Is the Fashion Industry Going
Out of Fashion?
While fashion designers and fashionistas prepared for the recent 2010 Fashion Week, concerns arose about whether or not its scarred recession-conscious consumers would continue to splurge on fashion.
The recession certainly took its toll on the industry; pressure on margins affected many and even resulted in the bankruptcy of world-renowned couture designer Christian Lacroix. Despite this, research firm IBISWorld ranked fashion design as one of the top startup opportunities for entrepreneurs in 2009.
The LA based firm forecasts that a recovery for the industry-wide fashion world is likely to take effect in the second half of 2010. They predict an average growth in the region of 6.3 percent per annum, for the next five years.
“Consumer attitudes toward spending are changing,” said George Van Horn, a senior analyst at IBISWorld. He believes these shifts in buying decisions are helping to shape the direction of fashion. “Being style-conscious doesn’t mean people aren’t being budget-conscious, and vice versa. Successful fashion houses are those delivering style and quality with affordability, and we can expect this trend to linger for the foreseeable future.”