Market Segments In The Fashion Industry

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The apparel industry is highly important in economic terms of trade, investment, employment and revenue all over the world.
In order to understand business models in the fashion industry, first of all, it necessary to have a look on different market segments in which fashion companies compete. The most common criteria to differentiate the segments is the price.
It is needed to concentrate more on a brand than a company, because one fashion company can have various brands like, for example, Armani does with its Armani exchange, Prive, Collezioni, Emporio Armani, and others.

These and other brands occupy different market segments in the fashion pyramid. This pyramid is consisted of five price segments, starting from the highest to lowest one.
They are as follows: couture, ready to wear (Prêt-à-porter), diffusion, bridge and mass market (, access date: 03.05.2016). The higher stage on the pyramid the brand stands on- the higher the price, creativity, quality and value proposition offers to the customer. The first three categories from the fashion pyramid are concerned as luxury brand segments. The focus will be only on two of them: ready to wear and diffusion, because haute couture is very occasions addicted, extremely expensive and affordable only for the very narrow target group.

Ready to wear or Prêt-à-porter in French, is a market segment which was invented by Italian companies in

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