EMERGING THEMES IN FASHION INDUSTRY

Document Type:Thesis

Subject Area:Business

Document 1

In the United Kingdom, fashion industry has boosted the economy by 12% according the annual report given by the national government (Burns, Mullet, Bryant, 2016). However, there have been emerging themes in this industry that have a huge potential of affecting its growth either positively or negatively. Through the case analysis of asos. com, an online shopping store that is located in the United Kingdom, this paper will expand more on fashion industry and the four critical emerging themes that impacts on the current business strategies on the fashion industry sector. The paper will critically analyze the appropriateness of existing organizational policies covering four main themes that affect such policies. These themes include political environments, technological advancements, demographic changes and global economic issues. This will include the impacts and how to improve this sector in the next five years. Findings and Analysis Political Environments Politics plays an important role in the fashion industry. The key political aspect in this industry is stability. Besides, through political process such as legislations, policies are drafted for the betterment of this sector which acts as a backbone in fashion growth. For instance, the asoss. com online retail company, has through political stability, developed relevant strategic policies and planning that’s has helped it in achieving its goals and visions. This has enabled it to merge with other competitive companies and this has been achieved because there is no political interference in the online retail business (Lu, Karpova, and Fiore, 2011). This proves that politics plays an important role in the business sector especially the fashion industry.

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It is evident that fashions business practices and strategies have inextricable links for political ambitions and endeavors, offering a conduit for political, economic and societal ambitions of a state to be realized in tangible form. Politically stable states have a good room to improve and strategies on the fashion sector due to the existence of peaceful coexistence in both the political arena and the business world. It is more effective when politics support creativity in the sector and advocate for policies that support this field (Burns, Mullet, Bryant, 2016). Technological Advancements Technology has advanced rapidly and has brought major changes and impacts in the business sector. This has also affected the fashion sector where it brought the advancement in sales and production of quality products. This is seen on our case study about asos.

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This is seen in our case study on asos. com where annually the level of demand rose to 90% (McCormick, Cartwright, Perry, Barnes, Lynch, Ball, 2014, 251). This shows that the population of United Kingdom is rapidly growing annually and that favors the company. In addition, it shows that there is balancing in terms of population growth for both genders and children hence the company is able to meet the demands of its market. Global Economic Issues The various economic issues such as recessions and booms in the economic sector adversely affect the fashion industry. The main goal of companies such as asos. com is to gain profit and be able to expand their operation and influence. For this reason, they must make strategic decisions on production and sourcing for raw materials as well as how to make and advertise their products.

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In the next five years, such decisions will be tied to events in the political environment such as government control and increase in taxations. Companies would prefer to operate in countries where taxes are favorable. These may include marketing strategies, quantity of production as well as the locations of operation. The next five years presents a predicted increase in the number of the aging population as well as the young generation aged between 16 and 24 years. As the current data shows, majority of online purchases were done by the age group made up of 16 to 24-year old. This accounted for about 60% of the total online purchases. The online sales grew to over 130% and the increase was triggered by the young population (Statista, 2018). com is using to address the changing demographics is by being on multiple platforms of advertising.

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Such social media, TV advertising, YouTube videos among others. This is bearing fruit because the company has received at least $13million visitors to its websites every single month (Nicola, 2011). Global Economic issues Global economic issues are likely to affect the decision-making process by companies especially in the ecommerce industry. These issues will influence the decision making on strategies and operation of the firms in the next five years. However, many more people have shifted their perception of global boundaries to mega-cities and megaregions that define the territories instead. A common case is the rise of Dubai and Singapore which has become a huge business and tourist destination (Singapore Business, 2017). For the next five years and beyond, many more companies will be focusing on how to enter such markets. How Growth and Technology Affect the Operational and Strategic Decision-Making Necessary to Shape Organizations Within the Broad Sector in the next five years Technology is one of the key factors of production.

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Organizations, therefore make strategic decisions on which type of technologies they will use in their production process as well as other activities such as monitoring and evaluation. Technology advancement will lead to proper planning strategies where the company will be able to strategies on new ways of advertising where they will be able to cover a wider market at a cheap cost and meet the market demand. This has been seen through the various ways it has used to strategize its policies using the social media such as Instagram in marketing their products. For instance, asos. com has over 1 million followers on twitter and it is an indication that it has a significant presence on social media. Besides, asos. It should also be in a position to adapt more advance technology in terms of production and this will make it be in a position to beat other fashion companies such as Gucci stores.

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The technology will also help it to cover a wider market in terms of marketing and should hire more information technology experts who will keep the updates daily on their website. In addition, the company should hire more economic analysts who will be able to detect the level of inflation in the coming years and through this, they will be able to strategically plan for the performance and effectiveness during the inflation. The analysts will also play a vital role in advising on how the company should adapt to the economic issues without affecting its market and consumers preferences. Lastly, the company should be in a position to campaign for proper population balance by promoting and campaigning on the population balance hence will be able to capture a wider market sand expand its operations.

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Fashion plays a great role in political environment since it acts as a voice of the voiceless and through it; it brings transformation in the political arena by promoting political revolution. This creates awareness and talks of matters that concerns the people without discrimination and violence. Global economic issues affect both positive and negative in the fashion sector. First increase in rates affects the purchasing power of the products. The prices usually go up and the consumers are required to pay more and this leads to low supply since few people purchase them. O.  The business of fashion: Designing, manufacturing, and marketing. Bloomsbury Publishing USA. Chamberlain, B. P. Faststreamtech, 2018. How the Retail Bluetooth iBeacon Technology can reshape Retail Marketing. faststreamtech. com/blog/retail-bluetooth-ibeacon-technology/ Lu, Y. Karpova, E. and Ball, G. Fashion retailing–past, present and future.

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 Textile Progress, 46(3), pp. Michael Evans, 2014. Forbes. Singapore e-commerce sales to reach $10b in 2020 https://sbr. com. sg/information-technology/news/singapore-e-commerce-sales-reach-10b-in-2020 Statista. Online retail spending in the United Kingdom (UK) from 2011 to 2017 (in billion GBP). Viewed on 15th April 2018.

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