Fashion CopyPortfolio - EToro

1y ago
2.35 MB
10 Pages
Last View : Today
Last Download : 2m ago
Upload by : Ryan Jay

FashionCopyPortfolio An eToro Investment Strategy

eToroFashionCopyPortfolio 2eToroFashionCopyPortfolio Fashion: An Enormous IndustryThat Is Growing Quickly.3What’s Driving the Growth of theFashion Industry?. .4Photo by Dami Adebayo on unsplash.comPhoto by Gwendal Cottin on unsplash.comeToroFashionCopyPortfolio How Has Covid-19 Impacted theFashion Industry?.9eToroFashionCopyPortfolio Investing In Fashion.10

Fashion: An Enormous Industry That Is Growing QuicklyFew areas of the retail industry are as dominant as that of fashion. Worth over 700 billion, the fashion industry is big business, and it is only likely to get biggerGlobal fashion revenue growthin the years ahead.899,910953,0941,003,541835,992For investors, the fashion industry is creating some amazing opportunities right758,252now. Many well-known companies within the industry such as Nike, Lululemon,664,474and LVMH have enjoyed strong growth in recent years and are showing no signs525,121of slowing down.439,048359,992The fashion industry is huge and growing at a rapid rate.According to Statista, global fashion revenue totalled 525 billion in 2019, upfrom 360 billion in 2017. That represents growth of approximately 46% in justtwo years.2017US m20182019Apparel2020Footwear202120222023Bags & AccesoriesLooking ahead, the industry is expected to continue growing at a fast pace.Between now and 2025, experts expect the industry to grow at a compoundannual growth rate (CAGR) of 8.6%, resulting in total global revenue of over 1trillion by 2025.3Add FashionPortfolio to your WatchlistYour capital is at risk20242025

What’s Drivingthe Growth of theFashion Industry?4

as our dependence on social media grows, we are being influenced by whatwe see online more, which is boosting demand for clothing and accessories.Ultimately, social media has changed the face of fashion as we know it.Advances in e-commerce technologies such as shopping functionality andpayment technologies have also made it far easier to purchase fashion goodsonline. For example, through Instagram’s ‘checkout’ function, users can nowmake a purchase immediately without leaving the platform. Meanwhile, paymentcompanies such as PayPal have made the online shopping experience moresecure and reliable.There are a number of reasons the fashion industry is experiencing suchpowerful growth right now.Furthermore, advances in data analytics have not only enabled fashion retailersto tailor their marketing efforts, which has helped to boost sales, but they haveTechnologyalso helped improve inventory management, which has increased profitability.The first is technology. In recent years, advances in technology have propelledIn addition, the ability to sell online has enabled fashion retailers to reduce thefashion in a number of ways, taking the industry to new heights.number of physical stores they operate, which has lowered costs and boostedprofits.Take social media, for example. Thanks to platforms such as Instagram, Facebook,5and YouTube, fashion is now far more interactive than it was in the past — whenOverall, technology has had a huge impact on the fashion industry over the lastit was presented to us through glossy magazines and catwalk shows — meaningdecade and it looks set to continue driving the industry forward in the yearsconsumers are now much more connected to their favourite brands. In addition,ahead.

Looking ahead, demand from China is expected to continue to grow at a fastRising wealth in the Eastpace between now and 2024.Another key growth driver for the fashion industry is the rising level of wealthacross the East. With incomes in countries such as China and India increasingrapidly, consumers have shifted their focus from essential goods to morediscretionary items such as fashionable clothes and accessories.The growing demand for fashion in ChinaRevenue in the fashionsegment amounts toToday, China now generates the most fashion revenue globally, with sales in2020 expected to reach 349 billion — nearly three times the amount of salesUS 348,700min the 2020Fashion: China is driving demand419,131Global Revenue — Top US 348,700mUS 123,736mUS 38,297mUS 25,217mUS 20,414m20176US m2018Apparel2019Footwear20202021Bags & Accesories202220232024

Dominant fashion trendsIn 2019, global sales of athletic footwear came in at around 67 billion, however,in the years ahead, the market is predicted to grow at a rate of over 7% per year.Finally, powerful fashion trends are also driving growth of the industry.This means that sales of athletic footwear could be worth close to 100 billionby 2025.One example of such a trend is ‘athleisure’ — casual clothing that is designedto be worn both for exercising and for general use such as yoga pants, leggings,and sweatpants. This fashion trend has arguably captivated consumers moreAthletic footwear salesthan any other over the last decade due to the increasing focus on health andRevenue in the Athleticfootwear segment amounts towellbeing, and companies at the heart of the trend such as Nike, Adidas, andUS 72,471mLululemon have 2020In 2018, the athleisure market was valued at around 155 billion, however, by2026 it could be worth nearly 260 billion, according to industry experts. That78,005represents an annualised growth rate of nearly 7%.66,94338,539for athletic products is high,” said Nike CEO Mark Palmer in 2019.21,751Another big trend that is related to that of athleisure is the high demand 633,31120132014201520162017201820192020athletic footwear (sneakers/trainers). Across the world, sales of designerare close to surpassing sales of formal shoes. Today, sneakers can be foundanywhere from boardrooms to the catwalk.789,16061,098“The global shift towards more active lifestyles continues to accelerate and demandsneakers are booming right now. In the US, for example, sales of athletic shoes83,604Add FashionPortfolio to your WatchlistYour capital is at risk202120222023

How Has Covid-19 Impactedthe Fashion Industry?Covid-19 has impacted the global fashion industry in several ways.Firstly, it has accelerated the shift to online shopping. With malls and storesacross the world closed during the pandemic, consumers were forced to buytheir clothes online. The result was about five years’ worth of online growthin about six months. Looking ahead, online shopping is only going to becomemore popular. Online fashion retailers such as ASOS, and brands with a strongonline presence, should benefit from this trend.Secondly, it has changed the way people dress. With more people now workingfrom home after the pandemic, demand for comfortable ‘loungewear’ clothingsuch as joggers and leggings has skyrocketed. At the same time, demandfor office wear, such as suits and smart shoes, has declined. With the workfrom-home trend set to accelerate in the years ahead, demand for comfortableclothing is likely to remain elevated.8

Investing in FashionGiven the growth of the fashion industry, it stands to reason that the sector isUltimately, picking just one or two fashion stocks for a portfolio is a risky strategylikely to present many opportunities for investors in the years there is a high level of stock-specific risk. A more sensible approach is to investin a thematic portfolio that offers diversified exposure to the sector.Picking stocks in this sector, however, has its challenges. For a start, the fashionindustry is very broad and encompasses a wide range of product categorieseToro’s FashionCopyPortfolio: Exposure to the World’s Top Fashionincluding business wear, casual wear, sportswear and athleisure, lingerie andCompaniesundergarments, footwear, fast fashion, and accessories.To help investors gain exposure to the fashion industry, eToro has structured aThere are also many different sub-sectors of the fashion industry, including:portfolio that tracks a number of the world’s leading fashion stocks. Designed tooffer long-term investors the chance to capitalise on the growth of the fashiony Department storesy Off-price retailersy Specialist storesy Brandsy Online retailersy Conglomerates (which owny Fast fashion retailersa number of brands)industry while minimising stock-specific risk, this investment strategy offersexposure to a diverse selection of global fashion companies across a wide rangeof sub-sectors and product categories. These include luxury apparel, businessand casual wear, sportswear and athleisure, sports footwear, and accessories.In addition, the fashion industry is highly competitive and trends can be veryFor those looking for portfolio exposure to this exciting, dynamic sector, eToro’sfickle. Fashions can come and go very quickly, meaning that it is hard to predictFashionCopyPortfolio offers an innovative and cost-effective way to invest.what will be popular tomorrow. Even the best analysts on Wall Street can misstrends that give specific fashion retailers a sales boost.Add FashionPortfolio to your WatchlistYour capital is at risk9

eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, aswell as trading CFD assets. Your capital is at risk. CopyPortfolios is a portfolio managementproduct of eToro EU. CopyPortfolios should not be considered as exchange-traded funds,nor as hedge funds.For more information regarding CopyPortfolios,contact: [email protected] (EUROPE) LIMITEDA company registered in the Republic of Cyprus.Registered number: ΗΕ 200585Corporate Address: KIBC 7th Floor,4 Profiti IliasStreet, Germasoyia, Limassol 4046eToro (UK) LIMITEDA company registered in England and Wales.Registered number: 07973792Corporate Address: 42nd floor, One CanadaSquare, Canary Wharf London E14 5ABZero commission means that no broker fee has been charged when opening or closing theposition. Other fees may apply. For additional information regarding fees, click here.This publication originates from eToro (EU) Ltd. (regulated by Cyprus Securities and ExchangeCommission) and has not been prepared in accordance with legal requirements designedto promote the independence of investment research, is not subject to any prohibition ondealing ahead of the dissemination of investment research, and as such is considered to be amarketing communication. eToro (EU) Ltd., its owners, subsidiaries, group entities, affiliates oremployees of the same (collectively “eToro Group”) may perform services for, solicit businessfrom, hold long or short positions in, or otherwise be interested in the investments (includingderivatives), of any issuer mentioned herein. Past performance is not a reliable indicator offuture performance. This publication may contain 'forward-looking statements'. Actual eventsor results or actual performance may differ materially from those reflected or contemplatedin such forward-looking statements. None of the opinions that may be inferred from thecontents of this website are intended to be relied upon as advice or recommendation of anyaction. All investments entail risks and may result in both profits and losses.Notwithstanding the steps taken to manage conflicts, eToro (EU) Ltd. and any affiliated partiesmay have interests which conflict with your interests and may owe duties to other clientswhich would otherwise conflict with the duties owed by eToro (EU) Ltd. to you. eToro (EU) Ltd.may recommend to you as a client, trade ideas, financial instruments, or services, in whichit or any affiliated company, or a person with whom it has an association, or one of its otherclients, may have an interest, relationship or arrangement that is material in relation to thetransaction concerned. eToro ( EU) Ltd., or any affiliated parties, or a person with whom any ofthem has an association, may be dealing as principal for eToro ( EU) Ltd any affiliated partiesor its own ldwide

Fashion: An Enormous Industry That Is Growing Quickly Few areas of the retail industry are as dominant as that of fashion. Worth over 700 billion, the fashion industry is big business, and it is only likely to get bigger in the years ahead. For investors, the fashion industry is creating some amazing opportunities right now.