Clothes have become a language. People wear clothes not just to cover themselves up but to express their inner selves in a non-verbal way. Individuals’ clothes also reveal their feelings, emotions, and inner psyche. There are many studies showing that the clothes we wear directly affect our mood and behaviour.
With clothes meaning so much to people nowadays, this is the main reason for the recent boom in the fashion industry.
The fashion industry worldwide is evolving at a fast rate because of the high demand for clothes. People are consuming fashion at an alarming rate. This has led to the fashion business being a booming sector, which people want to explore.
The fashion industry has attracted many individuals into the business, be it manufacturing or retailing. Having a fashion business may be a lucrative opportunity for people because of its high-profit margin and great demand.
However, having a successful fashion brand is not easy as it depends on many factors. Sometimes these factors may not be under control at all times.
If you are looking to start a business in the fashion industry or already own one, you should know about the different factors affecting the fashion industry.
Let us understand what variables are and how they affect the fashion industry.
Variables in an industry are certain factors that affect the end products. Variables can change depending on certain conditions. This volatility may be predictable or unpredictable, thus proving risky for a business.
Like any other business, the fashion industry also has its variables, things that change over time, depending on certain internal and external factors. These variables often affect the supply or pricing of the end products. Sometimes, these changes may be abrupt.
Variables like style trends, technological changes, economic conditions, supply constraints, market structure, changes in the cost, and labour issues are a few variables that affect the fashion industry.
Let us understand how each of these variables can affect the fashion business-
Fashion is in a constant state of flux. Consumers currently are highly influenced by social media and celebrities. Globalisation has led to the reach of information from one part of the world to another. This can lead to the rise and fall of fashion trends quite quickly. A fashion brand's inventory may instantly become outdated if an item of clothing goes out of style. Change in customer preferences is one of the biggest challenges the fashion industry faces today as customer preferences are changing at a fast rate. This is the major reason for the rise of fast fashion.
Technological change is another variable hugely influencing the fashion industry. Businesses need to keep up with the latest technology to sustain their customers. Manufacturing units updating their manufacturing process will lead to less production cost and less turnaround time, which translates to more profits. Retailers also need to invest in upgrading their technology. The pandemic has given rise to more people preferring to shop online. Thus, investing in good virtual technology is a must.
A country's economy hugely impacts the fashion industry. Though clothes are necessary, people may avoid or delay buying them under adverse economic conditions such as unemployment due to global recession. Fashion has been subject to people's disposable incomes. Higher incomes lead to higher impulsive purchases, boosting the fashion industry. The change in the economic condition of a country may not be as abrupt as the rest of the variables. However, it is an important factor affecting the demand for fashion products.
Timing is very important in the fashion industry, mainly due to the demand of the consumers being highly dynamic. With the short life cycle of a product and huge variety available to the consumers, fashion brands need to ensure that their supply chain process is smooth and without delays. Predicting fashion demands and stocking up on raw materials can help businesses overcome supply chains constraints.
The fashion industry is quite labour intensive. From manufacturing to retailing, a happy labour force adds credibility to the business. A business unit should have ethical labour laws in place to boost the morale of the labour force. The variable factor here comes in the form of government policies. A fashion business should be ready for a change in its labour policy as directed by the government to avoid events such as labour strikes, boycotts or being the target of activists for unlawful labour practices.
Another important variable in the fashion industry is cost. It includes the change in the cost of the factors of production such as land or labour, which can change the cost of the end products as well. Manufacturing clothes requires several raw materials. A change in the cost of any of these raw materials may directly result in the change of cost of the end product. In a price-sensitive market like India, a small change in the cost of an item of clothing can hugely change its demand. Changes in the cost of any raw materials can be unexpected and depend on government policies. A change in tax policies can also lead to an increase/decrease in clothing items. High taxes charged on clothing items can discourage the customers from making purchases.
The fashion industry is extremely dynamic and fast-evolving. Therefore, being successful in the fashion industry means the ability to concur these variables quickly.
We at Fashinza can help you by taking over your entire manufacturing process from start to end. This means you don't have to worry about the variables mentioned above. Just place your clothing order with us, and we will send you market-ready products in no time. Connect with us @ fashinza.com to know about the latest way of doing business.