From the point of view of the currency, the Euro is also strong as compared to the dollar in the US market thus they do not need to worry about the economic front (Arieff, 2010). Socio-Cultural factors The fashion industry is hugely effected due to the social elements present in the European Countries (Howe, 2003). Let us discuss it from the point of view of different age groups. The youngsters have the habit of buying clothes that are from the current trend and very fashionable so that they get attention from the others.
But, they are also stuck with a limited budget and can only afford the clothes with the help of their pocket money. So for them, the trend would essentially be stuck to the garments like cheap and chic would be appropriate. According to Kluyver (2010), the market of Europe and Asia is growing and has a huge potential for the fashion industry. Technological Factors With the advancements in the technology, the internet has become the new shopping zone for the consumers. They can easily check and buy their clothes online without having to pay extra and also receiving the doorstep delivery of their items (Doyle.
2012). Thus, most of the organizations are transforming they network framework to link it with the online retail stores for easier delivery of the clothes (Bonacich, 2011). Since technology is constantly upgrading with new innovations being done everyday, it is advised that the fashion retailers also keep themselves updates and put the stress on the use of technology to streamline their process of the selling and connecting with the consumers in a much better manner. (Bhagwt, 2011) Porter’s Five Forces Threat of new entrants According to Mohring (2009), it is very difficult for the new players to enter the market of fashion and apparel.
The main reason behind this statement is the high level of competition between the major players in the market. Thus, the market is getting saturated and difficult the new players. Most of the companies have already gained a majority of the market share and the market requires a lot of investment for an initial set up of an apparel company (Doyle, 2012) (Bonacich, 2011).
Threat of substitutes As per Gardetti and Torres (2013) most of the players in the fashion industry have a market strategy of targeting the niche segment of consumers. This mainly possible due to the fact that each of these apparel brands has their own style and fashion line which exclusive to themselves. Apart from this, they also have an affordable clothing line for the general public who have an interest in the brand.
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