Fashion industry has penetrated into the minds of the people which has turned to be the most profitable industry in the world. According to Bhardwaj and Fairhurst (168), frequent designing of fashions has been stimulated by the lifestyle of UK people, which has in turn created demand in the market. Also, it has been raised by the mega show that has created interests in the people to buy more.
Porter’s five forces
Bargaining Power of Suppliers
Suppliers have a high barraging power when the raw materials are available in scarce quantities. In the case of fashion industry, the UK fashion market is categorised by the presence of a few vendors which is generally due to high costs of raw materials. This implies that suppliers have a fairly high bargaining power which has led to market leaders in UK to start outsourcing their manufacturing products where cheap raw material is present at affordable cost of labor
· Bargaining Power of buyers
Bargaining power of buyers arise when the market is characterized by the presence of numerous sellers who offer a wide range of product line. In UK the sellers have high brand values of products that suit every type of buyers which provides ample choices for the buyers hence a high bargaining power in the UK market.
· Competition from Existing firms
UK is characterized by the presence of large number of global firms like Matalan and Bhs all of who have formidable brand image and impressive product line to target consumers. According to Dobbs (40), Competition exists in every segment of the target market which implies that competition from existing firms has a significantly high impact on the fashion industry.
· Threat of New Entrants
In the UK new entrants do not pose threats to existing firms because the market is saturated with big brands moreover, high cost of establishing a business deters new entrants from entering the market which implies that new entrants do not have significant power to challenge the existing players.
· Threat of Substitutes
Substitutes are those products or services with attributes that are similar to the original products. In UK the buyer segments of firms like Marks and Spencer’s is niche in nature and are unlikely to switch to substitutes which constitutes of low priced products hence do not present significant threats to the existing firms present in the market.
Key issues
· Technology
Technology has enabled the fashion industry to change frequently against the competitors through advertising through online platforms.
· Government Support
Proactive policies by the government favor the emergence of new firms as well as boost up the existing firms by creating market conditions that tend to provide greater value to the customers. Competition would generate innovations which is key for fashion industry.
· Customer Awareness
Consumer awareness implies that consumers get regular updates about the new products that are being innovated by the fashion industry.
Works cited
Bhardwaj, V., " Fairhurst, A. (2010). Fast fashion: response to changes in the fashion industry. The International Review of Retail, Distribution and Consumer Research, 20(1), 165-173.
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
