The key growth drivers in emerging markets are
- Government support
Among the top six emerging markets except India all other nations have government support
- Recognition of local designers
- Awareness of International Fashion brands
- Support from corporations and associations
- Demand for Fashion apparel
The well known fashion retailers are J.Crew, COS, Zara, Uniglo, H&M, Topshop, Urban outfitters, Gap, American apparel, Weekday, Mercator.
South Africa:
Government Support
The South African fashion industry is supported by the government as part of the economic development program. In 2006, the Johannesburg Economic Development Unit announced its goal to develop the city into an “an internationally recognized creative city”. Some initiatives undertaken so far, include:- Established a ‘Fashion District’ in the city that houses over 100 fashion enterprises and institutes and provides training to designers
- Organized fashion competitions in the city – "We are trying to stimulate new designs in the market. It gives young designers a platform to be exposed“ – Linda Vilakazi-Tselane, acting director of the Economic Development Unit
Awareness of Fashion brands
Before becoming a democracy in1994, the design sector in South Africa was dominated by the ‘American youth culture’. However, the last few years have seen the emergence of several domestic brands.These brands include key players in the domestic market, such as Stoned Cherrie, Sun Goddess, and Loxion Kulca, which have also gained international recognition.
Other factors
Fashion enterprises in the country have a diversified range of designers, including established, emerging, as well as designers of different races and cultures.Major design houses as well as individual designers contribute to Johannesburg’s recognition as an emerging fashion market
UAE
Corporate efforts
All of the nine large events held in the country in 2008 were hosted by event management or fashion focused companies, including:
- Event management companies – e.g.: IIR Middle East hosts two of the Middle East’s largest bridal fashion shows in Dubai and Abu Dhabi
- Fashion consultancies – e.g., Maven Corporate Ltd hosts the bi-annual Abu Dhabi Fashion Week
- International firms have also supported the industry in the UAE – e.g., CRYSTALLIZED Abaya Design Awards, launched in 2007, is sponsored by Swarovski to feature talented UAE designers.
Government support
The government also supports the fashion industry by organizing fashion events to promote tourism. Large events, such as DSS Dubai Fashion Fiesta, DSS Kids Fashion Week, etc., were part of the government supported large tourist programs in 2008
Recognition of Local designers
Various designers from the UAE are gaining recognition at the international level – e.g., brands of 10 designers from Sheikh Zayed Private Academy were featured in the Abu Dhabi Fashion Week in 2008
Awareness of Fashion brands
According to a survey conducted in 42 countries by ACNielsen
- One-third of the UAE respondents claimed to be buying luxury goods
- UAE customers are one of the most energetic consumers of designer apparel and accessories
Singapore
Government support
The government has hosted/supported several fashion events in the last few years, e.g.,
- The Singapore Tourism Board started the Singapore Fashion Festival with the objective of promoting Singapore as the tourist and shopping hub of the Southeast Asian region
- International Enterprise (IE) Singapore, an agency under the Ministry of Trade and Industry, co-hosts Singapore Fashion Week
- The government also offers funding to fashion initiatives to promote the fashion industry, e.g.,
SPRING Singapore, a government agency, provides funds to support Singapore Fashion Week
Awareness of Fashion brands
Fashion and apparel manufacturers are making focused efforts to generate/strengthen brand awareness internationally
- Singapore’s apparel industry has been evolving from OEM-oriented to self-branded production, and is shifting focus to market its local brands to international buyers
- In 2008, with government support, several Singapore-based apparel manufacturers launched a collective brand called “Apparel Singapore”, aimed at enhancing domestic and international recognition
The Textile and Fashion Federation (TAFF) of Singapore provides a platform for budding designers to display and sell their designs. TAFF’s training arm, the Textile and Fashion Design Centre (TaF.dc) provides training courses to improve productivity and efficiency, and enhance the skills of Singapore’s designers.
India
International recognition of domestic designers
The Indian fashion industry has gained international acclaim and recognition at serveral global forums. This has also helped attract a large number of international clients to the country. Ritu Beri, an internationally renowned Indian designer, has presented her work in various international fashion weeks, including the those held in the US, London, Paris, Mumbai, and Bangalore.
Consumer Brand Awareness
Rising affluance has increased brand awareness among Indian consumers. According to the ”Nielsen Global Luxury Brands Study”, India is among the most brand conscious countries in the world, with 35% of Indian survey respondents reporting to buy designer brands.
Other factors
The Indian School of Business (ISB) launched a program on ‘Business of Fashion: Strategic Brand Management’ in 2005. In 2008, a group of domestically established designers founded the Fashion Foundation of India (FFI). The aim of the association is to assist designers and fashion manufactures in growing the Indian fashion industry at international level.
Russia
Russia is among the countries with the highest number of large fashion events1. All these events are hosted by industry associations and fashion enterprises in the country. The market segments of the fashion industry have displayed robust growth in the recent years. Russia’s apparel market is considered as one of the fastest growing markets in the world, with an annual growth (by sales) of 25%, in 2008. The y-o-y growth rate for the accessories market in Russia was reported to be 35%, in 2007.Moscow is recognized as a fashion capital for Middle and Eastern Europe.Increasing demand for Luxury apparel
Many leading global luxury brands have established their presence in Russia, and have announced expansion plans.The Moscow market is now extremely attractive to all producers of luxury goods. It already has a class of consumers for such goods, and Russians are just as demanding and solvent as affluent buyers in Europe.The demand for luxury goods is growing every year. Russia has the third largest concentration of billionaires in the world (after the US and Germany).
Brazil
The fashion industry in Brazil is driven by the demand for apparel; Brazil is the fifth largest apparel market in the world.Currently, ~60% of the market is controlled by domestic brands.According to a survey conducted, 81% of Brazilian consumers prefer domestic brands over any international brand. The fashion trends in Brazil are reportedly dominated by domestic celebrities, especially television stars.
Demand in the domestic apparels markets
Brazil’s apparel market was estimated at USD 37.2 Bn, and growing at 7% in 2008.Consumers in Brazil spend more on clothes than consumers in many other countries. According to a survey conducted by McKinsey in 2006, Brazilian consumers are termed as “fond of shopping for clothes”. 79% of respondents from Brazil “look forward to shopping for clothes”, compared to 27% and 26% of the respondents from Russia and China, respectively. Brazil is the most attractive apparel market for reasons of demographics and demand.. great potential for international retailers.. its consumers spend USD 402 annually on apparel – six times more than average Chinese consumers. The young population is another driver for the fashion industry, and ~60% of the total population of Brazil is under 29 years of age..
Government and Corporate support
The Brazilian government, in association with private players, has recently launched the Brazil Fashion System (SMB), a new initiative to develop projects that benefit the country’s fashion industry. The government has also developed an incentive program called Texbrasil, to promote the domestic textile and fashion industry to international buyers.
