Top 10 Clothing Companies in the World in 2022
In this article, we discuss the top 10 clothing companies in the world in 2022. If you want to read about some more clothing companies, go directly to Top 5 Clothing Companies in the World in 2022.
In the backdrop of the increasing uncertainty in the global economic environment, the clothing industry has managed to hold itself together successfully and is forecasted to grow even faster in future. With intense competitive rivalry in the industry, the leading companies have continued to provide product differentiation with a dynamic approach to meet the changing trends. The clothing or apparel industry in the world has been one of the most important industries for trade, investments, employment and revenue generation globally. The industry revolves around short product life cycles, changing consumer demands due to fashion dynamics, product differentiation and brand image building.
The consumers in the clothing industry have high bargaining power as they have increased demand for more variety, more functionality and more new styles to meet the changing fashion needs worldwide. In recent years, the clothing industry has faced multiple challenges due to the economic downturn globally. These challenges had different impacts on different markets. In emerging markets, growth potential increased. There was a slow-paced recovery in the US markets, and a decline in Western Europe. The top leading clothing brands in the world all have to work rigorously to maintain the position and compete to gain larger market share every year. The top 10 clothing brands in the world based on their brand value ranking in 2022 are Nike, Louis Vuitton, Gucci, Chanel, Adidas, Hermès, Zara, H&M, Cartier and UNIQLO.
The clothing industry, also known as the apparel market, includes clothing ranging from sportswear to business wear to daily wear to luxury products. During the pandemic, the companies in the apparel industry were hit badly. However, they have managed to rise again with increasing sales revenue and brand value. The revenue of the global clothing industry was recorded at approximately $1.5 trillion as of 2021. It is notably the U.S. and China which have the highest demands for clothing than any other country. Nevertheless, emerging markets have fueled the sales revenue of the leading clothing companies in the recent years. More interestingly, according to Statista, it is expected the global clothing industry’s revenue will hit $1.9 trillion target by 2025 and reach $2 trillion by year 2026. Some of the top firms in the sector include The TJX Companies, Inc. (NYSE:TJX), American Eagle Outfitters, Inc. (NYSE:AEO), and NIKE, Inc. (NYSE:NKE).
These companies were picked after a careful assessment of the clothing industry. The details of each clothing company are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions.
Industria de Diseno Textil SA
Top Clothing Companies in the World in 2022
UNIQLO is ranked as the tenth biggest clothing brand in the world with a brand value of $9.64 billion. UNIQLO, a Japanese clothing brand, holds a strong position as one of the largest clothing retailers in the world. In recent years, the company has survived the global economic fluctuations and also managed to gain a strong position as an international giant. The company has a wide range of products which includes apparel, clothing for men, women, kids, and infants. UNIQLO, founded in 1949 by Tadashi Yanai, is headquartered at Midtown Tower, Akasaka, Tokyo, Japan with a total number of 56,000 employees as of 2021.
In the past, the company was labeled as a discounted retail store selling low quality apparel to the sub urban areas. However, in 2004, through a Global Quality Declaration, the company made a pledge to focus on high quality and affordability, which ultimately changed the company’s brand perception and image worldwide. UNIQLO’s fleece jackets are very popular for their high-quality casual wear. Interestingly, the company is the largest apparel chain in Asia with over 800 stores in Japan alone.
The company’s processes, beginning from project planning, design, and manufacturing till distribution, are all in-house, which gives a competitive edge to the company. The supply chain is cost effective as well as efficient to meet the changing demands of the global markets. According to the founder, UNIQLO is known to be a trend-driven and technology driven company to meet the uncertain, dynamic and highly challenging demands of the global industry. E-commerce and technological innovations are enhancing rapidly which are strengthening its position as the leading apparel brand in the world.
Just like The TJX Companies, Inc. (NYSE:TJX), American Eagle Outfitters, Inc. (NYSE:AEO), and NIKE, Inc. (NYSE:NKE), UNIQLO is one of the best clothing companies in the world.
Cartier is ranked as the ninth biggest clothing brand in the world with a brand value of $12.41 billion. Cartier International is a France-based multinational and wholly owned subsidiary of the Swiss Richemont Group. It is primarily a luxury goods conglomerate that not only designs but also manufactures and sells jewelry, watches and leather goods. The company was founded in 1847, with its headquarters in Paris. Cartier is known to be the most expensive luxury brand in the world; it has a long history of jewelry and watches sales to the Royals around the world. Interestingly, this year, the Cartier ‘Cheich’ Watch earned a record $1.1 million at the Sotheby’s Paris Fine Watches Auction.
The French luxury brand is known for its prestigious, exclusive watches and jewelry. However, it has a selective clothing range which has made it rank in the top 10 clothing brands worldwide. Cartier has released a new collection for the year 2022, bringing more novel and unique designs. The company’s CEO Cyrille Vigneron emphasized in an April 2022 meeting that the company will increase its prices but stressed it will be a mild price hike only. The current economic situation globally has given a slight push to the luxury brands to redesign their marketing strategies. More focus is on digital transformation and brand imaging in order to survive and maintain the leading position in the global markets.
H&M is ranked as the eighth biggest clothing brand in the world with a brand value of $12.70 billion. H&M, a Sweden-based multinational, is known for its innovation and commitment to sustainability. It focuses on the latest fashion trends and superior clothing quality for its consumers. The company is headquartered at Stockholm, Sweden, and has a total number of 107,375 employees as of 2021. The company is working hard towards sustainable growth and ensures that adapting to changes is taken as a welcoming challenge. The core strategy of H&M is to focus on digital transformation.
The company’s CEO Helena Helmersson has explained several times that the company is shifting towards digital. The key is to provide a convenient experience to consumers. Thus, the company initiatives for year 2021 onwards are focused on digital growth, integration of the channels and optimization of the store portfolio. Nevertheless, speed and flexibility are the key indicators for an efficient supply chain which have greatly resulted in the company's current success.
Zara is ranked as the seventh biggest clothing company with a brand value of $12.99 billion. Zara, a Spain-based luxury clothing brand, is known to be one of the most popular luxury brands. The company was founded in 1975 by Amancio Ortega and Rosalía Mera. Zara is headquartered at Arteixo, Spain, with total number of 15,285 employees as of 2021. Zara is no doubt one of the top clothing companies, which have gained strong position in the global markets. The key strategy of the company has been to manufacture locally and shorten lead times to meet the demands. It has an integrated digital and offline business model, which has facilitated sales during the virus crisis. Online sales have risen in recent years, jumping by 77% in year 2021, representing a third of all sales.
Digital transformation has helped Zara achieve its growth targets and meet the changing demands of the global markets. The company’s CEO, Isla Pablo, has highlighted that both the physical stores and online stores will together be expanded by year 2022 to provide uninterrupted buying experience to the customers worldwide.
Hermès is ranked as the sixth biggest clothing brand in the world with a brand value of $13.49 billion. Hermès International S.A., is a France-based luxury design house specializing in leather goods, perfumery, jewelry, home furnishings, watches, lifestyle accessories, and ready-to-wear. The company, founded in 1837, is headquartered at Rue du Faubourg Saint-Honoré Paris, France, having a total of 17,595 employees as of 2021. Hermès is a brand known for its heritage, exclusivity and craftsmanship in the niche market of ultra-luxury leather and silk products. It has highest brand equity in the leather and silk products market, which makes it unique worldwide.
The CEO, Guillaume de Seynes, believes its watch making segment has great potential in the future as it competes with leading watch making companies. However, the watch making segment is still in its early stages as it contributed just 3% in year 2019 to the brand’s total revenue. The brand image of the company still signifies its iconic Birkin bag which dates back to 37 years. In year 2022, the company has announced its plan to opt for diversification in order to meet the changing consumer demands.
In addition to The TJX Companies, Inc. (NYSE:TJX), American Eagle Outfitters, Inc. (NYSE:AEO), and NIKE, Inc. (NYSE:NKE), Hermès is one of the best clothing companies in the world.
Click to continue reading and see Top 5 Clothing Companies in the World in 2022.
Disclosure. None. Top 10 Clothing Companies in the World in 2022 is originally published on Insider Monkey.