Table of Contents
Apparel in Saudi Arabia - Industry Overview
EXECUTIVE SUMMARY
Strong growth thanks to westernisation and fashion trends
Good performance in 2011 thanks to rising economic confidence
Fragmented shares led by domestic retailers and global brands
Apparel specialist retailers gains share from street markets
Stronger growth ahead thanks to wealthier consumer base
KEY TRENDS AND DEVELOPMENTS
Apparel led by domestic players with a widening range of global franchises
Price promotions increasingly used to gain share and drive volume sales
Sportswear benefits from widening concern over weight issues
Retailing developments broaden range of products and brands
MARKET DATA
Table 1 Sales of Apparel by Category: Volume 2006-2011
Table 2 Sales of Apparel by Category: Value 2006-2011
Table 3 Sales of Apparel by Category: % Volume Growth 2006-2011
Table 4 Sales of Apparel by Category: % Value Growth 2006-2011
Table 5 Apparel Company Shares 2007-2011
Table 6 Apparel Brand Shares 2008-2011
Table 7 Sales of Apparel by Distribution Format: % Analysis 2006-2011
Table 8 Sales of Apparel by Category and Distribution Format: % Analysis 2011
Table 9 Sales of Clothing by Category and Distribution Format: % Analysis 2011
Table 10 Forecast Sales of Apparel by Category: Volume 2011-2016
Table 11 Forecast Sales of Apparel by Category: Value 2011-2016
Table 12 Forecast Sales of Apparel by Category: % Volume Growth 2011-2016
Table 13 Forecast Sales of Apparel by Category: % Value Growth 2011-2016
DEFINITIONS
SOURCES
Summary 1 Research Sources
Apparel in Saudi Arabia - Company Profiles
Al Bandar Trading Co in Apparel (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Al Bandar Trading Co: Competitive Position 2011
INTERNET STRATEGY
Al Sawani Group in Apparel (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Al Sawani Group: Competitive Position 2011
INTERNET STRATEGY
Fawaz Al Hokair Group in Apparel (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Fawaz Abdulaziz Al-Hokair: Competitive Position 2011
INTERNET STRATEGY
M H Alshaya Co in Apparel (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 M H Alshaya Co: Competitive Position 2011
INTERNET STRATEGY
Childrenswear in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
There was a growing focus on fashion and quality within childrenswear at the end of the review period. As the economy improved and disposable income levels rose, consumers began to spend more on their children’s clothing. A growing focus on fashion was also linked to the entry of new brand FG4 in 2011, with this offering European tailoring in lightweight fabrics for comfort. The entry of FG4 meanwhile encouraged M H Alshaya’s leading brand Mothercare to step up its promotional support and price promotions, which also encouraged many consumers to trade up to its products.
COMPETITIVE LANDSCAPE
M H Alshaya was the clear leader in childrenswear in 2011, accounting for 7% value share. The company thus dwarfed the share of second-ranked Fawaz Abdulaziz Al-Hokair, which accounted for 1% value share. M H Alshaya’s strong lead is due to the company representing Mothercare in Saudi Arabia, with this brand being popular as a one-stop shop for children and babies’ products. The brand offers baby care, nappies/diapers/pants, toys, nursery equipment and childrenswear, making it a first choice for most consumers with new babies. The brand also enjoys a strong degree of customer loyalty thanks to its reputation for quality.
PROSPECTS
The westernisation trend is expected to fuel strong volume and constant value growth in childrenswear during the forecast period and to result in a marked rise in constant value unit price as consumers trade up. With a shift towards western clothing styles, a wider range of clothing is likely to be purchased for children for different occasions. There is also expected to be a growing focus on fashion, with consumers thus becoming more likely to update their children’s wardrobes in line with changing styles.
CATEGORY DATA
Table 14 Sales of Childrenswear by Category: Volume 2006-2011
Table 15 Sales of Childrenswear by Category: Value 2006-2011
Table 16 Sales of Childrenswear by Category: % Volume Growth 2006-2011
Table 17 Sales of Childrenswear by Category: % Value Growth 2006-2011
Table 18 Childrenswear Company Shares 2007-2011
Table 19 Childrenswear Brand Shares 2008-2011
Table 20 Sales of Childrenswear by Distribution Format: % Analysis 2006-2011
Table 21 Forecast Sales of Childrenswear by Category: Volume 2011-2016
Table 22 Forecast Sales of Childrenswear by Category: Value 2011-2016
Table 23 Forecast Sales of Childrenswear by Category: % Volume Growth 2011-2016
Table 24 Forecast Sales of Childrenswear by Category: % Value Growth 2011-2016
Clothing Accessories in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
There was a growing focus on fashion within Saudi Arabia during the review period, with 2011 seeing the wider emergence of fashion bloggers in the country. Teenagers and young adults are increasing focused on fashion and on the expression of individuality through outfits and styling. This resulted in a growing experimentation in clothing accessories at the end of the review period, with this also encouraged by increased clothing budgets for many as economic confidence rose once more.
COMPETITIVE LANDSCAPE
There was high and growing fragmentation in clothing accessories at the end of the review period. This occurred due brands across clothing increasing their range of clothing accessories. Apparel specialist retailers thus sought to take advantage of a growing focus on fashion among younger consumers and interest in fashionable accessories such as hair bows, wide belts and snoods. As a result of this trend, “others” accounted for 92% value share in 2011 and gained almost a percentage point in share over the previous year.
PROSPECTS
Clothing accessories is expected to benefit from consumers trading up during the forecast period. With affordable mid-priced apparel specialist retailers offering a widening range of these products, many are likely to trade up from the economy imports offered via street markets. This trend will also be encouraged by rising disposable income levels and by a growing focus on fashion, with teenagers and young women in particular keen to update their clothing accessories in line with changing fashion trends. As a result of this trend, apparel specialist retailers is expected to continue to gain share within clothing accessories during the forecast period and could well rise to account for 40% value share or more during the forecast period.
CATEGORY DATA
Table 25 Sales of Clothing Accessories by Category: Volume 2006-2011
Table 26 Sales of Clothing Accessories by Category: Value 2006-2011
Table 27 Sales of Clothing Accessories by Category: % Volume Growth 2006-2011
Table 28 Sales of Clothing Accessories by Category: % Value Growth 2006-2011
Table 29 Clothing Accessories Company Shares 2007-2011
Table 30 Clothing Accessories Brand Shares 2008-2011
Table 31 Sales of Clothing Accessories by Distribution Format: % Analysis 2006-2011
Table 32 Forecast Sales of Clothing Accessories by Category: Volume 2011-2016
Table 33 Forecast Sales of Clothing Accessories by Category: Value 2011-2016
Table 34 Forecast Sales of Clothing Accessories by Category: % Volume Growth 2011-2016
Table 35 Forecast Sales of Clothing Accessories by Category: % Value Growth 2011-2016
Footwear in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
There was growing price competition within footwear in the second half of the review period, with leading brands such as Aldo increasingly using sales and discounting to drive volume growth. Discounts also became more pronounced, with over 50% off the original price for some products. This strategy was in response to growing competition from economy imports during the review period. Price promotions were also used to help volume growth to recover following the decline seen in 2009 as a result of economic uncertainty. A growing focus on fashion also encouraged the use of price promotions at footwear retailers, with the introduction of seasonal trends resulting in the faster turnover of stock and a greater need to sell off previous seasons’ collections.
COMPETITIVE LANDSCAPE
Footwear is considerably less fragmented than many product areas in apparel, with the two leading players Fawaz Abdulaziz Al-Hokair and M H Alshaya together accounting for 52% value share in 2011. This is chiefly due to the huge disparity in price between the footwear offered by the leading brands and the economy sandals available from street markets. Consequently, while “others” accounted for less than 42% value share in 2011 these smaller players accounted for a considerably higher volume share.
PROSPECTS
Saudis are expected to buy a widening range of footwear during the forecast period. While sandals will continue to be widely worn, there is expected to be a growing interest in fashion. This is likely to result in women buying a wider range of fashionable footwear for different occasions. Men are meanwhile likely to wear formal footwear more frequently, with a smart appearance increasingly being associated with career success.
CATEGORY DATA
Table 36 Sales of Footwear by Category: Volume 2006-2011
Table 37 Sales of Footwear by Category: Value 2006-2011
Table 38 Sales of Footwear by Category: % Volume Growth 2006-2011
Table 39 Sales of Footwear by Category: % Value Growth 2006-2011
Table 40 Footwear Company Shares 2007-2011
Table 41 Footwear Brand Shares 2008-2011
Table 42 Sales of Footwear by Distribution Format: % Analysis 2006-2011
Table 43 Forecast Sales of Footwear by Category: Volume 2011-2016
Table 44 Forecast Sales of Footwear by Category: Value 2011-2016
Table 45 Forecast Sales of Footwear by Category: % Volume Growth 2011-2016
Table 46 Forecast Sales of Footwear by Category: % Value Growth 2011-2016
Hosiery in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Socks benefited from strong economic growth and the westernisation trend in Saudi Arabia during the review period. There was a growing focus on both career and grooming in the country’s major cities, with many believing that a well-groomed and professional appearance can contribute to career success. As a result, many Saudi men switched from wearing sandals to wearing socks and leather dress shoes for work.
COMPETITIVE LANDSCAPE
Hosiery is the most fragmented product area within apparel, with “others” accounting for over 98% of value sales in 2011. Most consumers view these products as basic and have little interest in branding providing the quality of the product is acceptable. Street markets and their economy and generally unbranded dominate sales, with “other” non-grocery retailers thus accounting for 60% value share in 2011.
PROSPECTS
There is expected to be a growing focus on quality when it comes to socks during the forecast period. This product area is still expected to see constant value unit price decline during the forecast period but this will be due to strengthening price competition between the leading mid-priced apparel brands. Consumers are meanwhile likely to trade up from unbranded socks purchased from street markets to multi-packs of socks purchased from apparel brands such as Marks & Spencer or H&M. This trend will partly be due to a growing focus on formal dressing but will also be linked to demand for longer-lasting socks. As consumers begin to wear socks on a more frequent basis, they will be attracted to socks that can withstand the rigors of dusty Saudi roads.
CATEGORY DATA
Table 47 Sales of Hosiery by Category: Volume 2006-2011
Table 48 Sales of Hosiery by Category: Value 2006-2011
Table 49 Sales of Hosiery by Category: % Volume Growth 2006-2011
Table 50 Sales of Hosiery by Category: % Value Growth 2006-2011
Table 51 Hosiery Company Shares 2007-2011
Table 52 Hosiery Brand Shares 2008-2011
Table 53 Sales of Hosiery by Distribution Format: % Analysis 2006-2011
Table 54 Forecast Sales of Hosiery by Category: Volume 2011-2016
Table 55 Forecast Sales of Hosiery by Category: Value 2011-2016
Table 56 Forecast Sales of Hosiery by Category: % Volume Growth 2011-2016
Table 57 Forecast Sales of Hosiery by Category: % Value Growth 2011-2016
Jeans in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Jeans benefited strongly from social trends in Saudi Arabia during the review period. The westernisation trend and a growing focus on fashion greatly boosted sales to both men and women. Women are increasingly wearing jeans at home and under their abayas while men are increasingly wearing them as casual wear in public. Growth was also supported by increasingly aspirational consumer attitudes, with the strong brands associated with jeans boosting sales.
COMPETITIVE LANDSCAPE
Al Sawani and Fawaz Abdulaziz Al-Hokair were the leading players in jeans in 2011, accounting for 7% and 4% respectively. Al Sawani is particularly strong in standard jeans, where its well-known global brands Levi’s and Guess accounted for 11% and 7% value share respectively in the year. These brands benefit from a fashionable image and a reputation for quality. Fawaz Abdulaziz Al-Hokair is meanwhile strong in premium jeans, where its Zara and Gap brands accounted for 9% and 5% value share respectively. These brands also benefit from a fashionable and high quality positioning and from a large outlet network in apparel specialist retailers.
PROSPECTS
Westernisation is expected to continue to benefit jeans during the forecast period. A growing number of men are expected to opt for jeans for a widening range of occasions during the forecast period. It will become increasingly acceptable to wear jeans for all but formal, religious or work-related occasions. Women are meanwhile likely to opt for western styles when at home, with jeans benefiting from a fashionable image, a wide range of styles and strong brands such as Zara and Levi’s.
CATEGORY DATA
Summary 14 Jeans by Price Platform 2011
Table 58 Sales of Jeans: Volume 2006-2011
Table 59 Sales of Jeans: Value 2006-2011
Table 60 Sales of Jeans: % Volume Growth 2006-2011
Table 61 Sales of Jeans: % Value Growth 2006-2011
Table 62 Sales of Men’s Jeans: Volume 2006-2011
Table 63 Sales of Men’s Jeans: Value 2006-2011
Table 64 Sales of Men’s Jeans: % Volume Growth 2006-2011
Table 65 Sales of Men’s Jeans: % Value Growth 2006-2011
Table 66 Sales of Women’s Jeans: Volume 2006-2011
Table 67 Sales of Women’s Jeans: Value 2006-2011
Table 68 Sales of Women’s Jeans: % Volume Growth 2006-2011
Table 69 Sales of Women’s Jeans: % Value Growth 2006-2011
Table 70 Jeans Company Shares 2007-2011
Table 71 Jeans Brand Shares 2008-2011
Table 72 Forecast Sales of Jeans: Volume 2011-2016
Table 73 Forecast Sales of Jeans: Value 2011-2016
Table 74 Forecast Sales of Jeans: % Volume Growth 2011-2016
Table 75 Forecast Sales of Jeans: % Value Growth 2011-2016
Table 76 Forecast Sales of Men’s Jeans: Volume 2011-2016
Table 77 Forecast Sales of Men’s Jeans: Value 2011-2016
Table 78 Forecast Sales of Men’s Jeans: % Volume Growth 2011-2016
Table 79 Forecast Sales of Men’s Jeans: % Value Growth 2011-2016
Table 80 Forecast Sales of Women’s Jeans: Volume 2011-2016
Table 81 Forecast Sales of Women’s Jeans: Value 2011-2016
Table 82 Forecast Sales of Women’s Jeans: % Volume Growth 2011-2016
Table 83 Forecast Sales of Women’s Jeans: % Value Growth 2011-2016
Men's Outerwear in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Men have considerably more freedom in their appearance in comparison to women in Saudi Arabia. While women must by law wear abayas in public, men are permitted to wear a wide range of clothing. During the review period, there was a marked shift from traditional garments such as thobes to western outfits. Men are for example increasingly wearing suits and ties at work, jeans and shirts for casual gatherings and shorts for relaxing at home, reserving the use of thobes for formal gatherings and religious occasions. This was partly due to the westernisation trend but was also linked to economic growth, with many men seeking to look smart and modern at the office in the hope of thus furthering their careers.
COMPETITIVE LANDSCAPE
Fawaz Abdulaziz Al-Hokair and M H Alshaya were clear leaders in men’s outerwear in 2011, accounting for 6% and 4% value share respectively. These players benefit from their large distribution networks via their own leading brands in apparel specialist retailers, with a particularly strong position in shopping malls. Fawaz Abdulaziz Al-Hokair offers the Zara, Gap, Bershka, Massimo Dutti and Pull & Bear brands, while M H Alshaya offers Next, Topman and H&M. Both players also offer a range of smaller fashion brands.
PROSPECTS
Saudi Arabia is expected to benefit from ongoing economic growth during the forecast period and from an increase in its mid-income group. Consumers are expected to benefit from rising disposable income levels, with this resulting in increasingly aspirational attitudes. Men’s outfits will increasingly be assessed by those around them as indicative of their social and career standing. As a result, Saudi men are expected to become increasingly focused on their own appearance during the forecast period, with this trend benefiting sales of men’s outerwear.
CATEGORY DATA
Table 84 Apparel Size Chart for Men: Gap
Table 85 Apparel Size Chart for Men: Zara
Table 86 Apparel Size Chart for Men: Guess
Table 87 Sales of Men’s Outerwear: Volume 2006-2011
Table 88 Sales of Men’s Outerwear: Value 2006-2011
Table 89 Sales of Men’s Outerwear: % Volume Growth 2006-2011
Table 90 Sales of Men’s Outerwear: % Value Growth 2006-2011
Table 91 Men’s Outerwear Company Shares 2007-2011
Table 92 Men’s Outerwear Brand Shares 2008-2011
Table 93 Sales of Men’s Outerwear by Distribution Format: % Analysis 2006-2011
Table 94 Forecast Sales of Men’s Outerwear: Volume 2011-2016
Table 95 Forecast Sales of Men’s Outerwear: Value 2011-2016
Table 96 Forecast Sales of Men’s Outerwear: % Volume Growth 2011-2016
Table 97 Forecast Sales of Men’s Outerwear: % Value Growth 2011-2016
Underwear, Nightwear and Swimwear in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
For much of the review period, women's underwear, nightwear and swimwear sales were hindered by most lingerie outlets being solely staffed by male sales attendants. While the government passed legislation in 2006 enabling these stores to employ women, most did not do so. If a store employs women, it must cover its shop windows in order to block the view into their outlets and also employ expensive security staff, which deterred most operators. The presence of male assistants however resulted in many women feeling uncomfortable when shopping for women's underwear, nightwear and swimwear, which hindered sales. However, in June 2011 the government issued a decree banning the employment of men in lingerie shops, with stores given six months to make the transition from male to female workers. Consequently, there was a rise in the percentage of female shop assistants in these outlets in the latter half of the year.
COMPETITIVE LANDSCAPE
Fawaz Abdulaziz Al-Hokair was the leading player in underwear, nightwear and swimwear in 2011, while accounting for just 4% value share. The company benefits from representing the Marks & Spencer brand in Saudi Arabia, which offers a wide range of products and is regarded as offering high quality. Marks & Spencer’s no-quibble return policy also results in strong customer loyalty, as consumers do not typically try on underwear, nightwear and swimwear before making a purchase.
PROSPECTS
From January 2012, shopping for underwear, nightwear and swimwear is expected to become a lot more relaxed for Saudi women, with lingerie outlets offering women-only sales teams. This is expected to result in women spending longer in these outlets and feeling more comfortable in browsing the stock. Consequently, women's underwear, nightwear and swimwear is expected to see a growing focus on fashion and design in Saudi Arabia during the forecast period.
CATEGORY DATA
Table 98 Sales of Underwear, Nightwear and Swimwear by Category: Volume 2006-2011
Table 99 Sales of Underwear, Nightwear and Swimwear by Category: Value 2006-2011
Table 100 Sales of Underwear, Nightwear and Swimwear by Category: % Volume Growth 2006-2011
Table 101 Sales of Underwear, Nightwear and Swimwear by Category: % Value Growth 2006-2011
Table 102 Sales of Men’s Underwear, Nightwear and Swimwear: Volume 2006-2011
Table 103 Sales of Men’s Underwear, Nightwear and Swimwear: Value 2006-2011
Table 104 Sales of Men’s Underwear, Nightwear and Swimwear: % Volume Growth 2006-2011
Table 105 Sales of Men’s Underwear, Nightwear and Swimwear: % Value Growth 2006-2011
Table 106 Sales of Women’s Underwear, Nightwear and Swimwear: Volume 2006-2011
Table 107 Sales of Women’s Underwear, Nightwear and Swimwear: Value 2006-2011
Table 108 Sales of Women’s Underwear, Nightwear and Swimwear: % Volume Growth 2006-2011
Table 109 Sales of Women’s Underwear, Nightwear and Swimwear: % Value Growth 2006-2011
Table 110 Underwear, Nightwear and Swimwear Company Shares 2007-2011
Table 111 Underwear, Nightwear and Swimwear Brand Shares 2008-2011
Table 112 Sales of Men’s Underwear, Nightwear and Swimwear by Distribution Format: % Analysis 2006-2011
Table 113 Sales of Women’s Underwear, Nightwear and Swimwear by Distribution Format: % Analysis 2006-2011
Table 114 Forecast Sales of Underwear, Nightwear and Swimwear by Category: Volume 2011-2016
Table 115 Forecast Sales of Underwear, Nightwear and Swimwear by Category: Value 2011-2016
Table 116 Forecast Sales of Underwear, Nightwear and Swimwear by Category: % Volume Growth 2011-2016
Table 117 Forecast Sales of Underwear, Nightwear and Swimwear by Category: % Value Growth 2011-2016
Table 118 Forecast Sales of Men’s Underwear, Nightwear and Swimwear: Volume 2011-2016
Table 119 Forecast Sales of Men’s Underwear, Nightwear and Swimwear: Value 2011-2016
Table 120 Forecast Sales of Men’s Underwear, Nightwear and Swimwear: % Volume Growth 2011-2016
Table 121 Forecast Sales of Men’s Underwear, Nightwear and Swimwear: % Value Growth 2011-2016
Table 122 Forecast Sales of Women’s Underwear, Nightwear and Swimwear: Volume 2011-2016
Table 123 Forecast Sales of Women’s Underwear, Nightwear and Swimwear: Value 2011-2016
Table 124 Forecast Sales of Women’s Underwear, Nightwear and Swimwear: % Volume Growth 2011-2016
Table 125 Forecast Sales of Women’s Underwear, Nightwear and Swimwear: % Value Growth 2011-2016
Women's Outerwear in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
There was a growing focus on fashion in the last year of the review period, with women increasingly seeking to express themselves through their clothing. The influence of the internet and satellite TV was clearly seen in a shift towards more individualistic choices in fashion, while this trend was also linked to a growing number of Saudis studying abroad. While women are required by law to wear abayas in public places, many began to dress more fashionably at home. There was also more coverage of fashion in the media in magazines such as Destination Jeddah, while 2011 also saw the emergence of fashion bloggers via the Bags&Windows site and growing awareness of home-grown designers such as casual wear brand Qabila Apparel.
COMPETITIVE LANDSCAPE
Fawaz Al Hokair and M H Alshaya were the leading players in fragmented women’s outerwear at the end of the review period, accounting for 6% and 4% value share respectively in 2011. These players benefit from their large outlet volume and their wide range of leading global brands, which in turn are supported with frequent new product development and strong marketing. Fawaz Al Hokair represents Zara, Bershka, Stradivarius, Wallis and Gap amongst other brands, while M H Alshaya represents Next, Topshop, Dorothy Perkins, Evans and H&M.
PROSPECTS
Saudi Arabia is expected to become increasingly polarised in terms of attitudes to fashion during the forecast period. Young urban women are expected to become increasingly focused on fashion and on expressing their individual style, particularly in liberal cities such as Jeddah. These women are expected to dress more fashionably at home and are also expected to be attracted by designer abayas and other traditional clothing.
CATEGORY DATA
Table 126 Apparel Size Chart for Women: Levi's
Table 127 Apparel Size Chart for Women: Zara
Table 128 Apparel Size Chart for Women: Guess
Table 129 Sales of Women’s Outerwear: Volume 2006-2011
Table 130 Sales of Women’s Outerwear: Value 2006-2011
Table 131 Sales of Women’s Outerwear: % Volume Growth 2006-2011
Table 132 Sales of Women’s Outerwear: % Value Growth 2006-2011
Table 133 Women’s Outerwear Company Shares 2007-2011
Table 134 Women’s Outerwear Brand Shares 2008-2011
Table 135 Sales of Women’s Outerwear by Distribution Format: % Analysis 2006-2011
Table 136 Forecast Sales of Women’s Outerwear: Volume 2011-2016
Table 137 Forecast Sales of Women’s Outerwear: Value 2011-2016
Table 138 Forecast Sales of Women’s Outerwear: % Volume Growth 2011-2016
Table 139 Forecast Sales of Women’s Outerwear: % Value Growth 2011-2016