What is Fashion Business – A Complete Guide

Table of Contents

• Fashion Business Management- An Indian Fashion Industry perspective ?
• Latest fashion business trends
• Career Opportunities

When we talk of 'Fashion', for most it is synonymous with hot couture shows, ramp walks, designer wear and all the glitter sans the gold. But do you understand what goes behind all this mayhem? There is a method to this madness, and this is precisely what we intend to develop as fashion business experts.

 Fashion Business deals with the calculated and entrepreneurial aspect of fashion brands. In the fashion business, you understand branding, budgeting, distribution, finance, forecasting, marketing, merchandising and retail operations for haute couture to designer wear to everyday clothing.

Fashion Business Management- An Indian Fashion Industry perspective

Fashion- A modern-day industry comprising varied small firms including designs, retail, buying and sales firms. India Brand Equity Foundation (IBEF) states A contribution of 2.3 per cent to the Indian GDP comes from the Indian textile industry, further it constitutes 13 per cent to industrial manufacturing and 12 per cent to exports.

The Indian fashion business is estimated to hit USD 400 million. Leveraging a year-on-year growth rate of more than 10 per cent. As the world's second-largest export of textiles and clothing, it employs more than 105 million workers, directly and indirectly contributing to a more significant extent to the country's GDP.

The sector has also gone through a lot of innovations from the invention of the sewing machine to the growth of e-commerce.

Latest fashion business trends

1)      AR/ VR solutions to meet Customer Experience- Virtual Reality (VR) takes customers into a store which is almost like a physical store where they can look through a variety of products and can try them before buying. Augmented Reality (AR) lets customers visualize what merchandise would look like in reality. The use of AR/ VR has largely grown during the pandemic. These have made purchasing easier and helped increase brand awareness. For instance, Gucci says, to try on shoes virtually at home using AR technology. They introduced the solution in 2019, before Covid 19. Post which it has proved itself to be one of the most sought-after tools for pushing top-line numbers; this trend will more than likely stay for good.

2)      Omnichannel is a multiverse of opportunities- An ever-proven mode of conducting business, to help fulfill the customers’ needs at every touchpoint. Integrating and delivering parity in experiences irrespective of how a buyer chooses to interact. A thorough involvement is required by firms at each step of the purchase experience  — research,  discovery, support, purchase, customer service and returns. Further, build an ongoing relationship to grow repeat customers and loyalty. In layman’s language, omnichannel is about meeting customers wherever they are and providing exceptional service at every touchpoint, including:

a)Through a retail outlet either exclusive brand outlets or multi-brand outlets.

b) Through mobile applications

c) Through a brand’s website or marketplace models

d) Through social media

e) Through email marketing or catalog selling

3) Buy now, pay later (BNPL approach)- Many companies are giving their customers the ability to make after-purchase payments. For instance, a shopper could place an order for a Burberry bag on Ajio Luxe for INR 2,00,000 and only INR 50,000 at the time of purchase and then pay the pending amount in equal installments over the next 4 months. This started among selective fashion brands, and it is cropping into the luxury space.

4) Sustainability and ethical practices- In recent years, people have bought attention to social issues that are related to the fashion industry, specifically when it comes to fast fashion. People buy clothes quite often at low prices and quality leading to throwing them away even more often Another ethical issue that often arises is the use of sweatshops. The idea of factory workers being paid pennies to work in very poor conditions does not sit well with many. Recently, China’s brand Shein was in the news for its unethical practices of 3 pennies per garment which, a worker dedicating 18 hours a day highlighted another crucial/evil side of fashion. 

5) Re-commerce- It means selling previously owned or used products through electronic means it could be through a thrift store or a consignment store. Especially in the last few years, “Re-Commerce” has become even more popular. Consumer-to-consumer marketplaces like Bombay Closet Cleanse, Curated Findings, and Vintage Laundry marketplaces have pushed the “Re-Commerce” trend. The reason it is becoming popular is that,

a) Affordability

b) Focusing on Sustainability

c) Positive impact on the environment

6) Emergence of D2C (Direct to Customer)- Irrespective of the Pandemic online shopping has grown multifold. Customers’ preference has shifted from offline shopping to shopping online. D2C is contributing a $100 billion market opportunity by 2025, growing at a CAGR of 25% between 2020-2025. These brands mostly rely on influencers for marketing and social media marketing. The multi-channel marketing approach has also allowed them to stay in touch with the target group, and brands taking this path are set to stand out in a competitive market. Whereas a retail brand took 20 years to reach a 100 Cr revenue mark, these D2C brands are taking less than 5 years to reach a similar mark. Brands in fashion which are doing quite well are Chumbak, Fablestreet,  FabAlley, Anouk, Zivame etc.

Career Opportunities

Some of the career opportunities after completing Fashion Business Management are as follows:

Retail

It’s the business of buying clothes from manufacturers and selling them to end consumers. Fashion Retailers may be buying merchandise from several manufacturers. They should know what the consumer wants. In retail, there are various opportunities.

1. Retail Planner- A retail planner can work at the back end of a retail store. Their main job is to predict what the customer demands according to which they order the merchandise for the store, monitor sales, and analyze sales reports. They act as the mediator between the product department and the sales department.  
2. Retail Operations Manager- A retail operations manager works at the front end of the retail store. Oversees day-to-day operations at a store as per SOP to clarify the objectives and strategies into a clear plan that delivers measurable business benefits. 
3. Visual Merchandise/VM consultants- A Visual Merchandiser presents, arranges and displays merchandise to attract customers to the store. The concept is to optimize the presentation of products and increase customers’ shopping cart value. A visual merchandiser works both at the backend and front end. 
4. Fashion Consultant- A fashion consultant/professional stylist is an expert at stores and helps consumers choose clothing or accessories for various events. They help consumers by giving them fashion advice and recommending silhouettes, fabrics and/ or patterns. They also focus on ensuring customer satisfaction and building bonds on a long-term basis.
5. Store Manager- A store manager manages the staff on the shop floor to ensure all the policies are followed. They also manage the day-to-day operations at the store level to function smoothly. They hire new staff members and keep the shelves stocked to sell products efficiently.

E-commerce

Electronically buying and selling goods over the internet. Amidst the outbreak of covid, better infrastructure, digitization and growing mobile penetration has continued the rise of e-commerce channels over the last decade, this has led to better career opportunities in E-commerce, some of them are listed as follows:

1. E-commerce manager- An E-commerce manager is responsible for sales of the brand happening online. They take care of the number of customers coming to the online platform, acquisition, sales, and conversion. Their agenda is also to improve the website's performance. They closely work with the digital, social media and marketing teams to improve brand visibility. They focus on analyzing various data to deliver top performances.
2. Online Visual Merchandiser- Just like visual merchandising at a retail outlet, online visual merchandiser beautifies the overall experience of the customers aesthetically as well as usability. They also focus on improving the engagement on the website, increasing traffic, increasing the average time spent by the customer, better conversion rates and helping create a strong brand identity. 
3. Business Analyst- A Business Analyst is assessing how a brand is performing and helps improve its processes and systems. Using big data and technologies they help fashion designers to identify the characteristics of best sellers, also predict fashion trends and create designs accordingly.
4. Content Writer- A content writer’s responsibility is to create engaging content for fashion brands to increase brand awareness. They also produce articles on a variety of topics, where they then use the opportunity to advertise their services or educate consumers about relevant information related to the brand's offerings.

Marketing

 It refers to activities a company does to promote the buying or selling of a product or a service and improve brand salience in the long run. This majorly includes advertising, operations of advertising campaigns, and attendance to trade shows and public events. In marketing, there are various opportunities,

1. Marketing Manager- A Marketing Manager focuses on marketing campaigns to increase the awareness of the brand and ultimately generate demand for the product/ service. 
2. Digital and Social Media Marketing- Digital and Social Media Marketers specialists use various platforms to promote a brand’s products or services. They use social media platforms like Facebook, Instagram, Snapchat, Tiktok and/ or Twitter.
3. Brand Manager- A Brand Manager is responsible for guarding a brand’s image/ identity. They work with various departments in finance, product development, marketing communication and sales. They play an important role in providing feedback and analysis on key brand activities.
4. Customer Relation Management- Helps maintain relationships with their customers. CRM helps acquire and retain a customer through feedback, coupons, discounts, and emails. Some of these steps are tracked automatically, while others may be manual.

Exports,

A career in exports is a great opportunity for those with an interest in international business and trade. Exports are a vital part of many businesses and the economy, and there are many different export-related careers available.

1. Export Merchandiser- Export Merchandising can be termed as the process of offering retail products and goods to sell in foreign markets. They make sure the right product has reached the customer at the right place at the given time in the quality and quantity asked for. They focus on communication with foreign client, planning, controlling, costing, sourcing, and material management.
2. Production Manager- A Production manager takes care of what happens on the production floor. They take care of the timely completion of the orders within the stipulated period. They also take care of tailors, samplers, and quality checkers. 
3. Operations Manager- An operations manager takes care of the day-to-day operations at an Export House. They take care of the hiring, selection, and recruiting of the staff. They also take care of the overall performance of the employees in case there is a deviation the operations manager takes corrective measures. 
4. Export Documentation Manager- An export manager takes care of all the documentation of the international shipment. They also take care of the negotiation with a variety of people, shippers, and agents. 

Sourcing, Buying, Procurement and Merchandising

There are many career opportunities in sourcing, buying, procurement and merchandising. These roles are important in any organization that needs to procure goods and services. A successful career in this field requires strong analytical and negotiation skills.

1. Fashion Forecaster- A fashion forecaster looks at upcoming trends. They predict the colors, fabrics, textures, materials, prints, and graphics that will be there at the fashion shows. As per their prediction, the designer designs clothes for the coming season. It is a job which requires thorough research. 
2. Fashion Buyer- As the name suggests Fashion Buyer is someone who buys for the brand as per the customer's requirements. They stock the store aiming to generate profits. They also commute to different manufacturing locations and showrooms to look for new products to purchase and negotiate with suppliers on the costs. Other responsibilities include:
   1. Finalize retail prices for the products as per the clientele
   2. Developing strategies to push products
   3. Maintaining industry trends and competition
   4. Building relationships with vendors
   5. Ensuring timelines are followed strictly
   6. Negotiating on clothes and accessories
   7.  Doing quality checks
   8. Fixing and maintaining budgets

3. Merchandising- Merchandising is the practice and process of displaying and selling products to customers, making sure the right products reach the customers in the right quality, quality and at right time. Whether digital or in-store, retailers use merchandising to influence customer intent and reach their sales goals.

4. Entrepreneurship- ​​An entrepreneur is someone whose intention is to start something of his own with the agenda to earn profits. 

As the fashion industry continues to grow and evolve, so too does the need for reliable and up-to-date information on fashion business management. To help you stay ahead of the curve, we've compiled a list of the top 10 must-read books on fashion business management for 2022.

1. The Fundamentals of Fashion Management by Susan Dillon-This book provides in-depth knowledge of today's competitive fashion sector. It also provides invaluable behind-the-scenes insights into the processes; this book has business approaches for all those seeking to gain a solid understanding of what it means to work in the fashion industry.

2. Fashion Buying from Trend Forecasting to Shop Floor by David Shaw, Dimitri Koumbis- Talks about unique shop floor looks at what fashion buying entails in terms of the activities, processes and people involved - from the perspective of the fashion buyer. It breaks down the essential areas of buying activity for those wishing to pursue a career in the fashion industry; crucially exploring the role of the buyer, buying inspiration, sourcing and communication, merchandise planning, and trends.

3. Fashion Retailing: From Managing to Merchandising (Basics Fashion Management) by Dimitri Koumbis- Taking a collective approach, this book provides a look at merchandising across different levels within the industry pipeline. With an emphasis on merchandising in the textile, fibre, and apparel sectors, the book looks at the entire process from strategic planning to product creation, to product preparation, to a buyer's shopping of the market weeks, to product delivery and presentation to the consumer.

4. Fashion Marketing by Mike Easey- It talks about marketing and how important it is to help ensure success and reduce the risk of failure in fashion. For fashion designers it will help start their business, this book offers a guide to the major decisions that will enable you to fulfill your creativity and be a financial success. How to monitor trends; How to set retail price: 
   1. Deals with contemporary issues in fashion marketing
   2. Recent examples of the global practice
   3. Exclusively about Fashion Marketing
   4. Range planning with a practical blend of sound design sense and commercial.

5. Fashion Promotion by Gwyneth Moore- It’s about Building a brand through marketing and communication Gwyneth Moore examines what's required for a modern fashion brand to make its mark and stay visible in a shifting consumer landscape. It states the new ways in which brands engage with customers, through the latest digital channels as well as traditional methods. It is up-to-date, full of eye-catching outfits, celebrity models, designers and bloggers and full of useful, relevant information from leading figures working in fashion today. Topics covered include developing a brand from an original idea, the impact of blogging and street style sites, digital fashion, online and offline marketing techniques, creating the vision behind a brand and public relations. It is vital reading for anyone interested in working in fashion promotion in the current times.

Fashion in all its glamor is nothing but a combination of creativity, imagination, production and delivering it to the end consumer. The Fashion Business is the skill set that knits all this together. Delivering and ensuring the world stays fashionable.