Beauty and fashion is a multibillion dollars industry focusing on the product and sale of clothes and other accessories. Some of the high fashion brands in the beauty industry manufacture clothes from ordinary to luxury mass scale fashion.
The simplest way to define fashion business is the style of wearing clothes and other accessories by various segments of the people. On the surface, you would see a vast difference between the ordinary street fashion that is available in the shops and mall, and the runways fashion of New York, London, and Paris.
The fashion industry has different types of fashion for men, women, children, teenagers, middle-aged, and old people. It ranges from ordinary street clothes, casual sweatpants, and medium to luxury designer clothes. However, it comprises various functions and operations like designing, producing, manufacturing, distributing, marketing, retailing, selling, and promoting.
Today, we’ll discuss the swot analysis of the fashion business (clothing store and boutique). It’s going to focus on various aspects like strengths, weaknesses, opportunities, and threats of the fashion business.
Here’s the swot analysis of fashion business as follows;
Strengths of a Fashion Business
Wide Product Range
The fashion business offers a wide range of products and services to the fashion lover customers market. Like apparel of men, women, and children, footwear (boots, sandals, shoes), luggage, bags, purse, watches & jewelry, accessories, formal wear, traditional clothes, sportswear, textile, costumes, cosmetics, vintage, and secondhand products.
If you look at it closely, then you’ll see that fashion covers almost every aspect of our daily life. It offers products/services/accessories for every occasion to use and sends the message whatever you want to convey.
The internet and media have already made the world a global village. We’re aware of it whatever is happening here and across the world. However, the same thing goes for the fashion industry. Various companies organize fashion shows in different parts of the world like Asia, the Middle East, Africa, Europe, America, and Australia, where they promote their products.
As I said earlier the fashion business is a multibillion-dollar industry. Different multinational companies back fashion shows and finance the artwork of creative designers and artists. However, they’re visionary people and they value and worth of art. If one idea/design clicks, it would go to mass-scale production worldwide, and it would pay off the company in billions of dollars.
Some of the well-established fashion brands don’t compromise on the quality of their products and services. They offer both quality and fashion at the same time. They have established a large database of loyal customers because of the quality products. That’s why customers always choose the products of renowned brands and designers.
Speaking of renowned brands and their quality work, the reason they manage to maintain a high standard of quality and creativity is that they get the products manufactured in-house under their close supervision. Some of the fashion companies outsource their production work in developing countries, which helps them to lower the cost, but it bad impacts the quality of the products.
Various operations of the fashion have complete autonomy on their work and interconnect at the same time. For instance, the designers and creative artists have complete independence in their creative work. So as the marketers, manufacturers, retailers, and sellers; they all work independently and close collaboration at the same time. When you look at the final product, then the final result is amazing.
Weaknesses of a Fashion Business
Changing Fashion Trends
As many of you are aware it the beauty and fashion industry is highly competitive, and various fashion brands are competing with one another to be the first in setting up new trends in the market. In fact, the fashion industry doesn’t have control over it. All they have to do is to keep up their pace with the latest fashion trends. If they don’t, then they would lose the market share, sales, and profitability ultimately.
3rd Party Suppliers
In order to be cost-efficient, many fashion brands outsource their production and manufacturing work to third-party suppliers. It’s good in some cases. But it creates a number of problems like having no control over the production work, quality standards, delayed work, and custom and border issues. When you add up all of these costs, then it leaves you without any cost advantage.
Low Quality to Keep Price Low
Many fashion brands are at war with one another over price. If you want to gain a price advantage over competitors, then you have to use alternative materials. However, when they alternative material, or outsource the production processes, then it results in the form so of low quality. In other words, the goal to achieve low prices compromises the quality of the fashion products.
Entering New Markets
Fashion business always has to enter new markets and target new customers. It’s because fashion trends are always changing, and their target market is different age groups. It means that you always have to be ready to face the uncertain conditions and unexpected responses of the market.
Opportunities for a Fashion Business
The lifestyle and living standards of ordinary people have been increasing for the past few years. It’s a great sign for the fashion business. It’s because when people have extra money, then they would go out shopping and buy luxury fashionable products. It presents a great opportunity for fashion business to promote their products and services.
The pandemic of covid-19 and worldwide lockdown have increased the growth of online businesses. It’s because of the growing online shopping trends. The fashion brands that have their e-commerce platforms remained profitable during the pandemic year. If you’re in the fashion business, then you should consider investing in the e-commerce platform.
US Fashion Trends
It’s true that fashion trends are uncertain and unexpected for the business, but they also offer new opportunities for fashion brands to take advantage. Therefore, fashion companies launch US fashionable products in the market whatever customers want and looking for.
Spending on Fashion Products
The overall spending on quality and fashion products has increased significantly. People have become conscious of how they look, and they want to present a better image of themselves. In other words, it means the growth of the fashion businesses and their products.
Threats to a Fashion Business
The beauty and fashion industry is the world’s most competitive business along with its high demand. Some of the renowned brands have hired excellent designers and artists in the creative team. They always come up with unique and innovative fashion products and take advantage of being the industry leader. On the other hand, the new fashion brands with limited resources have to follow them and accept the 2nd position in the market.
The changing fashion trends could jeopardize the growth and performance of your business. It doesn’t matter however stable you’re in the market, if you’re not ready for the new trends, then you would lose the market share. It shows that how fragile the fashion business is against the trends.
For some of the competitive fashion brands that are already established in the market, it would be nearly impossible for you to compete against them and win the market share. They have got such a loyal database of customers that you have to follow them in order to stay in the market.