According to the U.S Census Bureau data, retail sales of accessories and clothing were among the hardest hit during the COVID-19 pandemic in 2020. It also shows the fall of retailer’s sales by about 26% in 2020 over 2019 is impacting textile companies.
As consumer spending is slowly gaining momentum, trends such as e-commerce are providing athletic garments new opportunities to specialize in textile manufacturing.
Are you wondering how to invest in such treads to benefit your business? Then continue reading to get your answers.
Many companies are experts in turning raw materials into textiles for manufacturing clothes and others. Nevertheless, companies developing new textiles and clothing should also know how to maintain good relationships with their prospective customers. It can be one of the great investments that a company could make. With the new technology and e-commerce, it is easier to eliminate the middleman, thereby reaching the customers directly. This trend is turning the textile industries into retailers themselves.
Here are few best textile stocks to invest on 2021
This athletic motivated apparel for everyday use for activities outside the gym has made a great mark in this COVID-19 situation. The brand's stretchy pants for comfortable workout has become the latest fashion trend. Athleisure, a Canada-based settler of lululemon athletica has taken pride in advancing this segment of textile retail.
Nearly half of the economy of Lululemon comes from online sales via its websites and social media channels. This new business model with loyal customers also benefits the modern apparel industry. During the pandemic, lululemon experienced minimal crisis and quickly got back on track producing a good amount of profit.
The company initially started with launching women’s clothing but now expanded its business to men and kids, too. Lululemon believes in the efficient management of the supply chain and maintaining good customer relationships for its success.
The company got into the fitness industry in 2020 with a $500 million acquisition of MIRROR, a maker of digital workout equipment. Now, lululemon stands as one of the best ones to invest in athletic-inspired apparel companies.
Canada Goose is a top textile company and retailer based north of the border. It is known for its manufacturing operations in Canada. It makes knitwear and accessories made in Italy, Romania, and Asia.
The company takes pride in making a variety of adventure-inspired apparel, making it a global luxury brand. It was sustained during the pandemic and recently expanded its business at the end of 2020. Canada Goose also tasted success through online direct selling from the web.
This company is expanding at a fast pace in international markets getting recognized as a top textile company in the luxury space.
The company is an American brand trying its hands in the new era. This denim company had experienced a great loss in the spring of 2020 during the hit of the pandemic's first wave.
Levis has shifted its focus from its stores to online sales through e-commerce with its partners. It found that one-quarter of its revenue emerged from digital platforms. Soon, the profit margins have been raised by implementing the web-based selling model. The stock of Levis Strauss also pays a small range of quarterly dividends to improve its deals.
Kontoor brands top the list in terms of jeans manufacturing. It also owns denim brands such as Lee, Wrangler, and Rock & Republic. The company was also disrupted due to the pandemic’s hit. But it soon recovered by the end of 2020, this was possible only through online selling. Kontoor’s denim is also spreading overseas with a high amount of profits and also pays quarterly dividends to stakeholders on time.
Hanesbrands has not shifted to digital business that smoothly. Though its parent company Hanes and Champion struggles to grow, Hanesbrands has shifted to e-commerce to find its way out.
During the pandemic, the brand was able to switch its textile manufacturing into personal protective equipment such as face masks, this has driven the company towards high profits, though for a short period. From then, it started to focus on athletic wear and e-commerce having a deal with DKNY along with sponsored marketing campaigns. Hanesbrands also pays a dependable dividend by slowly growing to top international markets.
Tapestry is well recognized for its leather goods which also tops in the industry. The company also manages apparel brands such as Coach, Kate, Spade, and Stuart Weitzman.
As the company relies heavily on retail partnerships, it has had a stable business on the internet before the pandemic. The emerging markets of China have been thriving for their digital stores. Tapestry has been growing at a fast pace with pandemic ease.
Like other industries, the textile industry is facing many challenges with the strike of the COVID-19 pandemic. As buyers are showing interest in buying online, comfortable attire motivated by athletic wear has been gaining popularity.
E-commerce provides new opportunities for the textile industry. So, taking advantage of this digital revolution is beneficial for the textile market to sustain the crisis posed by the pandemic. The investors are also interested in investing in textile stocks with great e-commerce businesses as well as with direct consumer relationships.