The Global & Local Outlook

for the Fashion Industry

THE GLOBAL OUTLOOK FOR FASHION
(Business of Fashion and McKinsey & Company, 2020)

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 KEY FINDINGS
◉ Fashion leaders and forecasters
are not looking forward to 2020
and beyond
◉ The industry will grow 3 to 4
percent, which is lower than
predicted
◉ Pressure to digitize and leverage
new technologies
◉ The biggest players are expected
to survive, the smallest &
startups left behind
◉ Must not be overly reliant on
China for market and supplies
◉ Asia, the Middle East, and Russia
will remain strong markets
◉ Purpose- and values-driven
companies will be preferred by
consumers and employees
◉ Optimize use of social media and
continue to enhance in-store
experience
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THE LOCAL OUTLOOK FOR FASHION
(Euromonitor, 2019)

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 WOMENSWEAR IN THE PHILIPPINES: Headlines

● Womenswear current retail value sales increase by 3% in 2018 to reach

PHP198 billion
● Fast-growing lifestyle trends, especially among millennials, continue to
maintain steady growth within womenswear
● Women’s leggings posts strong current retail value growth of 7%
● Avon Cosmetics leads sales in 2018, posting a retail value share of 4%
● Over the forecast period, womenswear is expected to post a current retail
value CAGR of 4% , with sales reaching PHP242 billion by 2023

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 WOMENSWEAR IN THE PHILIPPINES: Prospects

◉ Gender-neutral fashion trend opens

up growth opportunities
◉ New innovative leggings in
response to millennial lifestyle
trends
◉ Boom in online retailing via social
media and celebrity endorsement

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 MENSWEAR IN THE PHILIPPINES: Headlines

● Menswear current retail value sales increase by 5% in 2018 to reach

PHP149 billion
● Comfort and affordability are key trends within menswear in 2018
● Men’s shorts and trousers posts strong current retail value growth of 6%
in 2018
● Suyen Corp leads sales within the fragmented area in 2018, posting a
retail value share of 3%
● Over the forecast period, menswear is expected to post a current retail
value CAGR of 4%, with sales reaching PHP181 billion by 2023

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 MENSWEAR IN THE PHILIPPINES: Prospects

◉ Shift towards more affordable,

comfortable, sporty and retro wear.
◉ Travel lifestyle provides great
opportunity not just for fast fashion
brands
◉ Men’s shorts and trousers deemed
comfortable daily wear

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 APPAREL ACCESSORIES IN THE PHILIPPINES: Headlines

● Apparel accessories current retail value sales rise by 3% to reach

PHP12 billion in 2018
● Online retailing fuels demand but also lowers prices in 2018
● Hats/caps leads growth in 2018, with current retail value sales rising by
7%
● Popular mall chain SM Retail leads sales in 2018, posting a retail value
share of 20%
● Over the forecast period, apparel accessories is expected to post a
current retail value CAGR of 3% , with sales reaching PHP13 billion in
2023

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 APPAREL ACCESSORIES IN THE PHILIPPINES: Prospects

◉ Hats/caps benefits from retro and

active lifestyle trends
◉ Rising image consciousness to
continue fuelling new demand
trends
◉ Strong price competition from
online channels

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 FOOTWEAR IN THE PHILIPPINES: Headlines

● Footwear current retail value sales rise by 5% in 2018 to reach

PHP114 billion
● Rising demand for chunky sneakers boosts sales
● Men’s footwear leads growth in 2018, with current retail value sales
rising by 6%
● Nike Philippines leads sales in 2018, posting a retail value share of
4%
● Over the forecast period, footwear is expected to post a retail value
CAGR of 6%, with sales reaching PHP154 billion in 2023

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 FOOTWEAR IN THE PHILIPPINES: Prospects

◉ Fashion house and icon

collaborations boost demand
◉ Chunky sneakers craze spreads
from designer and luxury fashion
houses
◉ Travel footwear develops as
consumers seek destinations with
different seasons

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 FRAGRANCES IN THE PHILIPPINES: Headlines

● Fragrances sees current value growth of 4% in 2018 to reach PHP8.9

billion
● Consumers trade up to premium fragrances as economy sees strong
growth
● Unit price rises sustain value growth in 2018 as volume sales
struggle
● Avon Cosmetics Inc retains lead in 2018 with a value share of 31%
● Fragrances is projected to increase at a 7% current value CAGR over
the forecast period to reach PHP12.3 billion in 2023

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 FRAGRANCES IN THE PHILIPPINES: Prospects

◉ Avon losing share as consumers

shift to online retailing
◉ Puig leads premium fragrances
with wide range of brands (Paco
Rabanne, JPG, Prada, etc.)
◉ Local players in the minority but
offering interesting alternatives
(Whiff of Perfume, Radioactive
Mushrooms in the Forest)

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 COLOR COSMETICS IN THE PHILIPPINES: Headlines

● Colour cosmetics sees current value growth of 9% in 2018 to reach

PHP18.0 billion
● Social media and the internet opening market up to new trends and
new products
● Unit prices remain stable in 2018 due to strong competition with
demand on the rise
● Avon Cosmetics Inc hangs onto the lead in 2018 despite its value
share falling to 17%
● Colour cosmetics is projected to increase at a 13% current value
CAGR over the forecast period to reach PHP32.9 billion in 2023

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 COLOR COSMETICS IN THE PHILIPPINES: Prospects

◉ Avon launches Mark (i.e. Mark

Prism Lipstick) in an effort to
remain fresh and interesting
◉ L’Oréal on the rise with new
product launches and
collaborations
◉ Local players (i.e Ever Bilena,
HBC) under threat as consumers
trade up/upgrade

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 REFERENCES
Business of Fashion and the McKinsey & Company (2020). The State of Fashion 2020. In
businessoffashion.com and mckinsey.com.
Euromonitor International (2019, February). Apparel Accessories in the Philippines.
Retrieved from https://www.portal.euromonitor.com/
Euromonitor International (2019, February). Footwear in the Philippines. Retrieved from
https://www.portal.euromonitor.com/
Euromonitor International (2019, February). Menswear in the Philippines. Retrieved from
https://www.portal.euromonitor.com/
Euromonitor International (2019, February). Womenswear in the Philippines. Retrieved from
https://www.portal.euromonitor.com/
Euromonitor International (2019, July). Color Cosmetics in the Philippines. Retrieved from
https://www.portal.euromonitor.com/
Euromonitor International (2019, July). Fragrances in the Philippines. Retrieved from
https://www.portal.euromonitor.com/

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