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Tiffany Atwood

2/28/17
Apparel
Project 1 Paper
Profile of U.S. Marketplace for Apparel Mens Cottons Shirts
Cotton Shirts
The cotton shirt is usually considered a wardrobe necessity; cotton shirts is an ever expanding
market in the US. Recent manufacturing startups, advertising campaigns, collaborations between
brands and retail, and product extensions are challenging competition, and this product category
offers the opportunity to improve on the basics through innovations.
Trading Partners and Imports of Mens Cotton Shirts in US
The data in Table 1 shows US General Imports of mens cotton shirts in US Dollars from the
year 2011 till the year 2015. Figures 1 summarizes it for each country, based on the year.

US Imports in US Dollars
Country 2011 2012 2013 2014 2015
World 2,980,642,183 2868220967 3068185083 3136529622 3104808999
_ASEAN 676688340 662765193 715369087 723489064 740554538
Bangladesh 549420332 545782227 635951839 679039978 689637359
China 845934457 786555869 792877478 763065117 718559479
Vietnam 194722029 184585811 220582195 252963791 277834504
Indonesia 269809587 266890422 283663077 288625030 283524819

Table 1: US Imports in US Dollars; Data Category 340 (Source: OTEXA)

Figure 1: US Imports in US Dollars

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If you were to compare the US Imports in US Dollars over the years 2011 thru 2015. You can
tell that there has been growth and change in the mens cotton shirts industry. Comparing 2011
thru 2012 there was some slight growth for Indonesia, who sales grew 1%; while China went
down 1%. So that tells me that Indonesias customer base grew and that Chinas customer base
has declined. During the five years, Bangladesh has had the largest growth in the category at
22% in 2011 to 25% in 2015. This can be contributed to their economic growth as a country; in
2013, Bangladesh has grown every year including 2013 by 6%. While China has had the largest
decline in this category at 33% in 2011 to 27% in 2015. According to an article on Agrimoney,
China has hit an all-time low in cotton production, it has been attributed in the decreasing cotton
price. China in 2014 passed subsidy reforms, which affected Chinas cotton price. Vietnam and
_ASEAN have stayed the same throughout the five years. Bangladesh is expected to beat China
as the number one importer of cotton in 2016 and 2017. One reason for that is China is suffering
from wage inflation, plus the government has put quotas and tariffs on cotton. Based on the
graph below, cotton consumption is on the rise, while production is going down. This could be a
logical explanation on why Bangladeshs cotton production is rising, and since they are not
dealing with issues like China, they have been to continue to grow instead of decline.
Bangladesh is also seeing a rise in cotton consumption, and it is expected to rise by 10%, it is
caused by a rise in demand from garment makers, and favorable government policies on cotton.

Graph 1: Global Cotton Production and Consumption 1


The data in Table 2 shows US General Imports of Mens Cotton Shirts in units from 2011 to
2015. Figures 2-2D summarizes it for each country by percentage, for each year.

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Report, S. (2017). Bangladesh poised to be biggest cotton importer. The Daily Star. Retrieved 23 March 2017,
from http://www.thedailystar.net/business/bangladesh-poised-be-biggest-cotton-importer-189913

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US Imports in Dozen
2011 2012 2013 2014 2015
World 33438465 32259748 36239685 35499444 36056893
Bangladesh 8705277 8845766 10857663 11144178 11487759
_ASEAN 7554820 7037864 7730991 7845121 8166701
China 9023474 8509237 9212528 8293614 7995646
Vietnam 2569631 2382257 2831253 3228819 3507677
Indonesia 3332113 3109702 3339206 3342601 3402523

Table 2: US Imports in units; Data Category 340 (Source: OTEXA)

Figure 2: US Imports in Dozens


If you were to compare the US Imports in US Dollars over the years 2011 thru 2015. You can
tell that there has been growth and change in the mens cotton shirts industry. Between 2011 thru
2015, Bangladesh has had a steady increase in exports for the United States. Whereas China has
had a steady decrease in exports for United States. The reason for Chinas slow decline in
exports is because of the low price of cotton, which has affected cotton production within China.
China has started auctioning off some of its cotton reserves as of 2016. With Chinas decline in
production, it has allowed Bangladesh to rise up and take over the Mens Cotton Shirts category.
Between 2013 thru 2014 Vietnams exports to the United States had increased by 2%. During
2011 thru 2012 Indonesia had a decrease in their exports to the United States by 1%, but has
stayed steady from 2012 thru 2015 at 10%.
The data in Table 3 shows the Price per Dozens of Mens Cotton Shirts per Country in units from
2011 to 2015.
2011 2012 2013 2014 2015
World $89.13 World 88.91 World 84.66 World 88.35 World 86.1
Bangladesh$63.11 Bangladesh 61.69 Bangladesh 58.57 Bangladesh 60.93 Bangladesh 60.03
_ASEAN 89.57 _ASEAN 94.17 _ASEAN 92.53 _ASEAN 92.22 _ASEAN 90.67
China 93.74 China 92.43 China 86.06 China 92 China 89.86
Vietnam 75.77 Vietnam 77.48 Vietnam 77.9 Vietnam 78.34 Vietnam 79.2
Indonesia 80.97 Indonesia 85.82 Indonesia 84.94 Indonesia 86.34 Indonesia 83.32

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Table 3: Price per Dozen

Exports
The top export destinations in the US are Canada at $241 billion, Mexico at $194 billion, China
at $134 billion, Japan at $67.5 billion, and Germany $61.6 billion. In the course of five years, US
exports has increased at an annualized rate of 8.5%, from $967 billion in 2009 to $1.45 trillion in
2014.
Consumption in US

Graph 2: Volume in million pieces2

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"Men's And Boy's Apparel - North America | Statista Market Forecast". Statista. N.p., 2017. Web. 7 Mar. 2017

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Graph 3: Average Volume per Capita in pieces3
Based on these graphs you see above; shirts have declined in volume from 2010 thru 2016. It is
expected to continue decline thru 2020. The biggest volume of shirts is expected to reach a peak
in 2017. These graphs show the consumption of shirts is higher than coats and jackets and suits,
but lower than jerseys, and trousers. By looking at these graphs, you look at the volume, and so
based on the volume of article you can determine the consumption of the clothing.
NAICS Codes for Cotton Shirts
Cotton shirts comes as part of Apparel. These are the different NAICS codes used for this
category of product in the US market 448110, 313110, 315220.
Production, Manufacturing and Supply
There are five different channels in the US where the production and supply is divided for Mens
Cotton Shirts.
1. Cut & Sew Apparel Contractors in the US: The cut and sew apparel contractor industry
compromises establishments that are commonly referred to as contractors, that are
primarily engaged in cutting and sewing materials owned by others for apparel.
2. Apparel Manufacturing in the US: The apparel manufacturing industry compromises of
the entrepreneurial functions that are involved in apparel manufacturing. Tasks that are
completed in this industry include buying raw materials, designing and preparing
samples, arranging for apparel to be made from raw materials and marketing finished
apparel.
3. Apparel Wholesaling in the US: In this industry companies purchase apparel from
manufacturers and they sell these products to retailers, with minimum or no further
development of the product. Many wholesalers of this industry undertake sales and
administrative activities, for example establishing relationships with manufacturers and
retailers, marketing, advertising, storage, and transportation of stock.
4. Fashion Retailers & Mens Clothing Stores: Retail stores make purchases from
wholesalers, or direct from manufacturers and they sell the garments directly to
consumers, generally without developing or changing the product any further.
Major Market Segmentation

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"Men's And Boy's Apparel - North America | Statista Market Forecast". Statista. N.p., 2017. Web. 7 Mar. 2017

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Graph 4: Pie Chart of Mens Marketing Segmentation by Age4
The pie chart in graph 3 describes the market segmentation by age for the product category in
2014. Men who are 55-66 have the most disposable income, and since mens cotton shirts are a
staple item; this category is the most likely candidate for buying mens cotton shirts. Every age
group actually buys cotton shirts, but every age group has a different disposable income, and on
how they take care for the shirt; which can sometimes extend the longevity of the shirt itself.
Based on the market segmentation, men who of the ages 46-55 are the least populated.
Important facts about the US Marketplace
1. US Imports of Textiles & Clothing Estimated $105 Billion
US imports of textiles and clothing is estimated at $105 Billion. With this estimate we
can see that the United States brings more goods in through imports, than exports. Based
on this the United creates less products to trade and export versus other economic super
powers, mainly China.
2. US Exports of Textiles & Clothing Estimated $22.9 Billion
US exports of textiles and clothing is estimated at $22.9 Billion. With this estimate we
can see that the United States send less goods in through exports, than imports. If we
were to compare this to the other economic super power China, who exports more goods
versus imports; the United States is doing poorly. That means that the United States is
spending more money than making money based on their cost of imports and exports.
3. Sustainability
Cotton sustainability is a continuing process, that manufacturers, farmers, and scientists
are continuing to work on. Cotton has the ability to absorb water, heat and sound. As a
result of this, it is used as the main component in the sustainable wall finish from JaDecor
Natural Wallcovering. JaDecor Natural Wallcovering is a company that specializes in
cotton wall finishes. The product is used in used in both residential and commercial
applications. This has allowed cotton dyes to be more sustainable, and safer for the
environment.

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(2017). Retrieved 8 March 2017, from http://www.experian.co.uk/assets/business-
strategies/brochures/fashion_segments_handbook_males_small[1].pdf

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4. Technological Innovation
In 2012, Cotton Inc. collaborated with DuPont, to create a product that makes the dying
process eco-friendlier. With that collaboration, DuPont PrimaGreen was created. Prima
Green products offer an alternative to the chemicals that are typically used in textile
manufacturing. Prima Green uses bio-based enzymes combined eliminates the need for
abrasive chemicals, while reducing water consumption. This has allowed cotton dyes to
be more sustainable, and safer for the environment.
The Future of the Cotton Shirts Industry
1. Forecast
Cotton is expected to be 66.00 Cents/lb. by 2017. Cotton is expected to trade at 74.60
Cents/lb. at the end of this quarter; based on Trading Economics global macro models
and analysts expectations. The quarter ends in March.

Graph 5: Cotton Prices per Pound Forecast 2008-20175


2. Niche Products to be successful
With the rise of obesity in America, many retailers are beginning to cater to the plus size
market. The plus size market is continuing to grow, as of 2014 the plus size market
revenue went up 5% from the previous year. So with the rise of the plus size, mainly in
womenswear; there is a chance that companies who are doing poorly, or are startup
companies they can create a niche market for the plus size menswear market which is
also expected to grow. In 2014, the menswear market outpaced the womenswear market
in terms of growth for a second year in a row. So with the menswear market continuing to
grow, it creates a new opportunity to create a new niche market, the plus size man.
3. Globalization of brands
The menswear industry is highly fragmented and varied. In the industry there are only a
small number of operators, which operate and run national retail stores, while having an
international catalog, and online operations at the same time. IBISWorld estimates that
the menswear market will grow by .1% in retail, but will grow by 18.6% in e-commerce.

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"Cotton Forecast 2016-2020". Tradingeconomics.com. N.p., 2017. Web. 7 Mar. 2017.

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Research shows cotton industry more sustainable and productive. (2014, July 18).
Retrieved March 1, 2017, from http://www.abc.net.au/news/2014-07-18/cotton-
gains/5606434
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https://www.fairtrade.net/fileadmin/user_upload/content/2009/resources/2015-
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Zillman, C. (2017). Undressing todays man: Mens fashion enters a renaissance.
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mens-fashion-enters-a-renaissance/
Wang, L. (2014, June 17). No signs of slowing in the global menswear market. Retrieved
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https://www.businessoffashion.com/articles/fashion-show-review/signs-slowing-global-
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Agrimoney. China to lead drop in world cotton output in 2015-16. Retrieved March 2,
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