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Market

Today Polygiene is the market leader in the odor control segment, with regard to technology leadership as well as brand recognition. The Company has taken on the task of establishing and developing the odor control/Polygiene Stays Fresh® category for textiles in various segments and Footwear.

 

Polygiene in the world

Polygiene meets market needs

Polygiene meets, through its products and solutions, the needs of both consumers and brand partners for the best odor-control functionality, Polygiene Stays Fresh® and Polygiene – Wear More. Wash Less.®. Through its unique overall concept, which includes not only the products but also the application technology and active marketing support, the Company helps its customers present Polygiene in the right context. In doing so, the advantages as well as the pleasure of using garments and products treated with Polygiene become clear. Polygiene complies with all product, environmental and safety requirements imposed through legislation and industry-specific certifications.

Market potential 

Synthetic materials – especially polyester – represent a growing proportion of global textile production. Polyester is used to manufacture sportswear, lifestyle and functional clothing, shoes, accessories, protective gear and home textiles. Textile materials based on polyester fibers have many advantages in terms of good, flexible characteristics as well as cost and resource efficiency. Polyester and other synthetic fibers can also be recycled, which holds true even if they are treated with Polygiene. However, a well-known disadvantage of polyester-based fabrics is that they provide excellent breeding grounds for odor-causing bacteria. “Stinky polyester” is well-known phenomenon, and Polygiene offers an effective, environmentally friendly solution that keeps clothing, shoes, protective gear such as helmets and knee pads, and other garments and articles odor free.

It is estimated that the current total global addressable market for branded odor control is more than 1800 million units of apparel, shoes, textiles annually, equivalent of an estimated 1900 million yards of textile annually. The absolute majority of this addressable market is currently unpenetrated by Polygiene and its competitors. Herein lies the majority of future growth potential for Polygiene, to educate current and future customers (brand partners) of the potential in branded odor control. The addressable market of more than 1800 million units/pieces/pairs is split accordingly: Sportswear (450m), Fashion (660m), Workwear (48m), Footwear (450m) and Home Textile (200m). Please see table below for more details.

Segment Sportswear Fashion Workwear Footwear Home textile TOTAL
Global market 2016, estimated retail value (USD billion) 300 1100 40 300 100 1840
Relevant fabrics, layers etc for odor control treatment, estimated % 30% 15% 15% 25% 25%  
Global market 2016, relevant for odor control treatement, estimated retail value (USD billion) 90 165 6 75 25 361
Relevant products (premium and upper-mid price levels) for branded odor control treatment, estimated % 25% 20% 20% 30% 20%  
Global market 2016, relevant for branded odor control treatement, estimated retail value (USD billion) 23 33 1 23 5 84
Estimated average unit price in the premium and upper-mid price levels (USD) 50 50 25 50 25  
Global market, relevant for branded odor control treatement, estimated number of units/pieces/pairs (million) 450 660 48 450 200 1808

The Company sales in 2016 of MSEK 62, equivalent to 30 million yards of textile, represents much less than five percent of the long-term global sales potential of the Company, according to Polygiene’s own assessment of the relevant market potential. 

Polygiene operates globally in the premium brand segment, and sales for 2016 amount to MSEK 62 across four segments, with the Sport & Outdoor segment being the largest.

  • Sport & Outdoor (sportswear, protective gear, outdoor, hunting, fishing and more): approximately 72 percent 
  • Lifestyle & Workwear (shirts, blouses, trousers, suits, undergarments, socks, shoes and more): approximately 10 percent 
  • Home Textiles (towels, bedsheets, pillowcases, mattresses, pillows and more): approximately 9 percent 
  • Footwear (shoes and insoles): approximately 1 percent
  • Other (paint, flooring, sanitary equipment and more): approximately 8 percent

A notable trend that can be discerned is the convergence of various market segments, for instance Sport and Lifestyle, where fitness and fashion are merging. This development is advantageous to Polygiene.

ABC analysis:
Share of total revenues 2016 (62 MSEK, %)

Well positioned

Polygiene is well positioned to become the global leader in the odor control category in additional segments other than Sport & Outdoor

The most successful brand leaders in the textile industry within the ingredient brand category, such as Gore-Tex and Lycra, are characterized by distinct functionality. These brands address a clear and perceived consumer need, thereby creating significant customer value. This customer value can be communicated through co-branding in a simple and consistent manner by marketing consumer products that offer functionality, such as waterproof shoes or jackets with Gore-Tex membranes.

Successful ingredient brands can co-brand with premium brand partners, which strengthens the consumer appeal and value of both brands.

Polygiene’s premium brand partners to a great extent use Polygiene co-branding in their marketing communications to describe the odor control functionality or Polygiene Stays Fresh®. This increases the consumer appeal and value of their products.

Experience from other types of ingredient brands indicates that the leader in each respective category (in terms of functionality) can become a strong market leader by setting a standard that other actors then may try to emulate. Polygiene has managed to take the leadership position in the odor control category and has very good prospects to further consolidate and strengthen this position within the Sport & Outdoor segment. Polygiene is also now well on its
way to establishing a leadership position in the Lifestyle, Footwear and Home Textiles segments.

 

Sew-in labels, Care labels, Hangtags and Point-of-sale materials

Polygiene delivers a comprehensive and proven solution

Polygiene supplies the additive as well as:

  • Training with customized applications as well as sustainability and performance testing
  • Brand development for product and functionality: hangtags, sew-in labels, care labels
  • Workshops about Polygiene for the sales force, launch support
  • Training and “seeding” for retail – “seeing is believing”
  • Customer testimonials, PR/media, internet and support for social media