Economics of Fashion

Page 1

Brandon Mingo Economics 2011


Final Product The final project of my industry is an advertisement or marketing tool promoting a fashion designer, brand, or line of clothing and/or accessories. These can be of two forms: Physical: •Magazine Ads •Billboard Ads •Store Window •Flyers •Pamphlet Digital: •TV ads •Internet Banner Ads •Online Videos •Blogs


Demand for Product •Affected

by consumer attention span •Long Television Ads

VS.

Short Web Videos •Marketers

have become savvy to consumer behavior •Media viewed

by consumers more specified by the consumer •Marketers

figuring out new ways to target their demographic groups


Supply of Product •Plentiful •Advertising is •Obvious and

everywhere

subtle

•High in

some types of product advertisement, low in others •Supplied by

the creative individuals who make elaborate marketing campaigns or single advertisements


Elasticity of Product Demand •Very elastic •Big

brands = expensive elaborate advertising campaigns •Everyday companies

opt for primetime ads and most viewed media •Small companies

building up may go for free online advertising, promo videos, webisodes, etc. •How much

money marketers are willing to spend •Future

of Marketing


Market Structure of Industry

•Fashion Marketing

is a

Monopolistic competition structure


Government Regulations •None concerning marketing

practices

•Companies are

as they wish

free to market

•Campaigns

are based on the what companies want consumers to conceive the brand as •Example:

Abercrombie & Fitch = sexy & Land’s End = Family •Laws

concern garment production, especially child labor and children’s wear •Flammability Laws,

Sleepwear

Children’s


Antitrust Issues

•No

antitrust issues within fashion industry •Multiple government

interjections as of late concerning model’s weight and body image •Models must

abide by weight

regulations •British ads

for cosmetics may not portray unachievable results


Conclusion •I have realized through

this Economic course that the Fashion Industry , like any other industry is completely intertwined with the economic climate of any country. •Fashion is

directly tied to the economic ups and downs any system is going through. •Marketers

need to be keen on ways to promote and advertise to consumers in all of the different economic situations.


Comparison, Side. "Children’s Clothing Regulations." American Apparel and Footwear Association. Web. 05 Aug. 2011. <http://www.apparelandfootwear.org/LegislativeTradeNews/ ChildrensClothingRegulations.asp>.  Child Labor in U.S. History - The Child Labor Education Project." Division of Continuing Education - The University of Iowa. Web. 05 Aug. 2011. <http://www.continuetolearn.uiowa.edu/laborctr/child_labor/ about/us_history.html>. 


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