.0 1,010.0 1,258.0 1,250.3 1,253.5Total assets 4,212.9 5,202.9 5,742.2 7,105.6 7,776.6Total liabilities 1,819.6 2,282.0 2,889.0 3,028.0 3,054.9 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 15: Industria de Diseño Textil, S.A.: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 12.0% 12.3% 13.3% 13.2% 12.0%Revenue growth 21.0% 21.6% 15.1% 0.3% 10.0%Asset growth 20.0% 23.5% 10.4% 23.7% 9.4%Liabilities growth 29.6% 25.4% 26.6% 4.8% 0.9%Debt/asset ratio 43.2% 43.9% 50.3% 42.6% 39.3%Return on assets 21.0% 21.5% 23.0% 19.5% 16.8%Revenue per employee $189,993 $187,196 $157,182 $140,648 $149,041Profit per employee $22,858 $23,068 $20,958 $18,587 $17,952 Source: company filings D A T A M O N I T O R

Figure 15: Industria de Diseño Textil, S.A.: revenues & profitability


LEADING COMPANIES



Figure 16: Industria de Diseño Textil, S.A.: assets & liabilities


LEADING COMPANIES



Wal-Mart Stores, Inc.

Table 16: Wal-Mart Stores, Inc.: key facts Head office: 702 Southwest 8th Street Bentonville Arkansas 72716 USA Telephone: 1 479 273 4000 Website: www.walmartstores.com Financial year-end: January Ticker: WMT Stock exchange: New York Source: company website D A T A M O N I T O R

Wal-Mart Stores (Wal-Mart or "the company") is the largest retail company in the world. The company operates retail stores in various formats worldwide. Wal-Mart offers a wide assortment of merchandise at every day low prices (EDLP). In addition, Wal-Mart offers its products through various e-commerce websites including walmart.com and samsclub.com.

Wal-Mart operates three business segments: Wal-Mart US, the international segment, and Sam's Club. The company also generates revenues from a fourth, non-operating segment named "others" which includes a variety of income categories such as Sam's Club membership fee revenues, tenant income and financial services income.

Wal-Mart US operates three different retail formats in the US discount stores, supercenters and neighborhood markets. The segment has retail operation in all the 50 states in the US. Wal-Mart operates 803 discount stores, each with an average store size of 108,000 square feet, in 47 states. The company also operates 2,747 supercenters (average size of 185,000 square feet) in 48 US states and 158 neighborhood markets (average sixe of 42,000 square feet) in 16 US states. In addition, the segment also markets its products through its e-commerce website walmart.com.

The stores operated by Wal-Mart US offer branded and private label merchandise in various product categories including grocery, entertainment, electronics, apparel, health and wellness, and home furnishing and housewear. These stores also offer financial services such as money order sales, wire transfers, check cashing and bill payment.

LEADING COMPANIES



To support the retail operations of the Wal-Mart US segment, Wal-Mart operates 120 distribution facilities across the US, of which the company owns 105; the remaining are owned and operated by third parties. A few of these distribution centers also service Wal-Mart's Sam's Club for certain items. During FY2010, these distribution centers shipped approximately 79% of the merchandize sold by Wal-Mart US. The remaining merchandise was shipped directly by the suppliers to the company's stores.

The international segment comprises wholly owned subsidiaries operating in Argentina, Brazil, Canada, Japan, Puerto Rico and the UK. Wal-Mart's majority-owned subsidiaries operate in five countries in Central America, Chile and Mexico; the company's joint venture operations in India and China; and other controlled subsidiaries in China. The operating formats vary from country to country, and include discount stores, supermarkets, supercenters, hypermarkets and other formats which comprise Sam's Club, combination discount and grocery stores, cash-n-carry stores, department stores and restaurants.

To support the international segment's retail operations, Wal-Mart utilizes a total of 132 distribution facilities located in Argentina, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the UK and two export consolidation facilities in the US. The company owns and operates 34 of these facilities, 37 are leased and operated and the remaining facilities are operated by third parties. Wal-Mart distributes both import and domestic products to the international retail stores through these distribution facilities. During FY2010, approximately 83% of the international segment's purchases were shipped from these distribution facilities.

Sam's Club operates Wal-Mart's warehouse membership clubs in the US; it also operates the website, www.samsclub.com. Wal-Mart operates 596 Sam's Club (average store size of 133,000 square feet) in 48 US states. Sam's Club serves both individuals and businesses. Sam's Club offers bulk displays of brand name merchandise including hard goods, some soft goods, institutional-size grocery items, and selected private-label items under the Member's Mark, Bakers & Chefs and Sam's Club brands. A significant number of Sam's Club warehouses offer photo processing services, pharmaceuticals, optical departments and gasoline stations.

The company operates 26 distribution facilities across the US to support Sam's Club retail operation, of which the company owns eight and the remaining are third party owned facilities. During FY2010, approximately 63% of Sam's Club non-fuel purchases were shipped from these distribution centers; the balance merchandize was shipped directly by the suppliers to the warehouses. Sam's Club uses a combination of private fleet and common carriers to transport non-perishable merchandise from distribution centers to Sam's Club.

Key Metrics

The company recorded revenues of $408,214 million in the fiscal year ending January 2010, an increase of 1.7% compared to fiscal 2009. Its net income was $14,335 million in fiscal 2010, compared to a net income of $13,400 million in the preceding year.

LEADING COMPANIES



Table 17: Wal-Mart Stores, Inc.: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 308,945.0 344,992.0 374,307.0 401,204.0 408,214.0Net income (loss) 11,231.0 11,284.0 12,731.0 13,400.0 14,335.0Total assets 135,624.0 151,193.0 163,514.0 163,429.0 170,706.0Total liabilities 82,453.0 89,620.0 98,906.0 98,144.0 99,957.0Employees 1,800,000 1,900,000 2,100,000 2,095,000 2,100,000 Source: company filings D A T A M O N I T O R

Table 18: Wal-Mart Stores, Inc.: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 3.6% 3.3% 3.4% 3.3% 3.5%Revenue growth 9.8% 11.7% 8.5% 7.2% 1.7%Asset growth 15.8% 11.5% 8.1% (0.1%) 4.5%Liabilities growth 21.7% 8.7% 10.4% (0.8%) 1.8%Debt/asset ratio 60.8% 59.3% 60.5% 60.1% 58.6%Return on assets 8.9% 7.9% 8.1% 8.2% 8.6%Revenue per employee $171,636 $181,575 $178,241 $191,505 $194,388Profit per employee $6,239 $5,939 $6,062 $6,396 $6,826 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 17: Wal-Mart Stores, Inc.: revenues & profitability


Figure 18: Wal-Mart Stores, Inc.: assets & liabilities


MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2015, the global apparel, accessories and luxury goods market is forecast to have a value of $1,696.7 billion, an increase of 17.8% since 2010.

The compound annual growth rate of the market in the period 2010–15 is predicted to be 3.3%.

Table 19: Global apparel, accessories and luxury goods market value forecast: $ billion, 2010–15 Year $ billion € billion % Growth2010 1,439.7 1,084.2 2.7%2011 1,483.7 1,117.4 3.1%2012 1,532.9 1,154.4 3.3%2013 1,585.3 1,193.9 3.4%2014 1,642.7 1,237.1 3.6%2015 1,696.7 1,277.8 3.3%

CAGR: 2010–15 3.3%


Figure 19: Global apparel, accessories and luxury goods market value forecast: $ billion, 2010–15


APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX



Industry associations

European Apparel and Textile Organisation

24 rue Montoyer Box 10 – B – 1000 Brussels, Belgium Tel.: 32 2 285 4881 Fax: 32 2 230 6054 www.euratex.org

International Textile and Apparel Association

PO Box 1360, Monument, CO 80132-1360, USA Fax: 1 719 488 3716 www.itaaonline.org

Related Datamonitor research

Industry Profile

Global Housewares & Specialties

Global Household Durables

Global Textiles, Apparel & Luxury Goods

Global Consumer Durables & Apparel

Global Leisure Equipment & Products

APPENDIX



Disclaimer

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Global Apparel, Accessories & Luxury

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