Performance apparel markets: profile of Delta Galil: a global innovator in underwear, socks and seamless apparel, 4th quarter 2008

11 pages, published in Issue 27, 4th quarter 2008   Report price: Euro 395.00; US$ 520.00

Delta Galil, an Israel-based clothing company, is a leading innovator in next-to-skin wear. Since its foundation in 1975, it has transformed itself from a small, local garment producer to a global organisation at the forefront of innovation in underwear, socks and seamless apparel.

The company expanded strongly in the 1990s and early 2000s, resulting in a substantial increase in its product design, development and manufacturing operations. Expansion also improved its access to key apparel markets in North America and Europe.

The Delta Galil name is relatively unknown by consumers outside Israel, but the company has gained a strong reputation among the world’s major retailers—including USA-based Wal-Mart and UK-based Marks & Spencer (M&S)—as well as key international brands such as Calvin Klein and Hugo Boss.

On the downside, the company has become heavily dependent on Wal-Mart and M&S for a large proportion of its revenues, and its sales and earnings have suffered over the past two years as business with these companies has fallen.

Nonetheless, the company is cautiously optimistic about its future prospects and will continue to focus sharply on product development. In particular, it plans to broaden its seamless product line, which is enjoying faster growth than more traditional lines such as socks and underwear. Overall, the company believes that its strategies of innovation and building close relationships with its customers will stand it in good stead in poor economic times.

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• Anti-odour clothing: bringing fresh appeal to the performance apparel market, (4th quarter 2008)
• Profile of Gildan: A Vertically Integrated Producer of Low Cost Activewear, Underwear and Socks, (July-August 2008)
• Seamless knitting and stitch-free seaming technologies in performance apparel, (1st Quarter 2006)

Four times a year, Performance Apparel Markets provides intelligence, expert analysis and insight on the performance apparel industry. Performance apparel represents one of the fastest growing markets in the global textile and clothing industry--and market growth is being fuelled by an emergence of new fibres, fabrics and innovative materials. The market's growth prospects are also being spurred by increasing demand for performance properties in mainstream fashion.

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