Home / Knowledge / News / Apparel/Garments / Adverse water sports apparel market leads to sell-outs
Adverse water sports apparel market leads to sell-outs
18
Mar '13
Adverse conditions in the water sports apparel market are leading to a rise in industry takeovers.

Many companies enjoyed massive growth until the mid-2000s but the global economic crisis has depressed sales and reduced profit margins. In addition, lower participation rates in some water sports and changing consumer tastes have had a knock-on effect on demand and sales of water sports apparel.

As a result of weaker demand, major players in the water sports apparel market have been forced to cut back on their operations and re-evaluate their business strategies. Also, a number of players have experienced declines in their valuations, and some of those declines have been quite dramatic.

Consequently, large corporations and private equity groups have taken advantage of these lower valuations by launching bids for struggling brands and acquiring them.

Volcom, for example, was acquired by PPR, a France-based luxury goods and retail distribution group, in May 2011.

Another company which has received a number of takeover offers is the Australian surfwear company Billabong.

In December 2012 the head of Billabong’s Americas division, Paul Naude, and two bid partners    -- the USA-based private equity firm Sycamore Partners and Bank of America Merrill Lynch -- offered a $526.8 million (US$553.1 million) for Billabong.

However, in January 2013 VF Corporation and its private equity partner Altamont Capital matched Paul Naude’s bid with an offer of a $526.8 million. The two bidding consortiums are currently carrying out a due diligence process.

Another company up for sale is Rip Curl, one of Billabong’s major Australia-based rivals. The company is said to be considering a number of unsolicited offers.

In a further bid to boost sales in this difficult economic environment, companies in the water sports apparel market are continuing to develop garments which enhance comfort and improve a wearer’s safety. Companies which have paved the way in improving the functionality of their water sports apparel include Billabong, Musto, O’Neill, Patagonia and Quiksilver.

These and other companies will continue to focus their efforts on increasing the number of innovations they bring to consumers. In this way, they hope to differentiate themselves in what has become an overcrowded marketplace.

Textiles Intelligence

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search