APPAREL LOGISTICS Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Market is segmented by Service (Transportation, Forwarding, Warehousing, Distribution, and Inventory Management, and Other Value-added Services), and by Geography - Growth, Trends, and Forecast (2019-2024)

Market Snapshot

apparel logistics market
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific

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Market Overview

Apparel logistics caters to the supply chain needs of apparel manufacturers and retailers. From retailers to manufacturers, apparel supply chains compete strongly to provide latest trends and best customer experience. Apparel industry plays a pivotal role in developing a country’s economy in terms of revenue generation and creation of employment. Meanwhile, changing consumer expectations and fulfillment models are putting pressures on apparel businesses. With e-commerce reaching 10 percent of all U.S. retail sales in 2018, there is a need for speed and agility among apparel retailers. According to an industry survey, 73% of the top 100 retail brands now offer same-day or next-day shipping, as they also explore last-mile fulfillment models such as click-and-collect and locker pickup. With the U.S.-China tariff battle still steeping, global trade uncertainty is forcing apparel businesses to reexamine their sourcing and logistics strategies.

Starting from the purchase of material, to the quick movement of samples and quality control of production, right to the direct delivery of finished products to stores, logistics companies offer solutions for the entire logistics value chain of the fashion industry. The global apparel industry is extremely dynamic due to the ever-changing fashion trends. Due to the intense competition, apparel companies are implementing new technologies such as data analytics and AI. Additionally, these players also use proper software to forecast production and pricing to accurately cater to the growing demand. Some retailers has developed a fast-fashion business model that transfers products from design to stores in less than 2-3 weeks. With several companies adopting this kind of business model, there is a need for fashion logistics players to provide services that ensure fast replenishment of inventory. Since the implementation of efficient logistics service in the apparel industry ensures the quick availability of products at stores or retail outlets, the demand for textile logistics services is only expected to grow in the coming years.

The apparel industry has huge outsourcing operations that provide logistics players with huge opportunities in domestic and international operations making it a highly competitive industry. Any sort of disruption in the supply chain lead to a huge loss for the apparel company. To have a minimal impact on their supply chain, apparel companies usually prefer to outsource their operations to logistics players.

Scope of the Report

A complete background analysis of the global apparel logistics market, which includes an assessment of the sector and contribution of sector in the economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key goods flow statistics are covered in the report.

By Service
Transportation
Forwarding
Warehousing, Distribution, and Inventory Management
Other Value-added Services
Geography
Asia-Pacific
China
Japan
India
South Korea
Southeast Asia (Indonesia, Philippines, Thailand, Malaysia, Singapore, and Vietnam)
Rest of APAC
Americas
United States
Canada
Brazil
Mexico
Rest of Americas
Europe
United Kingdom
Germany
Italy
Russia
France
Rest of Europe
Middle East and Africa
Saudi Arabia
South Africa
Rest of MEA

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Key Market Trends

Growing Online Apparel Sales and Changing Consumer Behavior Demands Efficient Logistics Operations

As per the industry sources, in 2018, world apparel players has witnessed store downsizings and lesser retail growth. On the other hand, they experienced increase in sales due to digital market presence. This effect has fuelled changes in the approach of the market players and this is expected to continue in the coming years with more emphasis on the growth of e- commerce, mobile shopping and meeting ever rising expectations of personalization among customers.

While consumers frequently hit websites to compare prices and products, global online platforms plans to expand their fashion brand partnerships and develop additional engagement methods to stay competitive in the digital shopping space. To handle the growing online orders, third party logistics companies are absorbing millions of square feet of space and letting it out to consumer goods, ecommerce, manufacturing and apparel companies. In the past, CEVA Logistics, one of the world’s leading supply chain management companies, was awarded four ten-year contracts worth a total of USD 400m to provide warehousing, store deliveries, e-commerce fulfillment, international distribution and 4PL services to leading fashion retailers Coast, Karen Millen, Oasis and Warehouse. These new agreements represent significant progression into the e-commerce market for CEVA, which will undertake the co-ordination of around 1 million orders per annum for the four brands.

apparel logistics market

Asia-Pacific Leads the Global Apparel Logistics Market

As per the industry analysis, Asia-pacific region leads the current market studied and is also expected to be the fastest growing region. Sales of apparel items in emerging Asia-Pacific countries will continue to grow in 2019 while it is expected to decline in other major regions, including Europe, Middle East and Africa and Latin America. Further, the region’s fashion industry is ready to lead the way in both international growth and innovation. Consumer technology brands have long targeted online shoppers in markets such as Australia, Japan, and South Korea, but now brands in sectors such as apparel and beauty also are targeting the region. Hence, Brands will continue focusing on localization and catering to the millennial customer who is the key buyer of these products.

Global sports apparel and footwear brands like Nike and Adidas are ditching other regions and increasing their production in emerging Southeast Asian countries like Vietnam. This is a positive outlook for the transportation companies and other third-party logistics service providers. But, there exists some challenges also. According to Vietnam Textile and Apparel Association (VITAS), Apparel and textile firms across Vietnam are rapidly losing their competitiveness owing to higher logistic cost for exporting products. The cost involved in the logistics for garment and textile firms was nearly USD 2.79 billion in 2017, which is notably 9.1% of Vietnam’s total export turnover. High cost of transportation, surcharges at seaports as well as limited infrastructure of seaports have been cited as some of the major causes of companies losing competitiveness.

apparel logistics market

Competitive Landscape

The apparel logistics market is fairly fragmented in nature with the presence of large global players and small and medium sized local players with quite a few players who occupy the market share. Most of the global logistics players has a retail and apparel logistics division to meet the market needs and demand. Additionally, local players are increasingly enhancing their capabilities in terms of fleet size, service offerings, products handled, and technology. The surging e-commerce sales are creating opportunities as well as challenges to the logistics companies in terms of speed, delivery, etc. The global companies who have high capital and assets can invest in advanced storage spaces and fulfilment centers and can benefit from the above mentioned scenario. On the other hand, regional and local players are also coming up with better sector solutions to support the needs of the production companies as well as retailers.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Global Logistics Sector (Overview, LPI Scores, Key Freight Statistics, etc.)

    7. 4.7 Focus on Global Apparel Industry

    8. 4.8 Spotlight - Effect of E-commerce on Traditional Apparel Logistics Supply Chain

    9. 4.9 Review and Commentary on Return Logistics (Overview, Frequently Returned Products, Challenges in Comparison with Forwards Logistics, etc.)

    10. 4.10 Effect of Apparel Industry's Fast Replenishment Cycles on the Logistics Market

    11. 4.11 Spotlight on the Demand for Contract Logistics and Integrated Logistics*

    12. 4.12 *List not Exhaustive

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 Transportation

      2. 5.1.2 Forwarding

      3. 5.1.3 Warehousing, Distribution, and Inventory Management

      4. 5.1.4 Other Value-added Services

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 Japan

        3. 5.2.1.3 India

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Southeast Asia (Indonesia, Philippines, Thailand, Malaysia, Singapore, and Vietnam)

        6. 5.2.1.6 Rest of APAC

      2. 5.2.2 Americas

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Brazil

        4. 5.2.2.4 Mexico

        5. 5.2.2.5 Rest of Americas

      3. 5.2.3 Europe

        1. 5.2.3.1 United Kingdom

        2. 5.2.3.2 Germany

        3. 5.2.3.3 Italy

        4. 5.2.3.4 Russia

        5. 5.2.3.5 France

        6. 5.2.3.6 Rest of Europe

      4. 5.2.4 Middle East and Africa

        1. 5.2.4.1 Saudi Arabia

        2. 5.2.4.2 South Africa

        3. 5.2.4.3 Rest of MEA

  6. 6. KEY QUALITATIVE AND QUANTITATIVE INSIGHTS

    1. 6.1 By Supply Chain Process

      1. 6.1.1 Production Logistics

      2. 6.1.2 Sales Logistics

      3. 6.1.3 Reverse Logistics

    2. 6.2 By Nature of Service

      1. 6.2.1 Enterprise Logistics

      2. 6.2.2 Third-party Logistics

      3. 6.2.3 E-commerce logistics and Instant Delivery

  7. 7. INSIGHTS ON GLOBAL MAJOR FASHION RETAILERS (Company Overview, Product Portfolio, Logistics Partner, etc.)

    1. 7.1 Inditex (ZARA)

    2. 7.2 H&M

    3. 7.3 Fast Retailing Co., Ltd

    4. 7.4 Gap Inc.

    5. 7.5 Anta

    6. 7.6 L Brands, Inc.

    7. 7.7 PVH Corp

    8. 7.8 Ralph Lauren Corporation*

    9. 7.9 *List not Exhaustive

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Overview (Market Concentration, Major Players)

    2. 8.2 Company Profiles

      1. 8.2.1 Ceva Logistics

      2. 8.2.2 DB Schenker

      3. 8.2.3 Deutsche Post DHL Group

      4. 8.2.4 DSV

      5. 8.2.5 Hellmann Worldwide Logistics

      6. 8.2.6 Apparel Logistics Group, Inc.

      7. 8.2.7 Logwin AG

      8. 8.2.8 PVS Fulfillment-Service GmbH

      9. 8.2.9 Bollore Logistics

      10. 8.2.10 GAC Group

      11. 8.2.11 Nippon Express

      12. 8.2.12 Genex Logistics

      13. 8.2.13 Expeditors International of Washington, Inc.

      14. 8.2.14 Agility Logistics

      15. 8.2.15 BGROUP SRL*

      16. 8.2.16 *List not Exhaustive

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

  10. 10. APPENDIX

    1. 10.1 GDP Distribution, by Activity-Key Countries

    2. 10.2 Insights on Capital Flows-Key Countries

    3. 10.3 Economic Statistics Transport and Storage Sector, Contribution to Economy (Key Countries)

    4. 10.4 Global Apparel Statistics

    5. 10.5 Freight Statistics (by Mode, By Product Category, etc.)*

    6. 10.6 *List not Exhaustive

  11. 11. DISCLAIMER

**Subject to Availability

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Frequently Asked Questions

The Apparel Logistics Market market is studied from 2016 - 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Ceva Logistics, DB Schenker, Deutsche Post DHL Group, DSV, Hellmann Worldwide Logistics are the major companies operating in Apparel Logistics Market.

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