Global outlook of the denim jeans market
The global denim jeans market was valued at $58 billion for the year 2014, and it continues to grow on account of its lifespan as compared to other apparel. This market is further classified into three major categories such as mass market denim jeans, standard or economy jeans, and premium denim jeans. Geographically, North Americans have been the largest consumers of denim jeans followed by consumers in Western Europe, Japan, and Korea.
Premium denim accounts for roughly 26% of the overall Jeans market with the highest market potential and is also the fastest growing segment of the market. Many premium denim companies in the market are focusing on opening more stores in developing countries, augmenting the market to grow at a CAGR of over 8% until 2019.
Market segmentation of the premium denim market by end-users
The premium denim market is segmented by three major end-user categories such as:
Women dominated the market with a little over 55% of the market share. This segment looked keen to adopt the latest trends and fashion in clothing. One of the key drivers for acceptance of premium denim jeans by women is the growing number of women in the global workforce. College going youngsters constitute a major consumer category for this segment.
The men’s premium denim segment and children’s category also exhibits a huge growth potential for the forecast period. GAP has recently introduced a new premium kid’s series called the GAP Kids. Such trends are re-engineering the focus on style and quality for children.
Key trend: Growth of the E-commerce sales of premium denim
The market for online jeans is growing fast with the online mode emerging as a preferred channel for vendors. Online platforms have enabled vendors to provide customized denim as per the customers’ requirements. Designers too are leveraging e-commerce sites like Amazon, with exclusive sections dedicated to their collections.
Many brands have invested significantly to develop their online presence. These efforts are primarily focused on making e-commerce websites to approach consumers directly. It thereby eliminates the need for third-party distribution and improves the profit margin of vendors. The majority of brands are enjoying significant growth online and revenues in this category accounted for 24% of the overall sales of premium denim. This trend is expected to accelerate the growth of the premium denim market during the forecast period.
Leading vendors in the premium denim jeans market
The six leading vendors that dominate the market include: -
The other prominent vendors in the market include Agave, Armani, Banana Republic, CK, Citizens of Humanity, DKNY, DL 1961, Express, J Brand, Jose Jeans, Hudson, Naked and Famous, Nudie, Paige, Guess, Gap, Levi’s, and William Rast.
Many designer labels are expected to be launched in the market in the forecast period. Vendors look keen to leverage the growing popularity of faded, tea-dyed, ripped, splattered with paint, and acid wash jeans. Light washed denim and indigo colored denim jeans by the leading vendors have gained widespread adoption among consumers.
To keep up with the market demand, vendors are expected to invest more on innovation. For instance, Hennez has introduced an eco-friendly line of jeans while Diesel launched Jogg, and Spanx introduced slimming collections. Investments by vendors on branding and product differentiation will gain significant traction in the coming years.
Geographical segmentation of the premium denim jeans market
The key regions for the premium denim market include: -
While North America is expected to witness a slow growth rate in the next four years, the APAC region is slated to emerge as the fastest growing region for premium denim. Among all the countries in the APAC market, China has the fastest growth and poses a big opportunity for premium denim manufacturers. The APAC region is expected to reach $8 billion in size by 2019.
Other sections of the report include an analysis of the following
Average purchase of denim in the leading consumer countries
Value chain for premium denim jeans
Key drivers, challenges, and trends and their impact on the premium denim jeans market
Five forces analysis of the premium denim jeans market
SWOT analysis of the leading companies in the premium denim jeans market
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