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The ressesion in the fashion industry - Essay Example

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Fashion is a vulnerable industry when recession evolves in the economy because consumers can easily cut down the purchase of luxury products to manage their budgets instead of compromising on basic requirements like housing and food (Recession Woes Effect Fashion…
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The ressesion in the fashion industry
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The ressesion in the fashion industry

Download file to see previous pages... The fashion industry together with other textile products industry has undergone a downturn due to the financial adversity (Global Recession Impacts on Fashion Industry 2009).
Fashion is a complicated business with no standard to define the companies in the industry. Fashion companies belong to a broad of range of firms that produces apparel, footwear, textile accessories and home furnishings. The industry is formed of diverse professionals and firms that include fashion designing, modeling, marketing, retailing, planning and distribution. Fashion includes brands and local sellers to whom the recession has brought in a struggle to sell the products for survival. The impact is felt among the various members of the fashion industry in a different manner and the similarity among the members is their poor financial status.
The lavish spending attitude of consumers is now replaced by a cautious closefisted consumer behavior due to the global trend of increasing unemployment, plunging home budgets and the credit squeeze. Some of the few items consumers cut back during financial crisis is fashion accessories and apparels. This has led several fashion companies to contact credit problems. Various companies around the world have already filed for bankruptcy.
Even big labels in the fashion industry are faced with financial problem and have declared their negative financial trend. Some companies have gone to the extent of expecting a take over or are negotiating a partnership deal with consenting investors for financial support. Many innovative plans and events are being cancelled and the plans to cut down jobs in regional offices are more of regular news. Fashion labels in fashion cities in the Italy have held discussions with the government to appeal for support and reduce the burden of the financial downturn. Fashion houses are hesitating to show the collection for various seasons in 2009 since the shows are expensive without any guarantee of returns. The ...Download file to see next pagesRead More
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