Clothes, we all wear them and yet for the apparel industry what matters is fashion. It is through changing fashions that people are most often lured into buying more clothes than are strictly necessary. For many, of course, clothes buying is an entertainment.

Per capita spending on apparel in the United States peaked for the first decade of the new century in 2005 and then fell, gaining downward momentum with the onset of the recession and the financial crisis that followed. Complicating the downward spiral is the fact that apparel companies were caught somewhat off guard by the sharp decline in spending which led to excess inventories. As these were liquidated, overall apparel prices declined.

Today’s market size is a measure of the apparel industry based on per capita spending in the United States.

Geographic reference: United States
Year: 2005 and 2010
Market size: Annual, per capita spending of $1,276 and $1,136 respectively
Source: “Table 3. Age of Reference Person: Average Annual Expenditures and Characteristics,” Consumer Expenditure Survey, 2005 and 2010, U.S. Bureau of Labor Statistics, available here
Original source: U.S. Labor Department
Posted on March 21, 2012