Advancing With Fast Fashion

Fashion has long secured its place among the most successful and wealthy industries out there. Clothing is a basic necessity that will always sell, and is constantly advancing to suit consumer demands. The competition is fierce, and there is a constant battle between online and in-store retailers, though at this point most stores offer both options. It would be difficult not to consider the success of online retailers such as Amazon, who was responsible for 60% of the e-commerce growth within the U.S between 2014 and 2015. Can brick-and-mortar chains even compare? The quick answer is yes- because of fast fashion. The fast fashion industry is so prosperous, in fact, that even retail giant Amazon wants in.

Can’t Beat the Price:

Fast fashion has taken huge leaps and bounds over the years, and has set out to change the apparel industry as we know it. Brands such as H&M, Forever21, Primark, and Zara were created to serve immediate needs, keeping the prices reasonable for their target audience of young adults on a budget. The consumer demand for consistent new batches of clothing makes it possible for these labels to keep it affordable and still make a profit. It is true that the popularity of these brands is soaring, and will only continue to do so. Fast fashion, as many experts say, is great investment for the future.

Success Stories:

As of August 1st, 2016: Tadashi Yanai is Japan’s richest person and the founder of Fast Retailing Co. He holds $17.1 billion. Stefan Persson is the chairman of H&M, and his family owns the label. He is Sweden’s richest person with $20.2 billion. Amancio Ortega is the founder of Inditex, the parent company of Zara. He is the richest person in all of Europe with $75.1 billion. These billionaires have all had their share of undeniable success as the fast fashion industry grew over the years, allowing their massive fortunes to come into being. It is true that, aside from being faster and cheaper than the competition, fast fashion has made a name for itself as the best consumer reaction to the changing times. With the rise of social media and YouTube, people are seeing constant changes in style and various types of clothing on their favorite gurus. People want to wear what they see in their feeds, and they want them quickly, preferably cheaply so they can buy more.

Straying from Traditional Retail:

Fast fashion makes it their business to put out new clothing constantly, as opposed to traditional retailers, who develop a new line each season. (Customers get bored, don’t shop as often.) This would draw more customers in, but wouldn’t online shopping still win out and render this useless? We see in the most recent annual report for Fast Retailing that there was an online sales account for a mere 4.2% of its $14.3 billion total sales. Customers go in often because they have a consistent new selection of clothing to choose from. With a turnover like this and a mindset of ‘out with the old and in with the new,’ it is only natural that fast fashion is so popular.

The success of these labels is due partly to their vigilant comparison and tracking of their competitors. To get as far as they have come, they needed to be certain of their pricing strategy and keep organized, easily-accessible data. A way to go about this with your own business is to use an online price tracking tool like PriceManager. This will serve as a window of opportunity allowing you to keep on top of other up-and-coming brands. PriceManager’s software will ensure that you stay in touch with the rise and fall of pricing in this ever-changing world of retail, and will help you increase your sales.

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