4 reasons to enter the fashion and clothing industry

Size of the industry

The fashion and clothing industry is a giant in the global economy. With 2% of all world GDP, clothing generates more than three trillion dollars each year. The advantages of a successful clothing company are nothing short of massive. Approximately 80% of the industry is concentrated in the segments of women's clothing, men's fashion and luxury items. However, companies are moving to new lines and expanding the definition of clothing. Several large-size clothing companies are finding success serving a highly relevant but historically underserved demographic. The kitchen utensils and the "athleisure" are also niche segments that increase rapidly. Companies that expand into new segments should be careful to encourage substitution. An increase in sales of yoga pants has been associated with a decrease in sales of leggings.

The size of the industry has been growing steadily for many years. The number of people employed by industry has more than doubled since the turn of the century. With another fifty million people employed, the industry has proven to be an important job creator all over the world. With the clothing and textile trade representing $ 726 billion, the industry offers countless lucrative opportunities.

Emerging markets in the rebound

In recent times, much of the excitement surrounding emerging markets has cooled. Only a few years ago, China, Russia and much of the Middle East seemed about to be new and bright frontiers for the growth of the fashion industry. However, global developments have cast doubt on these predictions. China's economic growth has finally stalled, and Russia has overcome damaging economic sanctions. Many of the most promising emerging markets are highly dependent on oil, and the fall in oil prices has cast doubt on their economic future. However, there are still good reasons to invest in emerging markets. Rumors of a coordinated reduction in production by OPEC and non-OPEC oil producing nations have fueled hopes that oil-dependent nations will partially recover. Despite economic concerns, many investments related to fashion have advanced unimpeded. The refurbishment of a $ 30 million luxury shopping center in Kazakhstan has not been hampered, and major developments in Egypt, the United Arab Emirates, Quatar and Saudi Arabia are not expected to be threatened by economic crises. For its part, Russia has adapted to sanctions by adjusting its retail model. Several multi-brand stores are opening and many shopping centers are changing from charging a fixed rent to a percentage of billing. While economic uncertainty should never be underestimated, there are still many reasons to be optimistic about the future of an international business.

New online models

Like all good consumer industries, fashion and clothing have been greatly affected by electronic commerce and mobile applications. Many companies have found success in creating exclusive niches in the Facebook store. These online platforms have provided excellent opportunities for new entrants to establish their brand. And customers are very committed to these online stores. Almost two thirds of all purchases are made online. However, only 19% of all sales take place on these platforms. What this tells us is that customers use sites and applications mainly to find offers and compare prices, with real purchases that are still made in stores.

Find strategic partners with Powerlinx

With all the changes facing the apparel industry, it is vital that companies create a strong network of strategic partners. Powerlinx has worked tirelessly to create an unprecedented B2B network to help companies find, evaluate and connect with investors and partners in the supply chain. As the fashion industry becomes more accelerated and unpredictable, companies must have agile, agile and reliable supply chains to compete adequately. Lisa Harrington, president of the Lharrington Group, stated that garment companies need to "serve markets around the world with a supply chain strong enough to withstand shocks, agile enough to respond quickly to sudden changes or unexpected, flexible enough to customize the products and efficient enough to protect margins. "

Powerlinx is a pioneer in the B2B space. The patented PowerScore ™ algorithm provides a quantitative score so that companies can quickly and easily measure their compatibility with a potential partner. Every day, Powerlinx helps apparel companies store warehouses, establish distribution channels, find suppliers and manufacturers of garments around the world and connect with retailers and specialists. With millions of companies present and new opportunities added daily, Powerlinx is a valuable tool for fashion companies looking to succeed.

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