However, new entries might find unique ways to popularize their own products (which might not even be particularly special), and as such build novel brands - perhaps through clever use of social media.The retail industry in India is one of the fastest growing industries in world. In this sense, the fashion industry is a very difficult one to get into, and is almost becoming a ‘race to the bottom’ - not good news for retailers! Threat of New EntriesĪs mentioned previously, there is little that is unique to bring to the table in this industry, so this force is also somewhat small. Nowadays there is little innovation in this space, so the market is quickly becoming saturated with very similar products. There are large numbers of retailers who sell very similar products, but there’s also the concept of brands, which allow some companies to sell apparel for ridiculous rates. The fashion industry is an interesting one when it comes to analyzing through the intensity of competitive rivalry. This article will attempt to analyze the viability of the fashion retail industry as a whole, by means of a Five Forces analysis. The fashion retail industry has a market value of several hundred billions of dollars, with the average price per product coming in at a healthy $19. the threat of substitution - the threat posed by the possibility of substituting a product or service in one market with something else.the threat of new entries/entrants - the threat posed by new entrants in a market.
supplier power - the ability of suppliers to increase the cost of their product or service.buyer power - the ability of buyers to decrease the prices they pay.This framework draws on five factors, known as the ‘five forces’, to achieve this. Porter’s Five Forces analysis is an approach to determining just how competitive a given market is, and consequently, how profitable it may be for a business.
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