The “eagerly waited for” fashion shows are getting canceled. Many big names in the fashion industry have filed for bankruptcy and many others are negotiating for a take over or a partnership deal in order to help their finances. Jobs are being removed from many companies, and governments are being asked for bailing out the fashion industries. This has all started to show from last two- three months of 2008 and the growth graph is steeply falling in the present year. So, what is the industry doing? What strategies are being followed by the fashion retailers and fashion houses for surviving in tough times?
The fashion industry is focusing on individuality and innovation. The fashion businesses are following the changed patterns of consumer spending habits and offering them value added services. For protecting their gross margin, they are trying to prevent losses, optimize prices and manage their inventory systems efficiently.
Internet is in. Online selling, social commerce sites, blogs, mobiles, etc. are being used frequently for providing consistent brand and services. Social media channels are increasingly being used to reach consumers for promotion of brands, knowing consumer needs and for establishing brand loyalty.
Private labeling has, all of a sudden, become more prevalent. Private labels provide higher margins, increased flexibility and the capability of responding fast to the changes in fashion trends. Direct retail channels are being established and managed by stronger brands as it gives them tighter control over their brand identity. However, Weaker brands are looking for opportunities of becoming private-label suppliers to retailers.
The upcoming markets of Eastern Europe, South America and Asia are presenting new growth opportunities in the wake of already saturated U.S. and Western European markets. The companies committed to environmental friendly products and process are and will be far ahead than their competitors. Apart from it, the companies that offer customized fashion through online templates are also in positive stand as the technology savvy consumers demand fashion tailored to their individual lifestyle needs.
All said and done, the fashion industry is hoping to survive by building intuitive relationship with their customers.