Strategic Analysis Report: Fashion Industry Trends and Challenges

This report presents a strategic analysis of the fashion industry, focusing on the UK market. It examines the competitive landscape, market trends, and key factors influencing the industry's performance. The analysis draws on research from various sources, including Chan, Ngai, and Moon (2017), Henninger, Alevizou, and Oates (2017), Kaushik (2019), Rashid and Barnes (2017), and Varley et al. (2018). The report identifies strengths, weaknesses, opportunities, and threats (SWOT) within the fashion industry, such as the UK's design strengths, the impact of online platforms, infrastructure development challenges, changing consumer behavior, and external environmental factors. The report provides a comprehensive overview of the industry's dynamics, making it a valuable resource for students studying marketing and business strategy.

Research methodology

Table of Contents
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................5

MAIN BODY
Chan, Ngai and Moon, (2017) sought to determine the fact that, Strategic analysis helps
in enabling industry to understand and predict the key competitors and also highlight on the key
profit drivers and also analyse the various risk factors in order to improve the efficiency and
productivity of the industry. The fashion industry has been ever changing and also expand the
market by the entrance of new entrants. The fashion industry tends to have intense level of
competition because of high availability of the supplies who offers same range of products and
services at a competitive price. Strategic group is referred to as an effective strategic
management which is useful in grouping various companies of the specific industry. Moreover,
Henninger, Alevizou and Oates, (2017) established the fact that, The UK fashion industry is one
of the prominent company which helps in bringing trend within the economy. The fashion
industry of the UK is estimated to be £26 billion. There seems to be high degree of growth
within this industry because it helps in boosting up the GDP of the economy. There are large
number of brands associated with the fashion industry such as Marks and Spencer, Burberry,
Next, ASOS, etc. which tends to have high degree of market value. The key strength of the
fashion industry is that, high proportion of respondents associated with the UK design is
considered to be the major strength for the UK fashion industry. There is no tie to the physical
stores and helps in providing flexibility to carry out business through online mode. There is high
degree of market expansion which results in higher sales and profitability. Kaushik, (2019)
argued that, the slower development of the infrastructure is one of the most crucial weakness
associated with the fashion industry. High degree of cost associated with the investment in
innovative technology leads to higher cost to the business. Skills gap within the labour market is
also one of the prominent factor which affects the efficiency of the fashion industry. Lack of
linkage between the scientific disciples and design is another weakness for fashion industry.
Additionally, Rashid and Barnes, (2017) evaluated that, the key opportunity linked with the
fashion industry is that, high degree of rapid growth in the demands of fashion companies in the
emerging market has been growing. Growing importance of the online platforms is one of the
exponential approach in increasing the sales of the fashion industry. Changing consumer
behaviour and emergence of the new trends is an opportunity for the fashion industry to develop
new range of products. Advancement in technology and global market expansion are also
effective opportunities to improve the growth of the business. Varley and et.al., (2018) argued

that, continuously changing external environment factors are considered to be one of the factors
which are threat to the fashion industry. Fluctuation in currency and implementation of the new
regulations and government laws are threat to the business. Economic stagnation is another
weakness associated with the fashion industry.

REFERENCES
Books and Journals
Chan, A.T., Ngai, E.W. and Moon, K.K., 2017. The effects of strategic and manufacturing
flexibilities and supply chain agility on firm performance in the fashion industry. European
Journal of Operational Research.259(2). pp.486-499.
Henninger, C.E., Alevizou, P.J. and Oates, C.J., 2017. IMC, social media, and UK fashion
micro-organisations. European Journal of Marketing. 51(3). pp.668-691.
Kaushik, J., 2019. Strategic Analysis for Nykaa Fashion and Revised Consumer Profiling.
Rashid, A. and Barnes, L., 2017. Country of origin: reshoring implication in the context of the
UK fashion industry. In Reshoring of Manufacturing (pp. 183-201). Springer, Cham.
Varley, R and et.al., 2018. Fashion management: A strategic approach. Macmillan International
Higher Education.