Apparel and Footwear Specialist

Retailers in Pakistan
Euromonitor International
March 2019
APPAREL AND FOOTW EAR SPECIALIST RETAILERS IN PAKISTAN Passport I

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
the Booming Fashion Industry and Increasing Affordability Set To Drive Growth ..................... 1
Innovation and Value Offers Set To Drive Success in A Competitive Retail Landscape .......... 1
Outlet Location Will Remain Crucial for Success ...................................................................... 2
Competitive Landscape ................................................................................................................ 2
Low-cost Counterfeits of Leading Brands Remain A Challenge for Genuine Retailers............. 2
Numerous Local and International Chains Compete in Apparel and Footwear ........................ 2
Local Brands Start To Offer Western Styles ............................................................................. 2
Channel Data ............................................................................................................................... 3
Table 1 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and
Selling Space 2013-2018 ............................................................................. 3
Table 2 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2013-2018 ........................................................... 3
Table 3 Apparel And Footwear Specialist Retailers GBO Company Shares: %
Value 2014-2018 .......................................................................................... 3
Table 4 Apparel And Footwear Specialist Retailers GBN Brand Shares: %
Value 2015-2018 .......................................................................................... 3
Table 5 Apparel And Footwear Specialist Retailers LBN Brand Shares:
Outlets 2015-2018........................................................................................ 4
Table 6 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling
Space 2015-2018 ......................................................................................... 4
Table 7 Apparel And Footwear Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space 2018-2023 .......................................................... 4
Table 8 Apparel And Footwear Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space: % Growth 2018-2023 ........................................ 5

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APPAREL AND FOOTW EAR SPECIALIST RETAILERS IN PAKISTAN Passport 1

APPAREL AND FOOTWEAR

SPECIALIST RETAILERS IN PAKISTAN
HEADLINES
 Apparel and footwear specialist retailers increases by 12% in current value terms in 2018, to
reach PKR912.0 billion
 The growing middle-class with higher disposable incomes increases consumer spending,
driving the growth of non-grocery retailers in the country
 Bata Pakistan leads the fragmented apparel and footwear specialist retailers channel in 2018,
with only a 1% value share
 Apparel and footwear specialist retailers is expected to register a current value CAGR of 11%
(5% at constant 2018 prices) over the forecast period, to reach PKR1.5 trillion in 2023

PROSPECTS

the Booming Fashion Industry and Increasing Affordability Set To Drive

Growth
The fashion industry in Pakistan witnessed a tremendous boom in recent years, with the
growing influence of Westernisation, media openness, social media penetration and celebrity
lifestyles driving the overall fashion landscape in the country. Whilst a growing consumer
market, driven by the expanding middle-income group in the country, led to greater demand for
exquisite fashions and designer houses, many local and international retailers responded by
launching new outlets and exploring new avenues, such as mobile and internet retailing, to
enhance their reach and recall amongst key consumer groups. Apparel and footwear is
expected to maintain its growth trend over the forecast period in Pakistan, with retailers
expected to invest in marketing efforts in rural and semi-urban areas, as saturation in urban
markets is likely to limit growth over the coming years.

Innovation and Value Offers Set To Drive Success in A Competitive

Retail Landscape
Apparel and footwear specialist retailers is a highly competitive channel in Pakistan, with
numerous local and international retailers fighting for share of consumers’ disposable incomes.
Whilst undoubtedly the spending patterns of urban middle- and high-income consumers have
evolved to accommodate branded and fashionable products, seasonal spending on clothing and
footwear remains budgeted in the majority of households, and consumer loyalty is shifting
rapidly in favour of brands which release innovative designs and trendy collections. Whilst the
early adopters in the market choose their brand preferences based on innovative varieties
launched every season, the masses wait for value offers to decide on which brands to choose.
In a competitive landscape such as this, value offers, discounts and seasonal clearance sales
attract footfall, and many brands use this as a solid marketing tactic to attract consumers’
attention. Some apparel and footwear brands have struggled to create a distinct positioning in
the minds of consumers, in the midst of the plethora of choices that consumers have in the
market. Over the forecast period, design innovation, brand equity, value offers and effective
marketing tools targeting different consumer groups are expected to remain the main drivers of

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sales. Consumer retention will remain the biggest challenge for brands in a highly competitive
landscape.

Outlet Location Will Remain Crucial for Success

The location of retail outlets remains a crucial element in the performance of apparel and
footwear specialist retailers in the country. Whilst shopping centres such as Dolmen Malls in
Karachi, Centaurus Mall in Islamabad and Emporium Mall in Lahore contain multiple retail
chains in clusters, retail chains are also actively opting for commercial areas near wealthy and
high-income residential neighbourhoods to provide convenience to consumers and mitigate the
competition. Moreover, whilst Dolmen Mall in Karachi is a highly lucrative location for apparel
and footwear specialist retailers due to its popularity and consumer profile, outlets in Lucky One
Mall and Ocean Mall in Karachi are not performing as well. This is because factors such as
traffic, perception of the neighbourhood and popularity of the shopping centre are all critical in
determining footfall. Hence, over the forecast period, apparel and footwear specialist retailers
are expected to invest in stand-alone stores in high-income residential areas to replicate the
convenience retailing model in apparel and footwear.

COMPETITIVE LANDSCAPE

Low-cost Counterfeits of Leading Brands Remain A Challenge for

Genuine Retailers
The evolving consumer market in Pakistan is becoming increasingly aware of brands, and
switching rapidly to branded products, especially as disposable incomes increase in the growing
middle-income segment. However, price-consciousness and thriftiness still dictate most
purchasing decisions for consumers in the country, who are gradually expanding their spending
patterns, but still welcome pocket-friendly alternatives. In such an environment, counterfeits
thrive in the country, as consumers enjoy the style of branded retailers at an outstandingly low
cost. Whilst the vast presence of counterfeits in the country remains a challenge for genuine
apparel and footwear retailers in the country, regulatory action remains minimal.

Numerous Local and International Chains Compete in Apparel and

Footwear
In a highly competitive market, apparel and footwear in Pakistan is a channel that has
numerous international and local retail chains operating with specific niches and product ranges.
International retailers such as Mango and Next are mostly focused on Western styles, especially
in apparel, and local chains such as Ideas by Gul Ahmed and Sanaullah Shop are popular for
predominantly Eastern styles. Hence, whilst all brands compete for the same share of
consumers’ pocket, competition with regard to product variety and style is minimal, as
consumers split based on their specific style needs.

Local Brands Start To Offer Western Styles

However, local brands such as Khaadi are increasingly introducing Western clothing in their
product ranges, to meet the needs of young women, who are greatly influenced by Western
fashion trends and are inclined to amalgamate them in their daily wear. The hold of international
retailers in this domain remains strong primarily due to their brand equity. Over the forecast
period, however, local retail chains are expected to gradually make their mark in Western wear,
taking an edge in terms of price and attracting price-sensitive middle-income consumers.

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CHANNEL DATA
Table 1 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space
2013-2018

2013 2014 2015 2016 2017 2018

Value sales PKR billion 490.1 574.4 647.9 727.1 817.8 912.0
Outlets 78,466.0 86,469.0 95,116.0 103,676.0 114,873.0 125,901.0
Selling Space '000 sq m 10,360.0 10,598.4 11,128.3 12,463.7 13,988.0 15,358.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space: %
Growth 2013-2018

% growth
2017/18 2013-18 CAGR 2013/18 Total

Value sales PKR billion 11.5 13.2 86.1

Outlets 9.6 9.9 60.5
Selling Space '000 sq m 9.8 8.2 48.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Apparel And Footwear Specialist Retailers GBO Company Shares: % Value 2014-2018

% retail value rsp excl sales tax

Company 2014 2015 2016 2017 2018

Bata Ltd 1.0 1.0 1.1 1.1 1.2

Gul Ahmed Textile Mills 1.4 1.5 1.5 1.6 1.1
Ltd
Service Industries Ltd 1.0 1.0 1.1 1.1 0.4
Times Clothing Pvt Ltd 0.1 0.1 0.1 0.1 0.3
Crescent Bahuman Ltd 0.0 0.1 0.1 0.1 0.2
Levi Strauss & Co 0.1 0.2 0.3 0.3 0.1
Sanaullah Shop 0.0 0.0 0.0 0.0 0.1
Ego 0.2 0.2 0.2 0.3 0.0
Others 96.1 95.8 95.5 95.4 96.7
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value 2015-2018

% retail value rsp excl sales tax

Brand Company (GBO) 2015 2016 2017 2018

Bata Bata Ltd 1.0 1.1 1.1 1.2

Ideas by Gul Ahmed Gul Ahmed Textile Mills 1.5 1.5 1.6 1.1
Ltd

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Servis Service Industries Ltd 1.0 1.1 1.1 0.4

Outfitters Times Clothing Pvt Ltd 0.1 0.1 0.1 0.3
StoneAge Jeans Crescent Bahuman Ltd 0.1 0.1 0.1 0.2
Levi's Levi Strauss & Co 0.2 0.3 0.3 0.1
Sanaullah Shop 0.0 0.0 0.0 0.1
Ego 0.2 0.2 0.3 0.0
Others 95.8 95.5 95.4 96.7
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 5 Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 2015-2018

sites/outlets
Brand (GBO) Company (NBO) 2015 2016 2017 2018

Servis Service Industries Ltd 805 811 824 827

Bata (Bata Ltd) Bata Pakistan Ltd 390 400 412 415
Ideas by Gul Ahmed Gul Ahmed Textile Mills 58 65 71 72
Ltd
Levi's Levi Strauss & Co 40 41 41 45
Outfitters Times Clothing Pvt Ltd 21 26 32 33
StoneAge Jeans Crescent Bahuman Ltd 20 23 28 30
Ego Ego 12 13 17 19
Sanaullah Shop Sanaullah Shop 2 2 2 2
Others Others 93,768 102,295 113,446 124,458
Total Total 95,116 103,676 114,873 125,901
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space 2015-
2018

selling space '000 sq m

Brand (GBO) Company (NBO) 2015 2016 2017 2018

Servis Service Industries Ltd 161.0 162.2 164.8 166.2

Bata (Bata Ltd) Bata Pakistan Ltd 70.2 72.0 74.2 75.2
Ideas by Gul Ahmed Gul Ahmed Textile Mills 7.5 8.5 9.2 9.2
Ltd
Levi's Levi Strauss & Co 8.0 8.2 8.2 8.3
Outfitters Times Clothing Pvt Ltd 4.8 6.0 6.4 7.4
StoneAge Jeans Crescent Bahuman Ltd 3.0 3.4 3.8 4.2
Ego Ego 2.3 2.6 3.3 3.6
Sanaullah Shop Sanaullah Shop 0.5 0.5 0.5 0.5
Others Others 10,870.8 12,200.3 13,717.6 15,084.1
Total Total 11,128.3 12,463.7 13,988.0 15,358.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 7 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling
Space 2018-2023

2018 2019 2020 2021 2022 2023

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Value sales PKR billion 912.0 968.5 1,022.0 1,072.6 1,115.5 1,171.5
Outlets 125,901.0 136,854.0 146,844.0 156,242.0 164,367.0 174,938.0
Selling Space '000 sq m 15,358.8 16,771.8 18,214.2 19,671.4 21,107.4 22,544.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms

Table 8 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2018-2023

% growth
2018/19 2018-23 CAGR 2018/23 Total

Value sales PKR billion 6.2 5.1 28.4

Outlets 8.7 6.8 38.9
Selling Space '000 sq m 9.2 8.0 46.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms

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