The threat of new entrants
![the threat of new entrants the threat of new entrants](https://image.slidesharecdn.com/porters5forcesanalysisforcarserviceindustry-150325081449-conversion-gate01/95/porters-5-forces-analysis-for-car-service-industry-5-638.jpg)
Brands that have a strong brand image are able to charge higher prices. However, rest areas have become densely populated. However, some brands also drive loyalty based on features and quality. This makes the competitive rivalry intense. There are a large number of brands with similar product offerings. The fashion retain industry is remarkable for the intense level of competitive rivalry in it. Even for those who cannot afford luxury brands there are substitutes that can make high end styles available at lower prices. So, even if cloths in general do not have a substitute, brands have many. From the high end to the low end segment, brands have populated the fashion landscape. Every brand has several competitors and the space is continuously getting limited. Since the competition is intense, no brand can stay assured that it will keep selling and remains celebrity without focusing on customers. The threat of substitutes comes from inside the industry.
![the threat of new entrants the threat of new entrants](https://timreview.ca/sites/default/files/I5.png)
So, the threat of new entrants is not a significant force in the fashion retail industry. Apart from infrastructure, there is investment in marketing, distribution chain and human resources. Moreover, investment is also a significant barrier. The increasing popularity of fast fashion is a proof of this fact.
![the threat of new entrants the threat of new entrants](https://image.slidesharecdn.com/tu6414portersfiveforcesmodelandportersvaluechainsony-141016104924-conversion-gate02/95/porters-five-forces-model-and-porters-value-chain-sony-6-638.jpg)
Still, brands can find unique ways to grow popular and acquire success. As already mentioned, it is a densely populated industry and for a new brand to find success, it must use a significant level of differentiation. Threat of new entrants is a weak force in the fashion industry. So, overall, the suppliers have very little control and therefore their bargaining power is insignificant. Brands use their financial clout to influence prices. Brands have the purchasing power and can easily switch from one supplier to another. Mostly the suppliers a re from the third world countries and have to follow the rules set by the buying brands.
![the threat of new entrants the threat of new entrants](http://2.bp.blogspot.com/-0y6tA3K6ZSo/TvIhKBz_mpI/AAAAAAAAACQ/nc-UBcVBQQw/s1600/workers.jpg)
very little action goes on at the back end. Suppliers are not a significant force in the fashion retail industry. Websites and apps have become indispensable if a brand wants to create space in its consumers’ hearts. Technology is being utilized to improve the customer experience and engage customers as well. Brands are in a race to serve and influence the customers in the best possible manner. Even if the customers do not influence a brand’s position directly, they do son indirectly. so, overall the buying power of the customers is a significant force in the fashion retail industry. Fashion brands compete to attract and retain customers and that’s the reason behind the high spending on marketing.īrands employ several types of customer retention strategies including discounts and memberships. The high level of competition and the availability of so many brands and options makes the customers’ tasks easy. 21st century has handed over the switch to the customers who are well informed, can choose from several alternatives and can switch easily between the several brands in the market. However, there are various factors that make the customers as a group an influential force. Individual customers may have very little bargaining power in the fashion retail industry. This is a five forces analysis of the fashion retail industry based on the Porter’s five forces model. Thus, there are several forces affecting the market position of the fashion brands. Power is in the hands of the customers in this era and therefore the focus of the brands is also on crafting a better consumer experience. There are several factors including the fluctuations in the global economy, rise of the digital, technology, demand for fast fashion that are affecting the fashion retail market. The market has grown densely populated with fashion brands and still new brands can enter the market with new concepts. While there are a large number of brands, several of them provide relatively similar products. The fashion retail landscape has grown highly competitive in the 21st century.