Most interesting facts:
"Forecast period will feature intense price competition amongst the main operators. Under these difficult circumstances, the market will present signs of concentration. In particular, the smaller independent operators (both manufacturers and retailers) will face difficulties, and will have trouble surviving in the market. In turn, the market situation will facilitate the development of large fast fashion operators, discounters, outlet shops and internet retailers.
Apparel specialist retailers is followed by discounters, outlet shops and internet retailing
Poles will strive to maintain their volume purchases of apparel; however, they will tend to do their shopping at low pricesIn the Polish market apparel specialist retailers is the dominant channel, responsible for most sales of apparel. On the other hand, there are dynamically rising shares for distribution channels which best respond to consumers’ expectations in terms of low prices. Thus, there has been a rise in apparel discounters, hypermarkets, outlet shops and internet retailing. Discounters and hypermarkets address their offer to consumers with lower purchasing power. In turn, outlet shops and internet retailers are visited by consumers who are in search of branded products at low prices. The leading position in footwear is held by domestic operator MG2, which manages the popular CCC retail network in Poland. These shops feature relatively low prices, which is the most important factor drawing the attention of many Polish footwear shoppers.
Fierce competition between domestic and international brand owners
Apparel in Poland features fierce competition between domestic and international operators. The leading positions are held by two main competitors, which are domestic company LPP and international company Zara Polska, which belongs to the Spanish Inditex Group (Industria de Diseño Textil) and H&M in my opinion. Companies present a similar market approach, having a few brands each, with large networks of branded apparel specialist retailers.The growth achieved in 2010-2011 was higher than in 2012. The main factor restraining growth was the stagnant economic situation, which negatively affected consumers’ purchasing power. In particular, limited personal incomes resulted from wage freezes, rising inflation and rising unemployment. Facing reducing real personal incomes, Poles were not able to significantly increase their expenditure on apparel, and in many cases were forced to limit their expenses.
The key trend in 2012 was consumers’ desire to maintain volume purchases, yet at low prices in order to maintain or even to limit their expenditure on apparel. The pressure on pricing meant that operators intensified their endeavours to attract consumers, either with low prices or different types of bargains and sales promotions. The scale and depth of sales promotions organised by retailers has been intensively rising; increasingly resembling respective campaigns organised in Western European countries. The leader in such sales promotion was LPP, which started intense seasonal sales in the week before Christmas in December 2012.
Whole raport avaliable here: http://www.euromonitor.com/apparel-in-poland/report
