Macro-Environmental Analysis

1.2.1.4 Social Segment

General Demographic

According to the Market Analysis conducted by Matt Clark on the Sportswear Industry, the highest purchasers of Sportswear Apparel are those who are old enough to hold a career level job yet are young enough that they are likely to exercise regularly, which usually is ranging from 25 to 54 years old. The said demographic, to some degree, are buying higher end versions of these products rather than a higher quantity of these products. Moreover, the said analysis also mentioned that the lowest spending age group are those age 75 and above. This is likely attributable to the fact that those in this age category are unable to exercise or are simply exercising less. It may also be attributable to the fact that persons from this generation still consider cotton T-shirts to be the standard bearer for athletic apparel.

In the further studies conducted by Clark, he also mentioned that in ages 35 to 44 under the demographic, more money was spent on male sportswear than on female sportswear. The rest of the groups reflected the same picture as the total population being that more money was spent on female rather than male sportswear.

1.2.1.5 Economic Segment

Philippines’ Sports and Apparel Market Grew at 7%, Fastest in Asia According to an article written by Robb Young (www.businessoffashion.com), a Euromonitor International's Singapore-based emerging market analyst Jason Wong says growth of the Philippines apparel market, especially the sportswear and fashion wear outpaced the market average of 7 percent for the Asia-Pacific region last year. This is due to the emerging demand of young adults, professionals, and enthusiasts in having more comfortable clothing and to supplement their sports activities as Filipinos are become more health conscious nowadays.

1.2.1.6 Political-Legal Segment Memorandum of Cooperation Between DOLE and Sportswear Industry Signed

On August 17, 2012, the Department of Labor and Employment together with Industrial Affiliates, Playfair Alliance, Stakeholders, Suppliers, Trade Unions, and Global and Local Sportswear and Apparel Brands in the Philippines signed the Memorandum of Cooperation stating that sportswear companies should include promotion of freedom of association and full implementation of labour laws and standards in the industry. In the agreement, the parties commit to working together on a number of issues including precarious work, the lack of authentic worker representation, the low awareness of workers’ rights, wages and inadequate grievance mechanisms.

1.2.1.7 The Technological Segment

Eco-Friendly Sportswear Fabrics Arise

A new trend is rising in terms of sportswear production technology. It is a well-known fact that fabrics are made hi- tech by using chemicals and other such methods that are not very environmental friendly. However, consumers these days have become more eco-conscious. They want both, eco-friendly as well as performance clothing. They are not ready to sacrifice any of the characteristics. In such an event, the performance apparel sector has no other way apart from being innovative and introduce such performance apparel that are ecological too. Some of the apparel manufacturers have started showing interest in natural fibers such as bamboo, soy, and corn-based fibers or yams for the purpose. More innovative manufacturers have been experimenting with organic and recycled fabrics and many of them have come up with ½ Green Performance Apparel ½ made of such fabrics. Mostly, recycled polyester is used for the purpose. However, blends of organic cotton and recycled polyester are also used for making eco-friendly performance apparels.