Driving forces clothing industry
Hence, they may buy more clothing, increasing sales for clothing manufacturers, wholesalers and retailers.
Hence, a small clothing manufacturer may need to discontinue certain clothing lines and produce new ones that meet the needs of consumers. So, even if cloths in general do not have a substitute, brands have many.
For example, Zara. Consumers often shop for cheaper brands when they have less disposable income. So, even if cloths in general do not have a substitute, brands have many. Often, it can simply be because consumers do not want to wait for seasonal collections. Moreover, investment is also a significant barrier. Instead, small companies must adapt to these macroenvironmental factors, which include consumer characteristics, technology, government influence and the economy. Sustainability and ethics The fast fashion industry has come under fire in recent years for its impact on the environment, as well as suggestions that the demand for cheap clothing is driving poor working and labour conditions. Business owners have less control of these external factors, and their impact in changing them is minimal. Competitive Rivalry in the industry: The fashion retain industry is remarkable for the intense level of competitive rivalry in it.
Suppliers have little control over the fashion industry as, unfortunately, they are dispensable and can always be swapped out. Every brand has several competitors and the space is continuously getting limited.
Activists who are not employed by the companies may also picket retailers who purchase clothing from countries known for violating child labor laws. There are several factors including the fluctuations in the global economy, rise of the digital, technology, demand for fast fashion that are affecting the fashion retail market.
Fast fashion industry statistics
Threat of New Entries As mentioned previously, there is little that is unique to bring to the table in this industry, so this force is also somewhat small. Brands employ several types of customer retention strategies including discounts and memberships. Technological Factors Technological microenvironmental factors affecting the clothing industry include availability of resources, demand and production. As already mentioned, it is a densely populated industry and for a new brand to find success, it must use a significant level of differentiation. Our Conscious Exclusive collection blends style and and more sustainable materials such as ECONYL to showcase the possibilities of sustainable fashion. So, even if cloths in general do not have a substitute, brands have many. Power is in the hands of the customers in this era and therefore the focus of the brands is also on crafting a better consumer experience. Brands that have a strong brand image are able to charge higher prices. This negative publicity may impact a small clothing retailers' sales and profits. However, some brands also drive loyalty based on features and quality. Apart from infrastructure, there is investment in marketing, distribution chain and human resources. Moreover, investment is also a significant barrier. Elsewhere, more affordable retailers like JC Penney have accelerated the delivery of merchandise in order to update stock mid-season, while Gap has also trialled a fast-fashion model to get new designs into stores on a more regular basis. The increasing popularity of fast fashion is a proof of this fact.
There are a large number of brands with similar product offerings. Other brands playing catch-up So, what impact has fast fashion had on the wider industry in general?
Threat of New Entries As mentioned previously, there is little that is unique to bring to the table in this industry, so this force is also somewhat small. So, in order to deliver this, many retailers have started to act more like media brands — fusing the worlds of shopping, entertainment, and social media.
Moreover, clothing companies may add more advanced equipment in their plants like robots, which may force companies to fire some workers.
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