H&M registered sales of USD 3,354.27 Million in Germany in 2020
H&M recorded a historical decline (CAGR) of 5.38% between 2017 to 2020
Key highlights
Germany Apparel Market Drivers
Germany Apparel Market Inhibitors
Clothing Market Summary
Womenswear was one of the most affected apparel categories in Germany throughout the COVID-19 crisis, recording a decline in revenue in 2020 — a larger drop than menswear and childrenswear, as it is more reliant on trend driven purchases. As shoppers were forced to stay at home and social events were cancelled, demand for occasion wear and workwear were most impacted, with a long-term shift to casualization expected.
Menswear registered an overall decline in Germany in 2020, and though the category will see a recovery in sales in 2021, revenue will not return to pre-pandemic levels until 2023. However, thanks to the boost from athleisure and males’ increased interest in fashion, menswear will achieve the strongest growth versus pre-pandemic levels by 2025.
Childrenswear remained the most resilient clothing subsector throughout the COVID-19 pandemic with its sales decline in 2020, in comparison to total clothing in Germany, as it relies on more essential, replacement purchases. Further, the assurance from German government to make sure employees were paid even when firms were closed, supported would-be parents to shop for this product category.
Channel Analysis
German consumers are buying apparel via multiple channels with the three top channels being hypermarkets/supermarkets, retailer websites and brand’s own stores. In order to reach customers, brands must employ omnichannel strategies to maximize the potential reach.
Brand Summary
COVID-19 disrupted physical store sales for retailers in Germany, however, online initiatives has been a key strategy in the period.
H&M Brand Summary
H&M’s fast fashion business model has been key to the company’s proliferation since 2000. The fast fashion model relies on impulse purchases, quick trends and throwaway clothes. However, this has huge ramifications for the environment, especially in the case of cotton, a pesticide- and water-intensive crop. In recent years H&M has strived to become a sustainability leader, increasing its share of “sustainable” cotton, including organic cotton and recycled cotton. H&M also wants to “close the loop” for fashion, an ambitious but admirable goal, and one that is at odds with its fast fashion business model.
H&M: The Leading Brand with significant growth in market share in Germany.
Adidas, Bonprix, Nike, Puma, Kik, Marc O'Polo, Shein, Guess and Tchibo are among the other notable Brands engaged in the sales of Apparel and Accessories market in Germany.
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