International fashion business analysis Essay Example | Topics and Well Written Essays - 2500 words

International fashion business analysis - Essay Example From ancient periods to the modern era, fashion tastes on both designers, moneyed clientele and mass consumers have changed significantly and continue evolving, albeit, enigmatically. The designs in every decade changes and designers continue changing at rapid phase to introduce never-seen-before creations. The number of players in the industry has rapidly increased making the market competitive. Even independent designers have started competing and slowly establishing their presence in the industry. The industry is beginning to take shape and the process becomes defined. Sound business fundamentals and touches of creativity are basic elements of success in the industry. In the fashion industry, there are several companies that are considered as global in terms of market and recognition. Fashion designers are famous worldwide for their ability to strike in the preference of the consumers. Christian Dior and Balenciaga are two of the most famous names in fashion. These firms are highly competitive and have different sources of market. Indeed, it is interesting to discuss the similarities and differences that both firms have. Porter (1979) introduced the concept of five forces that seeks to analyse the competition in an industry. Accordingly, this will serve as an effective tool to carve a picture of the fashion industry. ... The threat to the new entrants shows the possible barriers that will hinder the investment in the industry. Unlike other industries, fashion is more open and barriers are mostly economic in nature. First, it is important to understand that fashion is seasonal and certain designs are only purchased by customers on given periods. Given this scenario, it is difficult to determine consistent production because of seasonal changes. Another vital threat to newcomers is their reputation in the industry. It has been proven that success in the fashion world is determined by credibility and nurtured reputation. The emergence and threat of substitute industry is another important dimension that needs to be considered. At present there are no direct industries that rival fashion. Clothing as a necessity is produced in limited methods and fashion design is a foremost mechanism. Despite of this reality, the future provides uncertain trends. Custom made-clothes and other similar commodities are starting to gain prominence in the market. The bargaining power of the consumers determines the capacity of the consumers to purchase the goods and price sensitivity. Fashion designers are usually expensive but can be afforded in several markets. Signature designs are indeed high priced, but there are other quality designs that require less money to be purchased. Because buying clothes and similar products is done based on the need, consumers are able to save enough money to afford expensive branded apparels. On the other hand, consumers are sensitive in price when it comes to fashion. Since there are different alternatives, price increase will affect the decision of the consumers to make a