Market Trends of Jeans Industry
Rising Inclination of Customers Towards Fashionable Clothing
Customers, especially millennials and Generation Z, have more discretionary cash, greater exposure to global fashion trends, and are more receptive to trying new styles of clothes as a result of changing attitudes towards fashion. UN Comtrade said that in 2021, China exported more denim than any other country in the Asian-Pacific region for a total value of about USD 2174.21 million.
Consumers' purchasing habits have been impacted by the increased socialization and expanding exposure to branded clothes across a variety of retail channels, leading them to be persuaded to spend more on branded items, especially jeans. Consumers' preferences have shifted significantly over the past decade in Asia Pacific and the Middle East as the effects of urbanization and digitalization have rippled through these countries' economies. People in the middle class are more likely to spend money on fad items and cosmetics. Jeans, especially when paired with a T-shirt, are a popular choice for casual wear among young people and working professionals in most of the developed world. To meet the needs of its customers, leading fashion manufacturers are diversifying their product lines by offering a wider variety of jeans that are visually distinct from one another in terms of color, size, fabric, and design. For instance, in March 2022, H&M Hennes & Mauritz AB developed a new denim line called the 'capsule collection,' which focuses on saving water throughout the manufacturing process by collaborating with suppliers who use recycled water systems. The pieces in the collection are inspired by late 1990s and Y2K vibes and include high-waist straight jeans, low-waist flares, dungarees, skinny jeans, mini-skirts, and denim shirts.
New product innovation is driven by the needs of price-conscious consumers who want high-quality goods at affordable rates. As the number of women in the workforce continues to rise and women's fashion tastes shift to accommodate new trends, designers are responding by creating jeans that are both stretchy and pleasant to wear.
Asia-Pacific is the Fastest Growing Region
Growing disposable incomes, higher denim consumption rates, and greater knowledge about which styles work best for different physiques are all factors that should help the jeans industry expand in the coming years. Further fueling the expansion of the jeans market is the fact that as per capita income rises in developing Asian-Pacific nations like India and China, so does consumer spending on items like jeans. India has a huge young population that makes up about 65% below 35 years of age, which stimulates the jeans market due to the exposure to the latest jeans collection by design and quality. In India, denim wear has seen a sharp resurgence, primarily driven by new and more comfortable fabrics, low pricing, and inclusive sizes offered by local and international brands. Denim brands are driving innovation in washes, colors, fits, and even vintage designs and styles. The key players are embarking on mergers and acquisitions as one of their key strategies to achieve consolidation and optimize their offerings in Asian countries. For instance, in December 2021, Tasuka Jeans, a Bangladesh-based brand, announced a significant investment in eco-friendly machines for its washing facility. The company bought waterless washing machines, each costing around USD 113, 416. Furthermore, the company is undertaking steps to decrease water consumption for washing per pair of jeans by around 40%.
Moreover, online retail outlets are expanding in the Asia Pacific jeans market due to the availability of a wide variety of brands and the ease with which they can be purchased. In addition, the ease of ordering, receiving, and returning items like jeans from the comfort of home has contributed to the channel's expansion. Customers' desire is further fueled by sales and promotions such as Black Friday on Amazon and the End of Reason Sale on Myntra and other discounts given by certain e-commerce websites of the businesses. For instance, in December 2021, Indian brand Mensa Brands acquired the home-grown denim brand High Star for an undisclosed amount. The company sells a wide range of denim apparel, including Jeans, on e-commerce platforms such as Myntra, Ajio, and Flipkart.
