Textile Sector in BrazilTextile Sector in BrazilMarketing III taskPedro Luiz Ximenes RossariSector definition, competidor analysis and consumer identificationLuxury/premium clothesSão PauloCSOS3A R.A: 11010712IndexSector definitionLuxury/premium clothesAs 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 Polos 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 analysisIn 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
Many of the textile industry is considered a ‘dynamic-active’ sector by the Ministry of Rural Development and Trade, but in recent years the official definition of this term has changed. For instance the main part is the textile sector, but also there are many other sub-sector categories which are related to the textile sector, such as:Sale of yarn, lace, clothing and other materials from textile sectorAbandonation of fabric from factories for clothing from the textile sector and related.Manufacturing of fabrics and thread for fabric production from the textile sector is only carried on during the period from 1987 to 2016, and is done by domestic suppliers of those fabrics and thread only. However, in these situations, there is increased activity by both the domestic and the overseas industry. It has been suggested that the ‘weaving sector’ should not be treated as a “synthetic manufacturing sector” but instead as a global body, a part of which is still mainly exported, such as cotton.Sale for fabrics, thread and other materials from the textile sector to the end of 2015 was reported in the final budget report of the Ministry of Agriculture, Fisheries and Climate Change, on the occasion of the 25th of October. It showed that the export of fabric to the textile sector increased by 60.6%. (Source)But even with increase in fabric sales, the garment sector remained in a state of decline, and the garment industry increased in cost.The total costs of textile garment production to end consumers was Rs.1,900 crore. The cost by vendors of fabrics in the whole of 2015 to the third and third quarters of 2016 was Rs.1,063 crore. Moreover, on January 27, 2016, the Ministry of Agriculture, Fisheries and Climate Change (MoD) decided to allocate money to manufacture cotton and cotton-based products in the textile sector from October 2015 till January 2016. This is due to the fact that cotton production in the whole of 2017 will be up by 14.46% under those numbers.A third of the textile retail prices are of cotton and cotton-based products (a category which is mainly imported), thus it comes along for the list of the lowest prices. The cost of cotton production is in the hands of the producer, since it is mainly from the consumers, who import the products.As for cost of production of garments, it is in the possession of the supplier and on all the official occasions in the country, not the retail buyers of fabric. Sustainability for textile products in general is also taking a step in order to reduce the number of poor and marginalised segments. In addition, the Ministry of Rural