Strategic Report on the Fashion Industry

Strategic Report
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Strategic Reports
Executive Summary
The fashion industry is one of the most diverse sectors in the world. Before creating a new fashion concept, the designers have to look into the different cultures, beliefs, trends, and inspirations. The fashion industry has the task of ensuring they move with the changing trends. The industry has specific brands that already dominate the market. Most people prefer working with known brands to new ones in the market. Since the first case of COVID-19 in China, the industry has experienced a lot of loss. Companies have been forced to close down, and the few that have survived are required to re-strategize to remain relevant in the new market.
The paper will create a strategic report that will introduce the new comeback product in the market. It will have an introduction that will give a short description of the product. It will also have a market analysis section that will use different tools to explore the state of the market, determining the opportunities the company has. Moreover, it will have a strategy section that will analyze the proposed strategy and its work. Finally, it will have a conclusion that summarizes the whole report.
Introduction
The fashion industry entails the production and marketing of fashion products. Destruction of one of the two areas means disorganizing the whole company. COVID-19 virus invention was a big hit to many organizations that depend on physical interaction to move. The fashion industry is among the most affected business sector because of its high dependency on physical stores. The industry faced a decline of over 20% in the challenging season. Different fashion lines had to close down in the last two years because they could no longer use the fashion runways to sell their products. About 7% of fashion companies have left the market either because they were bought by competitors or lack enough finances to run the business. A few organizations with a strong will to continue business is currently developing new marketing strategies. They are working day and night to penetrate the newly created opportunities.
Fashion companies have started adopting digital methods to ensure they get back to their feet. The organizations have been transiting from the physical market to the online marketing options. As we all know, dressing is necessary and cannot be ignored despite the situation. The market demand for fashion products will always be intact. COVID-19 did not temper the market demand; it only destroyed the marketing tools and strategies. The reduced physical contact pushes the management to think outside the box. The new company has four strategies that will help facilitate selling the company's new ladies classy dinner outfit collection.
First, the company will build a new franchise system for the brand collection stores. The franchise system will allow other people to invest in the company and open up new small stores with the brand. The system will be digital to enable easy tracking of the products in cash payments and credit sales. Each supplier will have a unique number that can identify them. Moreover, the company plans to empower the staff with professional fashion skills as a comeback strategy. The introduction of digital tools requires the team to learn how to operate the new system. Also, the staff requires upgrading their fashion sense. They will be trained to explore their creative brain and develop new designs. The company is also planning to build a supply chain system to facilitate the flow of goods in and out digitally. Finally, the strategic team plans to create a meta-universe in the fashion industry.
Market Analysis
The Product
The company is introducing a complete ladies' dinner outfit set. The set will have a matching dress with accessories, including shoes, bangles, neckpieces, and earrings.
Industry Overview
The fashion business takes the 3rd position in the profit gathering companies in the world. An investment in the fashion business has a high chance of gathering high profits if well strategized. The choice of products will determine whether the clients will accept the company or not. Building a prestigious brand is always an added advantage for any fashion company. Many people buy specific products because of the company that designs the product. Once a fashion industry creates a good design, they can easily convince clients to buy their products because of the prestigious name. A designer's creativity will determine whether their products will sell or not. Most designers seek inspiration from things related to people, like movies and films.
The COVID-19 pandemic transformed the fashion market completely. The traditional physical stores have become underperforming. Most people avoid direct conduct for their safety. Maintaining social distance has made it hard for people to do physical shopping. The loss experienced in the season has pushed many companies to try out digital options. Many fashion companies are currently moving towards online stores to facilitate their sales. The opportunity in the online market has provided a second chance for the businesses that were almost reaching extinction. All the companies have the opportunity to re-strategize and develop their brand on the online platforms. The platform has expanded the customers, meaning the companies must find ways to reach out to most clients and deliver quality service. The introduction of COVID-19 vaccines has allowed most night activities, including restaurants. The act creates an interest for ladies to buy new dinner outfits, which is an excellent opportunity for the company.
Market Size
The Grand View Research (2020) says that the global fashion market's value was 1.5 billion dollars. The market has an annual growth rate of an estimated 37% from 2020-2027. The COVID-19 pandemic entry has reduced the significance of traditional physical sales, increasing online sales. Instagram sales take the highest market of 52% in the different social media platforms. The new classy ladies' dinner outfit set will benefit from the social media market with a well-organized strategy.
Target Market
The slow reopening of many countries has created new market opportunities for different companies. The fashion industry was one of the most hit business sectors that faced destruction during the pandemic. Each company is trying to grab a market section with the new rules. The new classy ladies' dinner outfits set primary target market is the ladies that are expected to purchase the dresses. The young women adults are the leading group of ladies we are targeting. Also, the men that want to gift special women can be an area of market interest. The company will have a gift pack for a complete matching dinner outfit with accessories gifted to the ladies. The market will mainly focus on the online platform. The company will take advantage of the pandemic redirecting the market to the online shops to capture an international market. The platform will enable the brand growth to cover the entire world. Our good quality will facilitate the market's growth, building an easy penetration chance for our future products.
Online marketing for ladies' fashion products can be tricky because most prefer to try them before purchasing (Baek & Mohanty, 2020). The habit makes them more choosey than any other team of the buyer. To cater to the specific women, the team will allow the clients to fill specific sections in the purchase process that will help them narrow down to what they could have purchased physically. The section will include color, size, design, brand, and material. Moreover, women tend to shift their fashion needs quickly. A design that is fashionable today might be out of fashion next month. The tricky customers will require the company to expand their creativity to capture the desired clients.
Most people are currently on different social media platforms. Over 97% of American adults have accounts on at least one social media platform (Benedetto, 2017). The company can use ads for advertising the classy ladies' dinner outfit. Once they click on the ads, they will be connected to the company's online store website, where they will be able to purchase the exact product they need, which will be delivered to them at the specified time according to their location.
Persona
Claudia is a fashionable lady. She is a 25-year-old single lady that treasures fashion and is willing to any extent to be trendy. The young lady enjoys going to parties every Friday evening. Maintaining her classy look makes her feel more confident around her party mates during dinner.
Since she was hooked on the first night party at 17, she bought her party outfit in the physical stores. The young lady believes that buying the products one on one allows her to try them before purchase. She was hooked to several online stores during the pandemic to maintain her excellent look.
Her love for social media makes online shopping a fun thing for her. She spends her day window shopping for different products online. After selecting the product, she buys them, and once the products are delivered to her, she takes photos and uploads them for her online friends to view, like, and commend.
Claudia is a lover of refined, high-quality products. Our classy ladies' dinner outfit set will be a perfect fashion accomplishment for her. Our company's new investment in the online shop option will make her shopping experience enjoyable. The capability to give her an option t...