SWOT Analysis of Fashion Industry. Fashion allows you to express yourself in a specific context like time, place, and purpose. The sale of fashion products happens with the assistance of the fashion industry. The modernism and modern age have given rise to the global fashion industry.
Some of the main elements of the fashion industry are as follows;
- Body Posture
Key statistical facts and figures about the fashion industry are as follows;
- The annual revenue of the fashion industry in 2023 was 701.40 billion US dollars
- Growth and revenue of the fashion business would reach approximately 1003 billion US dollars by the end of 2027
- The total number of fashion industry users would reach 3.38 billion people by the end of 2027
Some of the top brands in the fashion industry are as follows;
- Tiffany & Co
- Louis Vuitton
Today, we’ll discuss the swot analysis of fashion industry. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the fashion business. Here’s the swot analysis of fashion industry as follows;
Strengths of Fashion Industry
Some of the main strengths in the swot analysis of fashion industry are as follows;
The emphasis of fashion brands is to develop high-quality products. When it comes to the purchase of fashionable products, consumers spend a lot of money on fashion brands. However, many brands offer high-quality products with unique experiences in order to retain their loyalty.
Fashion prevails in various cultures and regions across the world. There are various retail chain fashion brands, and they offer localized fashion products relevant to the culture and traditions of different cultures. In short, fashion trends exist across the world, and they contribute significantly to the growth and promotion of the industry.
People think of fashion brands intentionally or unintentionally, and they like the style and quality of Gucci, Zara, Shein, Apple, or Nike. Some brands are highly exclusive and they target only status-conscious people and they don’t serve everyone. However, the good thing about the fashion industry is that it has got a lot of variety and has the capability to serve the needs of everyone. There are different brands targeting various price segments of the market and offer a wide range of products like;
- Party wear
- Formal wear
- Office wear
- Daily wear
The annual revenue of the global fashion industry in 2023 was more than 705 billion US dollars. It would continue to increase and grow in the next few years. There are hundreds of fashion brands in various categories targeting specific segments of the customer market. In short, fashion is the world’s most profitable and exponentially growing industry.
Weaknesses of Fashion Industry
Some of the main weaknesses in the swot analysis of fashion industry are as follows;
World’s leading fashion brands spend hundreds of thousands of dollars on the development of quality products and services. Some counterfeit manufacturers copy their designs and introduce cheap quality products in the market. However, fake products are like original in appearance that no one could differentiate them. Such counterfeit products jeopardize the reputation of original fashion brands; that’s why patent and the rule of law is highly important.
The fashion industry has become almost fully saturated with a lot of brands and competitors; it puts a lot of barriers for new entrants. Existing fashion brands have experimented with and tested almost every possible idea. Every trend or fashion idea you could think of exists somewhere in the world in some form or the other.
There are various fashion brands local, national, and international. They have captured a significant portion of the target customer market. Their market presence has made it very difficult for the new brands to gain a foothold in the market.
Low Quality at a Low Price
The fashion business offers a lot of variety in different industries ranging from premium quality and price to an economical range of goods and products. The thing about affordable and economical price brands and products is that their products and goods aren’t durable. However, it negatively impacts the reputation of the industry; because the rich people enjoy high quality and the poor get low-quality products.
Changing Fashion Trends
The thing about fashion trends is that they are always changing. You need to change your outfit and accessories from time to time in order to keep up with the latest fashion trends. You would come across posts on social media telling about the next big thing or fashion. It puts great pressure on fashion brands to accurately predict the demand and manufacture the right quantity. Otherwise, the stock would get inventory and warehouse and decreasing the company’s profitability.
Opportunities For Fashion Industry
Some of the available opportunities in the swot analysis of fashion industry are as follows;
The Indian fashion designer is very popular in developing and creating real-life fashion design that is easily relatable to their daily life. Their focus is to target the mass market, rather than targeting exclusively the specific segment of the market.
Facebook is the world’s leading social media platform with billions of active daily in various geographies and regions across the world. It presents a great opportunity for fashion brands to launch and sell their product on the digital platform. They can use catchy avatars and emoji to attract the attention of target customers.
People have become more cautious about their standard of living and quality of lifestyle with better jobs and education. On top of that, they share ideas and thoughts on social media platforms, follow their favorite icons, and become aware of the latest social media trends. It shows the growth of lifestyle products in the fashion business.
Threats to Fashion Industry
Some of the potential threats in the swot analysis of fashion industry are as follows;
There is cutthroat competition in the fashion industry with a lot of competitors in almost every category and niche. It puts great pressure on the fashion brand to develop something and win the market share, and this process never ends.
The consumer market has become highly conscience about the environment and nature. Every new fashion trend increases the waste on the environment and surrounding. That’s why they prefer second-hand products and organic materials. However, it raises a serious question about the business and future of the fashion retail industry.
Conclusion: Fashion Industry SWOT Analysis
After an in-depth study of the swot analysis of fashion industry; we have realized that fashion is a highly growing and lucrative business. If you are learning about the business of fashion industry, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.