The whole world is facing global recession. The economy is slowing, the business environment is unpredictable and the consumers are getting more diverse, informed, technologically strong and demanding. The global meltdown hasn’t spared the fashion industry. This industry, along with other textile products industry, is also feeling the pinch of financial adversity. The fashion industry consists of different companies such as modelling, fashion designing, retailing, marketing, planning, and distribution. There are brands and local sellers too, all struggling with their products for survival. All of them are feeling the impact in different ways but something they have in common is their narrowing wallets. Very cautious consumers have replaced lavish spending habits. One of the few items which consumers cut back on in tough times include clothes and fashion accessories. Many fashion companies have also started to fall into credit problems. In the last few months, various companies worldwide have filed for bankruptcy. Many big names in the fashion industry are facing financial problems, and a lot of companies are negotiating for a partnership deals with investors in order to help their finances, also announcing of plans to remove jobs have become more common news. So with the collapse of the retail market and the slow recovery of the credit market, it sounds like the fashion industry is going downhill. With people spending less on fashion and luxuries people are coming to a standstill with there own trends.
People are resorting to knock off designer brands and cheap high street stores ignoring what they believe in such as ethical issues and child labour.
The down economy has also inspired many entrepreneurs while many large retailers are struggling, small boutiques are thinking outside the box to keep their businesses a float. Small business owners are opting to more of a popular approach to their marketing and visual merchandising. Boutiques are taking a local angle in their advertising, by hosting more in-store events rather than spending on traditional advertising. All retailers have cut back on their buying and are being less risky in investing in new product. This puts a burden on designers and manufactures to create more unique must have pieces at a recession friendly price.