H & M Level Of Demand Essay

The factors that determine the level of demand in clothing industry are income of consumers, price of product, consumers’ expectation and preference and population shifts. First, the income of consumers affects the level of demand in clothing industry. If the income of consumers increases, the level of demand of clothing industry will increase because they have extra money to effort luxury such as buy more clothes from well-known retail clothing company such as H&M. This is because when society has more money in their hand, they will spend it or invest it. For example, when they have extra money, they buy cloth from H&M, the demand of cloth of H&M will increase, by the way, the sales also will increase so this cause the profit of the company increase. This scenario can be proof by the income statement of H&M. In year 2013, the sales of H&M is 128.56 billion, in year 2014 , the sales is 151.42 billion , it has increase 18% from year 2013. The sales of year 2015 is 180.86 billion is has increase 23% from year 2015.The sales will increase year by year is because the demand of the consumer increase. The profit earns by H&M is also increasing year

If due to some reason, consumers expect that in the near future prices of the goods would rise, then in the present they would demand greater quantities of the goods so that in the future they should not have to pay higher prices. The next is the prices of related commodities such as substitutes and complements can also change the demand for a commodity. Usually, the decrease in demand does not occur due to the rise in price but due to the changes in other determinants of demand but decrease in demand for a commodity may occur due to the fall in the prices of its substitutes, rise in the prices of complements of that commodity and if the people expect that price of a good will fall in