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    The Apparel Market Overview 2009-2014

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    Rommel Aouad
    The apparel market in Lebanon grew between 2009-2012 but was impacted by the Syrian crisis starting in 2013. Imports have traditionally satisfied around 70% of domestic demand due to limited local production capacity. Imports in 2019 totaled $686 million, including $29 million in knit t-shirts and $30 million in knit sweaters. Lebanon's economic crisis in 2020 is projected to decrease the total accessible market to $152 million and target market to $80 million, with reduced exports and increased local production.

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    The Apparel Market Overview 2009-2014

    Uploaded by

    Rommel Aouad
    53 views15 pages
    The apparel market in Lebanon grew between 2009-2012 but was impacted by the Syrian crisis starting in 2013. Imports have traditionally satisfied around 70% of domestic demand due to limited local production capacity. Imports in 2019 totaled $686 million, including $29 million in knit t-shirts and $30 million in knit sweaters. Lebanon's economic crisis in 2020 is projected to decrease the total accessible market to $152 million and target market to $80 million, with reduced exports and increased local production.

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    The apparel market in Lebanon grew between 2009-2012 but was impacted by the Syrian crisis starting in 2013. Imports have traditionally satisfied around 70% of domestic demand due to limited local production capacity. Imports in 2019 totaled $686 million, including $29 million in knit t-shirts and $30 million in knit sweaters. Lebanon's economic crisis in 2020 is projected to decrease the total accessible market to $152 million and target market to $80 million, with reduced exports and increased local production.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    53 views15 pages

    The Apparel Market Overview 2009-2014

    Uploaded by

    Rommel Aouad
    The apparel market in Lebanon grew between 2009-2012 but was impacted by the Syrian crisis starting in 2013. Imports have traditionally satisfied around 70% of domestic demand due to limited local production capacity. Imports in 2019 totaled $686 million, including $29 million in knit t-shirts and $30 million in knit sweaters. Lebanon's economic crisis in 2020 is projected to decrease the total accessible market to $152 million and target market to $80 million, with reduced exports and increased local production.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 15

    TAM

    The Apparel Market Overview 2009-2014


    Lebanon’s retail activity has traditionally been boosted by a large
    number of Arab Tourists and Lebanese Expats visiting the country.
    The apparel market size grew by an average rate of 3.9% during 2009-
    2012 indicating a promising retail sector.
    The mentioned growth had been affected by the Syrian Crisis that
    weighed heavily on the tourism sector and the weak purchasing power
    of local citizens.
    The market remained stable though in 2013 and 2014 recording a
    yearly estimated value of imports USD 606 million.
    The demand for apparel is satisfied through imports given the country
    limited capacity for domestic apparel production.
    In fact, high production cost, fierce external competition as well as low
    customs duty on imported textiles and clothing restricts the expansion
    of domestic apparel industry.
    Breakdown of Lebanon’s Apparel Market in 2009. Total USD 542 Million. Local Production 27%. Imports
    73%. Source: Lebanon Country Commercial Guide 2014.
    Breakdown of Lebanon’s Apparel Market in 2014. Total USD 606 Million. Local Production 30%. Imports
    70%. Source: Lebanon Country Commercial Guide 2014.
    Breakdown of Apparel Imports by Type

    Breakdown of Apparel imports by type. Women’s wear in 2009 (USD 193 Million).
    In 2014 (USD 228 Million)
    Men’s wear in 2009 (USD 73 million) versus (USD 88 million) in 2014.
    Children’s wear (USD 14 million USD) versus (USD 26 million).
    In 2009, Others (USD 118 million) verses (USD 166 million) in 2014.
    Source: Lebanese Customs.
    Breakdown of Apparel imports by Country

    Breakdown of Apparel Imports by Country in 2014. China (USD 163 million), Italy (USD 57 million)
    Turkey (USD 56 million), Bangladesh (USD 34 million), India (USD 27 million), Morocco (USD 18 million),
    Portugal (USD 18 million), Vietnam (USD 15 million), Romania (USD 12 million), Others (USD 106
    million). Source : Lebanese Customs.
    2014 conclusion !

    • The market apparel remains stable as the country continues to stand


    as an attractive market for retailers despite the delicate political and
    regional conditions.
    • The country needs to minimize its high dependence on imports and
    instead seek opportunities to support and expand its local apparel
    manufacturing to enable its industry to flourish.
    Apparel Market Overview 2020
    • Lebanon’s economy is in crisis.
    • Local currency has lost more than 80 percent of its value.
    • Most banks are dollar insolvent
    • Most banks prevent Lebanese from transferring money abroad or withdraw US dollars from their
    accounts.
    • 550,000 workers lost their jobs and nearly 20% of companies closed.
    • Corruption and lack of transparency have continued to cause frustration among local and foreign
    businesses.
    • The government signed official request for IMF assistance.
    • On August 4, and explosion at the port of Beirut killed more than 180 people and incurred nearly
    15 USD billion in damages in the city.
    • If the country is able to implement reforms, then it may regain its role as a hub for foreign
    investment in the Middle East.
    The Observatory of Economic Complexity (OEC) is an online data
    visualization and distribution platform focused on the geography and
    dynamics of economic activities. The OEC integrates and distributes
    data from a variety of sources to empower analysts in the private
    sector, public sector, and academia.
    How much of textiles did Lebanon import in 2019? The imports of textile totaled (USD 686 million) out of
    which the trade value for knit t-shirts amounted (USD 29 million) and the trade value for knit sweaters
    amounted (USD 30 million).
    2019 (TAM) Total
    Accessible Market
    USD 16.1 billion

    (SAM)
    Served Available Market
    USD 686 million

    Target Market
    USD 59 million

    TAM or Total Accessible market in Lebanon is (USD 16.1 billion).


    SAM or Segmented Addressable Market or Served Addressable Market (the portion of TAM to target) is USD 686 million.
    Target Market is USD 59 million.
    (TAM) Total
    Accessible Market
    2021 apparel projection
    (SAM)
    Served Available Market
    USD 152 million

    Target Market
    1-Retailers
    2-Local Production
    USD 80 million
    (projection)

    Traditionally, Arab tourists and Lebanese expatriates drove robust retail apparel sales in Lebanon. However, Lebanon’s
    economic crisis and global travel restrictions due to the spread of COVID-19 have discouraged tourists from traveling to
    Lebanon; the number of passengers traveling to the Beirut airport in the first half of 2020 fell by over 70 percent compared to
    the first half of 2019.
    Given that the local financial sector has imposed strict controls on capital outflows, experts predict a major decrease in apparel
    exports to Lebanon and a slight increase in local production. Imports in the first half of 2020 have already fallen by 50 percent
    compared to the same period in 2019. With the destruction of the Port of Beirut, analysts expect imports to fall even further.
    SAM or Segmented Addressable Market or Served Addressable Market (the portion of TAM to target) is projected at USD 152
    million.
    Target Market is projected at USD 80 million.
    References

    • https://lb.usembassy.gov/wp-content/uploads/sites/200/Lebanon-CCG-2020-Final.pdf
    • https://www.bankmed.com.lb/BOMedia/subservices/categories/News/20150515162619680.pdf
    • https://oec.world/en/visualize/tree_map/hs92/import/lbn/all/show/2019/
    • http://
    industry.gov.lb/getattachment/PublicationsAndStudies/A-Study-on-Clothing-and-Textiles-Sector-in
    -Lebanon2_TT.pdf?lang=en-US
    • Targeting Retailers , Local Production and others would mainly be
    from:
    • https://lb.kompass.com
    • https://5index.com/

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