Industry Analysis
Kates Jastin Aguilar
Rachel Ann Rabulan
I. Cover Page
II. Executive Summary
III. Industry Analysis
A. Environmental Analysis
The competition between businesses within the textile and clothing industry has always been steep. The change in lifestyle combined with the fast changing trends has left entrepreneurs with the challenge of keeping pace with the demand of the consumers. With KRaze-Zip’s fresh, unique, and high in quality yet economical products, it is in the best position to answer such growing needs.
The Clothing Accessories Industry Today
Since KRaze-Zip will be selling clothing accessories, it will be penetrating the clothing and textile industry. The clothing and textile industry has been a declining industry in the Philippines since 2005. This decline is due to the MFA (Multi-fiber Agreement) phase out and lowered of trade quotas which greatly affected the Philippines due to its inability to compete with countries with lower wage costs. Aside from this, the global crisis in 2008 has also led to the decline of the industry not only in the Philippines, but also worldwide. However, the textile and clothing industry remains to be Philippines’ second largest industry based on the number of establishments according to the survey released by the National Statistics (August 29, 2012). Out of 4, 643 manufacturing firms employing 20, 7.5% or a total number of 347 establishments came from the wearing apparel industry. Meanwhile, the industry generated 85, 805 jobs in 2010 (latest data) or 9.8% of the 55.7% of total employment provided by manufacturing companies employing 20 placing it in rank 2 after the electronic component.
Despite the decline in the clothing and textile industry, clothing accessories was seen with a better spending pattern. According to an article released by reportlinker.com, more consumers opted to buy accessories because of its relatively cheaper price compared to other clothing items. Also, the growth of the
Rachel Ann Rabulan
I. Cover Page
II. Executive Summary
III. Industry Analysis
A. Environmental Analysis
The competition between businesses within the textile and clothing industry has always been steep. The change in lifestyle combined with the fast changing trends has left entrepreneurs with the challenge of keeping pace with the demand of the consumers. With KRaze-Zip’s fresh, unique, and high in quality yet economical products, it is in the best position to answer such growing needs.
The Clothing Accessories Industry Today
Since KRaze-Zip will be selling clothing accessories, it will be penetrating the clothing and textile industry. The clothing and textile industry has been a declining industry in the Philippines since 2005. This decline is due to the MFA (Multi-fiber Agreement) phase out and lowered of trade quotas which greatly affected the Philippines due to its inability to compete with countries with lower wage costs. Aside from this, the global crisis in 2008 has also led to the decline of the industry not only in the Philippines, but also worldwide. However, the textile and clothing industry remains to be Philippines’ second largest industry based on the number of establishments according to the survey released by the National Statistics (August 29, 2012). Out of 4, 643 manufacturing firms employing 20, 7.5% or a total number of 347 establishments came from the wearing apparel industry. Meanwhile, the industry generated 85, 805 jobs in 2010 (latest data) or 9.8% of the 55.7% of total employment provided by manufacturing companies employing 20 placing it in rank 2 after the electronic component.
Despite the decline in the clothing and textile industry, clothing accessories was seen with a better spending pattern. According to an article released by reportlinker.com, more consumers opted to buy accessories because of its relatively cheaper price compared to other clothing items. Also, the growth of the