UNDERSTANDING COATS
Market Trends
Understanding Coats
Market Trends
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“Our unparalleled customer base, high quality product portfolio and our global footprint are a great foundation to build on, supported by our financial strength.”
David Paja
Group CEO
Economic and geopolitical risk arising from significant macro-economic and demand uncertainty across both key Asian and developed markets including risk to free trade conventions and risk of tariffs and retaliatory actions leading to decrease
in consumer confidence and spending – as well as global inflationary pressures and ongoing geopolitical developments.
TREND 1
Macro-economic conditions
In 2024 we saw continued uncertainty and instability across the globe, including the impending threat of global tariffs / trade wars, however we have encouragingly seen a number of our end markets return to growth.
Strength of our global business, ability to flex production and active global supply chain management allow operational processes to be maintained despite volatility.
TREND 2
Sustentabilidad
This is increasingly important due to consumer pressures, customer strategies, and legislative changes. It is central to our business, influencing our products and operations. Many customers are developing sustainability-focussed partner programmes. This trend is expected to grow in importance over time.
Our targets for the 2023-2026 period are geared towards achieving our longer-term sustainability commitments and help direct our focus as well as enabling tracking of progress across the Group.
TREND 3
Growth of Asian domestic markets and brands
Domestic consumer demand in Asia is growing faster than in the US and Europe.
Favourable demographics and expanding consumer wealth drive this growth.
Our sales have outpaced market development, growing double-digit in the Apparel segment and doubling in the Footwear segment. These results have been achieved as a result of commercial and operational excellence in response to four
important trends in the market.
TREND 4
AI and emerging digital technologies
In 2024, industry adoption of generative AI and digital technologies accelerated, enhancing speed, productivity, and supply chain transparency. Investments in technology and Gen AI solutions improved supply chain and support functions, while sustainability-led innovations reduced waste and increased productivity, all while maintaining cyber security vigilance.
Our strategy is to digitise each of these stages as far as possible, creating a cohesive trading platform between Coats and its
customers. This enhances customer loyalty, reduces waste, and provides valuable analytics to enable better and more efficient production for both Coats and its customers.