Global Fashion Apparel

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  • Topic: Fashion, Milan, Fashion week
  • Pages : 18 (5772 words )
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  • Published : March 11, 2012
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2) For the global fashion apparel industry explain key dominant features and industry driving forces. Outline Zara’s strategies for leveraging this. Industry overview:
The global fashion apparel industry is one of the most important sectors of the economy in terms of investment, revenue, and trade and employment generation all over the world. Some of its major contributors are: Significant consolidation in retail

Increasing use of electronic commerce in retail
Wholesale trade
The industry has been in a transition over the last 20 years. The industry has been in a transition for over the last 20 years. Following trends in global fashion apparel industry explain this: As the apparel manufacturing industry has become more labor intensive and requires less capital investment, its concentration is shifting more towards the developing countries and even constituting large amount of their exports. This can be analyzed by the fact that the apparel production in industrialized countries decreased between 1980 and 1996, where as the production increased in developing countries during the same period. Similar trend was seen in exports, the apparel exports of developing countries increased six times between 1980 and 1997, and that of developed economies rose by 150%. The global apparel industry’s total revenue in 2006 was US $ 1, 252.8 billion, which was approximately 68% of the overall industry value. Asia Pacific constitutes the largest amount of production and trade in the apparel industry worldwide. The percentage share of different regions of the world in the total trade revenue in the year 2006 was:

China had captured 65% of the global market share towards the end of 2006 in total apparel exports. The other major apparel exporting nations include USA, Germany, Hong Kong, Italy, Malaysia, Pakistan, Thailand and India. Some of the apparel trade statistics are presented below:

The clothing and apparel industry produces finished clothing products made from both natural and manmade fibers like cotton, silk, wool, linen, polyester, rayon, lycra and denim. The important segments covered in apparel industry include: Kids clothing

Men’s clothing
Clothing for women
Bridal wear
Men’s wedding wear
Intimate apparel
The apparel is sold through three major channels:
Brick & mortar: A “brick and mortar business” is a term used mainly on the Internet to differentiate between companies that are based solely online, and those that have a real-world counterpart. A brick and mortar business has a commercial address “made of brick and mortar” where customers can transact face-to-face. The company might also have an online presence. Catalog: A book or pamphlet containing an enumeration of clothes, so that consumers can see how the apparel will look once it is stitched & ready to wear. Internet

The market share of the different channels is shown below:

The largest apparel manufacturers and exporters are countries from the Asia-Pacific region which included countries like China, Hong Kong, Philippines, Malaysia, Indonesia, Bangladesh, Srilanka, Pakistan, Thailand and India. The other major apparel manufacturing nations were USA, Italy, Germany and Mexico. The key dominant features of this industry are:

Short product life cycles
Volatile and unpredictable demand
Long and inflexible supply processes
Tremendous product variety

No style lasts more than four weeks. Fashion is a style that is popular in the present or a set of trends that have been accepted by a wide audience. But fashion itself is far from simple. Fashion is a complex phenomenon from psychological, sociological, cultural or commercial point of view. Fashion trends are the styling ideas that major collections have in common. They indicate the direction in which the fashion is moving. To cope with the ever-changing world, the marketing segmentation and targeting techniques are rapidly evolving from...
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