Clothing-Retailing Industry - Case Study Example

Clothing- Retailing Industry Name: Institution: Instructor: Date: Executive Summary The clothing- retailing industry involves men’s, children’s and women’s clothes and the accessories of clothing. In 2011, there was a drastic increase in the clothing sales especially on the women’s garments followed by the garments for the men and then lastly the children’s garments. After the great sales made there has been a great effect on consumer market by slow recovery and the recession. Earlier on, economic conditions also contributed to reduced sales made on clothing and since then things have changed because there is a witnessed growth being achieved despite the fact that the market has never been able to attain its full potential. It has been noted that discount, the collections of clothing in retailers’ grocery and value popularity are some of the causes for the failure of the market to reach its potential. The sales for the clothing industry products are boosted by the disposable clothing and the fast- fashion phenomenon. This has become a major factor for woman’s garment growth and those of men are also getting to facilitate more sales due to their new fashions or fast- fashion trends. However, area where marketing is contacted there are various competitors of the industry whereby many retailers have joined the administration. The increase of the administration members has lead to increased online retailers and shopping parks which is done out of town. My estimation on the market growth in five years to come is that there will be an increase of about sixteen percent. Table of Contents Definition of clothing industry………………………………………………………………4 Industry overview……………………………………………………………………………4-5 Size of the industry and the success factors in it Characteristics e.g. employment, growth trend and units sold Factors affecting the industry……………………………………………………………….5-6 Products and services distribution system Identification of governmental and environmental factors affecting the industry Economic conditions impact on the industry Main competitors in the clothing industry…………………………………………………6-7 Glamour Changing trends Creativity Prediction of the industry in the next 5 to 10 years………………………………………..7-8 Industry life cycle framework……………………………………………………………….8-9 Recommendation/Conclusion……………………………………………………………..…9 Reference………………………………………………………………………………………10 Definition of clothing industry Clothing- retail industry is an industry, which is heterogeneous and diverse, and it carries several activities that originate from fabrics and yarns being transformed from fibers thus resulting into many different types of products such as bed- linen, clothing, industrial fibers, wool, geo- textiles and synthetic yarns of hi- tech etc. It can also described as a standard sizes of clothing produced in large quantities and it is already finished thus being ready to wear and in most cases is sold in retail shops (Nadine Pahl, 2009). These clothes are not made under any order of a customer according to their design or personal likes such as the fitting clothes to them and they do not need to be tempered with so that they can be worn. Industry overview Size of the industry: - The industry stores of clothing accessories and clothing and other subsectors contains three groups:- Clothing Stores- This is the place where the clothing industry stores its output which is ready for marketing and the products kept here are only the garments. Shoe Stores- Shoes are another type of clothing mainly made for the legs and there are stores made by the shoe manufacture whereby they are stored thus being prepared for marketing as a new product (Nadine Pahl, 2009, p. 93). Luggage, Jewelry and Leather Goods Stores- It is a preservation area where all the leather goods, the luggage and Jewelry are stored while ready for their future marketing. Success factors in clothing industry include: - Several factors characterize the success of the clothing industry. These factors include; the quality of the product the industry sales; in order the clothing industry can easily succeed, it has to produce quality clothing which in return will highly attract more customers to buy the clothing. Relevancy of the product the industry is selling is another characteristic, which has lead to the success of the industry. In most cases if it cold the industry might decide to produce scuffs being sure that many customers will be attracted by the new make and they will buy it (Nadine Pahl, 2009). The ability to have new customers also characterizes the success of the clothing industry whereby if the industry is able to produce the current clothing they will not lose market. The current fusions in the market that makes most people feel stylish and unique so the clothing industry keeps on changing the styles they have in to ones that are more attractive so that they can be on demand. Lastly, high concentration of a certain age group also contributes to the industry’s success since if it is a certain group of teenage girls, there will be a certain influence on the kind of clothing they have and this will affect the industry positively if they produce these cloths (Nadine Pahl, 2009). Characteristics- The industry has been growing drastically for some time now and this is because of the keen observation of the requirement for a successful clothing industry. However, the industry has never acquired its full potential which different from the expectation of the majority. Due to an increased production that is caused by the growth, the clothing industry is also able to produce more units thus increasing the rates at which these units are being sold. Employment is another characteristic for the industry whereby a large number of people have been able to get jobs in the industry and get some money according to the level of working (Nadine Pahl, 2009, p. 82). Factors affecting the industry There are several factors influencing the clothing industry growth at a slow rate and they include; a decrease in the rate at which customers have been spending on clothing, the industry’s effectiveness, its efficiency and also the type of clothing they are producing. If the clothing is not in the current fashion, there will be less market for them. The distribution system of the clothing industry products is not one of the best although it is doing well hence causing an improvement on the sales currently being sold (Nadine Pahl, 2009). The clothing- retail industry is currently being affected by the government policies imposed thus reducing the rate in which the industry should be making profits. Some of the environmental factors affecting the clothing industry involve; weather conditions, the gas emissions from the industry and disposals from the industry that are likely to affect the water in the lakes where we benefit from other activities such as fishing and irrigation. The economy in the country is pulling back the industry since in most cases we find that the cost of the currencies used in the marketing of the product keeps on going up hence affecting the industry and its consumers (Nadine Pahl, 2009). Main competitors in the clothing industry The clothing industry faces competition from the fashion industry, which is comprised, of the fashion designers alongside models. The services and products involved in the fashion industry involves marketing professionals, publicist, photographers, graphic designers, retail merchandiser, textile designers, stylists and makeup artists (Nadine Pahl, 2009, p. 60). This field provides extreme competition towards the clothing industry because of the following competitive strategies:- Glamour The fashion industries glamour draws numerous people into the fashion career, developing a congested market. This glamour normally appeals to the confident, ambitious and bold people who normally love to be spotted in the limelight thus this mixture of personalities promotes this competitive environment (Nadine Pahl, 2009, p. 96). Attending large events internationally and mingling with various professionals is vital when planning the success of the industry. Therefore, the clothing industry should exude confidence to enable it to put its industry ahead. The perception of fashion professionals earning huge salaries with leading glamour live draws many individuals into the industry enhancing competition. Changing trends Trends in the field of clothing and fashion industries continually change to new ones unexpectedly thus businesses should adapt to these market demands and changes to meet high product sales. These various industries are entitled to establishing future trends to enable them to capture greater market demand since this ever changing market leads to extreme competition when the clothing industry is concerned (Nadine Pahl, 2009). Creativity Many people are drawn by working in creative environments thus the fashion industry becomes the first priority creating high competition. In the clothing industry, the pressure surrounding the creation of original designs inside original styles produces cut throat competition. The clothing industry should employ graphic designers and marketing professionals who will help in promoting and honing distinct styles in the industry (Nadine Pahl, 2009). Prediction of the industry in the next 5 to 10 years The modern clothing industry has been characterized by classical electric devices like LEDs, integrated circuits, conductors and garments embedded with conventional batteries or with internet connectivity. Elegant clothes have many intrinsic worth: they are, customized, eco-friendly and universal. In addition, designers promise to create dresses that change color by the mere contact and will never wear out; with the last quality to be debated by fashion specialists though. Nanotech cloth will have the ability to repel stains that ordinary clothes would absorb (Nadine Pahl, 2009, p. 52). This will be made possible by the molecular nanotech shields against stains while maintaining the fabrics texture. Web-enabled and digitalized apparel in the military service, sports and health care will facilitate collecting physiological diagnostics and data. Recently, Web-enabled clothing and smart textiles have been accepted by the R&D phase and are nearly on the brink of tossing themselves into mass fabrication (Nadine Pahl, 2009). However, these numerous fine examples about this symbiosis have already wowed audiences with their extraterrestrial versatility or hi-tech looks. Making of transparent raincoats with the ability to change color such as the bug's wing with 80% recyclable as well as totally nature-friendly clothing is currently being investigated. Clothing which can convert heat from the body to electrical current, capable of re-charging a mobile phone is still in the forecast. This technology will ensure that, the more the owner walks for long the more the energy to be generated. Cute circuits in the other hand will specialize on garments with numerous LED lights attached on the fabric and rechargeable by USB. The clothing industry will create a powered dress capable of displaying and receiving tweets (Nadine Pahl, 2009). The life cycle of the clothing industry There are four stages in the lifecycle of clothing industry which include; Introduction stage: It is majorly concerned with new products development since the industry is usually in the state of infancy whereby these new products are introduced in the market. This stage is risky to investors since a lot of money is required for the promotion of the product. Some of the risks encountered involve packaging, manufacturing technical problems and storage among others (Nadine Pahl, 2009, p. 54). Growth stage: After introducing the product I the market sales start growing thus gaining new competitors in the market. Efforts are made in distribution of this product whereby it is also exported for further marketing. In this stage there is competition experienced which is based on innovation. This stage also requires a lot of money since in it industries may economically start benefiting (Nadine Pahl, 2009, p. 75). Maturity Stage: The distribution of the product is well established since it is standardized. The price and shares competition takes place. The industry experiences low growth rate in this stage and this stage can mean differently to investors such as stable investment. Decline stage: A stage whereby production rate starts decreasing and eventually the product becomes too old in the prevailing market and this brings the end of the clothing industry lifecycle. Recommendation/Conclusion The clothing industry has evolved since the sewing age where early human beings used traditional methods of making clothes to the recent use of machinery and technology to build standardized garments. Bearing in mind that clothing is a basic need, this is an important venture in business because of its high demand. Different government regulations have been put in place to limit the use of environment with care without exploitation. In addition, the emerging trends of this digital world have led to improved technology where clothes are being embedded with various gadgets to economize and provide maximum utilization of resources (Nadine Pahl, 2009). Reference Nadine Pahl, W. M. (2009). Successful Business Models in the Clothing Retail Industry. Munich, Germany: GRIN Verlag. Read More