Political Factors Affecting Fashion Industry

a. Political and Legal

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,

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. 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

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