The Alexander Report

Denim has changed radically in past few years, from basic work clothing, to a high-end stylish and fashion oriented attire. Denim is presently a 10 billion dollar industry in the US. From retailer selling in mass market to exclusive couture designers, everyone has identified denim as a profitable business.

The apparel industry veterans are amazed by the success of denim. Reviewing recent sales-graph and fiscal year results of the leading retailers and brands, the analysts forecast a better future for denim on condition that the product should appeal different to the consumer looking while sustaining the traditional fabric.

The American consumers approximately purchase 450 million pairs of jeans per year. The denim market has been performing well, except for a drop in the sales was witnessed because of stiff competition with the alternative products like cargos, fatigues, cotton combat and khaki trousers, which led market at a saturation point in mid 2004.

The saturation in the denim market was a result coming-out of garments and fabric in developing countries, due to the elimination of a quota system, in the beginning of 2005. However, the denim industry emerged again during 2005-2006. The evergreen work-wear fabric is back on track with the efforts of companies, such as ITG, Levi Strauss & Co., VF Corporation, American Eagle Outfitters and Perry Ellis performed well throughout 2005. American Eagle Outfitters

American Eagle Outfitters come into view as triumph last year, emerging as leader in specialty store brands for the age group of 15 to 25. Comparing the $143.4 million sales month which ended April 30, 2005, the company recorded 25% climb in sales for April 29, 2006. The month of April depicted an optimistic consumer response to the company’s excellent initiatives for product assortments, designed for spring and summer that were also focused at other age groups.

The success standing behind, American Eagle Outfitters, in the denim market, is an outcome of right allocation of initiatives for various market phases. The perfect blend of the American West with European touch was the key reason of the gained success. (more…)