In the fashion industry there is a fairly short product life cycle because trends and tastes change regularly and move almost immediately into the next stages of maturity and decline. Because many new product introductions fail, the shake out stage may be short or relatively nonexistent for some products. However, for other products the shake out stage may be longer due to frequent product upgrades and enhancements that forestall movement into maturity5. The computer industry today is an example of an industry with a long shake out stage owing to upgrades in hardware, services, and add-on products and features. As the product gets more and more acceptance in the industry, more and more new entrants are likely to join the industry leading to aggressive competition.
Such as House of Louis Vuitton, Chanel, Christian Dior, Saint Laurent (Yves Saint Laurent), which hold prestige in the high fashion business. Although the high fashion market has expanded to the middle class as well, many consumers still go for the similar style but the less expensive way to get it to their hands. Many of the young generation want new designs and new clothing, in other words the younger generation of consumers demand for “fast-fashion”. Many of the high fashion brands has shown concern where the younger generations are losing the experience and the understanding of craftsmanship, quality, and luxury. Another concern that they stressed was that the fashion houses may not have a place in the market in the future if this continues.
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.
Aims: This paper aims at understanding structural embeddedness by researching inter-firm ties and relationships, individual ties of the managers and the structure of the apparel industrial chain—women’s luxury clothing industry. It also proposes a framework that explains how these factors affect each other, and in turn, influence inter-firm ties. This framework explicates ‘how the quality of social ties, the structure of the organization network, and an organization’s structural position’ affect inter-firm transactions and cooperation (Brian Uzzi, 1997). Moreover, the author attempts to create an extant theory for embeddedness. Objectives: First of all, Uzzi identified several features for embedded ties in New York apparel industries by concluding information from his interview records.
GAP’s market share, once a leading brand in America, has started falling as consumers’ race towards the fast changing designs such as Forever 21 and Zara. Similar to these would be Penneys, which will give them a positive edge to keep with competition. Where GAP began to fall, was their lack of innovation and adaptations to change. One thing none of these fast fashion clothing chains inherited, if Primark was to simulate their traits to get in position to become sustainable and profitable. For the fast fashion trade, the suppliers are out sourced and are all competing to gain access to the large chains.
(P2.2) It is important that Nordstrom knows in what environment they work in when launching a new store therefore, an environmental audit gives an idea and figure in which the company operates or work. This can be done by a PESTLE analysis. Political Factors Political factors play a significant role in determining the factors that can impact Nordstrom 's long term profitability in a certain country or market. Nordstrom is operating in apparel stores in more than dozen countries and exposes itself to different types of political environment and political system risks. The achieve success in such a dynamic apparel stores industry across various countries is to diversify the systematic risks of political environment.
Analyzing external environment of Unilever has many aspects in the global market. First of all, the PESTEL framework will find out about the political, economic, social, technological, legal and environment dynamics of the environment that Unilever operates. In order to develop and operate firms in a specific market, there are certain rules of the government applied in the firms. The co-headquartered of Unilever is located in London the European Union, which is the union creating opportunity for trade among members’ states by the harmonization of certain rules relating to business and the removal of trade barriers. If the Netherlands leave the EU, it will have a massive impact for a co-headquarter business like Unilever.
In addition fast fashion brand help to grow the clothing industry. Fast fashion brand is the brand provides cheap and fashionable clothes. According to According to the Bureau of Labor Statistics (BLS) 2014 Consumer Survey (qtd. Josephson), Apparel and services increased 11% between from 2013 to 2014 in the United States. However, clothing industry is oligopoly market because famous brand dominate the industry.
A SWOT analysis is a strategy that is used to perform an environmental scan in the internal environment, in order to identify possible strengths and weaknesses. And to investigate, possible opportunities and threats in the external business environment. Using a SWOT analysis can help to asses a changing environment and how to respond proactively. Strengths Weaknesses Affordable trendy fashion garments. On par with international trends with regards to clothing garments.
SWOT SWOT stands for strengths, weaknesses, opportunities and threats. SWOT analysis of L'Oreal can help us to identify the internal factors- strengths and weaknesses and external factors such as opportunities and threats. The results of the analysis can help the company to see the areas for development while improving its performance. Strengths: Rich heritage Leader in cosmetic industry Focus on innovation, innovative technology ( more than 3,5% of its Revenues is spent on R&D) Presence in more than 130 countries, which makes it global company Consistent quality and safety which retains loyal customers High environmental concern (Focus on Corporate Social Responsibility) Online presence and continuous growth in on-line platform Diversified