The traditional textile industry has witnessed various phases of disruption. From offline to e-commerce shopping, and from e-commerce to social media channels – a digital shop. The textile and fashion industry has undergone a significant transformation over the past decade, and still, it continues to evolve hastily.
In the new era of shopping where consumers’ behavior is dynamic, brands and retailers must adapt to new shifts in demographics, attitudes, and consumer preferences.
In the year 2019, the apparel and fashion market are defined by emerging technologies. These technologies are bridging the gap between consumers and brands. The evolutionary battle of e-commerce is changing consumer preferences and their interaction with brands.
Global fashion brands and retailers are in the race to be on top of their consumers’ choices. Here are the 4 best ways to analyze global brands and retailers based on their performance.
Political and Legal
In any apparel business, political and legal stability is indispensable. Legal and political factors can make it tricky for brands and retailers to make a profitable business.
“Geopolitical instability, Brexit, Terrorism, and Stalled trade deals will increase an extensive sense of uncertainty in the global economy”– reported by McKinsey.
The political and legal issue comes with a long-term effect. Some past situations can disturb the current textile trade if they are not solved properly. Two of the unsolved major unfixed issues of the past are – terrorism and political stability.
“The higher the level of political instability, the higher the uncertainty in the fashion industry”.
While entering into the global apparel market, traders must analyze the political and legal risks. Some major risks are:
• Political stability
• Level of corruption
• Legal framework for contract enforcement
• Trade and tariff restriction
• Bureaucracy and interference in textile
Favoured trading partners
• Employment laws and mandatory benefits
• Wage legislation
However, top global brands and retailers face fewer challenges compare to less-known labels. These fashion brands focus more on ethics and compliance.
Economic factors have some deep repercussions on the apparel and fashion industry. The industry contributes a huge part in the global economy.
Economic volatility can have both positive and negative impacts on the fashion industry as it affects sales and so profits.
During the budgetary boom periods, consumers have more disposable income to spend on fashion. While during the recession, they spend less. It causes fashion brands and retailers to sell the goods at comparatively low-price to compete with more generic brands. As consumers with less disposable income prefer cost-effective shopping.
“A stronger economy gives shoppers the freedom to buy fashion of their choice”.
Today the textile and apparel sector reckon for nearly 14 percent of the total industrial output. The industry contributes a massive value at every stage – from farming to purchasing. The textile and apparel trade holds about 30 percent of the total exports – an enormous potential.
Apparel and fashion businesses should consider the following factors while trading globally:
• Exchange rates
• Types of economic system
• Inflation rate
• Education level
• Business cycle stage
• Government intervention
• Infrastructure development
• Economic growth rate
• Discretionary income
• Employment rate
Big apparel businesses analyze the economic risks to maximize profit.
Read More on: 5 Ways Brands and Retailers Are Boosting Their Business
The growth of businesses is affected by the social and cultural values of the market. In the last decade, consumers are changed socially, and it has affected the demand for fashion products.
From offline shoppers to fashion influencers –e-commerce has changed the entire shopping landscape. Millennials are targeting fashion marketers and following the fashion influencers, it is continuously evolving the shopping preferences. Millennials are not settling for anything less than great quality at a lower price.
“Social and Cultural values tell a lot about shopping choices”.
Now consumers are making more precise and informed decisions while shopping. They count on feedback more than advertising and marketing. This has created a new challenge for fashion brands and retailers.
To earn a good reputation and build a good brand image – fashion brands should consider the following factors:
• Demographics and skill level
• Education level
• Population growth rate
• The entrepreneurial spirit of the market
• Leisure interests
• Religion and cultural itself
• Consumer behavior
• Class and Power structure
In every new market you enter, you must analyze their social and cultural values.
One of the most important factors of today’s textile and apparel world is technological advancement. Apparel and fashion businesses are achieving
success through increased efficiency, and effectiveness combined with modern technology.
In today’s textile world, businesses are undergoing a substantial re-orientation towards clothing– technical textiles. These textiles are relatively costly as it requires expensive machinery and skilled workers.
The amazing fusion of technology and textile is reshaping the fashion world. Fashion innovators are making the industry more advanced than the past and consumers are loving it too.
“Technology is making the fashion industry smart, and consumer smarter”.
With the advancement of technology, the textile and apparel industry has added more value throughout the supply chain – from farming to buying. At every stage, technology is involved to make the process easier, faster, and expensive.
Small brands and retailers – those who are not so advance with their manufacturing and selling might have to face a tough competition with technologically advanced brands and retailers.
Hence, it’s vital to consider the following technological aspects:
• Technology’s impact on the market
• Latest technological developments
• Impact on cost structure
• Technology incentives
• Distribution and communication channel
• Rate of technological change
• Technological barriers
• Outsourcing decisions
The future of fashion is ready to add more advancement to their current technology. And brands and retailers need to analyze their technological power and need to add more power to it.
(Know why Retailers Are Going Totally Global?)
Wrapping it up
These 4 factors can get the best analysis for your apparel and fashion business. The industry emerges faster than many others with time. And so, the competition.
Therefore, market players need to analyze their business performance periodically. And update the strategy wherever required. Analyze all the risks before entering into any new market and make informed decisions.
If you wish to leverage your business potential, we have an intelligent tool – TexPro.
TexPro – the market intelligent tool can help you to analyze your business potential.
Moreover, it can assist you with other brands and retailers’ details to analyze market performance. You can achieve your business goals with surefire strategies.
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