Globalization Effects In Apparel Industry Essay

1663 Words 7 Pages
TABLE OF CONTENTS
TABLE OF CONTENTS 1
ABOUT THIS DOCUMENT 1
APPAREL INDUSTRY IN GLOBAL WORLD 1
Apparel Industry Overview 1
Lifestyle Industry Overview 2
Globalization Trends 3
Globalization - Integration of Functional Activities 4
FORECAST & PREDICTIONS 5
5-year Horizon 5
10-year Horizon 5

ABOUT THIS DOCUMENT
The pervasiveness of retailing in the western world leaves the industry open for careful analysis. This document is intended to expertly address global effects onto a single sub-industry of retail - specialty apparel. To do so, I will acquire perspective by considering all recent global developments in the industry.
First, this document captures the current environment of the mall-based lifestyle apparel retail
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At the most basic level, all of these retails supply people with practical attire that is affordable and unlikely to change in the years to come. As such, U.S. apparel industry is mature, saturated, and slow growing (~4% annually). Consolidation has been prevalent in the industry; there were 22 $100+ million mergers and acquisitions in past three years . Firms strive to lower their costs, by gaining leverage in buying power and by achieving better economies of scale in production and marketing. Moreover, ruinous price competition, driven in part by the success of discounters (e.g. Walmart, Value City), means eroded margins. One of the possible solutions to increase margins is becoming global retailer, where is more pricing flexibility and is easier to leverage existing supply-chain infrastructure.
In the realm of rising fashion consciousness, the industry strives to update their assortments swiftly to reflect changing tastes and to offer innovative styles and features that, usually, command a price premium. Therefore, I will slice the industry into two major segments: the standardized retail industry, characterized as a mature one, and the lifestyle retail industry. The latter one consists of firms or even their individual brands that cater to the needs of specific market segments (American Eagle Outfitters to 15-25 years old, Sunwear

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