Common legal factors that are addressed in the fashion industry are workers rights and child labour laws. Activists that are outside of the company, from charities or interest groups, protest against the companies that are known for purchasing clothing from countries that are violating child labour laws. This negative publicity can have a huge impact on the company, especially they are small business. When trade embargo's are put in place this can ruin a company, blocking the company from using this country anymore for its purchases of clothing. Trade embargo's cause delays to work, meaning stores have to resort to going to other brands.
Ethical
Ethical problems in fashion are similar to the legal and political issues. Ethical issues cover things such as child labour, animal cruelty and pay rates. Fashion houses have to be very aware of what is ethically acceptable and what is no, to make sure they are staying within what is expected of them as a brand. Pushing ethical boundaries can be highly damaging to them as a Brand and can resort in the problems becoming politically incorrect, and legal action may sometimes be taken against the brand.
Political
Unions in the fashion industry can have a huge impact into the treatment of its employers. If the wages and medical benefits are worse than those in other industries then the unions will protest and picket against the company, this can cause a slow down in production, meaning a delay for retailers. Delays in garments can be highly damaging to a designer due to the fast pace of the fashion industry and collections having to be ready on time for various fashion weeks and seasons.
Economic
The economical state of the world can highly affect the fashion industry in both positive and negative ways. Boom periods in the economy mean higher sales, as consumers have more disposable incomes. Although recessions in the economy can have the direct opposite effect, significantly lowering sales. Retailers may be struck with large amours of stock and low funds as garments have already been paid for and not sold onto the consumer. Large sales occur in these times, causing a decrease in the profit made my companies. When consumers have less disposable incomes they will often shop for cheaper brands, this causes some retailers to sell the higher quality brands at a cheaper price to compete with this.
 |
| Kayne at door of Celine show. |
Social
Social media in fashion is curtail, it is how brands connect with their target market. Twitter, Instagram, Facebook advertising and Youtube advertising has flashes of fashion running through them. Especially for new brands social media can highly boost the brands image. A brands image is how the public has perceived the brand from the information the media and the brand has given them. A brand image can be shattered over social media. Kanye West was turned away at the Celine LFW show, due to the brand not wanting him to be associated with them. Brand image can be affect by various things many linked to the social media.
Technology
Technological factors in the fashion industry are the availability of resources, the demand from the consumer and the production of garments. A shortage of a certain material, such as fur and leather, can force retail companies to sell faux or other suitable materials that are worse quality. The price of cotton garments will rise when there is a shortage in cotton because the manufacturers are charging more for the more as the product is more desirable. Because of the fast growths in technology certain jobs in factories and plants that would have been carried out by an employee are now being carried out by machines that have been invented to replace then, this is cheaper for the company to run than paying an employee, this means that the employment rate in this industry can fall.
Competitive Advantage
A USP (unique selling point) is key for a brand if it wants to become successful. A brand must have a USP to gain its competitive advantage above other brands, similar brands can become generic without a USP, a certain way a brand is portrayed can gain it the right kind of interest and customers.
No comments:
Post a Comment