Risk Assessment Of The Fashion Industry

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5. Risk Assessment This section will analyse the risk of the company in the fashion retail industry. These risks will be to assessed through their impact on the company and proposed strategies to overcome when faced with risks. 5.1 Industry Risk Assessment The development of the fashion industry is huge in the UK and now the retail industry also shows growth. This indicates that the company has the opportunity to earn profits, but there are still several factors that may affect the company 's profitability. Labor costs Competition in the fashion market is very brutal; fashion companies have enormous pressure on profits and have continued to launch new products (The Business of Fashion, 2015). This led to the number of products manufactured by the fashion industry are more and more, faster and faster, as well as more and more reduce the cost. Many fashion companies will move to the low labor costs area, where workers ' rights are not sufficiently protected in the markets. With the transformation of Chinese government policy, workers ' rights would be enhanced and supported, the labor costs will gradually raise. Sustainability Garment and textile industry is the world 's most polluted industry, second only to the oil industry (Europa.eu, 2015). The every stage of the clothing life cycle poses a threat with all the resources of the Earth (The Business of Fashion, 2015). Producing one kilogram of cotton can make a T-shirt and a pair of jeans, but consume twenty thousand
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