Basics of Fashion Business

1. Shweta Iyer

2.  Major problems in production and
consumption of fashion which we
wear relate to the economic cycle
of FashionLike advertising lures
us to buy more of”fashion than
our needs or building hospitals
and other bare necessities”.
 Fashion in economic terms is
reductionalist which dealt with
capitalism’s need for expansion
which encouraged expansion with
help of consumption which would
require production
 See reference of China market
share….

3. “Production
creates
apparels
which are
distributed
,exchanged
for money
and then
consumed”(
Karl Marx-
1973)

5. In respect of
fashion cycle

6. The
fashion
cycle
•Fashion cycle: The ongoing
introduction, rise, peak,
decline, and obsolescence in
popularity of specific styles
or shapes.
•All styles that come into
fashion rotate through the
fashion cycle.
•Fashion acceptance can be
illustrated using a bell-
shaped curve.

7. The
fashion
cycle
•The cycles for some styles
are exceptions to the bell-
shaped curve.
•Flops: Fashions that are introduced and
expected to sell but that are not accepted
by consumers.
•Fads: Temporary, passing fashions that
have great appeal to many people for a
short period of time; styles that gain and
lose popularity quickly.
•Classics: Styles that continue to be
popular over an extended period of time
even though fashion changes; styles that
remain in fashion year after year.

8. Stages of
the fashion
cycle
Introduction: The first stage
of the fashion cycle when new
styles, colors, textures, and
fabrics are introduced.
 The new style may be accepted by a
small number of people called fashion
leaders.
 Promotional activities include fashion
shows and advertising in high fashion
magazines.
 Fashions are produced in small
quantities at high prices.
 Retail buyers purchase limited
numbers to see if the style will be
accepted.

9. Stages of the
fashion cycle
Rise: The second stage of the
fashion cycle when consumer
interest grows and the fashion
becomes more readily accepted by
consumers.
 Mass production brings down the
price of the fashion, which results in
more sales.
 Styles are manufactured in less
expensive materials and in lower
quality construction than the original
style.
 Promotional efforts are increased in
high fashion magazines to heighten
consumer awareness.
 Retail buyers order items in quantity.

10. Stages of the
fashion cycle
(cont.)
Peak (Culmination stage):
The third stage of the fashion cycle
during which a style is at its height of
popularity.
 The fashion is demanded by almost
everyone because it is now within the
price range of most consumers and is
mass produced in many variations.
 Each retailer tries to persuade
customers that its version of the style
is the best.

11. Stages of the
fashion cycle
(cont.)
Peak
(Culmination
stage)
 The style may have a long or short
stay at this stage.
 Short-run fashions: Styles that are
popular for a brief period of time.
 Fads, usually lasting only one
season
 Accepted and rejected quickly
 Teenagers’ fashions change the
fastest and have the most trends.
 Styles are easy for the
manufacturer to produce and are
relatively inexpensive to the
consumer.
 Styles typically have more details
than seen in classics.

13. Stages of the fashion
cycle
Peak (Culmination stage)
Long-run fashions: Styles that take a long
time to complete the fashion cycle.
Classics, basics, and/or staple fashions
Slow introduction, long peak, slow decline
Styles have simple lines, minimal detail.

14. Stages of
the fashion
cycle
Decline: The fourth
stage of the fashion
cycle when the market
is saturated and
popularity decreases.
The fashion is overused and
becomes dull and boring.
As the fashion decreases in
popularity, retailers mark
down their prices.
Promotions center around
major clearance or closeout
sales of the fashion.

15. Stages of the
fashion cycle
Obsolescence: The fifth stage of the
fashion cycle when the style is
rejected, is undesirable at any
price, is no longer worn, and is no
longer produced.

16. Lengths of fashion
cycles
Cycles have no specific
lengths.
Recurring fashions: Styles
which have been in fashion
at one time, gone out of
fashion, and come back in
fashion again.
Fashion trends seem to
recur about every
generation or every 20 to
30 years.
Fashion cycles are less
distinct now than in the
past.

17. Fashion
leaders and
followers
 Fashion leaders:
Trendsetters who have the
credibility and confidence
to wear new fashions and
influence the acceptance
of new trends.
 The first to purchase new
styles
 Desire distinctiveness and
uniqueness
 May be innovators and/or
influencers.
 Royal families, first
families, movie stars,
television personalities,
athletes, singers,
musicians

18. Fashion
leaders
and
followers
(cont.)
Fashion followers: Those who
accept and wear a fashion only
after it becomes acceptable to
the majority.

19. Basic
principles
of fashion
movement
Consumer acceptance or
rejection establishes fashion.
Price does not determine
fashion acceptance.
Sales promotion does not
determine fashion.
Fashion movement is
evolutionary rather than
revolutionary.
Fashion extremes cause
reversals or abrupt changes.

20. Factors that
accelerate fashion
movementCommunications and mass
media
Good economic conditions
Increased competition
Technological advances
Social and physical mobility
More leisure time
Higher levels of education
Changing roles of women
Seasonal changes

21. Factors that decelerate fashion movement
Bad economic conditions
Cultural and religious
customs
Laws or other
governmental
regulations
Disruptive world events

22.  INFLATION
In time of inflation such as the
US, people in 1980s experienced
that people earned higher every
year but there were higher prices
and taxes and there was no real
increase in purchasing power as
such.
 The fashion emphasis of 1980s
was power suit and luxury
accessories which showed
society’s obsession with money
and achievement.

23.  RECESSION
Experienced in early 90s,there was
decrease in spending, cut back in
production and increase of
unemployment resulting in drop in
Gross national Product
 When economic situation is
unstable, fashion picture is also
unstable.
 Money is short in supply and people
are not able to decide their
priorities
 For example:” Grunge look” of
1990s and “colorful” fashion
growing with economic upswing
 People during recession like to buy
long lasting and durable fashion
while in prosperity like to buy
variety and more of in vogue
apparels

24. Fashion from Concept to
consumer 7/E-FRINGES
Fashion-a marketing
approach-Dorothy S
Rogers
Fashion theory-Malcolm
Bernard
Chinas garment market
segementchina-trade-
research.hktdc.com
www.pintrest.com