THREATS AND OPPORTUNITIES FACED BY FASHION COMPANIES.
The current economic downturn has led to the overall doom in several industries, including fashion and apparel. Overall statistics have all shown that Americans are spending less on fashion. Moreover, the spending pattern and demographical classification of the market have all altered. Therefore at this time the new scenario gives some food for thought for the entire industry. In order to gain a deeper understanding of the implications of the current industry scenario, a systematic analysis needs to be conducted beyond the superficial facts and figures presented in the article. Despite the apparent melancholy feeling of most fashion firms, there are still firms that are doing well. This article is aimed at a brief analysis of the threats and opportunities that face fashion companies under the current industry scenario.
The correct standpoint.
While many analysts would perceive improving the fashion firms' performance as a sheer marketing effort alone, as they perceive the other consumer industries such as retail, they may tend to neglect many other important issues related to corporate development, such as change management, growth management, core competence, and competitive advantage. In time of great change and hardship, fashion companies particularly need to have some strategic mindsets and do much more work to evaluate their overall strategy when they assess their strengths and weaknesses in view of what the challenges and opportunities could mean to them. .
Threats.
In this part the paper will discuss what the causes and implications of some threats to the current fashion industry. .
--Reduction in people's income.
The fashion industry, as with other consumer industries, is easily influenced by people's spending power. The global downturn in some major industries such as telecom and internet, and the 9/11 initiated unemployment hikes have led to the reduction in wages and an instinctive natural cutting back of people's consumer spending.
