Did you know that there are four essential components to the fashion industry? Raw material production, creation, retail sales, and marketing all encompass this relatively new industry. That’s right – before the 19th century, almost all clothes were custom made.
Interesting Facts About the Fashion Industry
Annual revenues within the fashion industry typically exceed $1.2 trillion.
Fashion has become so ingrained with each culture and lifestyle that people typically tend to personally identify with specific branding or designers. They prefer to wear these brands above all others because the branding becomes a reflection of who they are. Because of this personalized association, brands will always have a revenue source with new variations in the fashions that are produced that will attract repeat customers.
Key Statistics from the Fashion Industry
1. Based on revenues generated alone, Louis Vuitton is the world’s most popular brand, bringing in over $37 billion in total revenues.
2. $250 billion is spent on the fashion industry in the United States alone.
3. The fashion industry employs a total of 4.2 million people around the world.
Takeaway: Fashion experiences high revenues because it is one of the key indicators of personal expression. Wearing a new outfit brings about a sense of personal confidence and pride that is difficult to replicate. For that reason, people consistently update their personal look so they can make a specific statement about themselves… and yes, wearing a jersey from a favorite sports team is just as much apart of personal fashion as wearing a tailored jacket is.
Essential Facts About Fashion
1. The average American household spends about $1,700 on the fashion industry every year.
2. The children’s niche of the fashion industry market has increased 15% over the last 5 years, accounting for $186 billion.
3. Women spend the most on fashion every year, accounting for 50% of the total annual revenues generated by the industry. That amount is expected to exceed $621 billion this year.
4. China produces up to 54% of the world’s textiles that are used for today’s fashion, processing over 41 million tons of fiber.
5. The fashion industry produces about 3 billion tons of soot every year.
6. In the last 20 years, apparel manufacturing employment has declined by 80% in the United States.
7. The Philippines has the world’s lowest compensation rates in the manufacturing portion of the fashion industry, paying just $0.88 per hour.
8. In the last year, over 230,000 people attended Fashion Week in New York City, providing the city’s economy with a $20 million boost.
Takeaway: The reason why employment in the industrialized nations is lower in the manufacturing sector is simple: it’s cheaper to outsource fashion. Outsourcing also reduces pollution, as China has over 1.5 billion tons of soot to deal with annually because of textile production alone. The bottom line of this industry is this: a lot of waste is generated to produce the clothes we all wear today. It takes 200 tons of water to dye one ton of fabric!