Retail Clothing Industry Analysis
Introduction
A detailed retail clothing industry analysis will enable any entrepreneur that is interested in venturing into this industry to determine whether the idea of venturing into this sector is a solid one. The clothing industry can be defined as the fashion industry, garment industry or apparel industry that began many centuries back at homes all over the world. Today, the industry offers ready to wear clothes and it is thriving fast, reaching females, males and people of different ages. People can purchase all purposes garments from the industry. The modern clothing industry is a multibillion-dollar industry. Nevertheless, it is important to analyze this industry if you are thinking of venturing into it.
Retail clothing industry analysis
A detailed analysis of the retail clothing industry should consider certain factors. These include the amount of money that is generated by the industry, the markets, trends and competitions or challenges. Such an analysis makes it clear for government entities or entrepreneurs whether they should expect rewards from this industry in the future. Companies in the clothing industry are operating physical and online retail establishments. How they run these establishments and how profitable they are can be indicated by a detailed industry analysis.
A detailed analysis of the retail clothing industry
- Revenue
According to Franchise Help, the retail clothing industry generated revenue of over $304 billion in 2009. Women’s clothing emerged as the most profitable segment of the retail clothing industry, accounting for 53% of this revenue. It is important to note that selling clothing is a seasonal business because most sales are made while children are going back to school and during major holidays.
- Trends
An increase in the trend of online shopping is influencing the retail clothing industry. Many people want to shop for clothes from their homes instead of visiting traditional brick-and-mortar stores. The emerging technologies that include mobile apps are also changing how retailers conduct business. Other trends that influence operations of retailers in the clothing industry include creation of mobile point-of-sale applications that make buying and offering services like virtual fitting easier. Using customer data in figuring out what customers want is also a popular trend. Fashion trends influence the retail apparel industry too.
- Challenges
To attract apparel-hungry shoppers, retailers in the clothing industry must remain at the top of the latest clothing styles. Failure to attract shoppers means that a retailer can end up with a lot of inventory or worse, experience brand damage. Increased retail clothing shops is another challenge in this industry. With the advent of the internet, more online apparel shops have come up. These can lure the local shoppers leading to loss of revenue for local stores. Apart from the threat that is posed by the internet, establishing and operating a local store is also costly. People who find capital a major concern opt to sell apparels online as a way of eliminating the need for setting up a storefront or hiring staffs.
Why it is important to conduct a retail clothing industry analysis
Conducting an analysis of the retail clothing industry makes understanding the dynamics of this industry that keep changing dramatically possible. It is only by conducting this analysis that entrepreneurs can succeed in the industry where tides keep changing by building relevant competences. The retail clothing industry is one of the few industries where companies are required to be on their toes in regards to global fashion industry. Generally, fashion has a fast moving nature. This implies that companies in the retail clothing industry must jump on the latest trends right away. This is the only way a business in this industry can acquire the much needed competitive advantage.
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Sources
http://www.wisegeek.com/what-is-the-clothing-industry.htm
http://www.hoovers.com/industry-facts.clothing-stores.1519.html
http://www.mckinseyonmarketingandsales.com/succeeding-in-tomorrows-global-fashion-market