Investment in the Fashion Industry Essay Example | Topics and Well Written Essays - 3500 words

Investment in the Fashion Industry - Essay ExampleThe paper Investment in the Fashion Industry explores the devise and coronation in this industry. The opportunities are great although level of competition is tough. The eye socket of Southampton has population of less than 2millions, but the potential buyers are more than 80percent of the population. The female population of the area is 52percent, whereas the teenagers act of more than 34percent of the entire population, and population of kids below 10yrs consists of 28percent. Significant percentage of the population can be regarded as the potential buyer within this region of Southampton. The fashion industry of Southampton has potential based upon financial rest of its population. More than 70percent of the population are working class, whereas 20percent of the population is involved in business related activities, tho the remaining population is retired class and their earning is based upon pensions and public funds. The pe r capita income of this region is relatively better than other move of coupled Kingdom, and the local population is attuned to contemporary customs and fashion. The region is therefore considered to be ideal for the investment in fashion industry, however risk does prevail. The risks associated with the investment are mainly related with the ongoing economical recession, the purchasing power of the local population has reduced, and people are reluctant to invest towards non-returnable and non- wageable items. The negative flavor of this investment is the profession itself., the fashion is considered to be commodity which can be sold but neer re-sold. The fashion is consumer product, it is not business or commercial commodity which has re-sale in the market, the customer can never expect to make dinero by investing in fashion consumables. The ongoing economic ruckus has therefore cautioned the public about their spending and savings. The unemployment in United Kingdom is expec ted to reach commemorate high level, and it will take years to create more earning opportunities for the public because the government savings and profit returns are restricted (Harald, 2000).PEST Analysis on IndustryPolitical Analysis1. The deregulation in the European market launched by the European Union created hindrances for the fashion industry. The industry has been accused of excessive profit margins, and labour law violations. 2. The stand of European Union has caused implication for the fashion industry within United Kingdom the fashion industry therefore found it difficult to continue with the implementation of high revenue cuts.3. The restrictions imposed by the European Union offered opportunities to the remaining companies of the fashion industry, therefore the market shares of the rival fashion units increased significantly.Economic Analysis 1. Fashion industry worldwide in general has played a central role in stirring the growth of the world economy. 2. In the curr ent scenario the major denote for the industry comes from the rising tax cuts and ongoing economic turmoil. 3. In the midst of much(prenominal) economic crisis, the pain in the neck from the European Union has reduced the profit making figures for the fashion units. 4. The financial penalties have halted the commercial activities of the participation unfortunately the company seldom enjoy enough revenue which can be utilized for such purpose.5. The banking and financial institutes shall be referred for financial borrowing, and the credit facility shall be thoroughly evaluated with special emphasis upon the wager rate. 6. It is important for the company to evaluate the purchasing power of the customers inside Southampton. The economic power of the