Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Thematic (Sector/Industry)

<h2>Headlines</h2><ul><li>Designer apparel and footwear (ready-to-wear) posts 2% value growth in 2016 to reach sales of JPY1,089.8 billion</li><li>Demand from the increasing number of foreign tourists remains relatively low compared to other luxury products</li><li>In 2016, women’s designer suits records the fastest growth at 7% in value terms</li><li>In 2015, global luxury brands continue to lead sales with Louis Vuitton ahead with a 12% category value share</li><li>Designer apparel and footwear (ready-to-wear) is expected to increase at a CAGR of 1% in value sales at constant 2016 prices over the forecast period to reach JPY1,171 billion in 2021</li></ul>

HeadlinesDesigner apparel and footwear (ready-to-wear) posts 2% value growth in 2016 to reach sales of JPY1,089.8 billionDemand from the increasing number of foreign tourists remains relatively low compared to other luxury productsIn 2016, women’s designer suits records the fastest growth at 7% in value termsIn 2015, global luxury brands continue to lead sales with Louis Vuitton ahead with a 12% category value shareDesigner apparel and footwear (ready-to-wear) is expected to increase at a CAGR of 1% in value sales at constant 2016 prices over the forecast period to reach JPY1,171 billion in 2021

Sector Capsule: Designer Apparel and Footwear (Ready-To-Wear) In Japan

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Equity Bottom-Up

<p>Luxury goods retailer <a href="https://www.smartkarma.com/entities/13644" target="_blank" data-smartkarma-citation="entities:13644:1">Coach Inc (COH US)</a> reported December quarter results on the morning of January 31st in New York. Revenue was bang in-line with consensus expectations, and Coach managed to beat EPS expectations slightly on cost control measures. Management guided FY17 (June) Revenue down slightly on weaker International growth, but maintained OP margin guidance. Although Coach's shares rallied on the results, we believe a close examination of the numbers shows that Asian demand for Coach…</p>

Luxury goods retailer Coach Inc (COH US) reported December quarter results on the morning of January 31st in New York. Revenue was bang in-line with consensus expectations, and Coach managed to beat EPS expectations slightly on cost control measures. Management guided FY17 (June) Revenue down slightly on weaker International growth, but maintained OP margin guidance. Although Coach's shares rallied on the results, we believe a close examination of the numbers shows that Asian demand for Coach…

Coach December Results: Negative Implications for Asian Luxury Retail & Chinese Tourist Spending

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

<p><strong>All Hail Caesar (Trump)!</strong> I still remember the time when Obama was elected President. Everyone was celebrating. Japan mentioned they had one city named Obama, and Indonesia was touting how he spent his childhood years there. Of course, Trump is anything but conventional, and neither was his inauguration. Jen here was watching the TV, and mentioned that there were protests in Mexico and Germany about his rise to power...hardly the way to welcome the world's most powerful man. At least, the people…</p>

All Hail Caesar (Trump)! I still remember the time when Obama was elected President. Everyone was celebrating. Japan mentioned they had one city named Obama, and Indonesia was touting how he spent his childhood years there. Of course, Trump is anything but conventional, and neither was his inauguration. Jen here was watching the TV, and mentioned that there were protests in Mexico and Germany about his rise to power...hardly the way to welcome the world's most powerful man. At least, the people…

<h2>Overview: probably more US-China tension ahead</h2><p>Throughout his campaign and in the weeks since the US election, President-elect Trump has shown he's not afraid to ruffle feathers in Beijing. Whether it's accepting a congratulatory phone call from Taiwan's President or posting inflammatory messages via Twitter, Trump's words and actions clearly signal a more contentious relationship between the US and China after Trump officially takes office in about a month. Chinese charges of price-fixing by US…</p>

Overview: probably more US-China tension aheadThroughout his campaign and in the weeks since the US election, President-elect Trump has shown he's not afraid to ruffle feathers in Beijing. Whether it's accepting a congratulatory phone call from Taiwan's President or posting inflammatory messages via Twitter, Trump's words and actions clearly signal a more contentious relationship between the US and China after Trump officially takes office in about a month. Chinese charges of price-fixing by US…

Trump-China Tension = 2012 'Senkaku' Boycotts Redux? Avoid US Consumer Plays Exposed To China

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

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<ul>
<li>
<strong>Russia:</strong> Trump presidency, likely lifting of western sanctions and a stabilizing economy boost prospects for Russia.</li>
<li>
<strong>Mexico:</strong> Fitch downgrades outlook to ‘negative; on concerns about growth and challenges to public finances.</li>
<li>
<strong>China:</strong> CPI of 2.3% was higher than expected but still below 3% target.</li>
</ul><p>The US Fed outlook for three rate hikes in 2017 is based on flawed assumptions.  They are expecting that the US economy in 2017 is similar to the back half of 2016.  We believe this is a flawed assumption as…</p>



Russia: Trump presidency, likely lifting of western sanctions and a stabilizing economy boost prospects for Russia.

Mexico: Fitch downgrades outlook to ‘negative; on concerns about growth and challenges to public finances.

China: CPI of 2.3% was higher than expected but still below 3% target.
The US Fed outlook for three rate hikes in 2017 is based on flawed assumptions.  They are expecting that the US economy in 2017 is similar to the back half of 2016.  We believe this is a flawed assumption as…

US Fed 2017 Rate Hike Outlook Based on Flawed Assumptions

United States

Skechers U.S.A., Inc. designs and markets branded contemporary casual, active, rugged, and lifestyle footwear for men, women, and children.  The Company sells its products to department stores and specialty retailers.  Skechers also sells its products internationally through distributors and directly to consumers through its own retail stores.

Ralph Lauren Corporation designs, markets, and distributes men's, women's and children's apparel, accessories, fragrances, and home furnishings. The Company's products are sold under a wide range of brands. Ralph Lauren's operations include wholesale, retail, and licensing.

Crocs, Inc. designs and manufactures shoes.  The Company produces soft, lightweight, non-marking, slip- and odor-resistant shoes made of closed-cell resin material.  Crocs manufactures men's, women's, and children's shoes and markets them to retail chains.

VF Corporation is an international apparel company. The Company owns a broad portfolio of brands in the jeanswear, outerwear, packs, footwear, sportswear and occupational apparel categories. VF Corp's products are marketed to consumers shopping in specialty stores, upscale and traditional department stores, national chains and mass merchants.

PVH Corp. designs, sources, manufactures, and markets men's, women's, and children's apparel and footwear.  The Company markets its products at a wholesale level through department store chains and directly to consumers through retail stores. PVH Corp offers attire that includes dress shirts, sportswear, neckwear, and footwear.

Levi Strauss & Co. manufactures and distributes apparels. The Company offers jeans, casual pants, tops, jackets, shirts, and other related products. Levi Strauss serves customers worldwide.

Capri Holdings Limited retails apparel. The Company offers fashion luxury women's and men's accessories, footwear, apparel, watches, jewelry, eyewear, and fragrance products, as well as provides delivery services. Capri Holdings serves customers worldwide.

Under Armour, Inc. develops, markets, and distributes branded performance products for men, women, and youth. The Company designs and sells a broad offering of apparel and accessories made of synthetic microfibers.

Samsonite International SA designs, manufactures, and distributes luggage. The Company's products include suitcases, garment bags, casual bags, business cases, clothing, shoes, and accessories. Samsonite also licenses their trademarks for use on products such as travel accessories, leather goods, handbags, clothing, and furniture.

Columbia Sportswear Company designs, manufactures, markets, and distributes active outdoor apparel.  The Company's products include outerwear, sportswear, rugged footwear, and related accessories.  Columbia's products are sold to specialty and department store retailers in the United States and other countries.

SRF Limited is a multi-business Indian multinational engaging in the manufacture of chemical based industrial intermediates. The Company has a business portfolio that encompasses technical textiles, chemicals, packaging films and engineering plastics.

Page Industries Limited develops, produces, and distributes branded underwear for men, women, and children in India and Sri Lanka.

Li Ning Company Limited researches, designs, manufactures, distributes, and retails sports footwear, apparel and accessories for sport and leisure use.

Bosideng International Holdings Limited develops down apparel products in the Peoples Republic of China. The Company's products include down jackets, vests, and pants which it offers through retail outlets located in multiple cities.

Bosideng International Holdings (3998 HK)

Shenzhou International Group Holdings Ltd manufactures and processes textiles.  The Company produces, dyes, finishes, prints, embroiders, cuts, and sews knitwear.

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

Brunello Cucinelli SpA is a luxury fashion company, known for its cashmere products as well as exclusive brands.  The Company designs, manufactures, and distributes clothing and accessories globally for men and women.

Puma SE designs, manufactures, and sells sporting goods and apparels. The Company produces running, tennis, training, and basketball shoes, as well as t-shirts and accessories. Puma serves customers worldwide.

Pandora A/S designs, manufactures, markets, and distributes hand finished and modern jewellery made from primarily sterling  silver, gold, precious and semiprecious stones and Murano glass. The Company offers rings, bracelets, necklaces and earings.

The Swatch Group AG manufactures watches, watch components, jewelry, miniature batteries, liquid crystal displays, and scoreboards. The Company produces watches under various branded names, as well as operates retail boutiques. Swatch Group serves customers worldwide.

Tapestry, Inc. designs and markets clothes and accessories. The Company offers handbags, leather goods, footwear, fragrance, jewelry, outer wear, ready-to-wear, scarves, sunwear, travel accessories, and watches. Tapestry serves customers in the United States.

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Tapestry Inc (TPR US)

Sector Capsule: Designer Apparel and Footwear (Ready-To-Wear) In Japan

Headlines Designer apparel and footwear (ready-to-wear) posts 2% value growth in 2016 to reach sales of JPY1,089.8 billion Demand from the...

Euromonitor International Ltd.

Coach December Results: Negative Implications for Asian Luxury Retail & Chinese Tourist Spending

Luxury goods retailer Coach Inc (COH US) reported December quarter results on the morning of January 31st in New York. Revenue was bang in-line...

Daniel Hellberg

Geopolitics, Trump, & Thailand

All Hail Caesar (Trump)! I still remember the time when Obama was elected President. Everyone was celebrating. Japan mentioned they had one city...

Athaporn Arayasantiparb, CFA

Trump-China Tension = 2012 'Senkaku' Boycotts Redux? Avoid US Consumer Plays Exposed To China

Overview: probably more US-China tension aheadThroughout his campaign and in the weeks since the US election, President-elect Trump has shown he's...

Daniel Hellberg

US Fed 2017 Rate Hike Outlook Based on Flawed Assumptions

Russia: Trump presidency, likely lifting of western sanctions and a stabilizing economy boost prospects for Russia. Mexico: Fitch downgrades...

David Riedel

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