IMPACT OF FASHION INDUSTRY ON THE ECONOMY

IMPACT OF FASHION INDUSTRY ON THE ECONOMY

        Fashion is a highly sophisticated, $2.5 trillion global industry. In the United States alone, consumers spent nearly $380 billion on apparel and footwear in 2017. The industry, which encompasses everything from textile and apparel brands to wholesalers, importers and retailers, employs more than 1.8 million people in the United States. 

The U.S. fashion industry has evolved from its roots in manufacturing to new high-value design and other creative jobs. As with many industries in the manufacturing sector, the United States now concentrates on the high-value parts of the apparel global supply chain: research and development (R&D), design and marketing.

The twin forces of technology and globalization have had enormous ripple effects in the fashion industry, similar to many other industries, and has created new trends, challenges and opportunities. The impacts of social media, new business models, advanced manufacturing, and changing demographics are leading to significant changes in all aspects of the fashion industry with the potential to reshape it for years to come.

Fast fashion is a strong economic performer. Zara’s customers visited the retail chain an average of 17 times in 2012. And fast fashion sales are by no means limited to brick-and-mortar locations. In the first half of 2015 alone, British fast fashion retail site boohoo.com experienced a 35% jump in revenue. A quick search for “haul videos” on YouTube shows the size of the appetite for large amounts of cheap clothing. Only time will tell whether consumer spending patterns return to the “buy more, buy better” model of the last century.

Fast Fashion retailers produce clothes that embody the style and fashion trends of the modern world. They transform the designs of high society brands (such as Louis Vuitton or Prada) into their own mass produced items that are inexpensive for consumers and bear a strong aesthetic resemblance. Companies like H&M, Zara, Uniqlo and Forever 21 fit this mold as these sorts of brands tend to produce low-cost mimics and basic essential pieces that rotate company shelves frequently.