Effect of the credit crunch on the fashion industry - Essay Example

(Han, pp. 44-45, 2003) Moreover, it is indicated that the fashion industry is one of the foremost industries that are affected by credit crunch because of its luxurious nature of offering. (Buono, pp. 56-57, 2004) The fashion industry is affected by the credit crunch in terms of modification in buying styles of consumers, as a significant change has been observed in their styles. High quality fashion clothing is still being bought by the buyers; however, they are choosing the styles that will last for years. (Bos, pp. 63-64, 2000) More than twenty percent of increment is observed in the filing of administration by clothing and fashion retailers in the United Kingdom, which is a significant impact of the credit crunch.

(Manlow, pp. 23-25, 2007) Furthermore, debt restructuring is often a difficult process due to high costs related to financing from banks, which increases the extent of impact faced by struggling fashion retailers. Further research in the future will facilitate in effective confrontation of similar issues. It is hoped that the rationale will be beneficial for better understanding of the