These characteristics, a complicated supply chain and wide availability of data make the industry a suitable avenue for an efficient supply chain. Also the fashion industry has been in a transition during the last 20 years: significant consolidation in retail, with most of the apparel manufacturing operations moving overseas and, in more recent times, increasing use of e-commerce in retail and wholesale trade. Historically, retailers have tried to exploit relationships with suppliers. Bargaining power of buyers is moderate because of the size and concentration of major retailers. To reduce power and you gain customers, retailers seek to differentiate products and to create stronger brands.
Lululemon can be considered a Shopping Product. Lululemon provides high-quality products so their products life circle is long. Another reason is their products are expensive for some people, so consumers are rarely to buy their products. Store image is very important to the Lululemon because they want to create the brand loyalty. Lululemon is not distributed so widely.
During the last years, Gap has been facing struggles because of its clothing design and faltered misjudgment fashion trend. As a result, the company has suffered for disappointing earnings and sales. One of the reasons is because in the attempt to turn around the company, the raw material and labor cost increased which lead to an increase of 20% per item. As a result, now the company is facing struggles because foreign competitors such as Zara, H&M, Walmart and Target are stealing its customers with cheaper and fresher fashion. Another driving force that affects the fashion industry is the information revolution.
He proposed to offer more interesting products, from lines like Martha Stewart and Joe Fresh, at reasonable prices all the time. But the change in pricing occurred with merchandise that was already in stores and that customers were used to, rather than on brand-new merchandise. The approach didn’t fare well with Penney’s customer base of bargain hunters. They rebelled, traffic declined, sales fell and Penney slowly returned to the prior era of pricing, with lots of promotions, lots of price-focused ads, and marked-up prices that would be later marked down(Kinicki & Williams, 2013).
As stated before, MTV had a big influence on fashion, but that was not the only thing people were focused on. Women were trying to be equal in their position with men, people were trying to get fit to improve their lifestyle, but most of all people were just trying to make a difference. People were bored with the earlier periods and wanted something new and interesting which resulted in a fashion boom. Economy affected people since it was down, but as soon as the designers got working the economy increased and got better. People portrayed themselves in many ways, but fashion was a big way and got them
The subgroups of the alliance were creating higher costs for one another, rendering each other unresponsive to the changing fashion choices of the U.S. consumer, and thereby reducing their own competitiveness. They were also struggling to predict the frequent policy changes associated with the textile industry, the cost of protecting the industry was proving to be too high, and the quotas were also driving the exporting countries to become high end producers. The protectionism was also increasing globe-trotting that in turn, further globalized apparel trade. In fact, the only good use of the trade barriers was as a powerful incentive with which the US could reward its friends, like it did with Pakistan after
A Buy Nothing Day can create a new way for many too open their eyes and realize that money sometimes does not buy happiness. First of all, many people spend money on much of hat they own. Although we spend on supplies that are useful for example clothes, food, homes, many tend to buy products that are useless. On television advertisement is likely to be on every channel and sometimes the advertisement is for a product that is not worth the money. Many will buy a pen that glows in the dark because it is cool or will buy gloves that are clear because they look ver cool.
PORTERS FIVE FORCES ANALYSIS • COMPETITIVE RIVALRY (HIGH) In both the large enterprises as well as the small enterprises there are many competitors. All the brands have started investing huge amount in the R&D to renew their products so, as to capture the market share. Therefore, H&M will always have to be quick and stylish at the same time to survive and maintain its position along with the changes and competition. BARGAINING POWER OF SUPPLIERS(LOW) The bargaining power of the suppliers is low as there are huge numbers of suppliers and manufacturers in the fashion industry. To meet the requirements of the company H&M has more options by buying and merging with the suppliers.
For instance, the world population is aging (OECD, 2013a), therefore, changes in demographic may be dangerous to solely teenage-oriented apparel firms based on the fact that competition for that segment is gradually diminishing (e.g. Coneen by design ltd). Nevertheless, these could be an opportunity for open and more flexible existing fashion retailers. Nowadays, customers are demanding for convenient shopping experience due to limited time in accessing or going to the market in person. Therefore, fashion or clothing firms with quality and easy to navigate web page will attract more customer (Chaturvedi, Martich, Ruwadi & Ulker, 2013).
Emergence of fast fashion has brought a drastic change in the fashion industry on a global level. Over the past decade it has brought a significant development in the retail sector as well as consumer behavior. This essay highlights the challenges and the opportunities as well as short term and long-term impacts of fast fashion on the industry. Fashion is a style of clothing or dressing at a particular time or place. Fashion is dynamic that is it keeps changing or evolving with time.