D2’s September Guest Speaker Jay Hunjun Jang is President & CEO of Mirae Asset Global Investments (USA).  His seminar titled, “New Eco System in Apparel Industry,” spoke in detail about emerging vs. developed markets, as well as major changes occurring in the global market.

What’s Happening to the World?

1)    The total GDP of Emerging countries is expected to contribute more than 59% of world GDP (currently at 37%). This is in comparison to average GDP growth of Developed Markets – 1.3% vs 4.2% of Emerging markets.

2)    Changes of world demographics: 2010 median age of Developed Market is 40.5, Emerging Market is 30.6.

3)    Reshape of Middle Class: As of 2010 EM 851, DM 968.

4)    Emergence of New Brand Women: Rise of “Money Rich – Time Poor” women and growing independence of women in EM.

Expected Key Trends in Apparel Industry

1)    Due to a declining demographic base of teenagers and young adults, Fast Fashion will need to work harder in Western Europe to secure growth.

2)    Enhancing opportunity in Aging Market: As Western Europe ages, particularly in Southern region, the 45+ segment will be a key target of new investment with professional middle-aged women increasingly demanding “feel good” products.

3)    Latin America’s new middle class & future growth: The expansion of the middle income consumer base, particularly in Brazil, creates a platform for new product development into the medium term.  More specifically, there will be a growing numbers of image conscious, economically active, middle class woman.

4)    Curb on cautious spending in North America: Mass market and low price retailers will continue to feel the downside of low consumer confidence among rank and file households. Equally, there is evidence that high end retailers could register a better than expected return to growth.  

5)    China’s low-price production & it’s challenge: As global unit prices for apparel come under external pressure, manufacturers outside China will increasingly look to international manufacturers for cost-reducing technological and production know-how.

6)    The Youth Consumers in Middle East Asia: With 39% of the region’s population under 15 years, there will be a huge influx of new economically-active adult consumers over the next 10 years. Predominantly, young, fashion conscious women are identified as key untapped market.

Is the current world economy a failed example of capitalism?

“ I believe that the current recessionary environment is a growing pain.  It is caused by the expansion of the world capitalism and the stress coming from transforming global structure – from monopoly structure toward multi-polarization.

This reform will increase the health and dynamics of the world economy and will provide great opportunities for companies and individuals who are ready for it.

In conclusion: We are entering a new era.”