TABLE OF CONTENTS
TABLE OF CONTENTS 1
ABOUT THIS DOCUMENT 1
APPAREL INDUSTRY IN GLOBAL WORLD 1
Apparel Industry Overview 1
Lifestyle Industry Overview 2
Globalization Trends 3
Globalization - Integration of Functional Activities 4
FORECAST & PREDICTIONS 5
5-year Horizon 5
10-year Horizon 5
ABOUT THIS DOCUMENT
The pervasiveness of retailing in the western world leaves the industry open for careful analysis. This document is intended to expertly address global effects onto a single sub-industry of retail - specialty apparel. To do so, I will acquire perspective by considering all recent global developments in the industry.
First, this document captures the current environment of the mall-based lifestyle apparel retail industry and unifies these findings to highlight globalization effects on the industry.
Second, the document projects the future landscape of the industry over 5 - 10 years horizon; and states actual choices firms should embrace to better align with the industry's global environment.
APPAREL INDUSTRY IN GLOBAL WORLD
Apparel Industry Overview
As of 2004, the global apparel industry was valued at $768 billion dollars, and the United States made up $172.8 billion or nearly 22% of the total. The competition for these consumer dollars has accelerated with lifting of import quotas on textiles and apparel from most World Trade Organization (WTO) members in January 2005 . Absence of these quotas enables apparel makers to procure high quality merchandise from most reliable suppliers regardless of their country of origin. Nevertheless, many apparel retailers and their suppliers will probably want to maintain diversity of sourcing to avoid being hurt by so called safe-guard, protectionist agreements (e.g. U...
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...terialize, we might see some drastic changes in companies' strategies, where they might start to diversify and buy unrelated business to regain failing sales.
In the longer term, I also anticipate that the industry will move to more efficient, less fragmented sourcing where current quota system does not force firms to pick inefficient supply chains.
Rapid advancement in technology will continue making the world smaller, more competitive, and faster. Therefore, the firms ability to spot, integrate new technology into new business models will be essential.
In the end, I do not see it utopist to have custom-made everyday clothing, where consumer can design clothes with the help of online-technology and get it at affordable prices. Apparel firms will be online shopping stores, commoditize and outsource all of their key activities except marketing and brand management.
Fast fashion is a complex and multifaceted problem that has effects reaching to every corner of the globe. ‘Fast fashion,’ similar to fast food, is cheap, easily accessible, mass produced globally standardized product. It is characterized by sweatshop labor, supply chains, and large profits for the sellers. From the countries that grow the raw material for clothing, to those that produce textiles, to those that contain sweatshops, to those that are full of consumers ready to buy the next item on the shelves, this is a growing global issue that needs to be stopped in its tracks.
This part of the report will highlight the problems within the external environment that affect Marks and Spencer. Before planning and decision making can take place an organisation must be aware of these issues. The key factors that impact upon all organisations are Political, Economic, Social and Technological. These factors are commonly referred to as PEST factors. Political changes like change of government could affect the minimum wage that M&S workers are paid. Economic factors such as inflation could affect the pricing of garments. The Social factors that would need to be taken into account are lifestyle changes and demographics, M&S would need to consider where their target market stood. Technological advances could also affect M&S sales just recently their website has been updated from a corporate site to a new website offering online buying. Globalisation is a huge environmental factor affecting M&S. Globalisation is the increase in cross-border economic, social and technological exchange. For organisations it increases competition and the search for cost advantages.
“Sweatshops Are the Norm in the Global Apparel Industry. We’re Standing up to Change That.” International Labor Rights Forum. N.p., n.d. Web. 6 Feb. 2014. .
Now, as with most business ventures, competition can be a disadvantage. Our research shows that there is already a high volume of undergarment lines in England, i.e. Stella Mccartney, Hanes, Mimi Holliday, La Perla etc. The great success of these lines is proof of...
When America's cotton is sent to China, it is made into T-shirts in the sweatshops of China by laborers working 12-hour days and being paid subsistence wages. When the finished T-shirts re-enter the U.S., they are protected by the government through subsidies, tariffs, taxes, and protectionist policies that ensure that these foreign products will not provide too much competition to American-made shirts. Government regulations control how many T-shirt can be imported from various countrie...
Established in New York City in 1858, Macy’s has become one of the nation’s most important fashion retailers in the United States of America and around the world through online shopping. In 2005-2006, Macy’s changed its naming policy. It now has fifteen regional department store chains whereas it previously presented under around 810 stores nationwide (Johnson, 2011: 1). The main reason for this move to a national brand was that the traditional department store industry had a negative impact on the company partly due to the general economic environment. Until the early 2000s, the sales were decreasing and the company was in a mature phase in terms of business life cycle.
The strengths of the book come from its’ accessibility. The book is easy to follow and provides readers with a great deal of information about the production of mass-manufactured clothing. As well as brings awareness to its’ many issues which we inadvertently take part in when we purchase such products. The book is well written and thoroughly researched but does have its’ share of weaknesses.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
Petro, G. (2012, November 5). The future of fashion retailing --- the H&M approach (part 3 of 3). Retrieved from http://www.forbes.com/sites/gregpetro/2012/11/05/the-future-of-fashion-retailing-the-hm-approach-part-3-of-3/
For the past several decades, globalization has been a hot topic and it also anticipates every aspect of the world to connect each other. Likewise, globalization also allows consumers to have more access to catch up with updated fashion. The advantages of globalization bring a new philosophy called fast fashion, which holds quick response time and enhanced design in fashion apparel industry. In this paper, I will deliver By exploring all the aspects of each system, I will conclude the reason why fast fashion becomes the mainstream of the fashion apparel industry, and use one particular brand, Zara, as an example to discover the impact on consumer behavior in detail. Finally I will make some comments on the future of fast fashion and what luxury brands will react to this circumstance……..
Even the slowdown in current global economies could not bring retail sector down as retailers keep seeking for opportunities overseas to avoid challenging economic condition, which make this sector becoming more globalised and competitive. As an heir of an industrial components retailer, I also believe there are bountiful opportunities to grow in this emerging industry. But without deeply and truly understanding in every aspect of retailing, one could not survive in the battle. For this reason, I would like to pursue my education further by studying Master in retail management to obtain knowledge in retailing and hopefully become successful in the field.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
Potential new entrants: With positive economic outlook, fine business environment, and increasing number of population growth rate, it is expected that there will be more companies coming in the industry;
The objective of this paper is to examine how the development of a textile industry contributes to economic growth in the global economy. Because textile manufacturing is a labor-intensive industry, developing countries are able to utilize their labor surplus to enter the market and begin the process of building an industrial economy. Emerging economies then look outward to develop an export strategy based on their comparative advantage in labor costs.
It’s lead people follow the way of fashion and make customer look as one another. The brands of high street fashion are homogenized. High street fashion depends on their marketing model to attract consumers. The big sales of almost same garments led costumers lost out the diversity. The marketing strategies of high street fashion companies involve physical stores and online stores. They stick to providing low-cost products and follow fashion trend principles, resulting in the mass production of clothing and global distribution. Online stores and physical stores are selling almost the same garments in different countries. ‘They are virtually identical in similar neighbourhoods in the major cities all over the world. There is less difference across borders; this fashion they produce is global’ (Jawdat, 2014). Due to the low-cost marketing mode, more and more consumers have favoured a high street brand. Therefore, its sales are also growing, resulting in everyone’s style of dress more like. As the world 's biggest fashion retailer, the current situation of ZARA can representative the high street industry. ‘Zara sells almost the same garments in the 88 countries, The items are sold at nearly 6,000 stores all over the world. This means that costumers can find same garments in different real shops in various countries’ (Gonzalez-Rodriguez, 2015). Doyle (2012) says ‘in the age of online