A Study of the Swimwear Industry in North America Essays and Papers

This essay has a total of 10697 words and 65 pages.

A Study of the Swimwear Industry in North America

Table of Contents

Ø Introduction
q Mission 2
q Briefing 2
Ø Histori cal Timeline of the Bathing Suit
Ø Secondary Data Search
q The North American Swimwear Market 4
q Influentia l Factors of Demand 5
q Swi mwear Industry 9
q Brands 10
q Manufacturing 13
q Distribution 13
q Retai ling and Advertising 16
q External Factors 17
Ø Strategic Assessment
q Changes in the Past Five Years 18
Ø Fu ture
q In creasing Obesity 20
q Increasing R&D 20
q Sun bathing-Related Health Concerns 21
Ø P rimary Research
q Interview 22
q Independent Local Market Study 23
Ø Re commendations 25
Ø Limitations 26
Ø Conclu sions 26
Ø A ppendix 27
I ntroduction

Mis sion
The intent of this study is to become well informed of the North American swimwear
industry, to discover opportunities that have not been exploited, and even try to
determine where the industry is heading. This information is very beneficial to one of
our group members, Andree-Anne, who presently designs her own swimsuits and is very
interested in opening a new type of retail store. She sees a potential in creating
swimwear that blends element of fashion and competition to extend its utility, durability,
and comfort. The new retail concept would also have a made-to-fit order policy to provide
the best fit for every woman’s body type. This industry study will hopefully give her
greater insights and help bring these ideas to reality.

We begin with the history of the swimsuit industry, followed by an extensive secondary
data search. This section contains the bulk of the factual findings, such as sales,
demand factors, and channel conditions. It includes a detailed analysis of the major
competitors, how swimwear is branded, distribution channels, and promotional efforts.
This section gives an overview of all the internal and external factors and how they
translate to the industry’s strengths, weaknesses, opportunities, and threats.

A strategic analysis examines the past and current trends in the swimsuit industry, while
the Future section examines research and development, obesity and the potential harm of UV

We then include all primary research, such as interviews with Yves Lepine, and an independent local market study.

Finally, we conclude with recommendations and limitations of this study.

Hist orical Timeline of the Bathing Suit
· 300 B.C: First recorded use of bathing apparel was in Greece. Togas were worn when
swimming and bathing reached the height of its popularity in the ancient world.

· During the 18th century men and women began to engage in public bathing in French and
English spas, though a typical swim was very brief. Suits were cut to preserve modesty and
resembled a "bathing gown." Theses first suits were far from practical or comfortable;
ladies went as far as sewing lead weights into the hem of the "bathing gown" to prevent
the dress from floating up and exposing her legs.

· The first swimsuits consisted of bloomers and black stockings. Around 1855, drawers
were added to prevent the problem of exposure. Women still refrained from swimming too
much, as it was not generally accepted until the end of the 19th century, when swimming
had become an intercollegiate and Olympic sport.

· The beginning of the twentieth century marked a new daring era in swimwear for women. In
1907, Australian Annette Kellerman caused quite a stir, when she was arrested in the
United States for wearing a loose, one piece suit that became the generally accepted
swimsuit for women by 1910. After that swimsuits began the trend of becoming lighter,
briefer and more stylish. During the "Roaring 20's" an appreciation for recreation and
leisure time was increasing dramatically. In May of 1916, the first annual "Bathing Suit
Day" was held at Madison Square Garden in New York City. Swimwear was now becoming
skimpier, slimmer, sexier, and very athletic.

· The 20th Century began the swimwear revolution, brought about by the major increase in
recreational sports oriented activities and the influence of the exotic cuts of French

· The 1930's lead to swimwear garments that were functional, sleek, and streamlined. The
1934 swimsuit hugged the body and was constructed to allow shoulder straps to be lowered
for tanning. By the end of the decade, molded-fit suits were introduced, featuring the
"nude look." The "panel suit" was also popular, retaining a small skirt.

· The 1940's had bathing beauties, pin-up girls, glamour girls wearing high heels, and
jewelry to accessorize their bathing attire. The most exciting was on July 5, 1946,
designer Louis Reard introduced a 2-piece creation called the "bikini" at a fashion show
in Paris. The suit was named after a few small South Pacific islands called Bikini Atoll.
It was proclaimed to be the smallest suit ever and helped comply with the war fabric

· In 1951, bikinis, perhaps seen as an unfair advantage to the wearer, are banned from
beauty pageants after the Miss World Contest. The tasteful one-piece reigns supreme. As
late as 1959, a woman caught wearing a bikini on New York's Rockaway Beach could be fined

· The 1960's were a daring time. Rudi Gernrich came out with his monokini (the topless
swimsuit). In 1960, Brian Hyland sings "Itsy Bitsy Teenie Weenie Yellow Polka Dot Bikini,"
triggering a bikini-buying spree among American teens.

· In the 1970’s in Europe, Rio and St. Tropez produce the Tanga suit-- also called the
Thong, the string bikini or "dental floss."

· In 1983 Carrie Fisher, as Princess Leia, wears an ornate version of the bikini in
"Return of the Jedi.” When Reard, the bikini creator, died in 1984, the bikini made up
almost 20% of all swimwear sales in the United States and Canada.

Due to side effects of plastic surgery and implants, many women in the 1990's have
returned to suits with intricately engineered wires, silicone inserts and other fiberfill
push up devices. In 1993: the "sports bikini” in the form of a hugging halter-top design
becomes the rage, thanks to Volleyball queen Gabrielle Reece and MTV. In 1997, designer
John Galliano created a maillot made of satin and jewels, priced at $25,000.

Seco ndary Data Search

The North American Swimwear Market

General Sales Characteristics
The total North American swimwear market has experienced significant growth during the
past decade, and as of 1999 the American swimwear market was approximately $2.2 Billion.
Between 1993 and 1999, the total market had the following characteristics:

· The total market grew 37% in terms of sales.
· During the same time, it experienced an 18.1% growth in the number of units sold.
· This translates to an increase of 15.9% in the average unit price: from $16.65 to $19.3.
(refer to Appendix, Exhibit 1).

The total market can be divided into swimwear for sports apparel and logo (brand name).
Between 1993 and 1999, the swimwear for sports apparel market had the following

· A growth of 59.8% in terms of sales.
· An increase of 37% in the number of units sold.
· This translates to an increase of 16.2% in the average unit price: from $16.87 to $19.61.

While the logo market had the following characteristics:
· A growth of 164.6% in terms of sales, and almost doubling as a percentage of total sales: from 16.2% to 31.3%.
· An increase of 111.7% in the number of units sold.
· This translates to the greatest increase of 26.7% in the average unit price: from $15.22 to $19.29.
Gender Differences
There is a large disparity between the market size for men and women. Women spend much
more on swimwear than men due their higher participation in water activities, greater
quality requirements, but most importantly because of the hope of looking sexy and the
fear of looking saggy.

· Women outsell men 2 to 1 on a unit basis.
· In 1999, swimwear expenditures by women accounted for 78.1 % of total sales.

Although the women’s market is much larger than the men’s, and growing more quickly in
absolute terms, it is becoming smaller in term of percentages.

· The total market grew by 37% between 1993 and 1999, yet women’s expenditures decreased
as a percentage of the whole, from 80.3% to 78.1%.

· During the same time, the women’s market grew by $444 million, and the men’s by $166
million (refer to Appendix, Exhibit 2).

Household Income
Since swimwear is purchased for leisure activities that are related to disposable income,
swimwear expenditures vary greatly by household income.

· Between 1993 and 1999, swimwear purchases by all households earning under $70,000
decreased as a whole from 83.1% to 58.2% of total sales (see Appendix, Exhibit 1).

· This segment not only experienced a decrease as a percentage of total sales, but also an
actual decrease in absolute terms of $54 million.

· During the same time, only the spending by households earning over $70,000 increased,
from 16.9% to 41.8% of total sales.

As would be expected, swimwear sales increase as one goes further south in North America
(for our purpose this is only Canada and the US). However, swimsuit expenditures appear
to be quite uniform throughout all of North America.

· Between 1993 and 1999, only the North Central US experienced an increase of 4% as a
percentage of total sales, yet this gain was offset evenly by the other 4 regions.

· All regions account for 19% to 32% of total swimwear sales.

Influe ntial Factors of Demand
The market for swimwear within North America is influenced by such factors as tourism to
warm beach destinations, water sports and other water related activities.

Swimming and Other Related Activities
North American participation in water sports, such as swimming, water polo and diving, is
being increasingly adopted by individuals of all ages. In fact, as of 1998, swimming was
the fourth most popular sport in Canada.

· Approxima tely, 1,120,000 people over the age of 15 participated in swimming events in 1998.
· 61% of these individuals (approximately 688,000) are female.

Figures for North America also show the growing popularity of swimming as both a leisure
sport and a frequent means of exercise.

· In 1999, 57,900,00 North American participated in swimming activities.
· 3,800 ,000 were frequent participants of water sports, swimming at least 100 days out of the year.

The increasing popularity of swimming can be seen in the rise of many leagues throughout
North America. The official Canadian league, Swimming/Natation Canada, is the governing
body of competitive swimming.

· The league is comprised of 50,000 competitive swimmers, in more than 350 clubs.
· It also has over 75,000 recreational swimmers as members.

Gender and Age Considerations
As females represent a larger proportion of participation in water sports; swimsuit
manufacturers have provided them with a wider selection of suits than those available to
their male counterparts.

Throughout North America, female participation in swimming activities varies greatly according to age.
· In 1999, women between the ages of 35 and 44 represented the largest percentage of swimmers
· Girls between the ages of 7 and 11 followed this group closely.

Touris m
The tourism industry has been experiencing rapid changes throughout the past two decades.
Vacationers have more destinations to choose from and are planning vacations with more
frequency and variation.

· As of 1998, only 11% of adults preferred to relax at home while on vacation.
· 27% wanted to relax away from home
· 44% wanted to get away and do many things.

These vacationers increasingly prefer to take 2 or 3 shorter vacations to different
destinations rather than one long vacation. Instead of choosing between a weekend in the
mountains or one at the beach, they will do both. This translates into higher
expenditures on accessories for each trip experience; swimwear for beaches, skis for
mountain regions, camera lenses for eco-tourism, etc.

Since travel is closely related to people’s disposable income, a prolonged downturn in the
economy could cause North Americans to take fewer, shorter trips, and spend less.
However, according to new projections from the Travel Industry Association of America,
travel expenditures should continue to grow for at least the next two years. Expenditures
will not approach the 63% growth experienced between 1991 and 2000, but an annual growth
of rate of 5.5% will still keep destinations and travelers moving at a brisk pace.

Destinati ons
As of 1994, beaches were the most popular summer vacation destination for Americans,
according to the Travel Industry Association. It was the most common destination among
those aged between 25 to 34, and the second most popular for those over 65 years of age.

Total 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 Over 65
Ocean or Beach 31.1% 31.5% 38 .1% 28.2% 29.0% 34.2 % 23.1%
Mountain area 10.3% 12.7% 7.3 % 12.5% 7.6% 8.6% 12 .3%
Lake area 7.3% 3.8% 6.9% 10.6% 8.5% 6.8% 5.7%
City 16.3% 25.8% 1 4.9% 10.8% 13.4% 26. 1% 15.9%
State or National Park 7.9% 5.7% 7.9% 10.1% 10.3% 3.2% 5.1 %
Small town 15.3% 16.3% 13. 6% 13.8% 14.9% 10.9% 25.6%
Amusement Park 6.8% 4.2% 9.1% 9.8% 6.1% 4.1% 4.0%

Due to Canada’s geography and weather (and lack of data) it is difficult to approximate
the nature of trips made by Canadians within Canada. However, Canadians did make 17.6
million trips to the top 15 country destinations, 80% of them to the US. Categorizing
these 15 countries, and the top 15 US states, as beach or non-beach destinations provides
an approximation of the number of such trips (refer to Appendix, Exhibit 4, 5).

· Approximately 25% of all trips by Canadians were made to beach destinations
· 48% of all nights spent were at beach destinations.

Senior Tourism
According to a recently published research paper, 64% of adults over 50 consider
themselves to still be in good health and more than 75% of them equate tourism with
physical well being. Although seniors’ top destinations are small rural towns, beaches
are a very close second. But seniors have been re-defining retirement and how they want
to live it. The southern US has seen a boom in retirement communities, particularly those
near beaches in Florida. So while seniors don’t travel as much to the beach as do other
age groups, it is because so many of them live near or on the beach. This is encouraging
considering that seniors will represent the largest age group within North America in 10

The Cruise Industry
The cruise industry may be an indicator of changing vacation preferences. It competes with
other vacation destinations, such as traditional beach resorts, eco-tourism, lake resorts,
mountain regions, large cities and small rural areas. Cruises, especially those to the
Caribbean, do divert tourists away from traditional beach destinations, but their
increasing affordability is also drawing more tourists from other vacation destinations
who previously could not have afforded warm-weather destinations. Cruise is the fastest
growing major sector in the worldwide tourism industry.

· It has experienced an 8% annual growth since 1980, almost twice the overall growth of tourism.
· The North American market, including the Caribbean, is the largest one. In 1997 it had
a growth rate of 8.6% for a total of 5.05 million North American cruise passengers.

· The cruise industry is expected to increase its capacity by at least 50% by the year
2002, surpassing the number of land hotel rooms in the Caribbean.

The growth of this industry is in part due to its expansion out of the traditional upper
and upper-middle class customer base and into the middle class.

· Presently, the mass-market, contemporary and budget categories account for about 53% of passenger capacity.
· The upscale premium category accounts for another 36%.
· Over the past decade, the average age, from 56 to 44, and average income of cruise
passengers have fallen steadily, particularly as baby boomers have taken up cruising.

· Top managers of cruise companies agree that with the popularization of cruises within
younger tourists, the market for cruising is just beginning to develop.

These figures show that both Canadians and Americans have a strong attraction to the beach
and other warm-weather destinations. Beaches are already the favorite vacation
destination and with the rapid growth of the cruise industry they are becoming even more
affordable and popular. Although beaches are the second favorite vacation destination of
those 65 and over, their popularity will not decline dramatically as they start to become
the largest demographic group. They will prefer to travel to small country-inns rather
than beach destination, but many of them will need swimwear year round as they move to
warm, sunny, coastal Florida and other Sunbelt States. All this equates to a very good
outlook for swimwear demand through all age groups, whether it is high or low end,
tailored or mass-market.

The Swimwear Industry

The following section outlines the four segments that brands are categorized into. These
are just brand segments and therefore do not dictate the manufacturing, design or
ownership of the brands.

1) Designer Swimwear
This first category simply carries the label of a fashion designer in two possible ways:
1) The swimwear line can be an extension of the designer’s general apparel brand.
2) The swimwear can be the designer’s only line.

Designer swimwear is a very competitive market segment, as there are a vast number of
general apparel brands that extend their line to swimwear. This segment is positioned at
all premium price-points to keep in line with the general brand’s image.

2) Competitive Swimwear
This category of swimwear is comprised of manufacturers dedicated to providing athletes
with top-notch, high performance swimwear. These companies invest in R&D as well as
state-of-the-art technology to ensure that their products are innovative and up to par
with world-class athletic competition requirements.

3 ) Swimwear for the Average Swimmer
This third category is sold mostly to the mainstream consumer. This category is
affordable and used for leisure purposes. The suits can have several special design
features, but none that will inflate the price to a premium level. It consists of two
possible segments, just like designer swimwear:

1) Solely as a swimwear line.
2) Swimwear line shares its brand name with general apparel line.

4) Imported Swimwear
This final category is fully manufactured overseas in developing countries, and usually
sells for under $20. This category benefits from cheaper labor in the manufacturing
process but is of very poor quality, often not lasting more than a single season. They
are usually branded and sold in discount stores such as Zellers, K-Mart, and Wal-Mart and

Speedo was previously part of the Warnaco Group, a manufacturer of many apparel brands.
It was then purchased by one of Warnaco’s board of directors and is now, along with other
brands such as Catalina, Anne Cole and Cole of California, part of Authentic Fitness Corp.

Speedo is by far one of the most recognized brands in the swimsuit industry. It is best
known for its one-piece men’s racing suit that is now known as the “Speedo”. The brand
used to consist mostly of very simple swimsuits at first, but then started becoming more
fashion oriented, following the direction of the industry. It has extended its expertise
in the competitive swimwear market into the leisure swimming market. Speedo is also used
for branding complementary accessories for swimmers, such as goggles, swim caps,
kickboards, towels, sandals and bags. This branding move was permitted by the Authentic
Fitness Corp’s decision to open exclusive “Speedo Authentic Sports” stores nationwide.
These stores have seen great sales success and completely revitalized the brand.

Speedo started making a wide variety of swimsuits to meet the needs of all consumers. In
the past, Speedo’s target market was swimmers of all ages who participated in swimming as
a sport. As swimming became more of a recreational sport, they started targeting a much
wider market of swimmers.

At present, Speedo manufactures swimsuits to meet the needs of all swimmers, regardless of
their skill level. They manufacture performance swimsuits for lifeguarding, racing,
triathlons, general swimming and aquatic sports. It is perhaps the only company that
manufactures swimsuits for every need, every sport and ones that can fit almost anyone.

Speedo devotes a large part of its resources to research and development. Their new line
of swimsuits using the patent fabric called ‘fast skin’ is the latest and most advanced in
performance swimsuits. The new fabric is based on a shark’s skin that reduces frictional
drag and allows the body to slip through water more smoothly. New test methods have been
conducted worldwide with independent experts in fluid dynamics, biomechanics, textile
technology, garment engineering, sports science and swim coaching. Their testing involved
professional swimmers, such as Olympic champion Jenny Thompson of USA. This kind of
extensive research and development has given Speedo an edge over all other competition
swimsuit manufacturers. Its success as a brand has given Speedo 21% of the men’s swimwear
market and 61% of the competitive swimwear market.

Speedo products are available at:
· The majority of sports shops
· Through 74 of its own “Speedo Authentic Fitness” stores, along with other related apparel
· Leading department stores, like The Bay
· www.speedo.co m and other online stores. The online channel serves Speedo very well
because Speedo users are very brand loyal and know the fit very well. They do not have as
high a need to try-before-you-buy as for leisure swimwear.

Adida s
Adidas is a household name when it comes to sporting equipment. The brand is well known
for its footwear and sports apparel, and sponsoring a number of world-renowned sports
teams and athletes. Adidas primarily manufactures performance swimsuits for athletes and
general swimmers, and full-body suits for high-performance swimming needs. The product
line also includes swimming accessories.

Adid as swimsuits are available in all major sports shops, department stores and other
retail channels that carry the brand’s apparel. Adidas has an online shop for Internet
orders and they can be found on a number of other online stores.

Nike is perhaps the most valuable brand name in the sports industry. Nike’s Swoosh label
dominates the market of almost every sport in the world. It manufactures apparel,
footwear and equipment.

However swimming is one of the few sports that Nike has not yet been able to leave its
mark on. It first entered the competitive swimsuit market in 1993 but was a complete
failure. Since then, it has again entered the market, this time along with Jantzen, the
industry’s second largest manufacturer. Jantzen is the manufacturer while Nike only
provides the brand name. Nike swimsuits are found in sports shops and online stores that
carry its products.

Shan is a Montreal based company that specializes in the design of swimsuits, coordinated
garments and beach accessories for men and women. Established in the high-end design and
high value-added market, Shan collections are recognized throughout North America and
Europe for their high quality and style. Aside from being sold in Shan stores, its
products are also available in reputable retail outlets such as Neiman Marcus and

San Francisco Maillots
San Francisco Maillots is Quebec’s premier retailer of sportswear and active wear. Aside
from an in-house collection, the stores feature some of the best names in swimwear that
Quebec and the world have to offer. In 1999, the company acquired 37 Bikini Village
stores, bringing the total number of its retail outlets to 59. The company expects to open
an additional 10 Bikini Village stores in Ontario, which would position it as the national
leader in swimwear retailing in Canada.

In 1983, Baltex opened its doors for business in Montreal. As the company grew, Baltex
moved to larger premises and began distributing its swimsuits to most department stores
and specialty boutiques in Canada. On the strength of its Canadian success, Baltex
expanded into the United States. Today, most North
American retailers carry its products, as the company has become one of the fifth largest
swimwear manufacturers in North America, with over 500 points of sale in Canada and about
4000 in the U.S. In fact, almost 70% of the company’s total sales are exports to the
United States. Baltex currently holds approximately 7% of the U.S. swimwear market. As
demand for its products continues to increase, Baltex has begun to modernize and
computerize its manufacturing facilities to maintain the highest quality standards, even
with volume production. A new laboratory ensures that fabrics comply with strict
standards. In 2000, Baltex produced over 7 million pieces of swimwear which sold in
numerous retail outlets for $40-$80.

Designer Swimwear
There are a vast number of designer labels in the clothing and apparel industry all around
the world, many of them manufacturing swimsuits. One of the most popular is Calvin Klein
(CK). CK makes a variety of swimsuits aimed towards the needs of women. They make
performance as well as fashion swimsuits but their main concentration is on fashion

Other big names in the designer swimsuit market include:
-Anne Cole -Liz Claiborne
-Cole of California -Ralph Lauren
-Anne Klein -Polo Sport RLX
-Baltex -Shan
-Cazimi -Christina
-Nautica -San Francisco Maillots

These designers produce mainly fashionable swimwear that keeps in line with the general
brand’s image in terms of price, quality and distribution. Only a few of these designer
labels have swimwear that can be worn for athletic activities.

· Designer swimwear is premium priced to keep in line with the brand’s image and
reputation, ranging in price from $60 to $90 USD.

· Designer swimsuits are available at department stores that carry the same brand’s
general apparel, as well as specialty swimwear stores like “Bikini Village”.

· They can also be bought online from stores that sell the same labels.

Producing swimwear to be sold at the final retail store requires three main elements;
design, manufacturing, and branding. These can be fully done in-house or outsourced
depending on the company’s size and capabilities. Large and popular brands may have the
resources to perform all three steps themselves, but the plethora of small, local brands
do not have the expertise, financing or assets to design and manufacture their own
swimwear lines.

These smaller brands, which dot the entire country and are most common in California, buy
their designs from other companies, whether the manufacturers or other larger brands. The
purchased design is then altered in terms of fabrics and patterns to give the brand its
differentiation. The final design is then manufactured domestically or overseas depending
on quality considerations. There, the swimwear is branded and shipped to the retail

Manufacturers vary greatly in their production types and output quality. They may
specialize in strictly producing swimwear or a variety of apparel lines, from nightgowns,
to socks, to swimwear. This breadth of production, the level of automation and skilled
labor all have a large impact on the manufacturer’s output quality and dependability.
Compared to overseas manufacturers, domestic manufacturers produce higher quality swimwear
because they use less manual labor and invest heavily in streamlining operations through
automation. The qualities of stitching, and general durability are much higher than that
of overseas swimwear, but also cost more.

Because the manufacturing process is so asset-intensive and requires expertise much
different from that of retailing, most brands, whether large or small, tend to outsource
production. In this way they benefit from the manufacturers’ economies of scale,
expertise, and distribution services. Although larger brands may have the financial
capabilities of integrating the manufacturing process, they still lack the expertise. For
this reason, only very few large brands do their own manufacturing, yet most of them do
their own designing. This puts the manufacturer in a position where they are the sole
supplier of the brand, of many brands.

Regardles s of price or quality considerations, all swimwear is branded to benefit from
image, awareness and recognition. They may be independent of each other, or owned
collectively by a single company, have original and exclusive designs or be exact copycats
of other brands.

Swimwear, like clothing, is sold through seven main retail channels;
· Departm ent Stores
· Discount Stores
· Women’s Apparel Stores
· Women’s Independent Stores
· Specialty Stores
· Outlet Stores
· Direct; Online Stores and Catalogues

Althou gh swimwear is sold online, it only accounts for less than 2% of total sales. This
value is insignificant compared to the traditional retail channel, especially since it has
been declining for the past 6 years. This is probably due to most swimwear being
purchased for an appropriate fit, as much as for design. Online ordering does not allow
the consumer to try on several models as they would in a traditional retail store. The
online channel also presents retailers the problem of returned orders and health concerns.
Returned swimwear cannot be re-sold by law due to the uncertainty of having been in
direct contact with the skin and sanitary reasons related to this issue. This has
actually created unforeseen inventory problems and significant financial inefficiencies.
There are ideas being developed to solve this problem, such as adhesive covers that
protect the swimwear from direct skin contact, and can be replaced when returned.

Percent age of Total Sa les
Units Dollars %Dollar/%Unit Under $20 $20-$39.99 Over $40
Department 36.3 % 38.8% 1.07 19.8% 41.2% 39.9%
Discoun t 28.8% 16.4% 0.57 68.9% 29.3% 5.3%
Wo men's Apparel 15.5% 20.0% 1.29 3.4% 14.6% 24. 0%
Women's Independent 7.1% 10. 4% 1.46 2.2% 4.9% 1 3.6%
Other Specialty 2.5% 3.9% 1.56 0.0% 1.3% 5.4%
Other Outlets 9.8% 10.5% 1 .07 5.7% 8.7% 11.8%
Total 100% 100% T otal 100% 100% 100%

Catalogues face the same try-before-you-buy problems as online stores but are more
frequently used. This channel, representing 10% of total swimwear sales in 1999, is taking
considerable market share from department and women’s apparel stores.

Department Stores
· Have the highest sales in terms of units and dollars, but not the highest average unit value.
· 30% of their unit sales are over $50.
· Only 1% of their unit sales are under $10.

With profit margins for swimwear at about 60%, compared to 30-40% for general apparel,
swimwear was the largest profit maker for department stores. But under pressure from
catalogues and brand names at discount stores, margins at department stores are now
30-35%. They are also starting to discount swimwear earlier in the year, providing an
explanation for why almost 60% of all swimwear is bought on sale. This discounting by
department stores puts great pressure on the manufacturer to lower prices and offer other
incentives. Department stores can charge large stocking and exclusivity fees due to the
sheer numbers of brands and stiff competition for floor space.

Discount stores
· Have the lowest average unit value, almost half of the next highest retail channel.
· Represent almost 70% of all under $20 unit sales.
· Only 5.3% of over $40 unit sales.
· 70% of their unit sales are between $10 and $30.

Discount stores have been eroding market share away from department stores with the
introduction of house-owned brands and exclusive contracts with premium brands.

· K-Mart has seen great success in the launch of its Cathy Ireland line of women’s
swimwear, capitalizing on her Sports Illustrated modeling career and likable personality.

· Target has recently purchased the Mossimo line of premium sports apparel, including
swimwear. The brand had a strong image but suffered financially from rapid over-expansion
and was rescued from bankruptcy.

· The Warnaco group has exclusively introduced Catalina, the chaste swimsuit of Miss
America, to Wal-Mart. This strategic move recharged the brand’s sales, which had been
slumping at department stores.

Special ty stores
· Only sell 5.4% of all over $40 unit sales, yet this is a significant amount considering
they are less numerous and sell less volume than discount stores.

· Have the highest average unit price.
· 54% of their unit sales are over $50.
· Only 6% of their unit sales are under $20.
· Specialty stores sell almost exclusively swimwear and other related accessories.

Wo men’s apparel stores
· Sell a quarter of all over $40 units, and one sixth of $20-$39 units.

Continues for 33 more pages >>

  • All Quiet On the Western Front Report
    All Quiet On the Western Front Report BARRON\'S BOOK NOTES ERICH MARIA REMARQUE\'S ALL QUIET ON THE WESTERN FRONT ^^^^^^^^^^ERICH MARIA REMARQUE: THE AUTHOR AND HIS TIMES Born Erich Paul Remark on June 22, 1898, he grew up in a Roman Catholic family in Osnabruck in the province of Westphalia, Germany--a city in the northwest part of what is now West Germany. He adored his mother, Anna Maria, but was never close to his father, Peter. The First World War effectively shut him off from his sisters,
  • Great GatsbyA Moral Issue
    Great GatsbyA Moral Issue The Great Gatsby: A moral issue The Roaring Twenties was a time of parties and illegal practices; it was a time of change. This change affected society as a whole- both how the people viewed their lives as well as the way they viewed the importance of morality. Before the Roaring Twenties the American people were very traditional in their values. Their values included simple things such as being true to your spouse, raising your family with love and attention and earnin
  • Breast Impants
    Breast Impants Breast Implants I. Should breast implants be concidered dangerous or are they safe for women to use? Small-breasted women in America say that they feel inferior or unfeminine in a culture where breast size is a major issue. Popular fashion models today are usually thin,but large-breasted,espec ially those who model lingerie,evening wear and swimsuits< /span>. With American culture seeming to equate cleavage with sexiness,it is no wonder that some smaller-breasted women doubt their attracti
  • Public Nudity
    Public Nudity Recently, people have showed concern about the fact that women are allowed to roam around topless in the streets of Toronto, and there is no question that some people find public nudity offensive. However, whether people should be offended is debatable; their reaction is often closer to confusion or embarrassment. The human body deserves to be shown and respected both for its beauty and its so-called “imperfections”. In the appropriate places and situations, public nudity can be co
  • Comparison of the ap with society
    comparison of the ap with society Comparison of The A&P with Society John Updike has succeeded in writing a very simple short story portraying society with conformists, the A&P, and idealists, such as Sammy. The story is merely five pages long, but is filled with symbolism that can be analyzed and written in the length of a novel. Society usually contains a government along with two types of people: conformists and idealists. The A&P in this case is representing society whereas every aspect of t
  • Nine Parts of Desire
    Nine Parts of Desire Islam is a religion that I have not learned much about before now. I knew that the women wore scarves covering their face, but I did not know why. I knew that Muslim’s celebrated Ramadan, but I did not know what that was. I have recently become more interested in learning about the Muslim religion because of a speech I heard in one of my other classes, and the book Nine Parts of Desire by Geraldine Brooks is a great insight into the world of Islam and into the lives of Musli
  • A Study of the Swimwear Industry in North America
    A Study of the Swimwear Industry in North America Table of Contents Page Ø Introduction q Mission 2 q Briefing 2 Ø Historical Timeline of the Bathing Suit Ø Secondary Data Search q The North American Swimwear Market 4 q Influential Factors of Demand 5 q Swimwear Industry 9 q Brands 10 q Manufacturing 13 q Distribution 13 q Retailing and Advertising 16 q External Factors 17 Ø Strategic Assessment q Changes in the Past Five Years 18 Ø Future q Increasing Obesity 20 q Increasing R&D 20 q Sunbathin
  • AP a critical analysis
    AP a critical analysis An examination of critical styles represented in John Updike’s A&P John Updike’s A&P provides numerous perspectives for critical interpretation. His descriptive metaphors and underlying sexual tones are just the tip of the iceberg. A gender analysis could be drawn from the initial outline of the story and Sammy’s chauvinism towards the female. Further reading opens up a formalist and biographical perspective to the critic. After several readings I began seeing the Marxist
  • The Biblical Antiquity and Prejudice towards Women
    The Biblical Antiquity and Prejudice towards Women When the Bible was written in the early years of civilization, society held a severe prejudice towards women. This prejudice is reflected in the written word of the Bible. While these sexist ways may have been accepted by society at that time, they are definitely not appropriate today. I find it unbelievable that women are “supposed to live” by the same discriminatory fashion they were about two thousand years ago. According to Lu Ann Bransby i
  • John Updikes A & P
    John Updikes A & P John Updike\'s A P Do you remember the grocery store chain A P? The letters stand for Atlantic and Pacific Tea Company, and the store used to be one of the most popular in the United States. The third person narrator of a story (or poem, play, or novel) is not the same person as the author. The narrator of this story is named Sammy, which is a kid\'s or teenager\'s name; what we call Sammy\'s voice, or his own particular way of thinking, comes through very clearly because he i
  • Anorexia And Bulimia
    Anorexia And Bulimia Anorexia and Bulimia: A Concise Overview As many as 20% of females in their teenage and young adult years suffer from anorexia nervosa or bulimia nervosa (Alexander-Mott, 4). Males are also afflicted by these eating disorders, but at a much lower rate, with a female to male ratio of six to one. Those with anorexia nervosa refuse to maintain a normal body weight by not eating and have an intense fear of gaining weight. People with bulimia nervosa go through periods of binge e
  • Miss California Essay
    Miss California Essay The Miss California, USA Seminar At the Miss California, USA seminar we were directed in how to apply makeup the correct way for stage lighting and also we had a number of evening gowns modeled so that we could know what is acceptable. We also had numerous swimsuits< /span> modeled for us by other delegates who I will be competing with. The person in charge of the USA pageant organization is Carolee Munger from San Luis Obispo, CA. She taught us how to present ourselves in the pres
  • Anorexia And Bulimia
    Anorexia And Bulimia Anorexia and Bulimia: A Concise Overview As many as 20% of females in their teenage and young adult years suffer from anorexia nervosa or bulimia nervosa (Alexander-Mott, 4). Males are also afflicted by these eating disorders, but at a much lower rate, with a female to male ratio of six to one. Those with anorexia nervosa refuse to maintain a normal body weight by not eating and have an intense fear of gaining weight. People with bulimia nervosa go through periods of binge e
  • 2Pac
    2Pac Search for: Advanced Search Parental Controls April 17, 2001 Book About a Horse CONNECT: Biz Cards Browser Chat Clubs Email/IM Message Boards People Search Personals Photos Videos WAP/SMS MORE » FIND: Downloads/FTP Jobs Maps MP3 Multimedia News Stocks Streaming Talk Radio Translate Weather Websites Yellow Pages MORE » SHOP: Auctions Books Cell Phones Classifieds Services Shopping MORE » Personalize Lycos My Lycos: Sign up | Log in - - - - - • My Investing • Build a Website - - - - -
  • The Knife
    The Knife It all started on a warm Saturday afternoon. My parents decided that we should go out on the boat that afternoon. So we changed into our swimsuits< /span>, got our beach towels, and finally piled into the van for the drive to the cabin. The cabin, where my grandparents live, is where we park our boat. Their house is about a mile from lock and dam fourteen on the Iowa side. My grandparents were away on a lustrous journey when we arrived. My dad went to fuel the boat, my mom loaded the boat with