“Fashion is very important. It is life-enhancing and, like everything that gives pleasure, it is worth doing well.” —Vivienne Westwood
The modern fashion industry is one of the biggest commercial sectors in the world. This industry based on firms and labels started in the 19th century with Charles Frederick Worth as the first designer to have his label.
Today, the fashion industry is projected to grow in value from 1.5 trillion U.S. dollars in 2020 to approximately 2.25 trillion dollars by 2025 globally. The Indian textile industry itself has estimated growth of around 108 billion dollars and expected to reach 223 billion dollars by 2021. Another astonishing fact is that the fashion industry employs an estimated 3.4 billion people worldwide which indicates that approximately 1 in 8 people are involved in the fashion and textile industry.
According to research, the global fashion market is dominated by 20 companies. These companies account for 97% of global economic profit in the retail sector and are known to own top brands like H&M, Zara, and Nike.
The top 3 companies include~
3) LVMH –
Economic profit~ $2.33 billion
LVMH is a world-renowned company made after the merger of Louis Vuitton and Moët Hennessy in 1987. Headquartered in Paris, this luxury company has an estimated net worth of $329 billion and is one of the most valuable companies in Europe.
Originally established in 1854, this company regulates around 60 subsidiaries that each manage a small number of prestigious brands, 75 in total including Christian Dior, Givenchy, Marc Jacobs, Celine,
Fenty and Princess Yachts. These brands sell goods that range from wines and spirits to leather goods and cosmetics.
Economic profit~ $3 billion
Nike isn’t just a US-based athletic footwear brand but it is also one of the most influential apparel brands all across the globe. Nike was founded by Phil Knight and Bill Bowerman and at present is headed by John Donahoe.
Nike is known for its unique designs, great product quality, product and process innovation, and marketing tactics. The quality and durability of its products are other contributors to its success.
Economic profit~ $4 billion
This Spanish company is the retail giant behind famous brands such as Zara.
It was founded by Spanish billionaire Amancio Ortega. Inditex owns 8 famous brands; Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.
It is one of the world’s largest growing luxury retail brands with 7,200 stores in 93 markets worldwide.
Techniques adopted by the brands to influence the market~
Sales & discount coupons from famous fashion brands are enough to attract customers. As the saying goes, it is the name and brand image that brings sales. People who are fans of a particular brand don’t even need any occasion to buy apparel from these brands. Here are some techniques adopted by the fashion industry to influence the market and shape the psychology of its customers~
°Creating a sincere consumer loyalty program to boost the count of repeat customers.
°Door-to-door delivery and in-store delivery option through offline/online payment mode.
°Marketing techniques and product promotion kept in mind concerning a particular niche to attract customers of different age groups.
°By offering time to time app-based discounts and different seasonal and off seasonal sales.
°By creating a Fear Of Missing Out(FOMO) in the minds of its customers to lure them to buy their products.
°By associating themselves with philanthropy they not only try to build an emotional connection with the customers but also try to enhance their brand image.
•Impact of advertising fashion industry~
Be it social sites like Instagram or Facebook or even Mass media like newspapers and television, advertising is a very important aspect for the brands to reach the general mass very quickly. We at Aurora Cosmos try to decode the complex process for you.
Advertisement is among the topmost factors that influence the choices that people make while buying a product especially in terms of fashion.
Some brands like Chanel or Dior do not require advertising as they have already established themselves well in the market and any product’s association with the brand itself is enough to ensure product’s quality.
Fashion is an everlasting and ever-growing business. It has deepened its presence in the life of almost every individual and has served as a medium of self-expression.
Almost every person is a direct or indirect consumer of fashion. The multi-billion-dollar fashion industry thus ultimately backs up the economy of a country and generates jobs for skilled and unskilled people all over the world.