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Globalization and its impact on the Fashion Industry

Within the last ten years, globalization has become a huge part of the fashion industry.  Global retailers have taken note of Global consumers consumption patterns, culture, found what was selling where, and expanded business in top selling areas.  Luxury global retailers such as Prada, Louis Vuitton, and Michael Kors have expanded in Asia where they have experienced great success with Asian Consumers.  Asia has become a target market for these luxury brands because of their rapid economic growth.

Our global retailers don’t find success within cross-cultural consumption without extensive observation.  When a product is produced in one country and consumed in another, we have cross-cultural consumption (Cvetkovich, 1997).   For our global retailers to achieve success across the globe, they must adopt the cultures branding strategies of their target market (Daye et al., 2008).  Those who attempt to do business in a foreign market have found understanding other cultures and adopting their ideas will help in achieving success.  After observance, global retailers found some reconstruction and sensitivity to cultural facets was just what they needed (Daye et al., 2008).

Studying consumption patterns of different areas across the globe is also an important aspect for global retailers (Daye et al., 2008).  Many luxury brands have discovered Asia to be their leading target market.  In 2011, journalist Bretta Wassener stated, “With much of the West struggling to revive weak economies, Paris, Milan, and New York are no longer the dominant centers of global luxury spending” these brands have taken notes on several countries economical situations.  As the west’s economical situation declines, luxury retailers have migrated east to Asia where the economy is growing at a rapid pace (Wassener, 2011). While the United States struggles with high unemployment rates, the luxury industry which thrived there before is experiencing some change (Wassener, 2011). Luckily these luxury brands are found appealing to the taste of Asian shoppers and their desire to flaunt expensive goods. Those who achieve success yearn to show it off and what better what to display success than to purchase luxury goods.

As one can see globalization does take an affect on our fashion industry.  Understanding the cultural impact and consumption patterns of different countries is important for global retailers to be successful.  When these aspects are taken into consideration, global consumers are active and retailers are making money.

 

 

References:

Cvetkovich, A., & Kellner, D. (Eds). (1997). Articulating the Global and the Local: Globalization and Cultural Studies.       Boulder, CO: Westview Press.

Daye, D., & VanAaken, B. (2008).  The Impact of Culture on Branding. The Branding Blog. Retrieved from   http://www.brandingstrategyinsider.com/2009/05/the-impact-of-culture-on-branding.html

Wassener, B. (2011).  Across Asia, an engine of growth for luxury firms.The International Herald Tribune.  Retrieved from http://www.nytimes.com/2011/12/09/business/global/across-asia-an-engine-of-growth-for-luxury-firms.html?_r=2&pagewanted=all

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This entry was published on February 2, 2012 at 11:03 PM and is filed under MDSE 2350. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

2 thoughts on “Globalization and its impact on the Fashion Industry

  1. Kelsey King on said:

    It’s interesting how luxury retailers are coveted by consumers regardless of what part of the world they are in. It seems that high end fashion goods appeal to all of those who have purchasing power and is not limited to the established nations, such as America.

  2. I agree with the points you made about how important Globalization has on fashion. I believe thats how many retailers get majority their customers. Without expanding and globalizing I don’t think you’re market will be able to reach its full potential.

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