Textile Sector in Brazil

?

Marketing III task

Pedro Luiz Ximenes Rossari

Sector definition, competidor analysis and consumer identification

Luxury/premium clothes

São Paulo

2011

CSOS3A R.A: 11010712

Index

Sector definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 1

Competidors identification . . . . . . . . . . . . . . . . . . . . . . . . . pg. 4

Consumer identification . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 6

Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 7

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 7

Sector definition

Luxury/premium clothes

As a first thought we may see clothes as something quite simple, something that is a part of the textile sector (or of the apparel sector, to be more specific) and that is responsible for satisfying our most basic and common needs. As a matter of fact, they are, indeed, responsible for heating us, for protecting our body against a plethora of events and possible ills, among other things. However, their importance is also known to be much more deeper, as it is also true that we buy clothes not only because of their physical benefits, but also because we need to satisfy our psychological and our individual necessities. And this is something that is special true when we come to think about a more specific segment of the clothing sector, the luxury/premium apparel segment.

We buy or clothes (specially the expensive ones) not only because of their quality, or their price; we buy our clothes based on the brands we are friendly to and on the image we want to pass. Much more than Polo's and Dress shirts, brands like Lacoste, Brooksfield and Tommy Hilfiger (among others) try to sell self-steem, confidence, respect. The types of clothes you use, the combinations you make with them, the brands to wich they belong, are all factors that are supposed to be ways to communicate who you are and to wich groups you intend to belong.

Therefore, instead of saying that the luxury/premium clothes acts in the "Safety" level, we can describle the main need they fulfill as being located in the "Love/Belonging" and in the "Esteem" level. Wearing your favourite clothes/brands give you confidence, self-steem, make you respected, and as a consequence, it makes you feel that you are part of a group.

Market analysis

In order to better understand the luxury market, its attractiveness and its disadvantages, we must first understand wich are the strong and the weak points of the textile and of the apparel sector.

Some explanations about the textile sector are required:

Basically, the sector is splited into four major groups:

Spinning (production of wires, etc);

Weaving and knitting (production of woven, tissues, etc);

"Aviamento" (production of zipers, etc);

Apparel (production of clothes, etc).

For "teaching" purposes the data that is showed are only related to textile sector (in general), and tend to focus mainly in the apparel sector.

Nowadays, Brasil counts with approximately 30.000 companies in the textile sector; since the year of 1985 the number of companies acting in this sector have increased approximately 140%, with a more concentrated growth in the south, in the midwest