Analysis of the North American Workwear and Uniforms Market Fabric Innovations Hold the Future of the Mature Market NBBE-39 March 2013
Contents Section Slide Numbers Executive Summary 4 Market Overview 9 Total Workwear and Uniforms Market -- • Forecasts and Trends 30 • Market Share and Competitive Analysis 48 CEO's 360 Degree Perspective 59 General Workwear Market Breakdown 61 • Blue Workwear Market Breakdown 90 • White Workwear Market Breakdown 105 Corporate Workwear Market Breakdown 120 • Career Workwear Market Breakdown 148 • Casual Workwear Market Breakdown 163 Uniforms Market Breakdown 178 The Last Word (Conclusions and Implications) 198 Appendix 201 NBBE-39 2
Executive Summary NBBE-39 3
Executive Summary • The North American workwear and uniforms market generated revenue of $9400.3 million in 2012 and is expected to reach $10.49 billion in 2017. • The North American workwear and uniforms market is mature, with a CAGR of 2.2 percent. • The market is divided into three product groups: general workwear, corporate workwear, and uniforms. • The market revenue is divided into direct retail revenue and rental revenue. The distribution structure is analyzed in detail for each category. • Each workwear market segment is in a different stage of growth. White workwear, which includes healthcare and hospitality workwear, is likely to experience the highest growth in the forecast period. • Innovations in fabric technologies and increasing awareness of end users for a multitude of fabric enhancements promote price growth and, therefore, drive revenue.
Source: Frost & Sullivan analysis. NBBE-39 4
Executive Summary (continued) • Rental companies have dominated the North American market in the past. • The continuing impact of the economic crisis and consequent changes in customer preferences for direct buying restrain market growth for the rental channel. • Price, inventory, and quality of service are expected to be the key competitive factors throughout the forecast period. • Participants range from small domestic manufacturers focused on a single type of workwear to several large multinational corporations that manufacture and offer a wide range of workwear products. • Many rental companies and commercial launderers compete and collaborate with workwear manufacturers and enjoy a leading market presence. • With increasing customer demand for high-performance fabrics, the market is set to see growth through increased collaborations with fabric manufacturers.
Source: Frost & Sullivan analysis. NBBE-39 5
Executive Summary—Market Engineering Measurements Total Workwear and Uniforms Market: North America, 2012 Market Overview Market Size for Base Year Compound Market Stage Market Revenue Last Year of Market Growth Annual Growth Study Period Rate Rate Mature $9400.3M $10.49 B 1.0% 2.2% (2012) (2017) (CAGR, 2012–2017) Competitor Overview Degree of Customer Price Market Number of Technical Sensitivity Concentration Competitors Change 8 6 49.3% 650-700 (% of market share held (active market competitors in (scale: 1 [low] to 10 [high]) (scale: 1 [low] to 10 [high]) by top five companies) base year) For a tabular version, click here. Decreasing Stable Increasing Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis. NBBE-39 6
Executive Summary—CEO's Perspective Post-recession employment uncertainties 1 have increased the customer preference for direct buying over a rental system.
Innovations in the workwear market center 2 on performance fabrics. Different workwear products demand different enhancements.
The increasing importance of corporate 3 branding offers scope for corporate workwear through adoption in newer end-user sectors.
Market growth is expected to come from 4 expanding businesses across sectors due to delays in replacing existing contracts.
Healthcare and food service uniforms offer 5 significant scope for growth in both the direct buying and rental channels. Source: Frost & Sullivan analysis. NBBE-39 7
Market Overview—Segmentation Percent Sales Breakdown by Product Type Total Workwear and Uniforms Market: North America, 2012 Uniforms 7.7% Corporate Workwear 29.8% General Workwear 62.5% Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis. NBBE-39 8
Direct Sales Channel Total Workwear and Uniforms Market—Competitive Environment Direct Sales Channel Total Workwear and Uniforms Market: Competitive Structure North America, 2012 Price, inventory management, fabric enhancements, Competitive Factors technology, brand loyalty, distribution network Manufacturing, hospitals, hotels and restaurants, airlines, Key End-user Groups supermarkets, corporate organizations and banks Major Market Participants Williamsons Dickies, VF Imagewear, Carhartt Other Notable Market Participants Superior Uniform Group, Richlu and many others. Market Share of Top Three 38.4% Competitors Distribution Structure Retail and online sales to customers, distribution sales Source: Frost & Sullivan analysis. NBBE-39 9
Rental Sales Channel Total Workwear and Uniform Market—Competitive Environment Rental Sales Channel Total Workwear and Uniforms Market: Competitive Structure North America, 2012 Robust laundry systems, reliability, customer relationships, Competitive Factors timely and high-quality service Manufacturing, hospitals, hotels and restaurants, automotive Key End-user Groups industry Major Market Participants Cintas, ARAMARK Corporation, UniFirst, G&K Services Other Notable Market Participants Alsco, Ameripride Services, and many others. Market Share of Top Four 68.5% Competitors Distribution Structure Renting and leasing garments to customers Source: Frost & Sullivan analysis. NBBE-39 10