Major Threats And Challenges In The Fashion Industry

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Within the fashion industry, there are major challenges that all companies face. In particular, for the bigger brands, there is always a chance for smaller, lesser known brands to take over at any time. This is why it is important to realize that although a company may be thriving, they have to continue to evolve creativity and consistently in order to maximize sales and stay competitive with their competition. A few companies that experience these threats and challenges on a daily bases include, The Hudson’s Bay (fashion department), Aritzia and H&M that many identify with as their ‘go-to’ stores. These are a just a few examples of the many companies that need to uphold their standard within the fashion industry. They need to do this to ensure …show more content…

“….H&M wanted to expand its customer group, emphasize the differences between H&M and its immediate competitors, strengthen its global brand and at the same time keep its successful business model” (Nordic, 2012; 32). This quote taken from Growth, Creativity and Innovation in the Nordic Countries novel, illustrates that although H&M has been a reliable company within the fashion market, a lot of their styles and business models are now being copied more often than not. This represents how within the industry you can never settle and must constantly strive to evolve so that the smaller brands cannot compete. Furthermore, H&M represents the concept and are hit with challenges of having to compete with those arising competitors that can easily market and brand in such a way that they know will not fail, given the way H&M may have had success and failures from using a specific model that has been visible to the public market of fashion. With competitors copying their business model and making it their own, companies such as H&M must constantly evolve. “H&M seems genuine in its desire to clean up its act, but when it comes to sustainability, the core problem for fast-fashion companies is the business model—and that isn’t changing anytime soon” (Bain, 2015). This quote proves that H&M is worried about change and risk- which is going against what the fashion industry is all about. Overall, H&M needs to be consistently aware of the arising competitors knowing how easily it is for those smaller brands to replicate their clothing and marketing/ branding ideas, right through their business model that is open to the public

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