"Buying for the day, wearing for a week and going in for a new fad" is the current trend. How are clothing retailers handling the situation?
A recent research report about the clothing market, and shoppers preferences states that 70% of the consumers prefer to buy through bargaining, and 30% of them would prefer to an inexpensive clothing budget. With todays scenario of double income in majority of the households, people prefer to buy clothing just because it does not involve a hefty price tag even if it is not essential for them. Buyers obsessions for cheap apparels have led to the emergence of value clothing market.
Clothing retailers have started to feel the pinch of increasing interest rates, alarming credit crunch, and a resulting influence in the consumer-spending pattern. There is a heavy cutback on inventory. It is seldom possible to escape the loom and doom of the looming economic downturn. During the period of recession, value-clothing retailers will have to go for strong discount offers.
Fashion trends, and younger section of the society are the prime focus of value clothing retailers. Stores need an overhauling and require being more fashionable with attractive discount propositions and more sophisticated product lines. Many consumers who cannot afford to be choosy while shopping for their clothes due to recession turn away from designer outfits, and departmental stores. Thus value retailers offer clothing range that are inexpensive, and does not affect the consumers wallet. They provide benefits during times of recession, and possibilities exist that they become high street fashion in the future years to come.
Retail market has changed significantly, with retailers growing noticeably bigger. Value clothing is a segment, which offers lucrative options for foreign revenue generation. Western markets for value clothing are under developed. On the contrary, Central and European countries offer tempting propositions. There, the purchasing power is at a lower level, and growth is anticipated once the economy recovers after recession. Mango has already launched new brand with inexpensive price tags in the name think up. Gap is also gearing up to meet with the fierce challenges in the clothing arena. Tesco and Asda are also striving to grab their slice in the global pie. H&M and Kiabi are expected to have a radical growth in the coming years. Peacocks, and New look are showing healthy profit margins; especially for younger women.
Focus on Ethical Strategies:
Currently, the ethical part of clothing has become a larger market, with more and more competitors entering the industry. As the preference and expectations of todays shoppers become more holistic, Primark will require focusing on ethical issues. Many retailers have started focusing on organic cotton for manufacturing their apparels. Value retailers will have to focus on ethical strategies; if they wish to overcome the consumers perception that low price tag in a garment implies unethical manufacturing.
Value clothing is a perfect antidote for todays fashionists. It has become lot more accessible, and acceptable in todays life style. Industry analysts predict that if value clothing continues to perform in the same level surpassing other specialist sectors, many players are likely to close their range of operations, and switch to value clothing segment.