Sources: Cotton Council International and Cotton Incorporated’s Global Lifestyle Monitor Survey and External Source: Euromonitor International1Source: Cotton Council International and Cotton Incorporated’s Global Lifestyle Monitor Survey, a biennial consumer research study. In the 2016 survey, approximately 10,000 consumers (i.e., 1,000 consumers in 10 countries) were surveyed. Cotton Incorporated’s Lifestyle MonitorTM Survey, an ongoing consumer survey that interviews 6,000 U.S. consumers annually. External Source: Euromonitor International1

GLOBAL LIFESTYLE MONITOR: ITALY

GLOBAL CONSUMER INSIGHTS

GLOBAL LIFESTYLE MONITOR: ITALY

INFO: MARKETINFORMATION@COTTONINC.COM LIFESTYLEMONITOR.COTTONINC.COM © 2016 © 2016 COTTON COUNCIL INTERNATIONAL AND COTTON INCORPORATED’S GLOBAL LIFESTYLE MONITOR SURVEY

cotton

70%

modal

27%

tencel

22%

polyester

22%

nylon

23%

rayon

25%

SEEKING SUSTAINABLE APPAREL

TOP SUSTAINABILITY/SOCIAL CONCERNSAPPAREL SPENDING

SPENDING A weak apparel market in Italy will call for brands and retailers to rethink current strategies to encourage pragmatic Italian shoppers to buy.

SHOPPING Brands have a greater opportunity to use their physical stores to educate and inspire Italian shoppers than they do in other developed markets.

OMNICHANNEL Realizing the strong potential in online spending will require brands and retailers to offer a seamless integration across digital platforms.

SUSTAINABILITY Sustainability is a core driver in Italians' purchase decisions and cotton is overwhelmingly viewed as their sustainable fiber of choice.

KEY TRENDS

$52.2$320.2$275.2

BILLIONS OF U.S. DOLLARS1

Italian consumers are more likely than other Europeans or Americans to translate environmental concerns into their shopping decisions. The majority of Italians say sustainability is important to their apparel purchases (66%) and they seek out sustainable apparel at retail (58%). Cotton is almost three times as likely as manmade fibers to be viewed as safe for the environment, as well as being viewed as the most comfortable, trustworthy, and authentic.

FOOD SAFETY 88%

GLOBAL WARMING 88%

WATER QUALITY 89%

AIR QUALITY 91%

COTTON SUSTAINABILITY FACTS

U.S. cotton farmers have reduced pesticide applications by HALF over the past 30 years.

DISCOVER WHAT COTTON CAN DOSM at CottonToday.CottonInc.com.

% SAYING THE FOLLOWING FIBERS ARE SAFE FOR THE ENVIRONMENT

COMPARED TO CLOTHING FROM MANMADE FIBERS, COTTON IS VIEWED AS THE MOST...

TOP CONCERNS REGARDING COTTON PRODUCTION

1.2.3.

Amount of chemicals & pesticides used

Amount of water used

Greenhouse gas emissions

66%

SUSTAINABILITY...

62%

58%

80%

sust

aina

ble

79%

relia

ble

73%

com

forta

ble

trust

wor

thy

80%

auth

entic

85%

78% of consumers prefer cotton-rich clothing.

PROJECTED SPENDING GROWTH 2015-20301

is important in my apparel purchase.

when it’s lacking, I blame the industry.

is something I seek out in my apparel. 2015 APPAREL SPENDING

$359.6

EU* +20% ITALY -1% CHINA +131%U.S. +28% EU +20%

Over the past two decades, U.S. cotton farmers have improvedwater efficiency by approximately 80%.

GLOBAL LIFESTYLE MONITOR: ITALY

INGLOBAL CONSUMER SIGHTS GLOBAL CONSUMER INSIGHTS

INFO: MARKETINFORMATION@COTTONINC.COM LIFESTYLEMONITOR.COTTONINC.COM © 2016GLOBAL LIFESTYLE MONITOR SURVEY • CHINA • COLOMBIA • GERMANY • INDIA • ITALY • MEXICO • JAPAN • THAILAND • TURKEY • UNITED KINGDOM

CHAIN STORES

INDEPENDENT STORES

ONLINE

OTHER

SPECIALTY STORES

DEPARTMENT STORES

30%online

41%already

own

Although Italians' affinity for clothes shopping is among the highest globally, they are more pragmatic shoppers. As store displays are the top source of clothing inspiration among Italian consumers, brands and retailers have more of an opportunity in Italy compared to other developed markets to use their stores a forum to educate consumers about their brand, products, and inspire their wardrobe choices.

TOP SOURCES OF CLOTHING IDEAS

RETAIL CHANNELS SHOPPED MOST OFTEN

APPAREL SHOPPING ATTITUDES & HABITS

EU*

24%

7%

15%

27%

16%

11%

ITALY

26%

16%

9%

14%

25%

10%

OMNICHANNEL SHOPPING

50%store

displays

U.S.

23%

1%

7%

44%

10%

15%

TOP 5 CLOTHING PURCHASE DRIVERS

fitquality comfort price fiber content

26%friends &

colleagues21%magazines

APPAREL SHOPPING HABITS

One major bright spot in the Italian apparel market is the projected growth in online apparel and footwear spending (+75% over the next 15 years). In order to realize these potential gains, brands will have to find ways to tell their story across multiple online platforms, from their own websites to apps to fashion trend sites, because Italian shoppers are less likely than their European counterparts to start their online journey at just one of these platforms. Given that more than 9 in 10 Italian consumers shop for most of their apparel in physical stores, online retailers must find ways to alleviate consumers' tactile concerns with more product information to spur sales.

Nearly 7 in 10 consumers say retailer/brand websites are their top online source of clothing inspiration.

WHERE CONSUMERS BEGIN THEIR ONLINE SHOPPING JOURNEY

31%retailer/brand website

43%e-commerce websites

23%search engines

23%e-commerce specific apps

20%discount websites

76%love or enjoy

clothes shopping

66%Pay more for better quality

apparel

49%shop for clothing once per month

or more

28%Buy clothing on

impulse

EU* U.S.

63%

46%

67%

42%

52%

88%

48%

34%

* INCLUDES FIGURES FOR U.K., GERMANY & ITALY

TOP CONCERNS WHEN SHOPPING FOR CLOTHES ONLINE

60%inability to try on

clothes

55%inability to touch

clothes

48%shipping costs

46%return policies

44%clothing quality

compare prices shop deals research clothing

USING THE INTERNET TO SHOP FOR CLOTHES

66% detailed size information

59% customer reviews

62% detailed fit information

61% up-close views

material/fabric information57%

FACTORS THAT COULD INFLUENCE ONLINE SHOPPING DECISIONS

Online apparel & footwear sales are projected to grow 75% from $1.8bn in 2015 to $3.1bn by 20201.

42%42% 37%

ITALY