The apparel industry has become increasingly competitive as more companies have entered, including large supermarket chains. Therefore, companies are using competitive pricing strategies and running intensive marketing campaigns in order to maintain market share.
Features and benefits
- Analyzes the business model of retailers such as American Eagle Outfitters and Marks and Spencer and assesses why these companies have been declining.
- Assesses why companies such as Inditex, H&M and Primark are growing and the strategies used by these retailers.
- Analyzes what the fast fashion model is and why companies that are not fast fashion, are declining within the apparel industry.
- Looks at how economic downturn has provided supermarkets with the opportunity to establish their position in the apparel industry.
- Assesses the threat experienced by traditional retailers from online apparel retailers such as ASOS.
According to MarketLine’s research, the global apparel industry (menswear and womenswear) grew at a moderate rate in 2013. However, some major apparel retailers, such as Marks and Spencer and American Eagle Outfitters, have experienced decline in recent years.
Key to the success of companies such as Inditex and H&M is the fast fashion model. The fast fashion model was pioneered by Inditex, and deviates from the norm of the fashion industry’s traditional model of seasonal clothing lines. This model has changed consumer behavior; consumers now expect new fashion quicker.
An economic recession triggers increased price consciousness among consumers. Many high street retailers have struggled during economic downturn and this provides supermarkets with the opportunity to establish their position as providers of affordable, good quality clothing.
Your key questions answered
- Why have non-fast fashion retailers such as American Eagle Outfitters and M&S declined in recent years?
- How has the fast fashion operating model changed consumer behavior?
- What is driving demand for fashion in supermarkets?
- What factors are fuelling growth in the apparel industry and how can retailers enhance their position?
- Why do online retailers pose a significant threat to traditional high street fashion retailers?
INCREASING COMPETITION IN HIGH STREET FASHION
The growing apparel industry
High street fashion retailers experience mixed fortunes
Advertising strategies of fashion retailers
INCREASINGLY POPULAR FAST FASHION MODEL
What is fast fashion?
Segmented marketing caters for multiple customers
Consumer to designer communication
THREAT OF SUPERMARKET FASHION
The rise of supermarket fashion
Supermarkets also adopting the fast fashion model
Fashion retailers at threat from online apparel retailers
Supermarket fashion and online retail pose a threat to high street fashion retailers
Ask the analyst