Startup Scout

Is the $3 trillion fashion industry open to entrepreneurship?

Luftkuss Atelier

One of the most popular issues of recent years is entrepreneurship. Each of us has come across this word when we are in any social setting with our friends or when we listen to an education-oriented talk. This word is perhaps one of the most popular “titles” of the last decade. So what is entrepreneurship? 

Entrepreneurship is the creation of an organization in which economic opportunities are transformed into new values ​​by bringing together the factors of production for the production of economic goods or services. To put it in the simplest way, we collect investment and establish a company by selling our idea to the industry. We see many successful startups and entrepreneurs both through social media and due to the environments we are in. 

What are the facts behind entrepreneurship, which we think we can live a dream-like life with? Does the venture involve risks? Is the fashion industry open to entrepreneurship? How big is the fashion industry? We will try to find answers to all these in the light of statistics.

9 out of 10 startups fail

When it comes to being a startup in any industry, the first painful statistic we will encounter is that 9 out of 10 startups fail. Many of these startups fail before completing their 10th year. As can be seen in the research results below, the biggest problem is in determining the relevant market and producing in accordance with the demands of the market. To turn this around and become a successful startup or entrepreneur, first of all, you should naturally do your research and choose the right market and produce suitable products for the targeted market. 

You cannot ignore anything. The entrepreneur is the company itself, not the person within the company who is bound by a specific job description. You should be able to take every responsibility at any time. Today, startups are growing very fast and the deficiencies are covered with hard team work.

Take Amazon for example. The almost 30-year-old giant company operates in many different industries today and never made a profit until it went public. Also, Netflix has been on the market since 2007-2008, but the company still reports losses from time to time. To summarize, it is only natural for startups to make losses. Investors are there to step in at this point. Startups must grow very rapidly and continuously, and for this, due to the nature of the business, there will be losses here and there.

Being a startup in the fashion industry

After discussing what entrepreneurship is, it is useful to look at the place fashion has gained in this sector. The global fashion industry is worth about $3 trillion. It is worth mentioning the place of the fashion industry in the market of several countries. Let’s take Europe. In the French economy with a population of 66 million, the fashion industry has a volume of 43 billion dollars and 340 thousand jobs are provided by the fashion industry. The German economy is fixed at 83 billion dollars and 340 thousand people are employed. If we look at the UK, the market volume of the fashion industry is 94 billion dollars and 555 thousand people work in this sector.

Like almost all industries, the fashion industry has been under the influence of the COVID-19 pandemic since the beginning of 2020. First of all, China, which is considered the heart of global textile production and export, has become a pandemic center with the emergence of the coronavirus in December 2019. For this reason, with the adoption of a series of measures such as quarantine and curfew, and the illness of people working in textile factories, export figures have decreased. 

China’s exports to the USA, the largest ready-made clothing export customer, decreased by 21.3% in February 2020. At the same time, many brands have started to choose different countries rather than China for their production. China is trying to overcome the decline in textile exports during the year by lowering its prices in 2020; and they offer 30% more affordable prices than other Asian countries. 

If we examine the issue in terms of brands, we witnessed that almost every fashion brand with a store closed their shutters in 2020 due to the coronavirus. Unfortunately, many retail brands in the fashion and textile industry, such as G Star Raw, J.C.Penny, Neiman Marcus, Century 21, Aldo, went bankrupt due to the economic difficulties caused by the coronavirus. 

While these large companies, which we think have strong capitals, could not overcome the difficulties caused by the coronavirus, undoubtedly smaller-scale entrepreneurial brands and fashion startups also had a very difficult time. 

In the coming period, with the shrinking of world economies, we will be able to reach the data of the economic distress caused by the COVID-19 pandemic by examining the reflections of entrepreneurship on the fashion sector.

Insprad Creative Agency

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button