The apparel market in the Asia Pacific (APAC) region is expected to reach a compound annual growth rate (CAGR) of 9.3% between 2020-2025 according to the latest figures from GlobalData, and brands are being urged to capitalize on the growing opportunity in resale, media reported.
The report also said that the resale market is growing in popularity among APAC consumers, with 27% of shoppers intending to purchase clothing via resale in the next 12 months.
While consumer-to-consumer resale platforms pose an increasing threat to apparel brands, they should leverage this interest and consider integrating secondhand products in their ranges or launch partnerships with platforms, which could be particularly lucrative for luxury players considering the strength of the sector in APAC, the report suggests.
The Apparel Market and Forecasts in APAC to 2025 report notes that APAC fared better than most regions during the pandemic with a 13.1% decline in sales in 2020 as it was cushioned by governments offering support packages and China’s continued economic growth. Online sales rose by 11.6% during the period.
The APAC apparel market surpassed pre-pandemic levels by $22.6bn in 2021, driven by urbanization and growing regional wealth. The region’s growth is something brands are certainly looking to capitalize on.
Of the top 10 APAC apparel markets, GlobalData forecasts China will continue to dominate, its estimated market value reaching $538.3bn in 2025.
It will be followed by Japan, India and then South Korea.
Sportswear continues to present a significant opportunity with 54% of APAC shoppers purchasing sportswear for everyday use, and an equal proportion also purchasing it for exercise, training and/or sports.
APAC consumers favour international apparel brands, with 44% of respondents in GlobalData’s 2022 Q2 Consumer Survey stating that they typically purchase from global multi-national brands.
The report suggests consumers in APAC are becoming increasingly aware of the environmental impacts of the apparel industry, yet native brands have been slower to implement sustainable initiatives than international players.