Is Fashion Impacted by the Global Recession in Any Way
This forces clothing retailers to alter their strategies to gain consumer attention and sales with a new emphasis on pricing, untraditional styles of marketing and advertising,and has also improved the competitive position of some low-cost fashion retailers that are seizing market share from more upscale clothing retailers. Further, the recession has even changed the method of employee relations utilized internally in an effort to retain capital in the face of revenue losses. The topic of the global recession impact on fashion retailing was chosen as a means to analyze how businesses alter their traditional operating and marketing models simply to remain competitive when consumer attitudes related to pricing are impacted by international economic downturns.The financial pressures imposed on retail fashion businesses due to falling sales revenues have forced retailers to alter their employee and management reward schemes as a means to retain capital. Thomsons Online Benefits conducted a research study that identified massive pressures to improve return on investment and minimize operating costs (Personnel Today, 2009). The same survey of 523 different employers indicated that 53 percent believed the economic climate was forcing pressure to justify their reward schemes (Personnel Today) with many considering a total abandonment, in the short term, to save on labor and human resources costs.Why is this significant for the fashion industry? Many fashion retailers experience high turnover rates and reward schemes are seen as motivational tools to ensure training and employee development. When budgets are strained and cannot provide this necessary motivation to ensure excellence and dedication to providing superior customer service, fashion retailers pinched by the recession might lose valuable employee experience when they defect to other retailers that still offer benefits and rewards packages. This can reduce the competitive advantage of these fashion retailers when costs of training new-hires increase exponentially on the back of losses due to job dissatisfaction.