Retail Clothing Industry Analysis
Clothing retail industry has been successful thanks to great developments in the world. Designing and manufacturing of clothes is a long process and it can be quite demanding as these apparels need to be sold. Retailers make the business sector successful as they are responsible for making initial purchases for resale three or month before consumers can buy them from clothes stores. Getting into clothing retail industry is not an easy task. It is a great step to conduct an industry analysis and understand how clothing retail works.
Investing in the retail apparel industry is an easy to go about investment that, but a good eye for fashion and aspiration to sell your own design or variety of name-brand clothes are a few factors that push many investors in the field. A good retail clothing industry analysis makes it easy to find out if selling apparel is solid money-making idea or not. Hence, it becomes clear for entrepreneurs and governmental entities whether to expect any rewards from the industry or it will be a failure.
The clothing industry is a great source of revenue. It is estimated that in 2009, more than $304billion was generated from the industry. Women apparel averaged about 53% of total revenue generated that year. Clothing retail is a seasonal venture and majority of the sales are expected during holidays and when children are heading back to school. Net profit margin for privately held clothing stores average nearly 7% in 2013 and this has been a stupendous growth from previous years.
Large clothing chains are known to generate most industry revenue and employ large number of people globally. Private-owned companies also sell bulk of clothes generating good profits and income for the involved entrepreneurs. The advent of internet by 21st century, have made it easy to sell clothes. In fact, internet has become an essential retail outlet. Nevertheless, it has come with new challenges such as inability to try clothes prior to purchase or need for facilities that can help handle apparel returns and exchanges. Internet as created new opportunities for merchandise, for instance, clients can enjoy shopping opportunities on 24/7 basis.
Clients can easily shop at the comfort of their homes and avoid spending time and money shopping at traditional brick-and-mortar store. Technology such as mobile applications has changed the way retailers do their businesses. Use of customer data to ascertain what consumers want is another great trend that has helped the retail industry evolve greatly. Use of social media has made it easy for thousands of consumers and retailers to satisfy their needs.
For any retailer to attract clothing-hungry shoppers, it is wise to stay on top of the latest styles of clothing, accessories and footwear. It is easy for clothing brands to collapse especially when a retailing company ends up with much inventory. Abundance of online retail shops has lured many local shoppers and this has led to lose of revenue. Despite recent global financial crisis and other forms of economic downturn, the clothing industry has gone through a lot of transformation to be able to satisfy the needs and requirements of many clients and retailers.
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