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ApparelandFootwearinthePhilippines
IndustryOverview|01Mar2017

EXECUTIVESUMMARY

Fasterperformanceofapparelandfootwearduetooptimisticconsumerspending
Apparelandfootwearincreasedincurrentvalueby7%in2016,slightlyhigherthanthereviewperiod
CAGR,asthecountrycontinuestoexperiencefavourableeconomicconditions.WithGDPgrowthof
6.22%,amongthehighestintheregion,Filipinoconsumersareincreasinglyempoweredandoptimistic,
tothebenefitofsalesofapparelandfootwear.Theinfrastructureimprovementprojectswhich
hamperedgrowthearlierinthereviewperiod,especiallyduetoportcongestion,alsopresentedmore
opportunitiesforgrowthforthecountrysleadingapparelandfootwearbrandsasnewcollectionscan
nowreachstoresandconsumersmoreeasily.This,inturn,hasspurredstronggrowth,eveninniche
areasandcategoriesofapparelandfootwear.

Growthinmiddleincomeandhighincomeconsumergroupsdrivesgrowth
Thenumbersofmiddleincomehouseholdsandmoreaffluentconsumerscontinuedtogrowinthe
Philippinesin2016,drivingdynamicgrowthinnumerousdifferentapparelandfootwearcategoriesand
thishasbenefitedsales,alongwiththeincreasesbeingseenintheamountofretailspaceacrossthe
country.Consumersarebecomingmorewillingthanevertotradeuptobrandsthataredeemedtobe
globallyprominentinordertoreflecttheirimprovingsocialstatus.Thisdynamicandlivelyapproachto
consumerspendinghasinspiredgrowthindifferentretailspacessuchasshoppingcentres,mixeduse
developments,luxuryhotelswiththeirownshoppingcentresandevendepartmentstores.Retailspace
isnotonlybeingexpandedinmajorcities,butalsoinrapidlydevelopingregionsandprovincesacross
thecountryasretailersseektoincreasetheirconsumerbasesforproductsindifferentindustries,
especiallyapparelandfootwear.

Localplayersremainatoptheindustry,althoughinternationalplayersdrivegrowth
Localplayersmaintainedtheirpositionasthelargestapparelandfootwearplayersinthecategoryin
2016,althoughthegrowthbeingseenbywellsupportedinternationalplayershaspresentedchallenges
asmanyconsumersnowfavourtheseinternationalbrands.Thedoubledigitgrowthseenby
internationalplayersreflectsthefactthatFilipinoconsumersareincreasinglysupportingimported
brandsmorethanthelocalones,duetotheirglobalprominenceandstrategicmarketingschemes.
Internationalfastfashionbrandshavenotonlyattractedmiddleincomeandhighincomeconsumers,
buttheyalsoinspiredlocalretailerstoregisterpositivegrowthin2016.Competitionbetweenlocaland
internationalbrandsisboostingtensionsintheindustryaswellaspresentingchallengestosmaller
players.

Growthininternetretailingaccelerates,althoughitremainsasmallretailchannel
AlotofimprovementswillbeneededbeforethePhilippinescantakefulladvantageofthegrowth
potentialofecommerceforapparelandfootwear.Althoughtheinternetcontinuestoreachtoawide
populationsegmentinthecountryduetotheaffordabilityofsmartphonesandtheavailabilityofcheap
computerservices,poorinternetspeedandreliabilitycontinuetodiscourageconsumersfromshopping
online,withcompaniesthuswaryofinvestinginthedevelopmentoftheiroperationsinthischannel.In
addition,poorlogisticsarealsohinderingfurthergrowthforinternetretailingduetothecountrysoften
troublesometransportationinfrastructure.Despitethehugegrowthseeninthechannelin2016,internet
retailingremainsasmallmarketandtheonlineoperationsoftheleadingapparelandfootwearplayers
usuallyconsistoflittlemorethanextensionsofsocialmediaexposure.

Robustforecastgrowthmightbehinderedorimprovedfurtherbythenewleadership
ThePhilippineapparelandfootwearindustryisexpectedtogrowinvalueataCAGRof5%overthe
forecastperiod,arateofgrowthwhichissettorepresentarobustandpositiveperformance.Withthe
currentGDPgrowthandlifestyletrendsencouragingstronggrowthinnumerousapparelandfootwear
categories,theperformanceoftheindustryduringtheforecastperiodislikelytobehighlypositivedue
tofavourableconditionsandanticipatedoutcomeswhichsuggestvastgrowthopportunities.However,
theinfluenceonthesetrendsoftherecentemergenceofnewpoliticalleadershipinthecountryremains
unknownasthesofarunconventionalapproachofthecountrysleadersofdoingbusinesswithother
countriesleavessomeroomforuncertainty.

KEYTRENDSANDDEVELOPMENTS

Flourishingretailspacespavewayforgrowthopportunitiesinapparelandfootwear
Atthestartofthereviewperiod,developmentswerealreadybeinginitiatedintheretailspaceinthe
Philippinesasmallsandshoppingcentresspreadacrossthecountryasretailerssoughttotake
advantageoftheimprovingeconomicconditions,whichwasspurringspendingamongalotofFilipino
consumers.Inprovincialareasofthecountry,ashiftisunderwayawayfromtraditionalretailingtowards
modernchannelsasopportunitiesforgrowtharemoreapparentinareasofthecountryinwhich
infrastructureisstillunderdevelopment.Forone,trafficisstilltolerableinsmallersettlements,unlikein
thecountrysmajorcities,wheretheusualdailyheavyflowsoftrafficdiscouragemanyconsumersfrom
visiting,andshoppingin,shoppingcentres.Anotheradvantageofshoppingcentresisthatthey
representaconvenientshoppingoptionforthoselivinginprovincialareas,enablingthemtoshop
locallyinsteadofheadingtoalargecitytopurchasetheirapparelandfootwearneeds.Moreover,the
countrysshoppingcentresarenoweasiertoaccess.Oneofthecompaniesthatistakingadvantageof
thistrendisDoubleDragonPropertiesCorp.Thecompanywasresponsibleforthedevelopmentoffive
CityMallCommercialCentresin2016anditiscurrentlyexecutingplanstoopenupto25moreretail
outletsduring2017,whichwillmakeittheoperatorofthebiggestchainofcommunityshoppingcentres
inthecountry.Thecompanyhasmanyopportunitiesfordevelopingitsoperationsintheprovincesof
thePhilippinesandthisissettoexpandtheretailingopportunitiesforapparelandfootwearspecialist
retailers,alongsideplayersinotherretailingchannelsandvariousserviceproviders.
Thistrend,however,hasnotstoppedtheoperatorsofthecountrysleadingshoppingcentresinits
largestcitiesfromtakingadvantageoftheincreasinglydynamicactivityamongPhilippineconsumers.
SMMallofAsiahasbeenrenovatingitsspacesanditsettofurtherexpandtohousethenewflagship
storeofH&M.Thisnewstoreisexpectedtooccupysome3,000sqmandwilljoinothermajor
internationalretailbrandswhicharesettoopenoutletsinthenewlyrenovatedretailspace.Department
storesarenotbeingleftbehindthisintrendeitherasMetroRetailStoresGroupIncopenedsixstores
inthePhilippinesin2016tobringthetotalnumberofstoresitoperatesacrossthecountryto49.Oneof
themostrenownedluxuryretailersinthecountryhasalsomovedtotakeadvantageofthistrendby
renovatingRustansinGatewayMall,whichnowcoverssome9,000sqmofretailspaces,up
considerablyfromonly3,500sqmpreviously.Alloftheseimprovementsanddevelopmentsonlygoto
showthehugeopportunitiesandhighdemandamongconsumersawaitingtheseretailstoresas
favourableeconomicconditionscontinuetoempowerPhilippineconsumers.
Theeffectofthistrendonsalesofapparelandfootwearhasbeenasimmenseasitseffectonthetotal
retailindustry.Throughtheseexpansions,bothinternationalandlocalapparelandfootwearcompanies
andbrandsarenowabletoreachouttoprovincialareasanddevelopingregionsofthecountry.
Consumersareevenbeingencouragedtospendtheirfreetimeshoppinginthesenewlydeveloped
shoppingcentres,whichofferpleasantenvironmentsthroughelegantdesignsandupdatedinteriorsin
ordertocapturetheheartsandmindsofFilipinomallgoersandshoppingenthusiasts.

Outlook
Thesedevelopmentsin2016representjustthebeginningoftheexpansionoftheretailingofapparel
andfootwearinthecountry.Furtherplansaresettobeenactedduringtheforecastperiodwhichwill
involvesomeofthebiggestapparelandfootwearretailers,encouragingthemtodevelopflagshipstores
similartotheonerecentlyopenedbyH&MinSMMallofAsia.In2017,AboitizGroupisplanningto
developaveryhighqualityworldclassshoppingdestinationinthePhilippines.ItistobecalledThe
OutletsatLipaanditwillhousediscountoutletstoresofsomeoftheleadingpremiumlocaland
internationalapparelandfootwearbrands.Theincreasingamountofretailspacecanonlybepositive
forsalesofapparelandfootwear.Furthermore,morevenuesandopportunitiesforgrowtharesetto
emergeinareaswhereconsumersarechangingtheirconsumptionbehavioursduetothefavourable
economicconditions.

Theemergenceofforeignbrandsfurtherdrivessalesofapparelandfootwear
Theincreasebeingseenintheamountofretailspaceavailabletoapparelandfootwearplayershas
enabledthemtowidentheirreachbyprovidingthemwiththebasisformuchhealthierandchallenging
competitioninthecategoryduring2016.Theinfluenceofinternationalfastfashionbrandsisstillbeing
stronglyfeltandthisinfluencecontinuedtogrowin2016duetotheconsiderablenumberofnewstores
beingopenedandtheuseofmoreaggressivemarketingstrategies.Thereviewperiodwitnessedan
improvementinretailspacesinthePhilippines,inthesensethatnewstoreswithhigheramountsof
retailsellingspacearebeingopenedduetothetrendswhichhaverecentlyemerged,inspiredbythe
giantstoresofMango,Zara,H&M,UniqloandForever21.Thelocalapparelandfootwearindustryis
adaptingtothistrendandthiswasreflectedintherecentopeningofthebiggeststoreofGoldenABC
Incsflagshipbrand,Penshoppe.ThecompanywasestablishedinCebuin1986anditsbiggeststore
wasopenedinCebuinDecember2015.
Nevertheless,growthapparelandfootwearin2016wassubstantiallydrivenbyinternationalplayers,
whilelocalplayerscopebyadaptingtothefastpaceofchangeinthetradingenvironmentandthe
consistentupdatingoftrends.Thecountrys12bestperformingapparelandfootwearcompanies,allof
whichregistereddoubledigitgrowthin2016,areallinternationalplayers,headedbyUnderArmourInc,
H&MHennes&MauritzInc,MagnificoJeansInc,FastRetailingPhilippinesIncandNewBalance
AthleticShoeInc.Thesecompaniesallbenefitedfromthestrongperformancesoftheirbrandsin2016
andthesebrandscontinuetosetthecurrenttrendsinapparelandfootwear.Theirstrengthening
presencepresentshugechallengestothelocalgarmentmanufacturingsector,especiallythose
companiesandbrandswhichtargetmiddleincomeconsumergroupsbychargingcompetitivepricesfor
highqualityproducts.

Outlook
TheproliferationofretailspaceinpartsofthePhilippineswhicharedevelopingrapidlyhastendedto
favourlocalplayersbygivingthemenoughopportunitytocopewiththerapidgrowthbeinggenerated
byinternationalplayersintheindustryin2016.However,itispossiblethatthesetrendswillchangeat
somepointduringtheforecastperiodastheexpansionofinternationalfastfashionbrandisseeing
themrapidlygainprominenceinthesedevelopingregionsaswell.
FurtherchallengesforthelocalsectorareposedbytheestablishmentoftheAssociationofSoutheast
AsianNations(ASEAN)EconomicCommunity(AEC)duringthelastquarterof2015.Heldatthe27th
ASEANSummitinMalaysia,AECwasformallyagreedtobeestablishedbytheleadersofthe
organisation.TheaimofthisprogrammeistocreateaunifiedmarketamongASEANcountrieswith
verylimitedbarrierstothemovementofgoods,labourandinvestments.Newapparelandfootwear
brandsenteringthePhilippinesfromneighbouringcountrieswithhighlycompetitivepricesareexpected
tobeseenduringtheforecastperiod.Thisislikelytocreateincreasedchallengesforthelocalplayers
intheapparelandfootwearindustry,althoughitisalsolikelytoelicitexcitementamongconsumers.

Economicconditionsimproving,resultinginchangesinconsumptionbehaviour
ThereviewperiodwitnessedimprovementsinthelifestylesofmanyFilipinoconsumers,theresultof
abundantlevelsofdisposableincomeandbenefitingsalesofapparelandfootwear.Thisgrowth
continuedinto2016asconsumersbecameincreasinglyoptimisticabouttheirspendingdueto
numerousfavourablefactorssuchastheavailabilityofhighpayingjobsforthecountryseducated
youngworkforce,thestrongfinancialsupportofoverseasFilipinoworkers(OFW)totheirfamiliesinthe
countrythroughremittancesandoverallimprovementsintheeconomicconditionsinthecountry.Allof
thesetrendsarealsobeingaccompaniedbythegrowthbeingseeninthenumbersofmiddleincome
consumersandevenhighincomeconsumergroups.Infact,VisaIncconducteditsownresearchinto
thegrowthbeingseeninthenumbersofmoreaffluentconsumerslivinginthecountryandithas
confirmedthatthereisstronggrowthbeingregisteredinthispopulationsegment.Throughitsresearch,
thecompanyalsodiscoveredthatthePhilippinesmostaffluentconsumersoutspendthecountrys
averageconsumersby169%,basedonelectronicpayments,withretailbeingthehighestspending
channel.Inaddition,affluentFilipinoconsumersareincreasinglytravelling,notonlylocallybutalso
internationally,withJapanamongthemostpopularoutboundtraveldestinations,whichismainlydueto
therecentrelaxationofvisarequirementsandtheofferofattractivepromotionalairfaresbysomeofthe
leadingairlines.
TheimprovementsbeingseeninthefinancialconditionsofmiddleincomeandhighincomeFilipino
familieshascontributedconsiderablytothechangesinconsumptionbehaviourbeingoutlinedinthis
report.Increaseshavebeenseeninpurchasesofunderwear,swimwearandevenfootwear,andthisall
reflectsthechangingshoppingbehaviourofFilipinos.Thesecategorieswerepreviouslyamongthe
mostneglected,withjuststatictoverysalesgrowthratesbeingrecorded.However,withtheentranceof
brandsthathavespurredpublicinterestbyofferingcollectionsthatareabletoenticehighnumbersof
consumers,lifestyletrendshaveencouragedstrongsalesofthesetypesofapparelandfootwear
amongFilipinofamilies.Furthermore,increasingimageconsciousnessisbeinginfluencedbythe
strongerrelianceonsocialmediaplatformsaspromotionalavenues,allofwhichmeansthatthese
categorieshaverecordedimmensegrowthinrecentyearsaswellasin2016.

Outlook
AmongtheleadingwaysinwhichFilipinoscanusetheirnewfounddisposableincome,savingsand
investmentsareamongthemostinterestingemergingtrends.IncreasingnumbersofFilipinosnow
intendtosavetheirextraincomeforfutureneedsanddesires.Infact,thereisagrowingtrendwherein
youngerprofessionalsaretakingadvantageofthehealthystateofthePhilippineeconomybyinvesting
insmallbusinesses,properties,fineartandautomobiles.Thisreflectsthegrowthbeingseeninthe
numbersofmiddleincomeandaffluentconsumers,whichhasspurredconsumerspendingacrossthe
country.
Theinfluenceofthistrendduringtheforecastperiod,however,couldbeovershadowedbypast
happeningsinthecountry.Thegrowthbeingseeninthenumbersofmiddleincomeconsumershas
pavedthewayfortheemergenceandimprovementoftheentireretailindustry,especiallyappareland
footwearspecialistretailers,overthereviewperiod.Thegrowthexpectedintheindustryduetostrong
demandamongmoreaffluentconsumersislikelytosupportthepositivegrowthexpectedinapparel
andfootwearasFilipinoconsumerstendtobehighlyimageconsciousness,withclothingandfootwear
oftenutilisedasawayofexpressingoneslifestyleandsocialstatus.Itispossiblethatthegrowthbeing
seenintheconsumptionofunderwear,swimwearandfootwearcouldbejustthebeginningforthe
overallimprovementoftheentireindustryasothercategoriesarelikelytofollowsuitduringtheforecast
period.

MARKETDATA

Table1SalesofApparelandFootwearbyCategory:Volume20112016
mnunits 2011 2012 2013 2014 2015 2016
Apparel 542.7 555.6 568.7 582.7 592.6 608.3
Footwear 125.5 130.7 136.0 141.5 146.8 156.1
ApparelandFootwear 668.2 686.3 704.8 724.1 739.4 764.4
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources
Note:Sportswearvolumenotresearched

Table2SalesofApparelandFootwearbyCategory:Value20112016
PHPmillion 2011 2012 2013 2014 2015 2016
Apparel 264,255.5 281,277.6 299,305.4 319,489.7 336,171.8 356,747.9
Footwear 72,164.5 76,902.1 81,955.7 88,032.1 93,974.6 101,414.4
Sportswear 14,717.0 16,199.8 17,785.7 19,620.1 21,695.9 23,458.0
ApparelandFootwear 336,420.0 358,179.7 381,261.2 407,521.9 430,146.4 458,162.3
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table3SalesofApparelandFootwearbyCategory:%VolumeGrowth20112016
%volumegrowth 2015/16 201116CAGR 2011/16Total
Apparel 2.7 2.3 12.1
%volumegrowth 2015/16 201116CAGR 2011/16Total
Footwear 6.3 4.5 24.4
ApparelandFootwear 3.4 2.7 14.4
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources
Note:Sportswearvolumenotresearched

Table4SalesofApparelandFootwearbyCategory:%ValueGrowth20112016
%currentvaluegrowth 2015/16 201116CAGR 2011/16Total
Apparel 6.1 6.2 35.0
Footwear 7.9 7.0 40.5
Sportswear 8.1 9.8 59.4
ApparelandFootwear 6.5 6.4 36.2
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table5NBOCompanySharesofApparelandFootwear:%Value20122016
%retailvaluersp 2012 2013 2014 2015 2016
SuyenCorp 1.7 1.8 1.8 1.8 1.8
GoldenABCInc 1.7 1.7 1.7 1.7 1.7
AvonCosmeticsInc 1.3 1.4 1.4 1.4 1.4
FastRetailingPhilippinesInc 0.1 0.4 0.8 1.1 1.3
NikePhilippinesInc 0.9 1.0 1.0 1.2 1.2
H&MHennes&MauritzInc 0.1 0.7 1.0
SMRetailInc 0.9 0.9 0.9 0.9 0.9
adidasPhilippinesInc 0.5 0.6 0.6 0.6 0.7
LeviStraussPhilippinesInc 0.7 0.6 0.6 0.6 0.6
OttoGeneralMerchandise 0.6 0.6 0.6 0.6 0.6
ForeverAgape&GloryInc 0.5 0.6 0.6 0.5 0.5
JockeyInternationalInc 0.4 0.5 0.4 0.4 0.5
Inditex,IndustriadeDiseoTextilSA 0.5 0.5 0.5 0.5 0.5
WorldBalanceInternationalInc 0.3 0.3 0.4 0.4 0.5
TriumphInternational(Phils)Inc 0.4 0.4 0.4 0.4 0.4
StefanoFootwearCorp 0.4 0.4 0.4 0.4 0.4
SBJMarikinaShoeExchangeCorp 0.2 0.3 0.3 0.4 0.3
MagnificoJeansInc 0.2 0.2 0.2 0.3 0.3
GuessInc 0.3 0.3 0.3 0.3 0.3
WolverineWorldWideInc 0.3 0.2 0.3 0.3 0.3
AlpargatasSA 0.1 0.2 0.2 0.2 0.3
GapInc,The 0.3 0.3 0.2 0.2 0.2
SoenGarmentsCorp 0.3 0.3 0.3 0.3 0.2
VansPhilippines 0.1 0.2 0.2 0.2 0.2
FilaHoldingSpA 0.2 0.3 0.2 0.2 0.2
PhilippineWacoalCorp 0.1 0.2 0.2 0.2 0.2
GiordanoInternationalLtd 0.1 0.1 0.2 0.2 0.2
FitFlopLtd 0.2 0.2 0.2 0.2 0.2
BoardwalkBusinessVenturesInc 0.1 0.1 0.1 0.2 0.2
AdenipInc 0.2 0.2 0.2 0.2 0.2
Others 86.4 85.4 84.8 83.4 82.5
Total 100.0 100.0 100.0 100.0 100.0
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources
Table6LBNBrandSharesofApparelandFootwear:%Value20132016
%retailvaluersp Company(NBO) 2013 2014 2015 2016
Avon(AvonProductsInc) AvonCosmeticsInc 1.4 1.4 1.4 1.4
Uniqlo(FastRetailingCoLtd) FastRetailingPhilippinesInc 0.4 0.8 1.1 1.3
Nike(NikeInc) NikePhilippinesInc 1.0 1.0 1.2 1.2
H&M(H&MHennes&MauritzAB) H&MHennes&MauritzInc 0.1 0.7 1.0
Penshoppe GoldenABCInc 0.9 0.9 0.9 0.9
Bench SuyenCorp 0.8 0.8 0.8 0.8
herBench SuyenCorp 0.7 0.7 0.7 0.7
adidas(adidasGroup) adidasPhilippinesInc 0.5 0.5 0.6 0.6
Levi's(LeviStrauss&Co) LeviStraussPhilippinesInc 0.6 0.6 0.6 0.6
Otto(OttoGroup) OttoGeneralMerchandise 0.6 0.6 0.6 0.6
Forever21(Forever21Inc) ForeverAgape&GloryInc 0.6 0.6 0.5 0.5
Jockey JockeyInternationalInc 0.5 0.4 0.4 0.5
WorldBalance WorldBalanceInternationalInc 0.3 0.4 0.4 0.5
Triumph(TriumphInternational TriumphInternational(Phils)Inc 0.4 0.4 0.4 0.4
AG)
Zara Inditex,IndustriadeDiseoTextil 0.4 0.4 0.4 0.4
SA
Oxygen GoldenABCInc 0.4 0.4 0.4 0.4
Gibi StefanoFootwearCorp 0.4 0.4 0.4 0.4
MSEMarikinaShoeExchange SBJMarikinaShoeExchangeCorp 0.3 0.3 0.4 0.3
Parisian SMRetailInc 0.3 0.3 0.3 0.3
Wrangler(VFCorp) MagnificoJeansInc 0.2 0.2 0.3 0.3
Human SuyenCorp 0.3 0.3 0.3 0.3
Havaianas AlpargatasSA 0.2 0.2 0.2 0.3
Soen SoenGarmentsCorp 0.3 0.3 0.3 0.2
Vans(VFCorp) VansPhilippines 0.2 0.2 0.2 0.2
Fila FilaHoldingSpA 0.3 0.2 0.2 0.2
Memo GoldenABCInc 0.2 0.2 0.2 0.2
Wacoal(WacoalHoldingsCorp) PhilippineWacoalCorp 0.2 0.2 0.2 0.2
Giordano GiordanoInternationalLtd 0.1 0.2 0.2 0.2
Guess GuessInc 0.2 0.2 0.2 0.2
Merrell WolverineWorldWideInc 0.2 0.2 0.2 0.2
Others Others 87.2 86.5 85.1 84.3
Total Total 100.0 100.0 100.0 100.0
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table7DistributionofApparelandFootwearbyFormat:%Value20112016
%retailvaluersp 2011 2012 2013 2014 2015 2016
StoreBasedRetailing 96.5 96.3 96.0 95.5 94.7 94.0
GroceryRetailers 18.0 17.6 17.1 16.5 15.6 15.1
ModernGroceryRetailers 0.6 0.6 0.6 0.7 0.7 0.7
ConvenienceStores
Discounters
ForecourtRetailers
Hypermarkets 0.6 0.6 0.6 0.7 0.7 0.7
%retailvaluersp 2011 2012 2013 2014 2015 2016
Supermarkets
TraditionalGroceryRetailers 17.5 17.0 16.4 15.8 14.9 14.3
Food/drink/tobaccospecialists
IndependentSmallGrocers
OtherGroceryRetailers 17.5 17.0 16.4 15.8 14.9 14.3
NonGrocerySpecialists 46.9 47.8 48.1 48.3 48.5 48.4
ApparelandFootwearSpecialistRetailers 30.3 30.4 30.4 30.7 30.3 29.9
LeisureandPersonalGoodsSpecialistRetailers 3.5 3.6 3.7 3.8 4.2 4.7
Sportsgoodsstores 3.3 3.4 3.6 3.7 4.1 4.6
OtherLeisureandPersonalGoodsSpecialistApparel 0.2 0.2 0.2 0.2 0.1 0.1
Retailers
OtherNonGroceryApparelandFootwearSpecialists 13.1 13.7 14.0 13.8 14.0 13.8
MixedRetailers 31.6 30.9 30.9 30.7 30.6 30.5
DepartmentStores 31.4 30.8 30.7 30.5 30.4 30.3
MassMerchandisers
VarietyStores 0.0 0.0 0.0 0.0 0.0 0.0
WarehouseClubs 0.2 0.1 0.1 0.1 0.1 0.1
NonStoreRetailing 3.5 3.7 4.0 4.5 5.3 6.0
DirectSelling 2.7 2.8 3.0 3.3 3.9 4.4
Homeshopping
InternetRetailing 0.7 0.9 1.0 1.2 1.4 1.7
Vending
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources

Table8DistributionofApparelandFootwearbyFormatandCategory:%Value2016
%retailvaluersp AP FW SW
StoreBasedRetailing 93.4 95.8 99.5
GroceryRetailers 16.1 11.4 0.0
ModernGroceryRetailers 0.7 0.7 0.0
ConvenienceStores 0.0 0.0 0.0
Discounters 0.0 0.0 0.0
ForecourtRetailers 0.0 0.0 0.0
Hypermarkets 0.7 0.7 0.0
Supermarkets 0.0 0.0 0.0
TraditionalGroceryRetailers 15.4 10.7 0.0
Food/drink/tobaccospecialists 0.0 0.0 0.0
IndependentSmallGrocers 0.0 0.0 0.0
OtherGroceryRetailers 15.4 10.7 0.0
NonGrocerySpecialists 45.3 59.3 85.4
ApparelandFootwearSpecialistRetailers 29.8 30.3 15.7
LeisureandPersonalGoodsSpecialistRetailers 2.9 11.1 69.8
Sportsgoodsstores 2.8 10.9 69.8
OtherLeisureandPersonalGoodsSpecialistApparelRetailers 0.1 0.2 0.0
OtherNonGroceryApparelandFootwearSpecialists 12.7 17.9 0.0
MixedRetailers 32.0 25.2 14.0
%retailvaluersp AP FW SW
DepartmentStores 31.9 25.0 14.0
MassMerchandisers 0.0 0.0 0.0
VarietyStores 0.0 0.0 0.0
WarehouseClubs 0.1 0.2 0.0
NonStoreRetailing 6.6 4.2 0.5
DirectSelling 4.9 2.5 0.5
Homeshopping 0.0 0.0 0.0
InternetRetailing 1.7 1.7 0.0
Vending 0.0 0.0 0.0
Total 100.0 100.0 100.0
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,tradeinterviews,tradesources
Key:AP=apparelFW=footwearSW=Sportswear

Table9ForecastSalesofApparelandFootwearbyCategory:Volume20162021
mnunits 2016 2017 2018 2019 2020 2021
Apparel 608.3 626.2 645.6 666.9 690.0 715.6
Footwear 156.1 166.1 177.3 188.4 200.2 212.5
ApparelandFootwear 764.4 792.3 823.0 855.3 890.2 928.1
Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources
Note:Sportswearvolumenotresearched

Table10ForecastSalesofApparelandFootwearbyCategory:Value20162021
PHPmillion 2016 2017 2018 2019 2020 2021
Apparel 356,747.9 372,475.1 389,192.8 406,949.4 425,839.2 445,936.2
Footwear 101,414.4 107,688.7 114,324.7 121,310.1 128,722.1 136,555.3
Sportswear 23,458.0 24,914.6 26,436.8 28,031.0 29,685.2 31,409.1
ApparelandFootwear 458,162.3 480,163.8 503,517.5 528,259.4 554,561.4 582,491.4
Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources

Table11ForecastSalesofApparelandFootwearbyCategory:%VolumeGrowth20162021
%volumegrowth 2016/17 201621CAGR 2016/21Total
Apparel 2.9 3.3 17.6
Footwear 6.4 6.4 36.2
ApparelandFootwear 3.6 4.0 21.4
Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources
Note:Sportswearvolumenotresearched

Table12ForecastSalesofApparelandFootwearbyCategory:%ValueGrowth20162021
%constantvaluegrowth 2016/2017 201621CAGR 2016/21TOTAL
Apparel 4.4 4.6 25.0
Footwear 6.2 6.1 34.7
Sportswear 6.2 6.0 33.9
ApparelandFootwear 4.8 4.9 27.1
Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources

DEFINITIONS

Otherterminology:
GBOreferstoglobalbrandowner,whichistheultimateownerofabrand.

NBOreferstonationalbrandowner,whichisthecompanylicensedtodistributeabrandonbehalf
ofaGBO.TheNBOmaybeasubsidiaryofaGBOoritmaybeacompletelyseparatecompany.Share
tablesatbothGBOandatNBOlevelareprovidedinthereport.Referencetosharesinthereport
analysisisatNBOlevel.
SOURCES

Sourcesusedduringtheresearchincludedthefollowing:

Summary1ResearchSources
OfficialSources DepartmentofTrade&Industry
MarikinaCity
NationalStatisticsOffice
PhilippineStatisticsAuthority
Securities&ExchangeCommission
TradeAssociations Children'sApparelAssociationofthePhils
ForeignBuyersAssociationofthePhilippines
GarmentBusinessAssociationofthePhilippines
GarmentManufacturersAssociationofthePhilippines
PhilippineFootwearFederationInc
PhilippineRetailersAssociation
TextileMillsAssociationofthePhilippines(TMAP)
TextileProducers'AssociationofthePhilippines
TradePress ABSCBNNews
BusinessWorldOnline
Forbes
Source:EuromonitorInternational

Euromonitor International 2017