Any fashion-based firm employs various techniques to make its hold stronger in the world market and to reap more and more profits. A fashion retailer tends to open more and more stores, in case the business is successful at the first go; and a fashion manufacturer opens various manufacturing units, if there is immense demand for the product. After attracting a set number of customers or clients at a particular place, the firm targets other geographical locations. This helps the firm in spreading its reach all over the world gradually. Physical stores and manufacturing units help the firm establish itself in the global textile industry.
But there are drawbacks to these conventional business techniques; setting up retail stores and manufacturing units at various places require immense flow of capital. Besides, it is not guaranteed if the stores would bring in the success expected out of it. Businesses take risks by setting up stores and units at not-so-familiar locations. This step can result in huge losses to the firm, if sufficient research and analysis is not carried out. Besides, a large number of employees need to be employed and infrastructural requirements need to be fulfilled in these newly set stores and units, which ultimately increases the overall expenditure incurred by the firm. Setting up a business and expanding it was, therefore, considered a game of the super rich!
E-business in Fashion Industry
Internet has made the world a smaller place. It has facilitated long distance communication by making the process cheaper, faster, and easier. Today, internet helps business houses to cater to a global audience without any major investment. Fashion business houses can maintain a website to promote its products and to sell its products. The official website of any fashion brand serves as its identity on the World Wide Web (WWW). It helps in spreading awareness about the firm and its products. Customers can also purchase fashion products from the website. Fashion business houses can also display their products on e-commerce websites and social networking sites, thereby attracting more and more buyers. Online media helps fashion houses take their products world-wide with minimum investment of money.
The involvement of the internet is not merely limited to sales and marketing a product. It is also used in managing the processes of the company. Software applications that can be managed by people located at various places are used in the fashion industry. These applications make the overall business work easy. Australians reported a growth of 17.6 percent in their online shopping in the year 2012. Clothing, footwear, and jewelry are especially expected to record a strong growth in the next five years. Statistics indicate that almost 192 million consumers will indulge in online shopping by the year 2016, and apparel and jewelry are the hottest categories for the same.
It has been noticed that e-commerce provides a level playing field to all the sellers of fashion and clothing. A small-time enterprise has equal opportunities as compared to a big fashion retailer, in terms of online sales. This is the reason many small-time fashion retailers are also able to make big bucks through e-tailing. It has been estimated that around 4.3 billion worth of clothing has been purchased online, which is almost double to the amount purchased online last year. A recent study stated that almost 61 percent of small-time firms in USA have a website and around 35 percent of them sell products through it. Clothing manufacturers and retailers, despite the size of the enterprise, reap huge profits through a website by employing simple online marketing techniques.