Whether you're someone who likes to keep things simple or someone who goes the whole hog with their style and clothes, you all identify with fashion in one way or another. Maybe that's why this industry has grown so big during this time; People express themselves through fashion. In the following SWOT analysis of the fashion industry, we'll analyze why it's such a big deal.
The fashion industry is not as old as some others. The reason fashion comes into play so “late” is because people in different regions used to have different cultures and henceseparate fashion and clothing selection. With the onset of technological development and globalization, people began to connect with each other.
Soon we saw the emergence of ideas and cultures shared around the world. Especially the western worldGreat Britain, had a big impact because the royal family and their fashion choices were very popular. King Ludwig the fifteenth also enjoyed an influence on the world with his court fashion and did soFrancealso very prominent.
As people started sharing ideas, fashion crossed borders and the industry boomed. Now it's a billion dollar industry with players operating in every country.Die SWOT-Analysewill help us see how this became possible.
In anySWOT template, you will come across four factors namely Strengths, Weaknesses, Opportunities and Threats. The first two factors together form internal factors while the last two form the external factors.
Internal factors are fundamentally under the sphere of influence or even control of the entity being analyzed in the SWOT. External factors are the complete opposite; They cannot be controlled or even influenced by the internal stakeholders. They are very independent in their creation.
If we try to understand this with an example, it may become a little clearer as we go along. If the fashion industry has many competitors that make it profitable, this will be a strength and therefore an internal factor that contributes to the industry.
We say it's internal because the industry makes money from the work done by the different fashion brands. Now if the industry is vulnerable to market forces, it is a threat or an external factor as the industry cannot control market forces.
There are manySWOT examplesavailable to make things even easier if you want to read more. Let's move on to see how SWOT analysis applies to the fashion industry.
What are some of the greatest strengths of the fashion industry?
Although we can talk for hours about what makes this industry so successful, in this article we will limit ourselves to the most important factors. Here's everything that's impacting the industry in a hugely positive way.
From 2021, the fashion business generated business with clothing, shoes and accessoriesabout worth$759.5 billion!!
This clearly shows that the fashion industry has a lot of potential to generate profits. There are maybe thousands and thousands of brands around the world that contribute to the fashion trends. They may be competitors, but overall they're not affected by saturation.
It's still making a profit and fashion is by far one of the biggest industries in the world.
There is something for everyone in this industry. When we subconsciously think about fashion, our minds get sidetracked to luxury fashion brands like Gucci or Armani. Of course, such exclusive brands have a very limited target market; They are not suitable for everyone.
Now there are so many alternatives that offer not only the trends but also the accessibility such as:, Schein,Zara, etc.
Not only that, but the fashion industry has products that suit every occasion. Everyday wear, office wear, formal wear, party wear, etc. No matter what the event or occasion, the possibilities are endless.
Fashion is everywhere. Fashion is present in every country and in every region of the world. Whether each country has chains of major fashion brands or local variants of fashion brands, there is a fashion hub in every country.
Certainly it is more common with some than with others; Fashion is still everywhere in the world. This contributes a lot to the growth of the industry.
This industry has some of the most focused operators who never neglect quality. Because the fashion lovers (customers) who put so much money into buying various goods from the industry have so many choices, many brands attach importance to being very special, so that people don't switch to others.
What are some of the biggest weaknesses in the fashion industry?
Though the industry literally mints money, there are still many weaknesses that prevent it from becoming an even bigger entity. These weaknesses can be controlled and even mitigated as they are intrinsic to the industry, so it is always beneficial to be aware of them.
Fleeting fashion trends
Without much exaggeration, fashion trends change faster than you can change your clothes. From purchasing a specific outfit or accessory to the moment you take it off to put on your nightgown,Instagramwill show you the next best thing.
Because there are so many fashion houses and inspirations around the world,The trends are extremely volatile. For this reason, many regularly renew their wardrobe or even change it completely.
Cheap versions are of poor quality
Because the industry is so widespread, there are so many fashion brands or manufacturers that use substandard raw material standards to keep their costs down. The resulting products can be good in terms of affordable prices; They are not very durable, which means that they have to be bought again and again.
This contradicts the perception that fashion produces high quality products. Many people choose not to bother anymore when they realize how poor the quality of some of the economical variants actually is.
This too casts a very negative light on the industry; Rich people get better quality, but those on a budget cannot enjoy the same quality.
Yes, on the one hand fashion is global and that is a strength as described in the previous section. On the other hand, it also becomes a reason for raising the entry barriers for new players.
First, there is no actual need that is not already being met by the players already in the field. Every fashion trend or item is available everywhere in one form or another.
Secondly, there are countless large and small, local and international brands offering fashion items. So the industry is quite saturated and it is very difficult for new companies to break into it.
Unfortunately, when fashion brands spend a lot of money and other resources to create original branded products, they cannot escape the wrath of counterfeits.
It is understandable why the counterfeit product business is doing so well; It allows people who cannot afford expensive brands to feel the experience. After all, many people cannot distinguish original products from fakes.
Despite the reality, counterfeiting is really unethical and hurting fashion brands' prospects because where they spend so much money to source the best products for their manufacture, some counterfeiters copy the design with cheap materials.
Patent work must be strengthened in industry.
What are some of the biggest opportunities in the fashion industry?
The biggest opportunities in the fashion industry at the moment as described above. These opportunities will help strengthen the industry if used effectively. You can even eliminate some of the persistent weaknesses.
Better quality of life
More and more countries are getting better in their lifestyle.People get more educationand therefore better jobs.
They have a better income and because they are in certain social circles, they are much more conscious of their clothes and the trends they follow.
Developing countries are a very good market for bigger brands to venture into. Here they have the opportunity to expand their customer base.
As you all know,Mark Zuckerberg recently created Meta, which will be the parent company of all his companies, includingFacebook.
The Metaverse, which is essentially his version of a virtual universe, is already seeking deals with various companies to conduct virtual transactions.
Fashion brands have the ability to create digital products that can be sold in the Metaverse to allow user avatars to be dressed in designer clothing. Sounds like a crazy concept and even unnecessary, but that's where the market is going.
Indie designers are becoming increasingly popular in the fashion industry. They are much more relatable to the general public and their pieces are not as exclusive either.
What are some of the biggest threats facing the fashion industry?
Yes, an industry as big and popular as this isn't immune to threats either. Here are some of the worst to look out for.
Today's customer is not only more educated, but also has better access to informationbecause of their smartphones. People these days are developing an ethical awareness about how much they should spend on clothes.
There are various reasons; One of them is that investing in fast fashion is a waste of money due to the volatility of fashion trends. Another reason is sheer waste. It is very bad for the environment to produce so many clothes and other accessories on such a large scale.
Because of this, people are becoming more and more reluctant to indulge in fashion all the time. So if the trend changes completely and people don't want as much choice and variety, or worse, if that shift is the only remaining option in the effort to eradicate climate change, where will the industry end up?
It's impossible to talk about every fashion brand competing with each other these days. This is enough to show that the industry is characterized by cutthroat competition that makes it very difficult for brands to survive and thrive. It's not an easy industry.
Fashion Industry SWOT Analysis: Final Thoughts
Before we wrap up this piece, now you knowhow to do a SWOT analysisand you get the whole pictureFramemuch clearer both through elaboration and through application.
This analysis showed us why the fashion industry is so successful. The strengths show exactly that. The biggest strength is undoubtedly the money this industry generates and the number keeps growing every year.
However, there are weaknesses that leave a question mark. The biggest weakness is definitely the fakes that affect the profits of authentic brands.
They have some amazing options, especially in the metaverse where they can actually save a lot on the process that leads to making clothes. This also takes care of the environmental threats somewhat. The biggest challenge facing the fashion industry right now is finding more sustainable solutions for the manufacturing processes they use. They can either reduce the amount produced or develop better technologies, they have a big responsibility.
What is a SWOT analysis in fashion? ›
A SWOT analysis is a strategic planning tool that is used to assess the Strengths, Weaknesses, Opportunities, and Threats involved in an organization, business or a project. A SWOT analysis is particularly useful in identifying both internal and external factors that are essential in decision-making.What are the threats in the fashion industry? ›
Supply chain bottlenecks
Combined, these issues push up the cost of manufacturing and distribution, impacting the profitability of many apparel brands. According to McKinsey, 15% of industry leaders fear margins & profitability will pose one of the greatest threats to the fashion industry in 2023.
Low Quality to Keep Price Low. Many fashion brands are at war with one another over price. If you want to gain a price advantage over competitors, then you have to use alternative materials. However, when they alternative material, or outsource the production processes, then it results in the form so of low quality.What is SWOT analysis in garment industry? ›
Abstract. SWOT Analysis of Garment industry in Salem simply means analyzing the Strength, Weaknesses, Opportunities and Threats of garment industry in Salem.What are the strengths of a fashion business? ›
- Revenues. ...
- Variety. ...
- Global Presence. ...
- Quality. ...
- Volatile Fashion Trends. ...
- Low Priced Variants are Poor in Quality. ...
- Saturation. ...
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.What is the biggest problem in fashion industry? ›
Sustainability. Sustainability is still the biggest problem the fashion industry is now facing, despite the fact that it is the second most polluting industry on the planet. The creation of clothing consumes a great deal of natural resources and generates a tonne of harmful waste that is dumped directly into waterways.What are 2 negative impacts of the fashion industry? ›
While the fashion sector is booming, increasing attention has been brought to the impressive range of negative environmental impacts that the industry is responsible for. Fashion production makes up 10% of humanity's carbon emissions, dries up water sources, and pollutes rivers and streams.What are the strengths and weaknesses of fast fashion? ›
Fast fashion's benefits are affordable prices and instant gratification for consumers, more profits for companies, and the democratization of stylish clothing. On the downside, fast fashion is also associated with pollution, waste, the promulgation of a "disposable" mentality, low wages, and unsafe workplaces.What are the four major factors affecting fashion? ›
- Psychological Factor.
- Social Factor.
- Economic Factor.
- Cultural Factor.
- Political Factor.
- Environmental Factor.
- Physiological Factor.
What are some opportunities of clothing business? ›
- 10.Garment Technologist. A garment technologist knows all about the processes and working on design and development of materials. ...
- Textile designer. ...
- Planner. ...
- Merchandiser. ...
- Fashion Public Relations. ...
- Fashion Writer / Blogger. ...
- Fashion Illustrator. ...
- Fashion Stylist.
The fashion industry accounts for between 5% and 10% of global greenhouse gas emissions. The global fashion industry is generating a lot of greenhouse gases due to the energy used during its production, manufacturing, and transportation of the million garments purchased each year.Can you use SWOT for industry analysis? ›
SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity.How do you Analyse fashion industry? ›
- Vast Product Range. Every fashion clothing retail business offers its customers a wide range of products. ...
- Global Presence. Today, the world is more connected than ever. ...
- Growth. ...
- Product Quality. ...
- Self Reliance. ...
- Adaptability To Market Trends. ...
- Online Presence. ...
Fashion industry analysis seeks to understand how the fashion industry works, what the fashion trends are and which brands people are buying or not buying and why. It looks to understand demographics, shopping trends and brand awareness.What are the four core areas in a fashion business? ›
The fashion industry consists of four levels: the production of raw materials, principally fibres and textiles but also leather and fur; the production of fashion goods by designers, manufacturers, contractors, and others; retail sales; and various forms of advertising and promotion.What are opportunities in SWOT analysis? ›
Opportunities. Opportunities in SWOT result from your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position. These could be anything from weaknesses that you'd like to improve or areas that weren't identified in the first two phases of your analysis.What are the 3 business strengths? ›
- Unique product or knowledge.
- Excellent efficiency and productivity.
- Customer service that creates raving fan customers.
- Speed to market.
- High adaptability.
- Diversification of products or services.
- Strong, decisive leadership.
- Weak brand(s)
- Higher-than-average turnover.
- High levels of debt.
- Inadequate supply chain.
- Lack of capital.
- Inefficient systems, tools, processes.
- Poor customer experience, service, reviews.
- Harness your strengths. One of the best things about the strengths you identified in your SWOT analysis is that you're already doing them. ...
- Shore up your weaknesses. ...
- Seize opportunities. ...
- Mitigate threats.
What are your 5 weaknesses? ›
Examples of Weaknesses.
Shyness. Lack of knowledge of particular software. Public speaking. Taking criticism.
It's lacking two fundamental things: the energy in the room and the ability to touch and feel the product. There are so many difficulties right now, especially for fashion entrepreneurs, that it's like trying to run on eggshells without breaking any.What are social issues in fashion? ›
- Working conditions. ...
- Forced and bonded labour. ...
- Wages. ...
- Purchasing practices. ...
- Craft and skills preservation.
More specifically, the social (macro and micro-scale) and environmental harms of fast fashion such as pollution, excessive water waste, poor working conditions and wages for workers, gender violence, overconsumption, and individuals' mental health and beliefs.What is the negative side of fashion? ›
Negative Impacts of Fashion Trends on Society
Such new fashion trends also affect the psychology of younger generations, and hence, if they do not get it, then it badly affects their minds and (likely) they become victims of psychological disorders such as eating disorders, mental illness, stress, etc.
Abstract. In the turbulent world of fashion retailing, competitive advantage is achieved by first targeting not simply in terms of demographics but also in terms of lifestyle and attitude to fashion, and secondly by creating a store image congruent with that of the target market.What are the benefits of fashion industry? ›
- You're surrounded by creativity. ...
- It's glamorous. ...
- The clothes. ...
- Full of hardworking people. ...
- It's multifaceted. ...
- The freebies. ...
- It's fast-paced.
- Dressing for status. While humans first adopted clothing for warmth and protection, it almost immediately began to serve other purposes as well. ...
- Dressing for happiness. ...
- Fashionable nightwear.
Throughout our engaging conversation, we discuss the 4 main pillars of fashion marketing: product, price, position, and promotion.What are the 3 key influences on fashion? ›
- Fashion Forecast (Colour & Fabric) Deciding the colour, fabric and look for the upcoming season is something that every designer works on. ...
- Movies & Music. The entertainment world is a major influencer of fashion. ...
- Fashion Stylist. ...
- Economy of a Country.
What are the 5 elements of fashion? ›
- Body Shape.
- Balance and Rhythm.
There are a plethora of job opportunities in Fashion Designing such as Stylist, Fashion Designer, Retail Manager, Personal Shopper, Retail Buyer, Textile Designer, Make up Artist, amongst others.How to take advantage of opportunities in a clothing business? ›
How to Increase Revenue for Your Clothing Business
- Grow your ecommerce with a fantastic website. ...
- Start a marketing campaign that you care about. ...
- Go beyond “straight sizing” ...
- Really get to know your customers. ...
- Authentically engage via social media. ...
- Create cult status.
In 2021, a report from the NGO Public Eye revealed SHEIN's workers putting in as many as 75 hours a week, receiving only one day off per month, and being paid per item of clothing. That's all in gross violation of labour laws.Is the fashion industry growing or shrinking? ›
Revenue in the Apparel market amounts to US$343.70bn in 2023. The market is expected to grow annually by 1.96% (CAGR 2023-2027).Why do most fashion brands fail? ›
One of the main reasons why retail brands fail is because they've launched poor quality products that customers aren't willing to pay for. Some brands attempt to decrease manufacturing costs by skimping on raw material quality or first-class equipment which reduces the quality of products significantly.Why is fashion a big problem for the environment? ›
Fashion production makes up 10% of humanity's carbon emissions, dries up water sources, and pollutes rivers and streams. What's more, 85% of all textiles go to the dump each year. And washing some types of clothes sends thousands of bits of plastic into the ocean.What is a SWOT analysis and what does it do? ›
A SWOT analysis helps you assess internal factors that might affect your business (strengths and weaknesses) and external factors (opportunities and threats). You will need to review and act on the results from the SWOT analysis.What does SWOT mean in retail? ›
By conducting a detailed retail SWOT (strengths, weaknesses, opportunities and threats) analysis, actionable insights can be gained to help retailers understand the future of their own organisation.What is the meaning for SWOT? ›
Definiton: SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'.
How do I write my SWOT analysis? ›
- Download HubSpot's SWOT Analysis Template. There's no need to start from scratch for your analysis. ...
- Arrange each section into a table with four quadrants. ...
- Identify your objective. ...
- Identify your strengths. ...
- Identify your weaknesses.
- Get help on projects.
- Propose working groups.
- Get testers for new ideas or products.
- Create a team to work on an idea you have.
- Share your expertise or best practices in a particular field.
- Alteration Service. ...
- Image Consultant. ...
- Patternmaker. ...
- Fabric Restoration. ...
- Handbag Design and Manufacturing. ...
- Homebased Tailor. ...
- Maternity Clothing. ...
- Fabric Shop.
Lackluster communication skills are a weakness to job performance in retail, hindering the salesperson's ability to connect with customers. For example, a customer might tell a salesperson that she wants to buy a product at the end of the week once she receives her paycheck.What are threats in retail? ›
Threats of primary concern to retail businesses are loss of market share, loss of competitive advantage, financial downturns, technology advances and society's expectation that business will operate in a socially responsible manner.What are business strengths and weaknesses? ›
Strengths - The strongest parts of your business model and your most effective selling points. The core competencies of your team and your investments. Weaknesses - The weakest parts of your business model and weak spots in the sales funnel. What's lacking in your team and missing from your investments.What are strengths and weaknesses? ›
Strengths are defined as character traits or skills that are considered positive. Strengths include knowledge, attributes, skills, and talents. Weaknesses are just the opposite. Weaknesses are defined as character traits or skills that are considered negative or not as well developed.What are weaknesses in SWOT analysis? ›
In a SWOT Analysis, weaknesses are written in the top right quadrant. They highlight the internal weaknesses that you or your organization need to address to meet your goals. Examples of weaknesses for a SWOT analysis might include lack of motivation, lack of a clear vision, or poor time management skills.What are the 5 steps in writing a good SWOT analysis? ›
- Internal analysis. Start by naming the strengths and weaknesses of your company. ...
- External analysis. ...
- SWOT table. ...
- Confrontation Matrix. ...
- Determine conclusion and strategy.
- You can list external opportunities in your company and project.
- New career paths that you can take.
- Different things you can do to improve yourself and your work.
- Training courses and mentoring opportunities.
- New projects and shifts in your life.