Apparel Industry On The First Term Paper

Length: 12 pages Sources: 7 Subject: Business - Miscellaneous Type: Term Paper Paper: #78321263 Related Topics: First Aid, Victorias Secret, Industries, Film Industry
Excerpt from Term Paper :

"Social messages sent by clothing, accessories and decorations can invoke social status, occupation, ethnic and religious affiliation, marital status and sexual availability etc."

4.2 Product innovation and technological changes

The rapid rate of technological development set the course of development in numerous other domains, including apparel. In this order of ides, the technology adherent to the apparel production process is on its path from computer made designs to technologically improved materials' quality. For example, future directions in the apparel industry involve "more types of fiber developed using nanotechnology or smart clothes that incorporate electronics."

4.3 Marketing innovation

The main characteristic of current trade and production is that the items tend to focus more and more on the customers' needs and desires. Apparel producers are today faced with the difficult task of combining the publics' needs with a high quality of work and material as well as with the latest fashion trends. Aside from these, apparel manufacturers are constant contributors to the art of marketing in order to promote their items. Apparel producers have been able to take the advertising campaigns one step further and organize glamorous fashion shows. These fashion presentations are in fact the core of apparel marketing and still represent its main source of prestige and customers.

4.4 Extent of globalization

The effects of globalization upon the apparel industry need to be analyzed from two points-of-view. First, from the production point-of-view, globalization brings about outsourcing of workforce and raw materials from abroad as they imply lower costs that the national resources. On October the 5th, the Sri Lanka Ministry of Finance publicized a press release stating that "According to the Chairman of Sri Lanka Exporters Association, A Sukumaran, exports of Sri Lanka apparel to U.S. registered a growth by 9.5% to U.S. $1,217.5 million from January to September this year"

The other point-of-view is referred to as fashion globalization. The United States have been able to impose their clothing culture upon numerous countries. "At the start of the twenty first century, the preferred garments of young people of both sexes from around the world tend to be jeans, sweatshirts, T-shirts and sneakers. These clothes are also international icons of American culture. The global young wear the same clothing, a phenomenon made possible by new technologies, global commodity advertising of branded leisure clothing, and the cultural and political domination of the United States. The reasons for wearing such clothing vary, but these clothes signify youth, modernity and an eagerness to belong to the newly globalized capitalist world."

5. Companies in the StrongestWeakest Positions

The leading positions in the apparel industry assure the occupants privileges such as international recognition and power as well as immense revenues. Fashionable clothing and accessories belonging to apparel houses of Gucci, Ralph Loren, Chanel, American Apparel, Dolce&Gabbana or Vera Wang have become part of the American culture and nowadays struggle to compete for the title of world's leader on the apparel industry.

5.1 Gucci

Gucci fashion house is "one of the world's most influential fashion houses and a highly profitable business operation." Their position in the apparel industry is given by their great number of customers, turnovers and international recognition. They have opened stores in most parts of the worlds, having headquarters in The United Stares, United Kingdom, Germany, France and Japan.

Gucci Strategies

Prior to the year 2000, Gucci was faced with an economic crisis. In order to overcome it, they were willing to sell the majority of option stocks. The stock options were sold to Prada and to LVMH which aided to the revival of the company. In September 2001, the Gucci Group signed a partnership agreement with the French company PPR and purchased shares from Di Modolo, Balenciaga and Bottega Venetta. In addition, they focused towards collaborations with new and young talented designers, such as Stella McCartney or Alexander McQueen.

Regarding their human resource strategies, it is known that along the years Gucci has not hesitated in letting their employees go and replacing them with better qualified personnel. Aside from the high quality of their products, Gucci also attracted customers through numerous promotional strategies such as price reduction or purchase gifts in the form of accessories (belts and watches.)

5.2 Vera Wang Strategies

Vera Wang, named after its top designer, is an apparel business located in New York, mostly focused on...


The latest strategies adopted by this fashion house involve launching on the market several new products and expanding the product line. The designer intends to launch "an exclusive line of clothing and handbags [...] and also manufacture and market the Vera Wang mattress set."

Nonetheless heroic, launching into a new market is a rather risky action. Given the international reputation of Vera Wang wedding gowns, the outcome of the new product line would also affect the entire Vera Wang image and collections. In this order of ideas, a failure to successfully launch the new items on the market could result in reputation denigration for the fashion house as a whole. Annual sales would decrease drastically, placing Vera Wang in a near bankruptcy situation.

To ensure the success for the company and increase its market segment, in August 2006, Vera Wang signed a business partnership with "mid-tier retailer Kohl's. The duo announced that they are partnering in a premium fashion and lifestyle brand to be called Very Vera by Vera Wang. The line, available in fall 2007, will be sold at 749 Kohl's stores and online at"

Vera Wang's leading position is assured by its 300 million dollars annual sales and it's a perfect depiction of the American dream. The means of attracting customers number the impeccable taste and fashion of the gowns and materials used as well as an international guarantee of the best quality.

5.3 Dolce&Gabbana Stategies

Dolce&Gabbana is a "high-end fashion house started by the Italian designers Domenico Dolce and Stefano Gabbana. The company became very popular for their designs in the Hollywood industry" and nowadays possesses stores all over the world.

The latest business strategy adopted by the company was made public in the summer of 2005, when the two founders decided to separate their paths. However, the Board of Directors believed that such separation could be fatal for the company as a whole. Therefore, even if the Dolce and Gabbana chose different paths, "the company will still stay the same, and they will continue to design together."

The position occupied by Dolce&Gabbana in the apparel industry is stated by the large number of customers, the high quality of their products and the impressive annual turnovers. Aside from these, Dolce&Gabbana has been able to become integrant part of the worldwide culture, being referred to in several pop songs by bands such as Black Eyed Peas, LL Cool J, 50 Cent, Kelis or Notorious B.I.G. Aside from pop songs, the Dolce&Gabbana immense success was also acknowledged by numerous specialized magazines, television talk shows documentaries and musicals.

In conclusion, all three companies are leaders in the apparel industry. Their positions on the market are given by the characteristics of their customers (number, preferences, and income) and their target market, the attributes that define the apparel items and the company's overall annual turnovers.

6. Key Success Factors for Competitive Success (1, 2 pages)

In order to become a strong competitor on the apparel market, companies need to prove international acknowledgment, high quality of their products and numerous resources. Possessing all the above key factors ensures producers with success and profits.

The apparel industry is a branch of the clothing and manufacturing industry, which divides itself onto six sub-categories: apparel for men, boys, women, girls, infants and accessories. This classification of the apparel industry does not imply a difference in the KSFs, as these are all similar on every segment.

The reputation a company has with their current customers and potential consumers is vital for success. In order to improve their public images, apparel manufacturers launch into humanitarian and charity actions. Whenever a scandal arises, companies rapidly organize press conferences to clear their names and explain the situation to the public.

The quality of the products is yet another significant KSF as it aids to increase customers' interest and continuous satisfaction with the manufacturers' products. The third highly important KSF is represented by resource availability. The resources required for a successful outcome are numerous, among which are financial resources, material resources and human resources.

A yet unexploited success factor is technology. The role of hi-tech devices and procedures is expected to increase in the course of the following years. Using high technology, apparel manufactures will come to change the internal structure of materials and make them more comfortable and more environment-friendly. The latest trend in using hi-tech in the apparel industry is developing free-sweat clothing. For instance, using nanotechnology, the apparel manufacturer No Sweat Australia has already launched their products on the market.

7. Industry's Attractiveness and Prospects for Long-Term Profitability


Sources Used in Documents:


October 2001, Contracts and Modifications by North American Industry Classification System (NAICS) Codes, Manufacturing NAICS Codes,

Fratto, M.G., Jones, M.R., Cassill, N.L., 2006, Journal of Fashion Marketing and Management, Volume 10, Emerald Group Publishing Limited

Wikipedia, The Free Encyclopedia, October 2006, Apparel, article was last modified on October 26, 2006,, last accessed on October 31, 2006

October 2006, Apparel Resources, Exim News, Sri Lanka: Apparel Exports to U.S. Show 9.5% Increase,, last accessed on October 31, 2006
Wikipedia, The Free Encyclopedia, October 2006, Corporate Gucci, article was last modified on October 29, 2006,, last accessed on October 31, 2006
Chang, S., October 2006, At Kohl's, Very Vera Should Be Very Wary, Brandweek Magazine,,last accessed on October 31, 2006
Staff Report, August 2006, Kohl's Marries Up: Vera Wang Signs Deal With Mid-Tier Retailer, Adweek Online Magazine,,last accessed on October 31, 2006
Wikipedia, The Free Encyclopedia, October 2006, Dolce&Gabbana,,article was last modified on October 26, 2006

Cite this Document:

"Apparel Industry On The First" (2006, October 31) Retrieved December 3, 2021, from

"Apparel Industry On The First" 31 October 2006. Web.3 December. 2021. <>

"Apparel Industry On The First", 31 October 2006, Accessed.3 December. 2021,

Related Documents
Industry Analysis for Women Clothing
Words: 2209 Length: 7 Pages Topic: Business - Miscellaneous Paper #: 2177123

Apparel Industry Analysis The objective of this report is to provide the analysis of the Women's Clothing Stores industry. The industry comprises of the line of the ready-made women clothing, and the category includes a specialized women suits, coats, and dresses. The industry also includes the maternity wear and line of women misses. Since 1990, the structure of the women clothing stores in the United States has changed significantly because of

Apparel Merchandise and Management
Words: 2320 Length: 8 Pages Topic: Careers Paper #: 9593930

California Labor Laws The state of California possesses some of the strictest labor laws and enforcement tactics in the United States - a factor that largely affects the business climate of the state. County health departments, such as the California Department of Industrial Relations - Occupational Safety & Health Administration (CAL-OSHA), enforce and protect California labor laws, acting against all businesses who violate the laws (West Group, 1999). This essay will discuss

Industry Analysis the Electronics Industry
Words: 1827 Length: 6 Pages Topic: Business Paper #: 46619779

The decrease in 2006 is obvious to most all product categories and it can be explained through the economic crisis in the U.S. And the general reduction of industrial activities and corporate profits. The communications and telecommunications subsector has also been subjected to changes in 2006 as compared to 2005, registering both increases as well as decreases, as shown by the figures below (millions of dollars): Product Product Name 2006 Code 3342101 Telephone

Billabong the Surfwear Industry Comprises
Words: 1650 Length: 6 Pages Topic: Business - Advertising Paper #: 71417036

With the significant amount of crossover between surfwear and other casual apparel wear forms, changes in their production and design systems will be minimal. The main risk is brand dilution, so it is recommended that Billabong use a different brand when entering these new segments. Another option for long-term success is to roll out a high end line of customized gear. The surfwear market is already priced at a premium

Lululemon Industry Analysis and Strategy
Words: 1859 Length: 6 Pages Topic: Business - Companies Paper #: 47646449

Industry Analysis The performance-based yoga industry is generally favorable for Lululemon. The PESTEL analysis will help explain certain aspects of the external environment. The main influence that the political environment has on Lululemon is with respect to trade in textiles, in particular insomuch as trade policy can affect the ability of Lululemon to acquire goods from its suppliers around the world, and whatever tariffs and trade barriers the company might face

Internationalization of Branding in the Retail Industry
Words: 16085 Length: 60 Pages Topic: Business - Advertising Paper #: 83979895

The main focus of the 1980s regarding brands focused on a trend in takeovers, enabling successful brands to become extremely valuable on the open market. Even very early on, a value associated with a brand large was viewed in part as more important than the product itself. Early research indicates that many thought the only way to have a successful brand was to buy one. Many felt that the