Fashion Industry - Essay Example

The fashion industry is one of the biggest industries in the world. In 2010 the industry generated sales of $226.5 billion in the United States (Plunkettresearchonline, 2012). The future of this industry is bright due to the fact that clothes are a basic necessity which means that the market size is composed of the entire global population of seven billion people (Census, 2012). Over the next decades, online sales of clothes will increase as people look for more convenience, value, and time savings in their shopping routines. The globalization movement has deeply impacted the fashion industry. Most clothes designers and manufacturers rely heavily on exporting goods to foreign markets to increase their total revenues.  

An organization that has had a lot of success in the fashion industry due to the ability of the company of providing a unique and differentiated product is Urban Outfitters. The company has become a global icon. One of the key factors that led to the success of the company is the uniqueness of the clothes designs. The firm also limits the supply of each design so that the inventory at the stores is always fresh and new. In fiscal year 2012, the company obtained sales of $2.47 billion (Urbn, 2012).

Technology in the fashion industry has helped reduce the cost of producing clothes. Manufacturing technologies are enabling firms to reduce their labor requirements and increase overall productivity. Computer software is allowing clothes designers to create new clothes faster than in the past. The culture of a country influences the clothes preferences of the customers. For instance, different cultures have various preferences for in color, style, and design of clothes. Companies in the fashion industry have become more ethically responsible than in the past. The use of immoral tactics such as sweetshops is no longer acceptable due to great customer awareness.