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Blue Jeans and Black Ink - Durable Denim Drives Apparel for Back-to-School

As the economy inches back from the depths of the global economic crisis, consumer confidence also appears to be slowly gaining momentum. An increasing number of consumers report that they are looking for – and buying – new apparel. It is no surprise that that most durable of durable good, the blue jean, is high on consumer lists; and was so even during the recent recession. Driving the enduring popularity of denim are its versatility, its appeal to the youth market and increased consumer optimism.

Click to EnlargeAccording to the Cotton Incorporated Lifestyle Monitor™ survey, almost three-fourths of consumers have bought the same amount or more denim in the last twelve months, versus the previous twelve months. The fact that 83% of consumers surveyed said they will continue to buy the same or more denim over the next twelve months, indicates the recession-proof quality of denim.

Consumers' enduring love for their jeans is based, in part, on their versatility, says Jennifer Scott, Head Buyer for the West Click to EnlargeCoast-based e-tailer Tobi. "Denim is part of American history and is a staple in women's wardrobes," she adds. "You can wear a pair of jeans to brunch on Saturday afternoon as well as dinner Saturday night. We are looking to expand our denim brand list for fall 2010 as well, which will be very exciting for our customer."

Their timing is not coincidental; in 2009, the back-to-school season was largely driven by denim, and it is possible this year could be no different. "It's too soon to tell about this year, but if all things stay the same in terms of consumer confidence, it should be a strong selling season," says Dan Butler, Vice President of Retail Operations at the National Retail Federation (NRF), the world's largest retail trade association. "Consumers, and in particular, moms will be looking for value when shopping for back-to-school and they will be sensitive to price while still trying to meet their children's needs," Butler adds.

Parents may be holding back on new denim purchases for themselves, but it seems their children are not. Compared to women's and men's markets, the youth denim market showed the strongest signs of growth last year. Denim jeans in 2009 made up 14% of apparel purchases by consumers aged 13 to 18, the highest among all age groups, according to Monitor data. And with denim already playing a significant role in their wardrobe, teens are also more likely to buy it in the coming months.

"Denim is available in a wide variety of styles from over-the-top fashionable styles to trustworthy basics," says Maria Dziedzic, Men's Design Director at Uniqlo. "Teens love denim since they have so many ways to adapt it to suit their own identity."

The willingness to complete the purchase ultimately, however, is also deeply tied to the consumer's own sense of optimism. Teens are naturally more optimistic about their own personal financial situations, but Butler points out that as the economy begins to stabilize, their parents will reap some of that optimism as well. "An individual's confidence as a consumer is highly personal," he notes. "It's directly tied to the housing and employment markets, and as these stabilize, consumers will take their own situations into account to create a point of view about the economy."

Other factors that play a role in cultivating a positive outlook among consumers are decreased debt and increased income. When asked by the Monitor survey what factors influenced their improved positive personal financial outlook, 44% of consumers cited their personal debt situation, while 36% noted an increase in income, 31% said the economy in general, and 19% credited a new job. Butler remains slightly guarded about these gains: "Let's call it cautious optimism right now."

This cautious optimism means consumers are still tending towards necessities as opposed to luxuries; when asked what they plan on purchasing from in the coming months, apparel came second only to groceries (57% compared to 71%, respectively).

Denim, however, stands out among other apparel offerings because of its irresistible combination of value, fashion, durability, and ease of care. "Denim continues to be an area of interest for consumers," Butler says.

Recognizing that denim has continued to sell well in spite of the economic recession, Gap re-launched its 1969 collection to go head-to-head with premium denim brands at a fraction of the cost. The sub-brand has been completely overhauled to give consumers that designer feel without the designer price tag.

"This has been a positive move for Gap since people want the fit and the fabrics that they experienced with premium denim jeans but without the price," notes Melissa Bastos, Manager of Market Research at Cotton Incorporated. "We've even seen premium denim brands offering recession lines to get through these times."

These so-called "recession lines" are well worth the investment, since Monitor data reveal that consumers are increasingly price sensitive to premium jeans. Twelve percent of consumers report they have purchased denim costing $100 or more, but only half that number share that they plan to do so in the coming months. "There are far more options for consumers now, so they don't have to spend what they used to in order to get the look they want," Bastos adds.

And though consumers cite a variety of reasons for purchasing new denim, chief among them is need: 45% of respondents report that they are simply replacing jeans that have worn out or no longer fit. Only 17% say they buy it because they like it, while 16% say its comfort is reason enough to purchase a new pair.

With so many reasons to love denim, most consumers say there is no need for improvement. When asked by the Monitor survey what specific aspect of denim would they like to change, 40% said nothing and an additional 17% said they did not know. Only 13% said they would improve the fit and a mere 6% said they would improve the style.

Just as there are countless numbers of consumers who adore denim, there are countless reasons why. One new reason may be that the beloved blue jean will be propelling the apparel market back into the black.

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