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        Apparel Manufacturing Industry Profile

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        Excerpt from Apparel Manufacturing Industry Profile

        Companies in this industry manufacture garments made from purchased fabric and from fabric they produce themselves. Major companies include Hanesbrands, Levi Strauss, Michael Kors, PVH, Ralph Lauren, Under Armour, and VF Corporation (all based in the US) along with Prada (Italy).

        Global fashion sales, an indicator of demand for apparel manufacturing, are projected to regain positive growth between 2% to 4% in 2021 after contacting by about negative 3-% in 2020, according to McKinsey & Company's State of Fashion 2021 report. China is expected to have a 10% sales growth in 2021. Countries such as Europe are expected to experience a continued decline of about 7% in sales due to the tourists' decreased arrival. The US is expected to recover by 2023.

        The US apparel manufacturing industry includes about 6,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.

        COMPETITIVE LANDSCAPE

        Apparel manufacturers compete on both price and fashion. Under many supply agreements, customers can cancel orders or return unwanted inventory. Companies with a competitive advantage are those that can successfully cater to consumer tastes while managing costs and securing beneficial contracts with clothing marketers.

        Large integrated companies such as Levi Strauss and Ralph Lauren have sophisticated marketing programs to promote their brands. Small companies can compete effectively with large ones by specializing in a particular type of clothing, such as athletic wear, intimate apparel, or ...

         
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