Cotton Opportunities in Women s Wear

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1 Opportunities in Women s Wear

2 Women s Wear Plan Objective: To develop breakthrough performance technology for knits Background: Price and style are the primary purchase drivers at retail Priority: Women s wear is the biggest opportunity for cotton in terms of bales and market share

3 2010 U.S. Apparel Sales In US$ Billions Menswear $9.1 26% Womenswear $ % Source: Euromonitor, 2010

4 s Market Presence Men's Clothing Women's Clothing 15% 32% 85% 68% Contains Does Not Contain Contains Does Not Contain Source: Incorporated Retail Monitor survey, 2010

5 More 100% cotton in menswear 75% of men s cotton clothing is 100% cotton More cotton blends in womenswear 60% of women s cotton clothing is a cotton blend 75% 48% 40% 17% 4% 2% 3% 6% 2% 4% 100% 60-99% 51-59% 50% 1-49% 100% 60-99% 51-59% 50% 1-49% % of men s cotton clothing that contains the specified cotton content % of women s cotton clothing that contains the specified cotton content Source: Incorporated Retail Monitor survey, 2010

6 Declines in -Dominant Share of Women s & Girls Knit Tops Imports 90% 80% 70% 60% 50% 40% Men's & Boys' Women's & Girls Source: OTEXA, seasonally adjusted. Data in units.

7 Declines in -Dominant Share of Women s and Girls Woven Tops Imports 90% 80% 70% 60% 50% 40% Men's & Boys' Women's & Girls Source: OTEXA, seasonally adjusted. Data in units.

8 Declines in -Dominant Share of 90% Women s and Girls Bottoms Imports 80% 70% 60% Men's & Boys' Women's & Girls 50% Source: OTEXA, seasonally adjusted. Data in units.

9 Declines in -Dominant Share of 75% Dresses and Skirts 65% 55% 45% 35% 25% Dresses Skirts Source: OTEXA, seasonally adjusted. Data in units.

10 Dress Pants Knit 8% Woven 92% % Blended Single Fibers Blends 92% Polyester Polyester/Rayon/Spandex Rayon/Polyester/Spandex Polyester/Spandex Wool/Spandex Rayon/Spandex Source: Incorporated Retail Monitor survey, 2010

11 Dresses Woven 46% Knit 54% % Blended Single Fibers Blends 62% Polyester Rayon Silk Nylon Polyester/Rayon/Spandex Polyester/Spandex Modal/Spandex Nylon/Spandex Silk/Spandex Nylon/Spandex Rayon/Polyester/Spandex Rayon/Nylon/Spandex Rayon/Nylon Rayon/Polyester Rayon/Spandex Polyester/Rayon Source: Incorporated Retail Monitor survey, 2010

12 Skirts Knit 21% Woven 79% % Blended Single Fibers Blends 59% Polyester Rayon Polyester/Rayon/Spandex Polyester/Spandex Polyester/Rayon Rayon/Nylon/Spandex Rayon/Nylon Rayon/Spandex Source: Incorporated Retail Monitor survey, 2010

13 Opportunities to Increase s Presence in Womenswear % of clothing that does not contain cotton Dress Pants 70% Dresses 62% Skirts 55% Knit Blouses 52% Source: Incorporated Retail Monitor survey, 2010

14 Areas of Interest Fabric Drape Drape is a top purchase driver and is grouped with overall fit of garment. Wrinkling Performance Improved wrinkle performance for cotton garments will promote a sense of easy care and low maintenance. AATCC 128 (Dry Wrinkle Recovery) AATCC 124 (Wash and Wear Smoothness)

15 Good Drape Poor drape Drape Results (testing performed on garments from retail) 36 = best possible rating Target ( 45%) % acetate/5% spandex 100% rayon 95% rayon/5% spandex 95% polyester/5% spandex 54% polyester/46% cotton 60% cotton/40% modal 100% cotton

16 Wrinkle Recovery Results (testing performed on garments from retail) Target ( 4.8) % polyester/35% rayon 95% acetate/5% spandex 95% polyester/5% spandex 95% acetate/5% spandex 60% cotton/40% modal 87% cotton/13% spandex 100% cotton 57% cotton/43% rayon

17 Thank You

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