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Global Recession Impacts on Fashion Industry: Strategies for Survival

Global Recession Impacts on Fashion Industry: Strategies for Survival
The whole world is facing global recession. The economy is slowing, the business environment is unpredictable and the consumers are getting increasingly diverse, informed, technologically strong and demanding. The global meltdown has, in no way, spared the fashion industry. This industry, along with other textile products industry, is also feeling the pinch of financial adversity. The Fashion Industry The fashion industry can be termed as complicated with no standard for defining fashion companies. Impacts of Recession on Global Fashion Industry The trends all over the world is that of rising unemployment, credit squeeze and plummeting home budgets. Many big names in the fashion industry are facing financial problems, many of whom have even declared their negative condition. Consumer spending has got lower resulting in pressure on retailers' margins.

Women's Clothing Industry Market Research & Statistics Global Women’s Clothing Industry The global women’s clothing industry is expected to exceed $621 billion in 2014, marking a 12% increase in five years, reports MarketLine. Clothing retailers account for the largest share of the market at almost 65% in terms of value. The EU represents more than 35% of the global market, which encompasses formalwear, essentials, active wear, outerwear and casual wear. Major drivers of the world womenswear market include fashion, with shoppers eager to keep up with the latest trends, consumer confidence and rising income levels. Compared with the lows of the economic recession, employment rates and per capital disposable income levels are rising, which leads to greater consumer confidence, allowing consumers to part with their cash more easily. As consumers made less purchases during the economic recession, retailers currently find themselves with a product surplus. Regional Markets Key Market Segments Market Outlook Leading Industry Associations More »

The fashion business - BBC News Image copyright AFP We know that clothing is big business, but it may be surprising just how big. The fashion industry's contribution to the British economy is an estimated £26bn - that's twice the size of the car industry's and nearly as big as the contribution from housing, according to the British Fashion Council. It is not just dresses and handbags, but also design and manufacturing that make the sector the largest part of the so-called creative industries, which include marketing, etc. It's an important part of the services sector that makes up around four-fifths of the economy. I wrote then that it was a tougher sector to picture than say manufacturing cars which is tangible. But a couple of times a year during London Fashion Week, it is visible as models wear dresses that embody design as they sashay down the catwalk. In the five days of London Fashion Week, about £100m of orders are placed for that season. It's also an industry that has taken to social media to reach that market.

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