The paper "Overview of Clothing and Apparel Industry - Smart Jeans Company " is a perfect example of a business case study. The clothing and apparel industry is facing numerous challenges such as higher rent costs for the retailing establishment, intense competition, and cautious consumer spending. According to IBISWorld (2016a), the annual growth rate of the clothing and apparel industry in Australia is estimated at 3.3%, the amount of revenue is $19 billion, and the number of people employed is 122,266 while the number of businesses is more than 12,785. IBISWorld (2016b) also analyzed the women's clothing industry in the USA.
IBISWorld (2016) estimated the revenues generated for women's clothing in the USA is more than $42 billion, the annual growth rate is -0.9%, the number of businesses is 33,439 while the number of employment opportunities is more than 371,128. The data indicates that the number of businesses and employment are high even though there are variable views when it comes to the growth of the business. Since clothes are a basic need, it means people will continuously purchase the products but issues associated with economic, social, political and cultural variables may dictate the type and amount of purchase. Current Issues The clothing and apparel industry can be seen as having a medium barrier to entry, and for the smaller establishment, it can even be lower.
Some of the establishments have a single outlet while others have multiple outlets across the world. For example, some companies have an online presence while others have strong supply chain strategic approaches (Bhardwaj and Fairhurst, 2010). It means that it is easier for competitors to enter the market.
In addition, the diversification of manufacturing processes, whereby companies are outsourcing the manufacturing processes becomes an integral component in the clothing industry (Gupta and Hodges, 2012). For instance, many companies are seeking production services from Asian countries because of lower production costs compared with Western countries.
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IBISWorld. 2016a. Clothing Retailing in Australia: Market Research Report. Available at: http://www.ibisworld.com.au/industry/default.aspx?indid=407 [Accessed on: 9 September 2016].
IBISWorld. 2016b. Women's Clothing Stores in the US: Market Research Report. Available at: http://www.ibisworld.com/industry/default.aspx?indid=1067 [Accessed on: 9 September 2016].
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