Thailand -Apparel Retail MarketLine Industry Profile Apparel Retail in Thailand

Thailand - Apparel Retail 0121 - 2005 - 2014

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MarketLine Industry Profile

Apparel Retail in Thailand May 2015

Reference Code: 0121-2005

Publication Date: May 2015

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EXECUTIVE SUMMARY Market value The Thai apparel retail industry grew by 0.4% in 2014 to reach a value of $13.3 billion.

Market value forecast In 2019, the Thai apparel retail industry is forecast to have a value of $17.1 billion, an increase of 28.6% since 2014.

Category segmentation Womenswear is the largest segment of the apparel retail industry in Thailand, accounting for 53% of the industry's total value.

Geography segmentation Thailand accounts for 3.3% of the Asia-Pacific apparel retail industry value.

Market rivalry Strong growth in recent years (with the notable exception of 2014) helps to lessen the level of rivalry in the Thai apparel retail industry.



TABLE OF CONTENTS Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market Segmentation ..................................................................................................................................................... 9

Category segmentation .............................................................................................................................................. 9

Geography segmentation ......................................................................................................................................... 10

Market distribution .................................................................................................................................................... 11

Market Outlook ............................................................................................................................................................. 12

Market value forecast ............................................................................................................................................... 12

Five Forces Analysis .................................................................................................................................................... 13

Summary .................................................................................................................................................................. 13

Buyer power ............................................................................................................................................................. 14

Supplier power ......................................................................................................................................................... 15

New entrants ............................................................................................................................................................ 16

Threat of substitutes ................................................................................................................................................. 17

Degree of rivalry ....................................................................................................................................................... 18

Leading Companies ..................................................................................................................................................... 19

Fast Retailing Co., Ltd. ............................................................................................................................................. 19

Fox Wizel Ltd. .......................................................................................................................................................... 22

Industria de Diseno Textil, S.A. ................................................................................................................................ 25

H & M Hennes & Mauritz AB .................................................................................................................................... 28

Macroeconomic Indicators ........................................................................................................................................... 31

Country Data ............................................................................................................................................................ 31

Methodology................................................................................................................................................................. 33



Industry associations ................................................................................................................................................ 34

Related MarketLine research ................................................................................................................................... 34

Appendix ...................................................................................................................................................................... 35

About MarketLine ..................................................................................................................................................... 35



LIST OF TABLES Table 1: Thailand apparel retail industry value: $ billion, 2010–14 ................................................................................. 8

Table 2: Thailand apparel retail industry category segmentation: $ billion, 2014 ........................................................... 9

Table 3: Thailand apparel retail industry geography segmentation: $ billion, 2014 ...................................................... 10

Table 4: Thailand apparel retail industry distribution: % share, by value, 2014 ............................................................ 11

Table 5: Thailand apparel retail industry value forecast: $ billion, 2014–19 ................................................................. 12

Table 6: Fast Retailing Co., Ltd.: key facts ................................................................................................................... 19

Table 7: Fast Retailing Co., Ltd.: key financials ($) ...................................................................................................... 19

Table 8: Fast Retailing Co., Ltd.: key financials (¥) ...................................................................................................... 20

Table 9: Fast Retailing Co., Ltd.: key financial ratios ................................................................................................... 20

Table 10: Fox Wizel Ltd.: key facts .............................................................................................................................. 22

Table 11: Fox Wizel Ltd.: key financials ($) .................................................................................................................. 22

Table 12: Fox Wizel Ltd.: key financials (ILS) .............................................................................................................. 23

Table 13: Fox Wizel Ltd.: key financial ratios ............................................................................................................... 23

Table 14: Industria de Diseno Textil, S.A.: key facts .................................................................................................... 25

Table 15: Industria de Diseno Textil, S.A.: key financials ($) ....................................................................................... 26

Table 16: Industria de Diseno Textil, S.A.: key financials (€) ....................................................................................... 26

Table 17: Industria de Diseno Textil, S.A.: key financial ratios ..................................................................................... 26

Table 18: H & M Hennes & Mauritz AB: key facts ........................................................................................................ 28

Table 19: H & M Hennes & Mauritz AB: key financials ($) ........................................................................................... 29

Table 20: H & M Hennes & Mauritz AB: key financials (SEK) ...................................................................................... 29

Table 21: H & M Hennes & Mauritz AB: key financial ratios ......................................................................................... 29

Table 22: Thailand size of population (million), 2010–14 ............................................................................................. 31

Table 23: Thailand gdp (constant 2005 prices, $ billion), 2010–14 .............................................................................. 31

Table 24: Thailand gdp (current prices, $ billion), 2010–14 ......................................................................................... 31

Table 25: Thailand inflation, 2010–14 .......................................................................................................................... 32

Table 26: Thailand consumer price index (absolute), 2010–14 .................................................................................... 32

Table 27: Thailand exchange rate, 2010–14 ................................................................................................................ 32



LIST OF FIGURES Figure 1: Thailand apparel retail industry value: $ billion, 2010–14 ............................................................................... 8

Figure 2: Thailand apparel retail industry category segmentation: % share, by value, 2014 .......................................... 9

Figure 3: Thailand apparel retail industry geography segmentation: % share, by value, 2014 .................................... 10

Figure 4: Thailand apparel retail industry distribution: % share, by value, 2014 .......................................................... 11

Figure 5: Thailand apparel retail industry value forecast: $ billion, 2014–19 ................................................................ 12

Figure 6: Forces driving competition in the apparel retail industry in Thailand, 2014 ................................................... 13

Figure 7: Drivers of buyer power in the apparel retail industry in Thailand, 2014 ......................................................... 14

Figure 8: Drivers of supplier power in the apparel retail industry in Thailand, 2014 ..................................................... 15

Figure 9: Factors influencing the likelihood of new entrants in the apparel retail industry in Thailand, 2014 ............... 16

Figure 10: Factors influencing the threat of substitutes in the apparel retail industry in Thailand, 2014....................... 17

Figure 11: Drivers of degree of rivalry in the apparel retail industry in Thailand, 2014 ................................................. 18

Figure 12: Fast Retailing Co., Ltd.: revenues & profitability ......................................................................................... 20

Figure 13: Fast Retailing Co., Ltd.: assets & liabilities ................................................................................................. 21

Figure 14: Fox Wizel Ltd.: revenues & profitability ....................................................................................................... 23

Figure 15: Fox Wizel Ltd.: assets & liabilities ............................................................................................................... 24

Figure 16: Industria de Diseno Textil, S.A.: revenues & profitability ............................................................................. 27

Figure 17: Industria de Diseno Textil, S.A.: assets & liabilities ..................................................................................... 27

Figure 18: H & M Hennes & Mauritz AB: revenues & profitability ................................................................................. 30

Figure 19: H & M Hennes & Mauritz AB: assets & liabilities ......................................................................................... 30



MARKET OVERVIEW Market definition The apparel retail industry consists of the sale of all menswear, womenswear and childrenswear. The menswear market includes mens activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear.

The womenswear market includes women's activewear, casual wear, essentials, formalwear, formalwear-occasion and outerwear.

The childrenswear market includes baby clothing, boys activewear, boys casual wear, boys essentials, boys formalwear, boys formalwear-occasion, boys outerwear, girls activewear, girls casual wear, girls essentials, girls formalwear-occasion, girls outerwear and toddler clothing.

The industry value is calculated at retail selling price (RSP), and includes all taxes and levies.

All currency conversions used in this report have been calculated at constant 2014 annual average exchange rates.

For the purposes of this report, North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.

Market analysis The Thai apparel retail industry experienced strong growth overall for the period 2010-2014. This trend is predicted to continue over the forecast period through to 2019, albeit at a decelerated rate.

The Thai apparel retail industry had total revenues of $13.3bn in 2014, representing a compound annual growth rate (CAGR) of 6.5% between 2010 and 2014. In comparison, the Indonesian and Chinese industries grew with CAGRs of 3.2% and 11.2% respectively, over the same period, to reach respective values of $4.6bn and $189.6bn in 2014.

The womenswear segment was the industry's most lucrative in 2014, with total revenues of $7.1bn, equivalent to 53% of the industry's overall value. The menswear segment contributed revenues of $4.8bn in 2014, equating to 35.8% of the industry's aggregate value.

The performance of the industry is forecast to decelerate, with an anticipated CAGR of 5.1% for the five-year period 2014 - 2019, which is expected to drive the industry to a value of $17.1bn by the end of 2019. Comparatively, the Indonesian and Chinese industries will grow with CAGRs of 3.9% and 10.3% respectively, over the same period, to reach respective values of $5.5bn and $309.7bn in 2019.



MARKET DATA Market value The Thai apparel retail industry grew by 0.4% in 2014 to reach a value of $13.3 billion.

The compound annual growth rate of the industry in the period 2010–14 was 6.5%.

Table 1: Thailand apparel retail industry value: $ billion, 2010–14

Year $ billion THB billion € billion % Growth 2010 10.4 337.2 7.8

2011 11.1 360.1 8.4 6.8%

2012 12.2 396.9 9.2 10.2%

2013 13.3 431.1 10.0 8.6%

2014 13.3 433.0 10.1 0.4%

CAGR: 2010–14 6.5%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Thailand apparel retail industry value: $ billion, 2010–14




MARKET SEGMENTATION Category segmentation Womenswear is the largest segment of the apparel retail industry in Thailand, accounting for 53% of the industry's total value.

The Menswear segment accounts for a further 35.8% of the industry.

Table 2: Thailand apparel retail industry category segmentation: $ billion, 2014

Category 2014 % Womenswear 7.1 53.0%

Menswear 4.8 35.8%

Childrenswear 1.5 11.2%

Total 13.4 100%


Figure 2: Thailand apparel retail industry category segmentation: % share, by value, 2014




Geography segmentation Thailand accounts for 3.3% of the Asia-Pacific apparel retail industry value.

China accounts for a further 46.5% of the Asia-Pacific industry.

Table 3: Thailand apparel retail industry geography segmentation: $ billion, 2014

Geography 2014 % China 189.6 46.5

Japan 95.8 23.5

India 15.1 3.7

Thailand 13.3 3.3

Indonesia 4.6 1.1

Rest of Asia-Pacific 89.0 21.8

Total 407.4 100%


Figure 3: Thailand apparel retail industry geography segmentation: % share, by value, 2014




Market distribution Clothing, foot/sportswear & accessories retailers form the leading distribution channel in the Thai apparel retail industry, accounting for a 46.1% share of the total industry's value.

Department stores accounts for a further 45.1% of the industry.

Table 4: Thailand apparel retail industry distribution: % share, by value, 2014

Channel % Share Clothing, foot/sportswear & accessories retailers 46.1%

Department stores 45.1%

Hypermarket, supermarket & discounters 6.0%

Discount, variety & general merchandise retailers 1.6%

Other 1.1%

Total 100%


Figure 4: Thailand apparel retail industry distribution: % share, by value, 2014




MARKET OUTLOOK Market value forecast In 2019, the Thai apparel retail industry is forecast to have a value of $17.1 billion, an increase of 28.6% since 2014.

The compound annual growth rate of the industry in the period 2014–19 is predicted to be 5.1%.

Table 5: Thailand apparel retail industry value forecast: $ billion, 2014–19

Year $ billion THB billion billion % Growth 2014 13.3 433.0 10.1 0.4%

2015 13.8 449.5 10.4 3.8%

2016 14.6 474.5 11.0 5.6%

2017 15.4 500.7 11.6 5.5%

2018 16.3 528.0 12.3 5.5%

2019 17.1 556.5 12.9 5.4%

CAGR: 2014–19 5.1%


Figure 5: Thailand apparel retail industry value forecast: $ billion, 2014–19




FIVE FORCES ANALYSIS The apparel retail market will be analyzed taking retailers as players. The key buyers will be taken as individual consumers, and clothing manufacturers and wholesalers as the key suppliers.

Summary Figure 6: Forces driving competition in the apparel retail industry in Thailand, 2014


Strong growth in recent years (with the notable exception of 2014) helps to lessen the level of rivalry in the Thai apparel retail industry.

Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal social success. Demand patterns are susceptible to branding and advertising, which, despite the lack of significant switching costs, tends to weaken buyer power. There is a fast pace of change in the demands of individual buyers. This means that, in an attempt to maintain market share in a highly competitive market, players aim to attract customers by creating strong brand consciousness and running intensive marketing campaigns. Low barriers to entry and relatively low requirements for capital mean there is a high likelihood of new entrants in this market. Substitutes to apparel retail include bespoke tailoring, factory shops, homemade clothing, and second hand clothing, although these pose a minimal threat to market players. Sales are boosted by the popularity of fast-fashion and disposable clothing. Predominantly, this has been a visible factor of growth within the womenswear sector. However, as the fashion industry becomes more focused on styles for men, fast-fashion trends for menswear are becoming just as prevalent as those for women.



Buyer power Figure 7: Drivers of buyer power in the apparel retail industry in Thailand, 2014


Buyer power in the apparel retail industry is weakened by the small size of buyers: virtually all buyers are individual consumers. What’s more, retailers tend to have large numbers of individual customers, which further weakens buyer power as the loss of one is unlikely to have a significant impact on revenues.

Despite the fact that brand consciousness in this market is substantial, the loyalty of consumers to specific brands is not always the overriding factor in their decision making. Buyer power is enhanced by a high level of choice, which is generated by the absence of switching costs. Brand loyalty within the top end of the apparel retail industry is connected more with the particular designer than the retailer, although some labels also have their own retail operations. There is a large market for non-designer apparel retail, especially among customers with lower disposable incomes.

Retailers can differentiate themselves fairly strongly through the styles of clothing offered and the price range of this clothing, meaning buyer power is weakened. Apparel is an essential item for consumers, and they are significantly exposed to the penetration of marketing icons and images into most forms of media. However, retailers must remain aware of the developments that shape public perception and subsequent demand.

Despite consumers lacking financial muscle, the position of retailers at the end of the value chain makes it impossible to integrate forwards. This means that they are obliged to offer buyers what they demand, in a market often subject to unpredictable and rapid changes in fashion. These factors strengthen buyer power. Overall, buyer power is assessed as moderate.



Supplier power Figure 8: Drivers of supplier power in the apparel retail industry in Thailand, 2014


The key suppliers in this industry are clothing manufacturers and wholesalers. These are typically small to medium sized enterprises, giving retailers the possibility to source from both. The wholesale and clothing manufacturing sectors are fairly fragmented. Although retailers’ switching costs are not very high, switching includes the risk of choosing a supplier with a more extended supply chain or who may not be able to cope with sudden changes in demand on the market. The lack of diversity between suppliers weakens their power, as the apparel retail industry is highly important to their business. Apparel manufacturing is almost always labor intensive, due to the difficulty of automating processes such as the sewing of garments. The existence of a minimum wage in many countries slightly increases the power of suppliers of labor. The Bangladesh Rana Plaza disaster in 2013, in which more than 1,100 people died and many were left injured; has put increasing ethical pressure on retailers to source responsibly. So far $21.5m has been paid into the Rana Plaza Donors Trust Fund through contributions from buyers, the Bangladesh Prime Ministers Fund and other private donors. A number of brands have refused to provide adequate payment into the fund. Walmart, Mango and The Children's Place have been criticized for making donations which fall short of expectations. Benetton initially was reluctant to pay into the fund; however in April 2015 the company made a $1.1m contribution. Overall, supplier power in this industry is assessed as moderate.



New entrants Figure 9: Factors influencing the likelihood of new entrants in the apparel retail industry in Thailand, 2014


The Thai apparel retail industry has experienced strong growth in recent years, potentially making it attractive to new entrants.

Barriers to entry are not high, with capital requirements being low enough for individuals to enter. However, a small number of large corporations, such as Inditex and Fast Retailing, account for a significant share of total market revenues. They benefit from scale economies that allow them to build brands in multiple retail outlets, and greater buying power when negotiating with suppliers. The latter allows them to compete more intensely on price.

There is little regulation as such for retailers in the market, but there are some self-imposed conventions related to child labor, working conditions and workers' wages. New entrants who are known to have items manufactured outside of such conventions may lose customers and suffer long-term reputational damage.

Low switching costs for buyers and a low level of product differentiation make it easier for new entrants to compete with existing players.

Overall, there is a strong threat of new entrants to this market.



Threat of substitutes Figure 10: Factors influencing the threat of substitutes in the apparel retail industry in Thailand, 2014


While there are no substitutes for apparel as such, there are alternatives to retail. One option is purchasing clothing directly from the manufacturer as opposed to the conventional distribution chain. This is facilitated by the growth of online sales. All major apparel retailers now have their own online stores as there is an increased consumer acceptance of the internet as an alternative shopping channel.

A growing number of ‘pureplay’ online fashion stores have emerged in the market, as they look to take advantage of lower running costs from not having to pay for the overheads incurred by running a high street store. The online sale avenue opens the door for manufacturers who may be tempted by the opportunity of selling directly to end users without the need for the retailer.

Home-made and custom-made (couture) clothing are also niche alternatives to the retail of ready-made clothes. Counterfeit clothing can be a significant threat to the revenues of manufacturers. Another option is purchasing second-hand clothing from charity shops and internet sites such as eBay.

The threat of substitutes to the apparel retail industry is assessed as weak overall.



Degree of rivalry Figure 11: Drivers of degree of rivalry in the apparel retail industry in Thailand, 2014


The Thai apparel retail industry is typically composed of large numbers of similar retailers, many of which are independents. However, there is still room for large numbers of smaller players in this industry.

Major increases in capacity may be fairly costly to smaller players if they require the outlay of opening additional outlets, although this may be lessened if it can be accomplished by taking on more staff on a flexible basis.

While some retailers selling apparel have diversified into the retail of other items, such as jewelry, many retain a strong emphasis on apparel specifically, which intensifies rivalry.

A fast pace of change in fashions in the apparel retail industry, combined with strong market performance over the past five years, helps to alleviate rivalry, which is assessed as moderate overall.

郭旭



LEADING COMPANIES Fast Retailing Co., Ltd.

Table 6: Fast Retailing Co., Ltd.: key facts

Head office: 717-1 Sayama, Yamaguchi City, Yamaguchi 754 0894, JPN

Telephone: 81 3 6865 0050

Website: www.fastretailing.com

Financial year-end: August

Ticker: 9983

Stock exchange: Tokyo

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Fast Retailing and its mainstay UNIQLO operation offers casual wear for men, women and children. Its offerings include outerwear, jeans, trousers, skirts, shirts, t-shirts, polos, sweaters, fleeces, dresses, knitwear and underwear. The group operated a total of 2,753 stores in FY2014.

The group operates through three business segments: UNIQLO Japan, UNIQLO international, and global brands.

The UNIQLO Japan segment consists of the UNIQLO clothing and footwear operations within Japan. The group has a network of approximately 853 UNIQLO Japan stores in the country.

The UNIQLO international segment consists of UNIQLO clothing operations in China, Indonesia, South Korea, Hong Kong, Taiwan, Singapore, Malaysia, Thailand, the UK, the US, France, Russia, and the Philippines.

The global brands segment comprises the group's Theory, J brand, Comptoir des Cotonniers (CDC), Princesse tam.tam (PTT), and g.u. clothing operations.

Key Metrics The company recorded revenues of $13,065 million in the fiscal year ending August 2014, an increase of 21.0% compared to fiscal 2013. Its net income was $704 million in fiscal 2014, compared to a net income of $988 million in the preceding year.

Table 7: Fast Retailing Co., Ltd.: key financials ($)

$ million 2010 2011 2012 2013 2014 Revenues 7,697.8 7,750.1 8,773.4 10,798.0 13,065.0

Net income (loss) 582.7 513.5 676.9 988.1 704.3

Total assets 4,792.5 5,042.8 5,622.1 8,514.0 9,374.7

Total liabilities 2,071.8 2,020.5 1,891.5 2,942.7 3,365.8

SOURCE: COMPANY FILINGS M A R K E T L I N E



Table 8: Fast Retailing Co., Ltd.: key financials (¥)

¥ million 2010 2011 2012 2013 2014 Revenues 814,811.0 820,349.0 928,669.0 1,142,971.0 1,382,935.0

Net income (loss) 61,681.0 54,354.0 71,654.0 104,595.0 74,546.0

Total assets 507,287.0 533,777.0 595,102.0 901,208.0 992,307.0



Table 9: Fast Retailing Co., Ltd.: key financial ratios

Ratio 2010 2011 2012 2013 2014 Profit margin 7.6% 6.6% 7.7% 9.2% 5.4%

Revenue growth 18.9% 0.7% 13.2% 23.1% 21.0%

Asset growth 9.5% 5.2% 11.5% 51.4% 10.1%

Liabilities growth 8.6% (2.5%) (6.4%) 55.6% 14.4%

Debt/asset ratio 43.2% 40.1% 33.6% 34.6% 35.9%

Return on assets 12.7% 10.4% 12.7% 14.0% 7.9%


Figure 12: Fast Retailing Co., Ltd.: revenues & profitability




Figure 13: Fast Retailing Co., Ltd.: assets & liabilities




Fox Wizel Ltd. Table 10: Fox Wizel Ltd.: key facts

Head office: Hermon St, Airport City, P.O Box 76, LOD7019900, ISR

Telephone: 972 39050100

Fax: 972 39050200

Website: www.fox.co.il

Financial year-end: December

Ticker: FOX

Stock exchange: Tel Aviv


Fox Wizel is engaged in the production and marketing of fashion products and other accessories in Israel. The company's products include womenswear, menswear, children's clothes, baby clothes and related accessories. It operates around 236 points of sale, including Israel, Russia, Singapore, China, Bulgaria, Croatia, Romania, Thailand, Panama and the Philippines

The company manufactures and markets products under the brand names: FOX, FOX HOME, LALINE, AMERICAN EAGLE OUTFITTERS, AERIE, BILLABONG and THE CHILDREN'S PLACE.

Fox Wizel also produces and markets fashion accessories such as socks, belts, scarves, watches and bags. Additionally, the company, through the FOX HOME chain of stores, offers kitchenware, accessories for entertaining, tableware, bathroom accessories, linens and bedding, and other decorative items. FOX HOME has 37 branches throughout Israel.

Key Metrics The company recorded revenues of $313 million in the fiscal year ending December 2014, an increase of 6.8% compared to fiscal 2013. Its net income was $21 million in fiscal 2014, compared to a net income of $26 million in the preceding year.

Table 11: Fox Wizel Ltd.: key financials ($)

$ million 2010 2011 2012 2013 2014 Revenues 203.4 229.1 258.7 293.1 313.1

Net income (loss) 16.2 21.1 22.9 26.3 21.5

Total assets 173.2 210.9 219.8 244.4 333.9

Total liabilities 65.9 96.0 94.8 104.3 177.4




Table 12: Fox Wizel Ltd.: key financials (ILS)

ILS million 2010 2011 2012 2013 2014 Revenues 727.1 819.1 925.0 1,048.0 1,119.6

Net income (loss) 58.1 75.5 82.0 94.0 76.7

Total assets 619.3 753.9 786.0 874.0 1,194.0

Total liabilities 235.5 343.2 339.0 373.0 634.3


Table 13: Fox Wizel Ltd.: key financial ratios


Revenue growth 22.6% 12.7% 12.9% 13.3% 6.8%

Asset growth 2.4% 21.7% 4.3% 11.2% 36.6%

Liabilities growth (9.9%) 45.7% (1.2%) 10.0% 70.1%

Debt/asset ratio 38.0% 45.5% 43.1% 42.7% 53.1%

Return on assets 9.5% 11.0% 10.7% 11.3% 7.4%


Figure 14: Fox Wizel Ltd.: revenues & profitability




Figure 15: Fox Wizel Ltd.: assets & liabilities




Industria de Diseno Textil, S.A. Table 14: Industria de Diseno Textil, S.A.: key facts

Head office: Edificio Inditex, Avenida de la Diputacion, 15452 Arteixo, A Coruna, ESP

Telephone: 34 981 18 54 00

Fax: 34 981 18 55 44

Website: www.inditex.com

Financial year-end: January

Ticker: ITX

Stock exchange: Madrid


Inditex is one of the largest fashion retailers in the world. It comprises more than 100 companies operating in textile design, manufacturing and distribution. The group markets its range of products through eight sales formats: Zara, Bershka, Pull & Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque. At the end of FY2015, Inditex operated 6,460 stores in 88 markets across Europe, the Americas and Asia.

The group operates through three divisions: Zara, Bershka and other.

Zara offers a wide range of fashion products for women, men and children. At the end of FY2015, Inditex operated around 2000 stores under the Zara brand (including the Zara Kids stores) in 88 markets. These stores are located in major cities throughout the world.

Bershka offers fashion for young women and men (target market aged 13-23). At the end of FY2015, Inditex operated 910 Bershka stores in 64 markets.

The other division comprises the following sales formats: Pull & Bear, Massimo Dutti, Stradivarius, Oysho, Zara Home and Uterque.

Pull & Bear offers casual fashion and sport styles for young men and women typically aged between 14 and 28. The group operated 900 Pull & Bear stores in the main streets and shopping centers of 65 markets at the end of FY2015, as well as five e-commerce platforms.

Massimo Dutti offers international fashion collections for men, women and children. Inditex operated around 700 Massimo Dutti stores in 68 markets at the end of FY2015.

Stradivarius offers urban fashion for young women typically aged 18 to 35. At the end of FY2015, the group operated 910 Stradivarius stores in 59 markets.

Oysho offers women's loungewear, lingerie and undergarments. At the end of FY2015, Inditex operated 570 Oysho stores in 40 markets.

Zara Home specializes in home furnishings. It offers textiles for bed, table and bathroom linens, as well as decorative items. The group operated 437 Zara Home stores in 48 markets at the end of FY2015.

Uterque offers premium accessories, including bags, shoes and costume jewelry. Inditex operated 66 Uterque stores in 12 markets at the end of FY2015.

Key Metrics The company recorded revenues of $24,043 million in the fiscal year ending January 2015, an increase of 8.3% compared to fiscal 2014. Its net income was $3,319 million in fiscal 2015, compared to a net income of $3,155 million in the preceding year.



Table 15: Industria de Diseno Textil, S.A.: key financials ($)


Net income (loss) 2,298.3 2,564.0 3,133.1 3,154.7 3,318.5

Total assets 13,040.6 14,544.1 17,107.2 18,256.5 20,407.4


Employees 92,301 100,138 109,512 120,314 128,313


Table 16: Industria de Diseno Textil, S.A.: key financials (€)

€ million 2011 2012 2013 2014 2015 Revenues 12,526.6 13,793.0 15,946.1 16,724.4 18,116.5

Net income (loss) 1,731.8 1,932.0 2,360.8 2,377.1 2,500.5

Total assets 9,826.1 10,959.0 12,890.3 13,756.3 15,377.0



Table 17: Industria de Diseno Textil, S.A.: key financial ratios


Revenue growth 13.0% 10.1% 15.6% 4.9% 8.3%

Asset growth 17.9% 11.5% 17.6% 6.7% 11.8%

Liabilities growth 14.8% 3.0% 25.8% 1.6% 9.6%

Debt/asset ratio 34.6% 32.0% 34.2% 32.6% 31.9%

Return on assets 19.1% 18.6% 19.8% 17.8% 17.2%

Revenue per employee $180,112 $182,800 $193,246 $184,481 $187,379

Profit per employee $24,901 $25,605 $28,610 $26,221 $25,863




Figure 16: Industria de Diseno Textil, S.A.: revenues & profitability


Figure 17: Industria de Diseno Textil, S.A.: assets & liabilities




H & M Hennes & Mauritz AB Table 18: H & M Hennes & Mauritz AB: key facts

Head office: Master Samuelsgatan 46A, 106 38 Stockholm, SWE

Telephone: 46 8 796 55 00

Fax: 46 8 796 57 03

Local office: Hthai (Thailand) Co., Ltd, No 999/9 The Offices at Central World, 26th Floor. Rama 1 Road Pathumwan, Bangkok 10330, THA.

Telephone: 66 2 620 6888

Website: www.hm.com

Financial year-end: November

Ticker: H&M B

Stock exchange: Stockholm


H & M Hennes & Mauritz AB (H&M) is a Sweden-based leading retailer of fashion apparel, cosmetics, accessories and shoes for women, men, teenagers and children. H&M's retail operations are conducted through leased store premises, internet and catalogue sales and through a network of franchise stores. At the end of FY2014, the group had 3,511 stores which included 110 franchise stores.

Internet and catalogue sales are offered in Sweden, Norway, Denmark, Finland, the Netherlands, Germany, Austria and the UK. Furthermore, H&M's home textile range, H&M Home, is offered for sale through internet and catalogues, and through stores in Stockholm, Helsinki, Copenhagen, London and Amsterdam among others.

H&M's in-house designers work with pattern designers and buyers to create a range of merchandise. The group's design and buying department creates the collections centrally and outsources the manufacturing. After the merchandise is ready, it is purchased and distributed to a region and then allocated to separate sales countries in that region depending upon the demand in each market. In order to support this operating style, H&M restructured its business process in 2007 and transferred the central design, buying, logistics and stock-keeping functions to a separate company, H & M Hennes & Mauritz GBC AB.

The group outsources product manufacturing to 800 independent suppliers through its local production offices in Asia and Europe. Tests, such as chemical and laundry tests, are carried out on a continuous basis at the production offices and at external laboratories. The merchandise is subsequently transported by sea, rail, road or air to various distribution centers. The goods are then distributed directly to the stores or to central regional replenishment centers.

Key Metrics The company recorded revenues of $22,072 million in the fiscal year ending November 2014, an increase of 17.8% compared to fiscal 2013. Its net income was $2,912 million in fiscal 2014, compared to a net income of $2,500 million in the preceding year.



Table 19: H & M Hennes & Mauritz AB: key financials ($)


Net income (loss) 2,723.1 2,306.2 2,458.7 2,500.2 2,911.9

Total assets 8,626.9 8,773.5 8,771.3 9,573.5 11,019.6


Employees 87,000 64,874 72,276 116,000 132,000


Table 20: H & M Hennes & Mauritz AB: key financials (SEK)

SEK million 2010 2011 2012 2013 2014 Revenues 108,483.0 109,999.0 120,799.0 128,562.0 151,419.0

Net income (loss) 18,681.0 15,821.0 16,867.0 17,152.0 19,976.0

Total assets 59,182.0 60,188.0 60,173.0 65,676.0 75,597.0



Table 21: H & M Hennes & Mauritz AB: key financial ratios


Revenue growth 7.0% 1.4% 9.8% 6.4% 17.8%

Asset growth 8.9% 1.7% 0.0% 9.1% 15.1%

Liabilities growth 9.2% 7.2% 1.6% 25.0% 17.7%

Debt/asset ratio 25.4% 26.7% 27.2% 31.1% 31.8%

Return on assets 32.9% 26.5% 28.0% 27.3% 28.3%

Revenue per employee $181,763 $247,162 $243,631 $161,554 $167,213

Profit per employee $31,300 $35,549 $34,018 $21,554 $22,060




Figure 18: H & M Hennes & Mauritz AB: revenues & profitability


Figure 19: H & M Hennes & Mauritz AB: assets & liabilities




MACROECONOMIC INDICATORS Country Data

Table 22: Thailand size of population (million), 2010–14

Year Population (million) % Growth 2010 67.2 0.8%

2011 67.7 0.7%

2012 68.2 0.7%

2013 68.8 0.9%

2014 69.0 0.2%


Table 23: Thailand gdp (constant 2005 prices, $ billion), 2010–14

Year Constant 2005 Prices, $ billion % Growth 2010 210.1 7.8%

2011 210.3 0.1%

2012 223.9 6.5%

2013 230.4 2.9%

2014 232.3 0.8%


Table 24: Thailand gdp (current prices, $ billion), 2010–14

Year Current Prices, $ billion % Growth 2010 318.9 20.9%

2011 345.7 8.4%

2012 366.0 5.9%

2013 387.3 5.8%

2014 381.0 (1.6%)




Table 25: Thailand inflation, 2010–14

Year Inflation Rate (%) 2010 3.3%

2011 3.8%

2012 3.0%

2013 2.2%

2014 1.9%


Table 26: Thailand consumer price index (absolute), 2010–14

Year Consumer Price Index (2005 = 100) 2010 115.5

2011 119.9

2012 123.5

2013 126.2

2014 128.6


Table 27: Thailand exchange rate, 2010–14

Year Exchange rate ($/THB) Exchange rate (€/THB) 2010 31.9495 42.4170

2011 30.2938 42.2055

2012 31.0584 39.7288

2013 30.7148 40.8185

2014 32.4816 43.0834




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Industry associations International Textile and Apparel Association PO Box 1360, Monument, CO 80132-1360, USA Fax: 1 719 488 3716 www.itaaonline.org

Related MarketLine research Industry Profile Global Apparel Retail

Apparel Retail in Europe

Apparel Retail in Asia-Pacific



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