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The face of Fashion Industry is witnessed a dramatic change in which the business is done. In the current scenario, Internet is considered as one of the channels of marketing (front end) in Apparel business. This paper will focus on how Brand building can be implemented by making use of tools like E-Business and Internet based channels to improve the traffic flow.
Internet marketing has made its presence in the fashion industry. Fashion represents one's personal style and a taste of art. Every month, every one of us spends at least hundreds to thousands on what we are wearing. There are different purchasing and supplying sources to renew your closet every season. Now, it is no longer necessary to purchase directly from stores. E-buying is definitely the current trend.
Since fashion is renewing by the seasons, it involves a lot of media advertisements, online buying and auctions as well. There are plenty of happening issues in the fashion line. Information on big fashion event like a fashion week in France or some fashion awards is available online for consumers' references. Marketers have to keep up with the current demands and fashion trend so that they can provide vital information to companies. Online fashion suppliers are countless. From branded name to small boutique vendors, the online network has become an ideal platform to sell and buy. Consumers can also book new arrivals without picking up a phone or going to the store.
Current scenario of Fashion Business
The current fashion stores which are engaged in brick and mortar model can be transformed into click and mortar model. E-commerce is the solution for the electronic selling and buying of fashion goods. Most of the stores have shopping cart in their websites to browse the information pertaining to fashion products such as Men’s wear, Women’s wear, Kids wear etc.,
The challenges and the opportunities faced by the organization can be clearly understood by looking at the following points:
The Challenges
Fierce Competition among wholesalers & retailers.
Profit Margin drops as a result of by price war
Increasing holding cost of inventory.
Expensive expansion cost for traditional brick & mortar clothing business.
Features tailored for Fashion & Apparel Industry:
There are companies which uses webshaper E-Commerce tool for designing the clothes required in the stores
Powerful feature like Sub Stock Keeping Unit enable Flexible Management over clothing, shoes etc with different combination of colors and sizes.
Easy, clean & user-friendly control panel to upload & manage your clothing.
Color switcher: Shirt colors will change accordingly when customer choose different colors with their mouse clicks.
Unlimited Web Pages: Create as many web pages as you like .For Example size, chart, buying guide, fashion tips, terms & conditions, etc.,
Enlarged Picture: To showcase the details like cutting and texture of the fabrics.
The following diagram shows the Search Engines shopping web sites with Web addresses and also pricing information about the product. To Sell Online there is marketing-driven features which are incorporated in the website which helps the user to access the tailored- made requirements for the company.
Companies can put forth their strategies to improve the traffic flow by having a tie-up with the Search Engines. Ready-made store can help the business grow instantly.
Ability to accept credit
Support most choices of Online Payment Gateways you can find online.
Integration with YouTube.
Prevent fraudulent credit card order with Fraud Alert System
Impact of Internet on Fashion Business
To understand the impact of Internet on Fashion Business it is necessary to know about the names, faces, people from the business of fashion and lifestyle. What did this industry achieve or lose out on in the decade just past us. The year 2009 was when the global meltdown made an impact on the domestic market too. A beneficial outcome of it was that rather than being a bane, for many it turned out to be a boon, correcting as it did anomalies in a market which was earlier zipping ahead with little or no focus on critical issues that usually remain on the backburner. IMAGES BoF spoke to a cross-section of the industry to retrospect on the decade that was, introspect on the outgoing year and list their wishes for the year, nay decade, ahead.
Retrospective the Decade: 2000-2009
The business of fashion shifts from a pure commodity play to a more fashion-driven player.
Birth of fashion in India – Till 2000 fashion was just beginning. In the last eight years fashion has evolved. People now consider fashion as a way of life.
Fairly organized domestic market: Organized fashion retail now occupies 30 per cent of total organized retail in the country a very important development in the
Business of fashion in India.
The span of a decade also sees the strong growth of ready-to-wear apparel market, a big change from the days of apparel sales being restricted to tailored clothing. Domestic players like Arvind Brands have a lot to their credit in creating this wave of growth.
Finally industry achieved some scale in India as businesses reached the next level in terms of business size. Good to see organizations talk of 1 billion USD scale in the country.
India is at the top position among 30 emerging markets as per the annual Global Retail Development Index (GRDI) for 2005. The expanding base of well-to-do young people and the middle class seems to be pushing the country towards adapting to modern retail formats. The domestic fashion industry can increase from its net worth of Rs 200 crore to Rs 1,000 crore in the next five to ten years.
Respect and desired visibility to this industry within business sector in the country
Malls emerge as new shopping destinations: Massive increase in the number of malls, supermarkets and hypermarkets throughout the country, including in the non-metro cities, largely help shape the current fashion industry.
Large market area and the realisation that there’s still a larger market yet untapped:
Spreading the fashion business in tier II and tier III cities and towns
Birth of the luxury market:
The outlook and horizon of people has changed with economic growth, the internet and travel. They have started to enjoy the best the world has to offer
The cult of the luxury brand has taken roots in India and begun to spread: The Indian customer is now more aware and with a large disposable income at hand is also ready to spend more on luxuries. This boom in the luxury retail segment has attracted many international brands and retailers to see India as a large market for their designs.
A deluge of international brands in the country across segments.
The advantages we now enjoy following the elimination of the global textile quotas in 2005. India with its competitive prices for quality products and being among the largest exporters of textile garments and fabrics benefits from this.
New methods of retailing, including e-commerce, multi-brand outlets, shop in- shops
Focus on product lines, quality and styling, Creation, innovation and perfection: Brands across fashion and lifestyle industry reinvent themselves, thereby creating new business opportunities
The birth of many niche brands/products.
Emergence of value fashion retailers
Penetration of fashion into smaller towns of the country
Customer is king
Higher demand and specific choices and tastes of customers forces fashion houses to Improve quality.
People have become more trend-conscious, with more lines added on like a club section or festival collection which shows that brands are trying to cater to the changing Customers needs and wants
High fashion affordability has increased among the masses with an increase in the purchasing power.
Men in the 30-45 years age bracket have also become conscious of the way they dress up
Boost to the industry due to change in consumer habits
India is the most desirable market for international luxury. In fact, the factors contributing to this is the fact that Indian consumerism has observed a sea change over the last decade and a half. Nuclear families and a trend of double income households are on the rise. With the workforce dominated largely by younger age groups, and Indians travelling abroad more frequently has resulted in an increased awareness of western concepts of entertainment and shopping. Industry has witnessed a change in the consumer base.
Marketing & distribution
Fashion media in print as well as television has been established and continues to create awareness in the consumer
Major international publications step in to further spread the fashion gospel
Distribution due to growth of organized retail has improved tremendously. It is now possible to distribute the products to the right people through the right channels.
Huge advertising and branding budgets
Logistics and backend issues
Learnings from recession on the need of efficiency
More investments in logistics and backend operations streamlining business
Reorganizing assets
With the entry of international brands, came global know-how and shared international practices, which enhanced practices in the domestic fashion retail sector.
No part of the fashion business remained untouched by technology, right from concept to consumer. However notable improvements happened at the research stage with more in-depth and easily accessible details being available for product development through technology, including the internet. E-commerce along with an online presence is a must today, which no self-respecting fashion business will be seen without. Massive improvements in ERP has helped logistically as well as made the off-shoring of production feasible to such a great extent.
Conclusion
After understanding the Importance of E-Business in Fashion Industry we can conclude that entire fashion business cannot make use of Internet as the main source. It can be used as support system for enhancing the image of the fashion houses in India.
Organization can make use of internet to expand their sales channel and directly engage customers in order to create a niche market. By doing this companies can expect healthier profit in the shortest time by promoting it online.
References:
http://www.neowave.com.my/online-fashion-store.asp
http://news.indiamart.com/story/indian-textile-industry-aims-touch-220-bn-fy20- 90493.html?utm_source=newsletter&utm_medium=email&utm_term=Indian-textile- industry-aims-to-touch-220&utm_campaign=Apparel-vol170
http://sloanreview.mit.edu/the-magazine/articles/2010/summer/51406/the-surprising- impact-of-fashions-in-information-technology/
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