Factors that determine apparel market trends
The apparel market is a billion dollar industry with many clients. It generates a lot of money and is considered extremely important for many economies. There are many consumers who indulge in this industry and entrepreneurs are constantly entering into this market. Over the past decade, there have been many changes in this industry and it has grown massively. The following are some of the factors that have affected the apparel market trends in the decades.
Asia influence
From the early 1990s most apparel companies moved to Asian countries because of availability of cheap labour and large cotton farms. Countries like India, China and Bangladesh became hot destinations for many apparel companies.
In the recent times, investors are becoming wary of the high costs of labor in China. Due to the high number of apparel factories and subsequent demand for laborers, the cost of employment in the country has risen. This has raised the cost of production in the country and investors have to counter this by looking for cheaper suppliers.
In countries like Bangladesh and parts of India, the costs of labor has not risen as much and more investors are setting up apparel factories in these countries. New entrants must consider the cost of labor before entering the markets.
Technological investments in machines
Fortunately for investors in the apparel industry, there is now high technological advancement that has made work easier and production much easier. This includes new machines for making apparels and shoes. This has reduced the costs for producing apparel items and the time for making both clothing and shoes.
Investors who intend to venture into countries where there is high cost of labour can use these machines to reduce the number of laborers and also cut on costs of hiring expensive workers. They can also reduce the amount of time used in making the apparels.
Recession and competition
The recession period that lasted between 2008 and 2010 had a huge impact on the apparel market and the American companies lost their grip of the apparel market. To date, there is still very high competition from different manufacturers in the world.
In fact, emerging markets in the apparel industry are attracting more investors. These investors are heading to destinations such as Africa and the Pacific where there are plantations as well as abundance of cheap labor. This has increased competition in the market because investors are no longer limited to a particular market.
Consumer preferences
The consumers of the apparel markets have changing tastes and preferences. This means that the entrepreneurs have to change their designs constantly to suit these preferences. Consumers have also been more conscious about the origins of the apparels that they purchase.
For instance, consumers have in the recent past boycotted some apparel items from countries like Bangladesh and China citing poor working conditions of workers. When a building collapsed on apparel workers in Bangladesh, consumers boycotted the apparel items from these countries. Child workers in China apparel factories have also attracted condemnation from consumers.
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References
http://www.plunkettresearch.com/apparel-textiles-clothing-market-research/industry-trends