A Marketing Report on Synthetic Insulated Jackets in
High Modulus Polyethylene (HMPE) in London
17 July 2014
Rositta Torres
Sales and Marketing Manager
Porek Synthetic Materials, Inc.
Executive Summary
Porek, Inc., a leading manufacturer of synthetic materials in the apparel industry in Europe, aims to explore the potential of its recent product, High Modulus Polyethylene (HMPE), in the market of insulated jackets in London.
This report investigates the nature of the insulated jacket market, compares different synthetic materials, and the potential of HMPE in the market.
Findings show that the insulated jackets in the current market are primarily made of genuine and artificial leather, but synthetic materials have become popular. When compared to PVC and LCAP, HMPE is considered superior in terms of durability, colour range, and manufacturing time despite a higher manufacturing cost. It is recommended that Porek, Inc. proactively market HMPE to major manufacturers of insulated jackets through joint programmes of development and marketing in the next three months on selected products. In-house research should also be conducted to reduce material processing time to compensate for the high manufacturing cost.
Table of Contents
Executive Summary
1
Table of Contents
2
1 Introduction
3
2 Findings
3
2.1 The market of insulated jackets
3
2.2 Synthetic materials in insulated jackets
4
2.3 Potential of HMPE in the insulated jacket market
4
3 Conclusions
5
4 Recommendations
5
1 Introduction
The market of insulated jacket has expanded substantially in Hong Kong into a $500 million industry with an increasing variety of materials and designs. Porek, Inc., a leading manufacturer of synthetic materials in the apparel industry in Europe, has recently conducted research into High Modulus Polyethylene (HMPE), a stronger and stiffer alternative of conventional polyethylene. The company intends to explore the potential HMPE in the market of insulated jackets in London.
This report investigates the nature of the insulated jacket market, compares different synthetic materials, and the potential of HMPE in the market.
Information on the market of insulated jackets were collected through site-visits and face-to-face interviews of a list of 28 major jacket manufacturers in the UK provided by the London Chamber for the Development of Trade (LCDT). Telephone interviews were conducted with the editors of the top 15 apparel-related magazines and publications, including the popular European Jacket Gazette from January to June 2014.
2 Findings
The findings of this study are reported below in relation to the four areas below.
2.1 The market of insulated jackets
The market of insulated jackets in London is estimated to be $500 million with an annual growth of 15%, comprising 35 manufacturers and dealers in London. In general, insulated jackets can be categorized into authentic leather (25%), artificial leather (43%), and synthetic materials (32%) in 2013. While leather continues to be the major manufacturing material, synthetic materials enjoys increasing popularity in recent years (see Table 1).
| Year | % Market Share of
synthetic materials |
|---|---|
| 2011 | 17 |
| 2012 | 24 |
| 2013 | 32 |
Table 1: Increase in popularity of synthetic materials in the insulated jacket market in London
2.2 Synthetic materials in insulated jackets
PVC (65%), LCAP (35%), and HMPE (7%) are the major materials used in manufacturing insulated jackets. PVC and LCAP are popular because of its low price, and ease of being coloured. However, they are less durable and require a longer manufacturing time when compared to HMPE which can be dyed bright and fluorescent colours. See the comparison between the three materials in Table 2.
| Material | Cost | Durability | Color Range | Processing Time |
|---|---|---|---|---|
| PVC | Low | Low | Good | Medium |
| LCAP | Low | Low | Good | High |
| HMPE | High | High | Excellent | Low |
Table 2: Comparison between PVC, LCAP, and HMPE
2.3 Potential of HMPE in the insulated jacket market
The strongest advantages of HMPE are its durability and the wide colour range, offering a high potential in sports and fashion related applications. As consumers are becoming more sporty and fashionable, it is believed that stronger and colourful insulated jackets would command a higher price particularly in the recent economic uptake in London. The high cost of HMPE, therefore, may be justified, and it may also be partially offset by a low processing time when compared to PVC and LCAP.
3 Conclusions
Our findings suggest that while insulated jackets are primarily made of leather, synthetic materials are becoming popular in recent years. Among the major synthetic materials, although PVC and LCAP are generally low in price, they are not as durable and colourful as HMPE. With an increasing trend in sports and fashion in the market of insulated jackets, an increasing demand of HMPE may command a higher price by willing customers. The short processing time, on the other hand, can be an area of investigation to lower the overall high manufacturing cost.
4 Recommendations
Based on the above findings, it is advisable that Porek, Inc. proactively market HMPE by contacting the major manufacturers of insulated jackets for joint product development and marketing in the next three months. To expand the product offering in the market, an emphasis can be laid on sports and fashions such as special bright-colored fluorescent jackets for snowboarding and skiing, and winter fashion show. It is also recommended that in-house research be conducted on reducing the material processing time to offset the high manufacturing cost.