The Business of Fashion in its current context
In the Business of fashion today we observe:
- The Supply-Demand Imbalance: The world is experiencing a seismic shift driven by underlying collusion of too much supply and too little demand for traditional goods.Its a good news for buyers as they have good choice and reduced prices at the same time. And bad news for Brands and Retailers because of rapidly falling prices and declining profits. Leading to commoditisation where the consumer cannot differentiate among the products so they will choose the less expensive alternative.It’s important to note that experience is the only non-commoditising product. and we will have a more in-depth module at a later stage.
- Dematerialisation: Keven Kelly in his book The Inevitable points out: In 1870 it took 4 kgs of stuff to generate one unit of the U.S’s GDP. In 1930 it took only one kilogram. There are multiple reasons for this shift – Like Manufacturing Technology, Alternatives as Non-Physical – Like this digital session itself. and so the need for ownership of the Physical product itself. And to add to it the growth of experience as a product. The shift from tangible to intangible grtification.
- The Great Demographic Shift- The drag is due to the ageing population and a drop in the birth rate. depopulation in developed countries adds to the imbalance.
- The Great Fragmentation: Lifestyle values are becoming distinct. An increasing disparity in how the defined groups define and live their lives. They need something more personal more authentic and personalisation. So what we call “cool ” comes from this differentiation we call psychological drivers. From Classic rock to Punk to New Wave to Grunge to Indie to alternative and it goes on becoming more differentiated and niche. as in music so in fashion.