Amid COVID 19 Pandemic the fashion and apparel industry faces a big time slowdown. Nevertheless, the fashion industry has been one of the most challenging businesses. While many successful brands have become history as they failed to sustain the challenges, still many aspire to set benchmarks in the industry. Fashion and apparel businesses can learn from the top 10 reasons why fashion brands fail and plan appropriately to avoid these mistakes.
1. Lack of Innovations and Uniqueness
Although every industry needs innovations and uniqueness, the fashion industry lies on the top where innovations and unique designs are keys for success. Following the latest fashion trends new designs are created for customers. If these designs are not unique or lack innovations and creativity then the products are ignored by customers. This could be one of the main reasons among the top 10 reasons why fashion brands fail.
2. Lack of Market Knowledge
Marketing is the backbone of any company. Without marketing, companies cannot perform solely on the merits of their products or services. This means that companies that didn’t have great products cannot survive in the business. The company loses customers and sales will go down if the product is not marketed well to right customers and the target customers are not satisfied.
3. Lack of Business Knowledge
Business knowledge is a significant vital resource. It is a sum of skills, experiences, capabilities and expert insight, which you collectively create and rely on in your business. As a common asset, knowledge shapes and influences every one of the exercises in and around your business.
People who lack technical knowledge and managerial experience in fashion brands can find it difficult to operate or make unfavorable decisions causing losses.
4. Inappropriate Pricing
Many brands fail because of this reason. Many fashion brands overestimate themselves and keep the price higher than competitors in the market. Similarly, many people keep the selling price at very low. People do not want to buy expensive products unless it provides special features or solution. Similarly, too low price makes people assume as cheap and inferior quality. During the market research “Willingness to pay” of the target customers need to be studied and should be considered as the top priority among 4Ps.
5. Inferior Quality
The cost of inferior quality comprises not only the costs resulting from product defects, but also company processes, practices, or functions that generate defects and errors. Inferior quality can also weaken consumer relationships, damage your brand, and add major operational and financial costs.
Sales return and customer dissatisfaction are the main losses due to inferior quality.
6. Lack of Resources
Without resources, nothing can happen. Short of resources make company compromise which may not be in the favor of the main reason for why companies fail. If companies can’t properly manage resources, they don’t know which of their assets are available. This leads to resources that are spread too thin, causing projects to be understaffed and underequipped, and creates a system of inefficiencies that leads to teams that put in long hours to meet project goals.
7. Failing to Reach Customers
Sales are the ultimate goal of any business. Between company and customers, social media platforms or eCommerce or retail are bridges. There could be several reasons for failing to reach customers. The obvious main reasons are ignorance and poor executions. Sometimes, customers may not be happy or convinced to buy the product if a company’s pricing strategy is ineffective; too low or too high. When it is too low customers perceive the products and or services as being of inferior quality. Customers are looking for value and benefits, not, the cheapest options. Similarly when the price is too high and products do not have additional or unique features customers may ignore them. The most important customers and people should know about the company and product.
Deciding on correct media to reach target customers is important. Failing to do so is one of the main reasons why fashion brands fail.
8. Poor Management and Leadership
All plans, strategies, and decisions are in management’s hands. If the company does not follow appropriate plans, strategies, and decisions then the company’s performance is affected.
9. Ineffective Marketing and Promotion
Marketing is important to know target niche customers, their specific needs, and the company’s position to achieve customers’ satisfaction. On the other hand, promotion is important for brand image building and for people to get aware of the product and company. In case of any error or ineffective marketing plan company loses the race against it’s competitors.
10. Limitations of New Technologies
New technologies make us and companies efficient. They also provide competitive advantages. Leaders in business are always looking for new technologies to implement so that they can improve performances, reduce costs and be ahead of their competitors. Companies implementing Information Technology tools like Data Analytics, Machine Learning, the Internet of Things (IoT), Augmented Reality, Virtual Reality and so on are good examples today. Not upgrading with new technologies could be one of the top 10 reasons why fashion brands fail.
Hopefully, the above top 10 reasons why fashion brands fail can be helpful to analyze the biggest mistakes by fashion brands. You may have better plans to eliminate these mistakes while moving ahead. Please do write your suggestions and feedback in the below comment section.