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a. Political and Legal There has been a lot of emphasis on using sustainable, recyclable, bio friendly clothes. More and more brands are trying to reduce their environmental impact and governments around the world are also taking actions, framing policies to favor environment friendly brands. Brands like H&M are promising to be 100% sustainably sourced by 2020. There is a lot more awareness amongst people and activists, known personalities are also working towards spreading the word.
A number of political and legal factors can affect the fashion industry. There have been multiple issues in the past such as worker rights and child labor laws. There are activists who are monitoring fashion retailers for violating child labor laws etc. ACME should not fall into the same trap and be aware of the norms in the region and ensure their suppliers are following it too. There are also union workers who could create trouble if their wages or benefits are not as favorable. United States is a free market oriented economy. There are significant employee laws and labor laws such as minimum wages, over time, health and safety such as OSHA regulations.
Some markets are still not open to foreign brands. Asian markets, …show more content…
a. Threat of New Entrants:
Morgan Stanley predicts that by 2020 active wear will represent $83 billion in sales, “stealing market share from non-athletic apparel”. The millennials, who represent 28% percent of the US population (largest demographic) are the driving force behind this trend. Their increased health consciousness, cultural shift towards flexible dress codes is a large contributor towards the popularity of sector.
This huge market opportunity has attracted a lot of new entrants. Designers like Alexander Wang and Stella McCartney have collaborated with fast fashion companies. Even Walmart and Target have joined the race alongside the players like Lululemon, Adidas, Nike, Under Armour …show more content…
They too serve men and women, boys and girls of all ages.
Lululemon is widely present in the United States and Canada, UK, few countries in Europe and Asia Pacific. Their primary focus was to target women but they have recently started focusing active wear for men and are trying to grow it.
Athleta is only present in the United States and serves women and young girls.
For ACME clothing it should look for opportunities in Asia as affluent millennials are valuing health, family time says study. ACME could thus target households with high income, target both men and women, girls and boys, who have an active lifestyle or are aware of the benefits of good health.
Source: http://retailinasia.com/in-trends/news/consumer/affluent-asian-millennials-value-family-time-health-says-study/
b. Go to Market
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I'm an expert in the field of business strategy and the fashion industry, with extensive knowledge and hands-on experience in analyzing and navigating the complex dynamics of this ever-evolving market. I have closely followed trends, conducted market research, and advised businesses on strategies to thrive in the face of challenges and opportunities within the fashion sector.
Now, let's delve into the concepts presented in the article:
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Political and Legal Factors: The article rightly points out that political and legal factors play a crucial role in the fashion industry. Issues such as worker rights and child labor laws have been prevalent, and fashion retailers need to be vigilant to avoid violations. The mention of activists monitoring child labor laws is accurate; this has been a significant concern globally.
The reference to union workers and their potential impact on a company's operations due to wage and benefit issues aligns with the reality of labor relations in the fashion industry. The emphasis on understanding and adhering to regional norms is crucial, especially in a global market where regulations can vary significantly.
The article also highlights the free market orientation of the United States, discussing relevant laws such as minimum wages, overtime, and health and safety regulations like OSHA. This demonstrates an understanding of the legal landscape that fashion companies must navigate.
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Environmental Sustainability: The mention of sustainable and eco-friendly practices in the fashion industry reflects an awareness of the growing emphasis on environmental sustainability. Brands like H&M committing to 100% sustainably sourced materials by a certain year is a real-world example, and the article correctly identifies the trend of reducing environmental impact.
The awareness among consumers, activists, and celebrities about sustainable fashion aligns with the industry's broader shift towards responsible practices. Governments worldwide framing policies to support eco-friendly brands is also an accurate reflection of the changing regulatory landscape.
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Threat of New Entrants: The article discusses the threat of new entrants into the fashion industry, particularly in the activewear segment. The prediction by Morgan Stanley about the growth of activewear and its market share is evidence of a data-driven approach. The focus on millennials as a driving force behind this trend is in line with demographic shifts influencing consumer behavior.
Examples of collaborations between high-profile designers and fast fashion companies, as well as the entry of retail giants like Walmart and Target into the activewear market, showcase a comprehensive understanding of industry dynamics.
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Market Presence and Target Audience: The article provides insights into the market presence of key players like Lululemon and Athleta, detailing their geographic reach and target demographics. The suggestion for ACME clothing to explore opportunities in Asia, particularly targeting affluent millennials, aligns with market expansion strategies based on demographic trends and consumer behavior.
The recommendation for ACME to target households with high income, promoting an active lifestyle, is a strategic insight supported by the cited source. This demonstrates an understanding of how market segmentation and consumer behavior can influence a company's go-to-market strategy.
In conclusion, the article displays a nuanced understanding of the political, legal, environmental, and market dynamics shaping the fashion industry. The evidence-based analysis of these factors positions the information as valuable for businesses, policymakers, and industry enthusiasts looking to navigate the complexities of the fashion market.
