Industry+-+toni

=  =  The fashion industry is well known for its fast-paced turnovers throughout the business like: models, management, designers, and of course clothes. Today the fast-pace has only doubled and with internet becoming a new platform for cost effective distribution channels and social media advertisements, the apparel markets have become saturated with top designers and self-made designers. In Canada, the apparel industry is a new growing sector. Today Toronto is home to more than 550 apparel manufacturers with wholesale shipments totalling 16% of the $9 billion Canadian markets [1]. Mass production of apparel in Canada had only begun in the mid-19th century within urban centers, where there were major consumer markets. The Canadian apparel industry produces women's, men's and children's wear, furs, foundation garments and a wide range of knitted apparel such as t-shirts, underwear, gloves, sweaters and hosiery [2]. Jeanne Beker from Fashion Television, Toronto was the first to bring Paris, London and other European fashions into Canada. Fashion Television Channel is Canada's first and only channel dedicated to fashion, beauty, and design. Jeanne travels to the fashion capitals of the world to report the latest trends that hit the runways [3]. Industry Canada is promoting long-term economic growth by supporting research and development and by c reating economic policies and regulations that help Canadian industries to compete in the global economy [4]. This is favourable to the fashion industry. Toronto has quickly claimed a spot in the global market as a fashion city with the 550 apparel manufacturers exporting outside of Canada. The Canadian fashion industry is growing fast past the recession that ended in 2009. This is due to external factor, that cause ripple effect from neighbouring states. A recent fashion show in February 2011 in New York inspired an all-American feel-good message through the collections. This created optimism and consumer confidence that endorsed U.S. retail sales reaching post-recessionary highs [5]. This has also increased consumer confidence has a total of 4,600 fashion retail stores generating annual sales of $2.6 billion [6]. The research and development and regulations will provide opportunity for Toronto Fashion to compete worldwide, and create global confidence to purchase Canadian apparel. This will also help communicate and promote emerging Canadian designers. The fashion industry is a fast paced industry and always has a pulse on new innovation and innovative ideas. Three keys innovative industry trends the fashion industry currently uses to strategically remain competitive is online commerce, “fast-fashion” distribution, and social media. Fast fashion is a contemporary term used by fashion retailers and designers to describe the production flow from designs seen on the catwalk to stores in the fastest time to capture current trends in the market. This is a concept once called ”quick response” by Lowson and Hunter who re-designed the Supply Chain to Meet Consumer Demand [7]. Today the fashion Industry has used the concept to create a catwalk to store manufacturing model. Both fast fashion and the internet commerce support the high fashion turnovers. These are the key strategic models any designer or retailers need to remain successful in the growing Canadian fashion industry. E- commerce flourished after Tim Berner-Lee invented the World Wide Web, however it wasn’t until Janeanne Beker who set the tone for online fashion in 1995. Within in Toronto, Jeanne helped pioneer fashion on the Internet with American communications giant MCI. She became editorial director of @fashion. This was the web's first fashion site. People around the world now had 24-hour access to Jeanne and episodes from Canada’s leading fashions. This is growing current trend for fashion retailers to attract and retain customers through internet retailing. During the recession online fashion retailers say an opportunity to sell to women across the globe who refused to let economic hardships get in the way of fashion [8]. Internet Fashion sales increased end profits. Today Wall Street journal reports online fashion retailers are still the hottest trend as an increase of investor’s interest in the market. This is evident with case studies like online retailer Yoox and Assos who have created a successful online business model, illustrated with a 70% in their 2010 operating profit [9]. This proves online retailers have shown a favourable avenue fashion sales and a great way to deliver fashion to consumers directly from the catwalks. This is evident due to a marketing agency Greenlight’s GFashion Secgtor report” that statistically states: ‘women’s wear’ dominates the consumer online fashion searches, accounting for 67%of the total searches [10]. The introduction of e-commerce has also given box retailers, a competitive opportunity to enter the online markets. Retailer uses the internet space to ship items faster to customers. Box stores in Canada now selling online include major players like Aldo Shoes, Lululemon Athletica, Roots and La Senza [11]. The fashion Industry is fuelled by consumers who demand constant change and new collections. This has fostered the fast fashion term, which have retailers and suppliers because to meet constant change. The internet enables fast fashion as it markets new trends from runways by manufacturing it quick and cheap to target mainstream consumers to take advantage of current clothing styles at a lower price. This new trend has changed the Industry as it allows new entrants to sell similar luxury items and saturate the market further. The trend also poses threats to speciality online retailers and established retailers who use the e-commerce. With cheap online retailers using the philosophy of quick manufacturing it lowers prices and the industry as a whole must adjust to remain competitive and retain customers. Burberry is a luxury retailer who has also used the same strategies to re-enter the markets after a prole-drift. A term coined Paul Fussell to describe when products become associated with the working class or urbanized. After re-designing their business model, Burberry sales rose 60% by using e-commerce. The company has also used fast fashion to deliver to customers anything they liked straight from their runway [12]. The third trend online fashion retailers are taking full advantage of is social media. Luxury retailers and fast fashion retailers like Asos have already used social media to remain competitive with the fast pace industry. Burberry is the brand that is most "liked" on Facebook with over 2 million fans [13]. This was due to a social media campaign the company did to re-build their brand image. Using Facebook, the company advertised the "Art of the Trench” website campaign, it displayed the craze for street fashion by portraying highly stylized ways common Burberry consumers wear their trenches. This website had may hits and “like” replies. “Like” is an advertising tracking meter created by Facebook to track what each user likes, which in turn provides valuable statistics of consumer trends and demographics for advertisement. Another company who understands the power of social marketing is the Asos. Nick Robertson, owner of Asos explains he runs a fashion and technology business. He currently hires staff who fit the same target demographic to blog, twitter and Facebook pictures, catwalk videos and fashion reels. The Company understands talking to their customers through their favourite avenues have increased their customer retention and satisfaction. The company has also opened a Facebook store, where they are the first retailers to launch a shop on a social networking site. When people sign up, Asos automatically sends you e-mails, posts on your wall and can view your friend lists [14]. The three trends currently affecting the Canadian online fashion industry includes: social marketing, fast fashion distribution model, and e-commerce. All of which have enable companies to re-design their current business models to remain competitive through the virtual world. The internet has enabled consumers to demand fashion through new avenues and demand constant feedback on new trends. A company who can manage their fashion online with fast fashion and social media can see their sale increase with a strategic e-commerce model.  The Canadian fashion industry has divided the apparel supply chain into three major industrial segments: the textile industry, apparel industry and retail industry [15]. For the purpose of the market research, a closer review on the retail industry will help identify what distribution strategies are in place to market final products. However it is important to note without one segment the other cannot operate. The manufacturers in the fashion industry are very important and essential to the market. They produce the new designs which are then delivered to wholesalers or direct buyers. Through traditional distribution channels, most retailers will outsource to third parties. The Fashion Distributers ® from the Renco Group® [16] are a third party serving Canada’s fast-paced Fashion industry for over 30 years. ® The company distributes from both Montreal and Toronto facilities. With the industry moving to internet based distribution and supply chain values, fast fashion or quick response manufacturing has been the key focus versus distribution. Fashion retailers need to have a strong focus on Improving offshore sourcing capabilities, including finding offshore sourcing agents and factories, and establishing company-owned offshore production facilities in order to market new trends right away. This at times may not be enough for a company. With external factors like the internet and buyer-driven markets, retailers are starting to see direct competition with manufactures. Thus currently there are three supply chain values in the industry. Traditional manufacture to retailer model using third party distributers, online retailers that remove the distributers and have manufactures ship directly to customers with fast fashion concept, and lastly manufacturer to buyer has lead fashion retailers to self produce. This trend is well known as vertical retailing. Companies like Gap The Limited Inc. and Benetton have taken on manufacturing responsibilities to produce private label or store-brand lines to recapture lost markets [17]. In the fashion and apparel industry it is very important to keep a quick response model that utilizes technologies and strategic concepts that help deliver new trends every season. Tools like fast fashion, JIT, and RFID technologies can alleviate and decrease inventory cost. On average these costs are high in the apparel industry because of the unpredictable demands coupled the complex nature of the business. Amongst the new trends in the industry, it has opened opportunity for new international retailers entering the Canadian market. New entrants are entering both in the physical world and online. With the web available to market and lower inventory costs, the competition is aggressive between international competition and at home competition. Online retailers have a blurry line between the physical and virtual demographics, thus for this industry it is safe to assume both Canadian and international online speciality retailers are direct competitors, as long as they target the same target segment. Current direct competitors targeting the same audience includes Asos (UK), La Canadienne, Reitmans, La Maison Simons, and Boutique Jacob Inc. Indirect online retailers include: Garage, Lululemon, Aritizia, Le Chateau and other name brand retailers entering the online market [18]. Large brand recognized competitors have well establish business models and can offer attractive price promotions which can take away from smaller speciality retailer’s market share. Online shoppers will shop within and across Canadian borders. Today the strongest online retailer selling other name brands has already established a strong market hold internationally. Asos is a retailer that sells over 850 brands and is currently has the world’s biggest online wardrobe collection to date. What makes Asos a major competitor not the ability to sell online, however they share similar marketing strategies Akumaku has developed. Asos has incorporated on their site fashion blogs, social media networks, and up to date fashion alerts through Twitter. The online store also features their own online fashion magazine and has also revolutionized the way designers sell their clothes. Asos marketplace allows fashion lovers and new designers to sell directly to each other. This creates an online community of fashion experts sharing knowledge and new trends.  Ukamaku works with marketing and promotions agency Magnet Creative Management to provide a similar experience with blogs designers can generate buzz around for their fashion designs. The Toronto based company has also positioned themselves in the market as not just a store; it is a fashion network and a fashion community site. The company promotes emerging and established fashion designers across Canada, North America and the world, similar to Asos overall strategy.
 * The Industry **
 * Industry Trends **
 * Overview of Competition **
 * Detailed Analysis of Major Competitors **

[1] http://www.toronto.ca/invest-in-toronto/fashion.htm#1 [2] http://www.ic.gc.ca/eic/site/apparel-vetements.nsf/eng/home [3] http://www.fashiontelevision.com/show/personality_jeannebeker.aspx [4] http://www.ic.gc.ca/eic/site/ic1.nsf/eng/05445.html [5] http://www.theglobeandmail.com/life/style/with-the-recession-over-fashion-pushes-forward-for-fall/article1921358/ [6] http://www.toronto.ca/invest-in-toronto/fashion.htm#1 [7] Lowson, B., R. King, and A. Hunter. 1999. Quick Response - Managing the Supply Chain to Meet Consumer Demand. Chichester: Wiley.

[8] http://www.linkingmatters.com/online-fashion-retailers-benefitting-from-economic-climate [9] http://online.wsj.com/article/SB10001424052748704823004576192781287021172.html [10] http://www.netimperative.com/news/2010/july/top-online-fashion-retailers-asos-tops-social [11] http://www.ksleconsulting.com/selling-fashion-online/2010/09/the-state-of-e-commerce-among-specialty-fashion-retailrs-in-canada.html [12] http://www.huffingtonpost.com/heba-el-habashy-and-charles-lacalle/the-burberry-revolution_b_833618.html?ir=Business [13] http://www.huffingtonpost.com/heba-el-habashy-and-charles-lacalle/the-burberry-revolution_b_833618.html?ir=Business [14] http://www.ft.com/cms/s/0/8c81c140-3de9-11e0-99ac-00144feabdc0.html?ftcamp=rss#axzz1GcLwiBIL [15] http://www.ic.gc.ca/eic/site/apparel-vetements.nsf/eng/ap03295.html [16] http://www.remcoforwarding.com/remco.htm [17] http://www.unido.org/fileadmin/media/documents/pdf/Services_Modules/Apparel_Value_Chain.pdf [18] http://www.ksleconsulting.com/selling-fashion-online/2010/12/whats-next-for-canadian-specialty-fashion-retailers-the-2011-e-commerce-agenda.html