According to research, a one trillion USD growth is expected in the global apparel and fashion trade by the year 2020. While already developed markets are slowing down in terms of growth, there is a dramatic change expected in the dynamics of the global fashion market. Economies that are now emerging will dominate most of the fashion market growth. The BRIC (Brazil, Russia, India and China) countries, along with a few more South-East Asian island are predicted as major growth drivers. In addition, global apparel markets are focusing on product differentiation and supplying to a varying and demanding customer base. As a result, retailers are moving toward social influences, demographic shifts, economic influences and other environmental concerns.
In developed countries, consumer spending is restricted and hence growth has reduced, and as a result retailers are facing tremendous pressure. Because of this, retailers are now taking the lines of models from high end designer brands in order to give their consumers a greater variety. While on one hand, some high end brands in the West are redefining their position in the market by introducing specialty stores or creating a unique shopping experience for customers, other retailers are focusing on promoting electronic sales as much as possible. Many retailers are also investing in loyalty programs and other techniques to retain loyal customers. It is a fact that today’s shoppers are more categorized based on lifestyle, demographics and cultures.
As a means of increasing business, retailers are focusing on business opportunities in foreign countries. The fashion market in the Europe and the West is already saturated. Therefore, a paradigm shift is seen in Asian and South American markets. In addition to that, the positive GDPs of the BRIC countries is also an attraction for retailers. Many big apparel firms are working in Chinese markets where they can access big amounts of young population who have a considerable capacity to spend. With its large geographical area, China also provides the opportunity to upscale productions.
As mentioned above, when shopping, consumers are restricted to their lifestyle and status. For this reason, retailers offer a variety of products from lower to higher market segments. Being able to afford a fashionable item is now the key factor in improving sales. Customization of products to suit exact needs of customers and bespoke services have seen a major increase over the past few years and are a promising trend for the future. Furthermore, supply chain systems are also adjusted to cater to the changing desires and needs of the consumer. Retailers are trying their best to maintain a balance between supply and demand in order to limit the amount of wastage.
In addition, retailers are now using the latest developments in technology to niche certain channels of selling merchandise. Some of these advancements include digital promotional displays, shelf labeling, sales kiosks and self check-out systems. Furthermore, using social networking sites to reach the online market is another opportunity being explored by many retailers.
About the Author: Jessy Taylor is a content writer who loves to share her knowledge among internet users. At the moment she is more concerned about Promotional T Shirts and Tshirt Printing.