Industry Analysis: Competitive Landscape

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Industry Analysis: Competitive Landscape

In 2014, the global apparel retail industry grew by 5.2% to reach a value of USD 1,196 billion after the previous few years of the economic downturn (Marketline Industry Profile, 2016b). Although the fashion industry worth billions dollars, the major challenge for the companies to survive in this industry is the shorter product life cycle resulted from the frequent change in consumer’s behavior (Rahman, Saleem, Akhtar, Ali, & Khan, 2014).
As the US is Gap’s largest geographic market which accounted for 77.1% of the total revenue in 2014 (Marketline Company Profile, 2016), the analysis mainly focuses on US market which had a value of USD300.9 billion in 2014 and is predicted to grow at 2.8% in 2020 (Marketline Industry Profile, 2016a).The industry witnessed the emergence of fast fashion retailers and e-commerce retailers thanks to the penetration of online stores and internet payment via mobile phone and computer(Marketline Industry Profile, 2016a). By offering the fashionable clothing at affordable prices and introducing new clothing styles weekly, even daily; fast fashion retailers such as H&M, Zara, and Forever 21, made consumers feel “out of trend” quickly and………

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