Apparel Case Study

External Market Environment

There are some macro environmental factors that affect small apparel company and their competitors, such as political, legal, economic, social, cultural, technological, demographic, and competitive considerations. In this case, Stussy is facing these factors and they can’t be controlled by business owner’s willingness.

Legal Factors

As a fashion industry, Stussy is likely to be affected by several legal factors. And the law also affects the way customers behave.

Consumer law:

According to the Federal Trade Commission, consumers of United States are protected from fraudulent products, dishonest products and unfair business. In the marketplace, customers can get their rights thought consumer law. In this case, Stussy

When economy grows, people have more money to dominate. So customers are more likely to purchase clothing, which increases company’s sales. On the other hand, when economic meets with recession, people have less disposal money. For example, during the financial crisis in 2008, a lot of people went through unemployment, so they tend to buy cheap clothing or avoid shopping, which reduces fashion companies’ sales. As a consequence, retailers may cut down the selling price to get rid of large amount of stuck inventory and to survive within other

Competitive factors in fashion brands include quality, design, service, and price. In this case, there are a lot of apparel is competing with Stussy such as American Apparel, Superdry, Cyerdog and so on. Due to the intense competition of apparel industry, no one can guarantee the demand of products will be high all the time. Moreover, the development of new products needs cash flow for design, manufacturing and marketing. It is possible those costs are not covered due to the failure of products. So Stussy have to anticipate the possibility and make