Apparel Logistics Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Apparel Logistics Market is segmented by Service (Transportation, Warehousing, Inventory Management, and Other Value-added Services) and Geography.

Market Snapshot

Apparel Logistics Market Size
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 6 %
Apparel Logistics Market Key Players

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Market Overview

The apparel logistics market is expected to record a CAGR of 6% during the forecast period. Rapid replenishment cycles of the apparel industry are the main factor driving the market’s growth. From retailers to manufacturers, apparel supply chains compete strongly to provide the latest trends and the best customer experience. Meanwhile, changing consumer expectations and fulfillment models pressure apparel businesses.

The COVID-19 pandemic caused lockdowns, line limitations, and breakdown of transportation organizations across regions. With the rapidly increasing cases, the overall apparel logistics market is being influenced from multiple points of view. The accessibility of the labor force is disturbing the inventory network of the apparel logistics market, as the lockdowns and the spread of the infection are forcing individuals to remain indoors.

Many leading fashion retailers have embraced the concept of performing multi-channel distribution within a single facility with a single information system, achieving dramatic improvements in labor productivity and inventory optimization. The apparel marketplace is evolving and reinventing itself regularly. New sales channels are being developed, requiring companies to continuously evaluate and remodel their logistics and transportation networks.

The global apparel industry is extremely dynamic due to the ever-changing fashion trends. Due to the intense competition, apparel companies are implementing new technologies, such as data analytics and AI. The apparel industry has massive outsourcing operations that provide logistics players with considerable opportunities in domestic and international operations, making it a highly competitive industry. Any disruption in the supply chain leads to a huge loss for apparel companies. Thus, to have a minimal impact on their supply chain, apparel companies usually prefer outsourcing their operations to logistics players.

Scope of the Report

Apparel logistics cater to the supply chain needs of apparel manufacturers and retailers. The report provides a complete background analysis of the apparel logistics market, including an assessment of the sector and its contribution to the economy, market overview, market size estimation for key segments, the impact of COVID-19 on the market, key countries, emerging trends in the market segments, market dynamics, and key goods flow statistics.

The market is segmented by service (transportation, warehousing, inventory management, and other value-added services) and geography.

By Service
Transportation
Warehousing, and Inventory Management
Other Value-added Services
By Geography
Asia-Pacific
China
Japan
India
South Korea
ASEAN
Rest of Asia-Pacific
North America
United States
Canada
Brazil
Mexico
Rest of Americas
Europe
United Kingdom
Germany
Italy
Spain
France
Rest of Europe
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Growing Online Apparel Sales and Changing Consumer Behavior

In June 2021, the fast-fashion e-commerce site, shein.com, was the most visited in the fashion and apparel category worldwide, accounting for 3.29% of desktop traffic. The e-commerce portal of the Swedish clothing retailer HM ranked second, with 1.75% visits. In 2020 and 2021, online apparel retail sites experienced a sales increase due to their digital market presence. This effect has fuelled changes in the approach of the market players, which may be expected to continue in the coming years, with more emphasis on the growth of e-commerce, mobile shopping, and meeting ever-rising expectations of personalization among customers.

Based on the yearly percentage growth in terms of website traffic, shein.com emerged as the leading fast-fashion retailer website in the United States in Q4 2020. While consumers frequently visit websites to compare prices and products, global online platforms plan to expand their fashion brand partnerships and develop additional engagement methods to stay competitive in the digital shopping space. To handle the growing online orders, third-party logistics companies are absorbing millions of sq. ft of space and letting it out to consumer goods, e-commerce, manufacturing, and apparel companies.

Apparel Logistics Market Key Players

Growing Apparel Market Boosting the Growth of Apparel Logistics

Revenue generated by the apparel market steadily increased through the study period. In 2020, the market revenue was approximately USD 1.46 trillion. Consumer technology brands have long targeted online shoppers in Australia, Japan, and South Korea. However, brands in the apparel and beauty sectors are also targeting other regions. Hence, brands may continue focusing on localization and catering to millennial customers who are the key buyers of these products.

The Y-o-Y growth rate for apparel and footwear experienced severe losses in 2020. Against the backdrop of the COVID-19 pandemic, growth declined by a total of over 10%. Sporting goods and mass/club retail grew in 2020. Global sports apparel and footwear brands like Nike and Adidas are ditching other regions and increasing their production in emerging Southeast Asian countries like Vietnam, offering a positive outlook for transportation companies and other third-party logistics service providers.

Apparel Logistics Market Growth

Competitive Landscape

The apparel logistics market is fragmented with the presence of large global players and small- and medium-sized local players. Some of the key players occupy most of the market share. Most global logistics players have a retail and apparel logistics division to meet the market needs and demand. Additionally, local players are increasingly enhancing their capabilities in terms of fleet size, service offerings, products handled, and technology. The surging e-commerce sales are creating opportunities and challenges for logistics companies in terms of speed, delivery, etc. Global companies with high capital and assets can invest in advanced storage spaces and fulfillment centers and benefit from this scenario. On the other hand, regional and local players are coming up with better sector solutions to support the needs of the production companies and retailers.

Recent Developments

  • November 2021 - DHL sponsored a stage of TGC for the first time in the international logistics industry, offering an express ticket to style worldwide. In this project, DHL teamed up with "FASBEE", a global fashion e-commerce site, to enable people overseas to purchase products introduced on the sponsored stage of Mynavi TGC 2021 A/W.
  • November 2021 - DSV and New Balance agreed to expand their long-standing collaboration. With this new agreement, DSV plans to triple the volume stored and distributed for New Balance. A tailor-made and automated 60,000 sq. m DSV warehouse facility has been upgraded to accommodate this significant volume increase. The warehouse facility has already been inaugurated.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Spotlight on Global Logistics Sector

    7. 4.7 Brief on Global Apparel Industry

    8. 4.8 Spotlight - Effect of E-commerce on Traditional Apparel Logistics Supply Chain

    9. 4.9 Review and Commentary on Return Logistics

    10. 4.10 Effect of Apparel Industry's Fast Replenishment Cycles on the Logistics Market

    11. 4.11 Spotlight on the Demand for Contract Logistics and Integrated Logistics

    12. 4.12 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 Transportation

      2. 5.1.2 Warehousing, and Inventory Management

      3. 5.1.3 Other Value-added Services

    2. 5.2 By Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 Japan

        3. 5.2.1.3 India

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 ASEAN

        6. 5.2.1.6 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Brazil

        4. 5.2.2.4 Mexico

        5. 5.2.2.5 Rest of Americas

      3. 5.2.3 Europe

        1. 5.2.3.1 United Kingdom

        2. 5.2.3.2 Germany

        3. 5.2.3.3 Italy

        4. 5.2.3.4 Spain

        5. 5.2.3.5 France

        6. 5.2.3.6 Rest of Europe

      4. 5.2.4 Middle-East and Africa

        1. 5.2.4.1 Saudi Arabia

        2. 5.2.4.2 South Africa

        3. 5.2.4.3 Rest of Middle-East and Africa

  6. 6. KEY QUALITATIVE AND QUANTITATIVE INSIGHTS

    1. 6.1 By Supply Chain Process

      1. 6.1.1 Production Logistics

      2. 6.1.2 Sales Logistics

      3. 6.1.3 Reverse Logistics

    2. 6.2 By Nature of Service

      1. 6.2.1 Enterprise Logistics

      2. 6.2.2 Third-party Logistics

      3. 6.2.3 E-commerce logistics and Instant Delivery

  7. 7. INSIGHTS ON GLOBAL MAJOR FASHION RETAILERS (Company Overview, Product Portfolio, Logistics Partner, Etc.)

    1. 7.1 Inditex (ZARA)

    2. 7.2 H&M

    3. 7.3 Fast Retailing Co. Ltd

    4. 7.4 Gap Inc.

    5. 7.5 Anta

    6. 7.6 L Brands Inc.

    7. 7.7 PVH Corp.

    8. 7.8 Ralph Lauren Corporation*

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Overview (Market Concentration, Major Players)

    2. 8.2 Company Profiles

      1. 8.2.1 Ceva Logistics

      2. 8.2.2 DB Schenker

      3. 8.2.3 Deutsche Post DHL Group

      4. 8.2.4 DSV

      5. 8.2.5 Hellmann Worldwide Logistics

      6. 8.2.6 Apparel Logistics Group Inc.

      7. 8.2.7 Logwin AG

      8. 8.2.8 PVS Fulfillment-Service GmbH

      9. 8.2.9 Bollore Logistics

      10. 8.2.10 GAC Group

      11. 8.2.11 Nippon Express

      12. 8.2.12 Genex Logistics

      13. 8.2.13 Expeditors International of Washington Inc.

      14. 8.2.14 Agility Logistics

      15. 8.2.15 BGROUP SRL*

    3. *List Not Exhaustive
  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

  10. 10. APPENDIX

  11. 11. DISCLAIMER

**Subject to Availability

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Frequently Asked Questions

The Apparel Logistics Market market is studied from 2018 - 2027.

The Apparel Logistics Market is growing at a CAGR of 6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Ceva Logistics, DB Schenker, Deutsche Post DHL Group, DSV, Hellmann Worldwide Logistics are the major companies operating in Apparel Logistics Market.

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