Market research and competitive analysis in the fashion industry (2023)

Are you a clothing company in the fashion industry? That's great!

However, as you already know, the apparel industry is valued at1.9 trillion.

By far the most prominent apparel market is the United States and some of thetop earning clothing brandsThese include famous houses such as:

  • Other Marines
  • Geheimnis victories
  • gap
  • American Eagle outfitter
  • Coach

So how do you successfully compete with such world-renowned names? In fact: Just trying to gain a foothold as an established clothing label is a huge challenge.

But it's not impossible.

It's about choosing the right products and managing them profitably.

How to do it: Effective preparation is one of the most important steps in launching a new product line – this includes market research and competitive analysis.

What do these terms mean? And why are they so important?

In this article, we explain everything you need to know to skyrocket your clothing brand. And also advise how you can conveniently carry out both types of research with EpiProdux.

Let's begin!

Table of contents

What is market research and competitive analysis?

market research

Market research involves gathering information about the needs of your potential customers and determining how profitable your new products (or business) will be in today's highly competitive fashion industry. You can conduct market research to develop a clear idea of ​​your target market, get opinions from actual consumers who are likely to buy your products, and reduce the risk of bringing goods to market that nobody wants or needs.

Market research puts you in direct contact with potential consumers who have the shopping experience to provide valuable and actionable feedback.

Use market research to:

(Video) Zara Case Study | SWOT and PESTLE Analysis | Total Assignment Help [In-Depth Review]

  • Recognize your target customer's pain points, expectations and preferences;
  • Segment markets to deliver the right products and messages to the right consumers;
  • Discover new markets and the potential they offer;
  • Identify new product development opportunities and test them to determine feasibility;
  • Gather price point information to tailor it to customers' spending habits;
  • Prioritize the most valuable and popular products based on trends and feedback, helping you increase sales and reach a broader customer base;
  • Experiment with marketing techniques and messages;
  • Gain insights into your competitors;
  • Learn more about customer satisfaction and how you can promote it with your products and services.

Analysis of the competitive landscape

Your clothing company has many competitors.

This is inevitable.

It's the nature of business.

You may have direct competitors (targeting the same audience with a similar product) and/or indirect competitors (targeting the same audience but with a different product).

However, the number of your competitors and the scope of their activities will vary depending on your target market.

For example, you may have fewer competitors if your business specializes in high quality, luxury organic men's socks than if you want to make fashionable clothing for men and women in their 20's and 30's.

Market research and competitive analysis in the fashion industry (2)

Those:attrition pact


Market research and competitive analysis in the fashion industry (3)

Those:Organic Basics

Regardless of your target market, however, competitive analysis is fundamental to understanding the level of competition you face.

Competitive landscape analysis includes several assessment areas:

  • Company (sales, customers, branding)
  • Products (properties, prices, manufacturing processes)
  • Marketing methods (digital marketing, offline marketing, channels, customer service)

Market research and competitive analysis in the fashion industry (4)

With competitive analysis, you can gather pretty much a wealth of data that will help you compete more effectively with competing brands.

Competitive analysis offers several advantages. It can help you:

  • Define your Unique Value Proposition (RRP), also a powerful feature of EpiProdux;
  • Prioritize your product development based on the elements customers value most;
  • Make better products and provide better service by being aware of competitors' weaknesses;
  • Set benchmarks to monitor and measure your growth over time;
  • Identify market segments that your competitors may be overlooking and find new ways to capture more meaningful market share.
  • Identify opportunities to bring products to an underserved population to differentiate from the competition.

How to conduct a competitive analysis

Competitive analysis is crucial. Not least because you can use their data to determine your goals, marketing strategies, tactics, new product lines, pricing and more. Use competitive analysis to:

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  • Determine how strong the competition is
  • Find ways to stand out from the competition
  • Set the price for your product

There are a few techniques to find out who your competitors really are. You can start with a Google search, but remember that this will only show you the competition that ranks in the search results. How to find your competition online:

  1. Set the keywords related to your product and business
  2. Google the terms and make a list of websites that rank in the top ten.
  3. Check their offer to see if they are competitive.

In addition, you can also use various online tools to find out who your competitors are. The limitation with this technique is that the tools only really work for companies with a high volume of website traffic.

Here are some tools you can use to find competitors online:

Once you have a list of your real competitors, you can now dive into their data. Find out what keywords they are targeting, either through paid or organic search. Use tools likeAhrefsto determine which keywords they are targeting, which pages get the most traffic, and other important metrics.

Find out the following data for each relevant keyword:

  • Keyword Volume: How many people search for this term per month;
  • Keyword Difficulty: How difficult is it to rank for this keyword?
  • CPC: How much are your competitors paying for clicks on these keywords?

How many competitors should you compare?

The answer depends on your time, budget and available resources. Of course, the more the merrier, but we have to be realistic about what can be achieved.

As a general rule of thumb, 3 to 5 of your biggest competitors would be a good place to start and should give you plenty of data.

keyword research

When conducting your market research, you MUST also do keyword analysis. While this is often used for SEO purposes, also use keyword research to understand what your audience is searching for, the intent behind their search, and the search terms that relate to your competitors.

Keyword research helps:

  • Indicate the size and scope of the demand. The more people search for your product, the higher the demand;
  • Determine the level of competition. The higher the CPC bids, the more intense your competition and the higher the purchase intention.

How to define your keywords

Before you dive into the data for specific keywords, you need to know which keywords are relevant to your business and product.

You can search forums, social media groups, and Q&A sites to find keywords. These are a gold mine of information. Find and save common phrases used by your target audience.

In addition, your competitors are also a valuable resource. Find out what search terms they are targeting either organically or in their paid advertising campaigns. There's a good chance if they've made the effort to create a landing page or ad campaign that targets a specific keyword, it's a valuable term. So find out which sites are driving the most traffic to your competitors' sites.

You can also use Google to find out the search terms. Just enter your ideas for keywords and see how it ranks. See if the top 10 results are similar to your product and have a similar intent. In addition, you can use Google Autosuggest and the search snippets to see what Google also comes up with first.

Armed with your keyword list, head over to EpiProdux. Enter keywords in the product profile to determine search volume, keyword difficulty, and average cost per click.

Your keyword research will help you decide what products customers want, what information they are looking for, and what the monthly demand for a product is.

Remember to consider the intent behind a search. Try to understand where a customer is on their buying journey. For example:

Informational Search Intent

Information searches refer to the beginning of a customer journey. The buyer informs himself how best to solve his problem. They are in pain, but they are not yet sure of the solution.

(Video) 7 Easy Steps on How to Perform a Competitor Analysis

Examples of keywords are:

  • Best material for hot weather
  • Which hiking shoes are waterproof
  • Best type of pan for frying

navigation search intent

Once a customer has learned more about their problem and found the type of product that solves their problem, they start looking for the specific product they need. These are navigational queries that lead a user to specific solutions.

Examples of keywords:

  • walking boots
  • Leinenhose

Commercial Search Intent

These are your money terms. Hooray!

When a customer has identified the exact solution to their pain and is ready to buy, the search terms become laser-focused on purchase intent. There you will find the highest CPCs.

Examples of keywords:

  • Shop linen pants near me
  • Waterproof jacket under $50

Examples of how fashion brands use market research and competitive analysis

New look

New Look avoids competing on highly competitive non-branded terms in paid advertising. Instead, they focus on bidding for branded keywords like this:

Market research and competitive analysis in the fashion industry (5)


Farfetch gets more than4 millionVisitors per month through SEO tactics. This traffic comes from people searching for luxury fashion brands like Versace, Givenchy, Burberry, Saint Laurent, and Valentino.

We can also see that Farfetch is using highly targeted ad copy for specific keywords that are cleanly matched to their landing pages.

Market research and competitive analysis in the fashion industry (6)

As with search engine optimization, the essence of paid search is to attract people who need Farfetch products when they search for them.


A key part of market research is listening to consumers and noting what they can't find. This applies both in the initial phase of brand development and during an active presence.

For example, the fashion brand Zara is known for its direct research approach.

One famousFallincludes multiple customers in Tokyo, Toronto, San Francisco and Frankfurt entering Zara stores to purchase a pink scarf, only to find none available. At the same time, many other customers around the world were experiencing the same problems.

Not that these stores were sold out: Zara didn't have any in its collection. But more than 2,000 stores received pink scarves and 500,000 units sold out in three days.

Similarly, Zara trains its store managers and sales assistants to understand customers' shopping habits. Employees are encouraged to research behaviors and trends directly in their stores. They do this by listening to customers' comments on clothing options, making suggestions on how to improve the products, and examining what shoppers are wearing to inspire Zara's new products.

(Video) Who Is My Customer? Market Research for Fashion (Starting a Fashion Company Series)

It's not difficult to understand why Zara's brand equity is so high$14.7 billionAs of late July 2020 and operates in more than 95 countries.

How to quickly and easily conduct market research and competitive analysis

EpiProdux helps you streamline your market research reports and competitor analysis with easy-to-use tools. We'll break down the process for you so you can get started right away. First, log in to EpiProdux and select a product. You see the product profile and the product goals.

Market research and competitive analysis in the fashion industry (7)

Then click on the Markets icon on the left side of the screen. This takes you to the selection of relevant markets for this product, e.g. B.California Organic Apparel.

Market research and competitive analysis in the fashion industry (8)

In the Markets section, go to the Details section to conduct a competitive analysis.

Market research and competitive analysis in the fashion industry (9)

With this you define:

  • Complete competition based on factors such as market position, keyword difficulty, product strength, pricing and funding to name a few;
  • Easy access to see how easy it is to enter the selected market.

Market research and competitive analysis in the fashion industry (10)

  • Ease of doing business in a given country based on policies and current infrastructure, allowing you to plan how to get started in that location;
  • How easy cross-border trade will be for importing and exporting products;
  • Digital readiness to determine if consumers in the target market have the technology and knowledge to access and use your products;
  • Barriers to entry in the market could prevent you from entering it and earning your fair share of the market.

Market research and competitive analysis in the fashion industry (11)

You can also use EpiProdux to conduct in-depth market research, e.g. B. to measure market size and perform market validation. Both provide you with invaluable insight into:

  • demand
  • Erlös model
  • purchase frequency
  • Total Available Market (TAM)
  • Serviceable Market Segment (SAM)
  • Serviceable Obtainable Market (SOM)

Use EpiProdux to calculate your sales, market share and other key data to make informed decisions. This can discourage you from investing in products that may not generate a decent ROI or hurt your reputation.

In the Market Validation section, you can conduct experiments to validate products before spending money and time on them. Distribute surveys, check demand and analyze fashion industry sales data to realistically assess your SAM size.


Any fashion brand that sells clothing and apparel can benefit from market research and competitive analysis. With so many online channels for interacting with consumers, it's easier than ever to do good business. It can give you the data to make smart decisions about your products, marketing, and more.

EpiProdux simplifies market research and competitive analysis so you can gather the information you need on one centralized platform. Access key customer feedback and data to understand how you can impact your target market.

Want to learn more about how this platform works and how you can benefit from it?Try EpiProdux today with a free trial!


Why is market research important in the fashion industry? ›

Reasons for them to perform market research are to gain insights into how different customer segments react to trends in the market and certain marketing strategies. They also try to gain insight into how much consumers spend on certain items, to identify areas for growth and new markets.

What is market research and competitive analysis? ›

Market research helps you find customers for your business. Competitive analysis helps you make your business unique. Combine them to find a competitive advantage for your small business.

What are the competitive factors in the fashion industry? ›

The main competitive factors of retail clothing stores can be divided into two groups: external factors (margin, rent, brand awareness, financing, goodwill) over which the company has no influence in the short term and internal factors it has (knowledge of consumer needs and compliance with, store design and atmosphere ...

What are three reasons for market research? ›

Why You Should Be Conducting Marketing Research
  • Market research helps you understand your customers better. ...
  • Your competitors are definitely using market research techniques. ...
  • Market research allows you to test your product before launch. ...
  • You can set better goals for your company with market research.
Jul 8, 2019

What are the most important aspects of market research? ›

4 Critical Aspects of the Market Research Process
  • Define the Objective & Problem.
  • Determine Research Design.
  • Design & Prepare Research Instrument.
  • Sampling & Data Collection.
  • Analyze Data.
  • Visualize & Communicate Results.
Sep 10, 2014

What is the purpose of the competitive market analysis? ›

Competitive market analysis is the process of determining who your competitors are, researching their strategies, and unpacking what they do well (and not so well). From this process, you can learn a lot about your company's own strengths and weaknesses, as well as how to remain a strong competitor in your industry.

What is competitive analysis explain with examples? ›

A competitor analysis, also referred to as a competitive analysis, is the process of identifying competitors in your industry and researching their different marketing strategies. You can use this information as a point of comparison to identify your company's strengths and weaknesses relative to each competitor.

What are the 4 types of market research? ›

Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

What is a market analysis in fashion? ›

Fashion market research is the process of gathering and analyzing information to gain insights into the fashion industry, which includes its top players, your competitors and mainly, your target market.

What are the 6 steps of competitive analysis? ›

6 Steps to Performing a Competitive Analysis
  • Identify competitors. Find out how much you're spending on monthly biz app subscriptions. ...
  • Analyze competitors' online presence. ...
  • Check online reviews. ...
  • Talk to competitors' customers. ...
  • Identify their strengths and weaknesses. ...
  • Use research tools.
Apr 5, 2021

How do you write a competitive analysis example? ›

Here is a step-by-step process for writing a competitor analysis report:
  1. Write down your competitors.
  2. Write what you know about them already.
  3. Discover who their target customers are.
  4. Discover their pricing methods.
  5. Investigate their marketing strategy.
  6. Figure out their competitive advantage.
Apr 16, 2018

What are the 4 key factors for competitive success? ›

What Are the Key Planning Factors for Competitive Success in...
  • Knowing Customer Needs. ...
  • Understanding Competitors' Strengths and Weaknesses. ...
  • Finding Markets That Are Large or Growing.
Nov 21, 2018

What are 4 common characteristics of a competitive market? ›

Perfect competition
  • Provide many different producers and consumers.
  • Ensure no single buyer or seller influences prices.
  • Remove barriers to enter the market.
  • Ensure producers are price-takers that serve the market supply and meet its demands.
Jul 7, 2021

What is the biggest problem in the 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 main purposes of market research? ›

Market research can allow you to learn more about the industry, current or potential competition, and, most importantly, whether your idea is going to solve an existing problem in the market. Determining new business opportunities.

What is an example of market research? ›

An example of market research is conducting an online search on a particular topic and making note of the most recent data published on that topic.

What are the five key requirements for good market research? ›

Five Steps for Effective Market Research
  • Define the critical information need. ...
  • Design the research around your critical information need. ...
  • Focus, focus and more focus. ...
  • Manage expectations. ...
  • Beware of bias.
Feb 15, 2019

How can you make a good and effective market research? ›

Here are some ways to improve market research:
  1. Identify New Opportunities and Needs. ...
  2. Understand Your Customers. ...
  3. Conduct Brand Research. ...
  4. Collect and Analyze Data. ...
  5. Don't Make Assumptions. ...
  6. Apply Personalized Problem-Solving Techniques per Project. ...
  7. Improve Communication Skills. ...
  8. Gather Product Feature Insights.

How do you analyze a competitive product? ›

7 tips for analyzing your competitor's product
  1. Go deep on the website. A great starting point is to scope out your competitor's website. ...
  2. Focus on the flagship product. ...
  3. Benchmark your own products. ...
  4. Watch videos. ...
  5. Gather feedback from customers. ...
  6. Keep an eye on marketing. ...
  7. Track changes to identify product direction.
Jul 1, 2021

What are the benefits of market research? ›

The business benefits of market research are myriad. From improving customer-centricity and efficiency, to identifying growth opportunities, to reducing risk and staying competitive, market research helps organizations make informed decisions for better business outcomes.

What are the two benefits of a competitive analysis? ›

Competitive Analysis in Marketing

Every brand can benefit from regular competitor analysis. By performing a competitor analysis, you'll be able to: Identify gaps in the market. Develop new products and services.

What is a good example of a competitive market? ›

A great example of competitive market is farming. There are thousands of farmers and not one of them can influence the market or the price based on how much they grow. All the farmer can do is grow the crop and accept whatever the current price is for that product.

What are the 2 main types of market research? ›

Market research generally involves two different types of research: primary and secondary.
Examples of primary research are:
  • Interviews (telephone or face-to-face)
  • Surveys (online or mail)
  • Questionnaires (online or mail)
  • Focus groups.
  • Visits to competitors' locations.

What are the 3 main types of market research? ›

There are three types of market research-exploratory, descriptive, and causal.

What are the 4 major segments of the fashion industry? ›

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 the 3 basic competitive strategies? ›

According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.

What are the 4 major competitive strategies? ›

Here are four types of competitive strategy and an example for each:
  • Cost leadership strategy. ...
  • Differentiation leadership strategy. ...
  • Cost focus strategy. ...
  • Differentiation focus strategy.
Nov 16, 2021

How do you start a competitive analysis essay? ›

The analysis begins with a list of your company's competitors.
A competitive analysis covers five key topics:
  1. Your company's competitors.
  2. Competitor product summaries.
  3. Competitor strengths and weaknesses.
  4. The strategies used by each competitor to achieve their objectives.
  5. The market outlook.

What are the 3 keys of success in industry? ›

The three key things that all long-lasting companies share, he posited, are: Great vision. Great financial management. Great people.

What are the factors affecting competition analysis? ›

From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location.

What are examples of competitive factors? ›

Competitive factors
  • imitators.
  • price wars.
  • product differentiation.

What are the different types of competitive market? ›

There are four types of competition in a free market system: perfect competition, monopolistic competition, oligopoly, and monopoly.

What are the main characteristics of perfectly competitive market? ›

So what is a perfectly competitive market? The perfect competition definition is a theoretical market where all the products are homogeneous, there are no barriers to entry and there are a large number of buyers and sellers where no individual buyer or seller can affect prices.

What is the SWOT analysis for fashion business? ›

A strengths, weaknesses, opportunities and threats, or SWOT, analysis lets your fashion business or brand see how it stacks up against the competition. The analysis tool will also help you understand where your brand stands in the larger fashion marketplace.

How can the fashion industry solve problems? ›

How can we reduce our Fashion Environmental Impact?
  1. buy less. ...
  2. Buy CLOTHES FROM sustainable BRANDS. ...
  3. Buy better quality. ...
  4. Think twice before throwing out your clothes. ...
  5. Buy second hand, swap, & rent clothing. ...
  6. Keep an eye on your washing.

What is market research in fashion? ›

The process of gathering and analyzing information to find insights into the fashion industry, which involves its top players, competitors and more importantly the target market is called as market research.

What is market research and why do we need it? ›

Market research involves gathering data to learn more about target demographics and consumers so a business can market itself more effectively and, ultimately, succeed in the market. Market research is a vital part of any business strategy, whether that business is B2B or B2C, big or small, new or old.

What are the 4 common market research? ›

Four common types of market research techniques include surveys, interviews, focus groups, and customer observation.

What are the 5 types of market research? ›

Research Services
  • Overview.
  • Competitive Benchmarking.
  • Segmentation Research.
  • Brand Tracking Research.

What is market research short answer? ›

Market research consists of systematically gathering data about people or companies – a market – and then analyzing it to better understand what that group of people needs.

What are two purposes of market research? ›

Whether you are starting a new business, expanding, or developing new products, conducting market research is essential. It helps you to understand your target market, increase sales, and spearhead business growth.


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