Risk Assessment Of The Fashion Industry

The primary purpose of this essay uses persuasive writing to get her point across. Informing the reader about the eco dangers of buying outsourced clothing material. Most people often want the cheaper alternative without going to the flea market or charity clothing banks. But all the clothes get worn down, shrink, fade or just deteriorate in the end because the fabric is unsustainable. Resulting in the t-shirts and jeans to be tossed away and put into a landfill. Where they have been found to transmite “more than three million tons of carbon dioxide emissions”. (Siegle, 7)

How fast fashion is affecting the environment is a very serious topic since this type of consumerism in the United States is heavy on supply and demand, and because of that shoppers want it all and want it now which is basically fast fashions motto. The way to make these pieces of clothing heavily rely on cheap materials that can be made quickly, so that is polyester and cotton being made in big factories that emit out toxins into our earth. Cotton being one of the most used fabrics takes a lot to be made into a single garment. Uzbekistan which is the 6th biggest producer of cotton had faced many conflicts during production since cotton uses so much water to be made it has dried up the 4th largest lake the Aral Sea because of how much we need to produce cotton fashion. (Prospectjournalucsd) Buying these cheap garments that become unwearable after 5 times (Forbes) of wearing it usually gets thrown out after and producing more waste that gets put into our waterways since theses garments shed easy and through washing them can “find their way into oceans and on the shores everywhere.” (Sweeny) So with the help of shoppers, being able to cut down on the purchase of fast fashion can help aid in keeping the ecosystem in order.

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

80 billion clothing items are produced every year. About two million tons of clothes is thrown away every year. The clothes often cannot be resold due to lack of quality. Only about 10% of clothes are resold. ¾ of the clothing’s manifested from fast fashion labels will end up in a land fill after a year after it is put out for consumers to buy.

The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s

success factors. However, the company has a few weaknesses and threats they need to address in

With the elimination of U.S. government subsidies, cotton textile manufacturers will pay more for cotton. As the leading buyer of cotton, the Chinese apparel industry’s profitability will be reduced due to their inability to pass on increased cotton prices to their buyers. China’s manufacturing costs had already increased by as much as 40% due to higher market wages and costs with complying with worker and environmental protections. Although China has substantial labor and is accused of utilizing sweat shops to keep their costs extremely low, their increasing manufacturing costs have opened the door to other countries with cheap labor such as Vietnam and Pakistan.

Throughout the past decade, China has been an engaging end for worldwide enterprises because of its low pay rates, however China is still unable to carry out the guidelines for international labor laws. Regardless of the insufficiencies of Chinese law, the legislature now permits strikes. (AFL-CIO 2016) The minimum wage approved by law rates might consider the particular exchanges of a each state, and diverse the lowest pay permitted by law rates might be settled for regions with different financial progress levels and for various exchanges. (Lehman, Lee & Xu November 24, 1993) Therefore, Chinese wages are rising. This is something worth being thankful in both Chinese working families and for laborers in different nations that compete with China in the clothing industry. (AFL-CIO 2016) This shows that even though China is not yet following labor laws for the wages dispersed to their workers, they are continuously improving. Clothing manufacturing consists of more than just

The retail fashion sector is an enormous industry in the UK and there are many branded fashion retailers having

According to the case we know that labor costs in china may have a big increase in the next 10 years, from 40% totally to 10% annual increase to even 40% annual increase.

This marketing plan examines the case of TOPSHOP as a UK’s fast-fashion retailer. The following marketing plan is structured according the SOSTAC framework. Topshop is operating under the parental Arcadia Group. Over the latest years, Topshop has been one of the most popular UK’s fast-fashion retailers. The company is a multinational Omni-channel fashion retailer. Topshop is well-known for its high-quality products in medium low prices. The company’s portfolio owns a wide range of products and services. According to the Situational Analysis, the UK’s macro environment has changed over the latest years. The UK’s fast-fashion industry is becoming more and more cluttered with competitors from both UK

The fact that there is so much competition in the clothing industry forces companies to seek the cheapest labor and material. To get products that are the least environmentally harmful will cost the company more money. That can lead future CEO’s to look for less expensive resources that may not meet their current standards. For example, because Patagonia makes synthetic clothing, plastics used to make the clothing release micro-plastics into the water when washed. These micro-plastics cannot be completely filtered by waste water filtering plants. (Martinko, Katherine)

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

‘Fashion industry is characterised by short product life cycles, volatile and unpredictable demand, tremendous product variety, long and inflexible supply processes and a complex supply chain.’

Sustainability has become a major issue in the fashion industry. The global apparel industry has a large amount of social and environmental problems and the apparel industry is a dirty business that relies on water intensive methods and toxic chemicals within its factories. Fashion and textiles is known to be one of the most polluting industries in the world, following oil. Millions of gallons of wastewater from mills each year contain harsh chemicals. The clothing industry has a huge environmental impact, some of which include: industrial water pollution, production of fiber responsible for pesticide and insecticide. Another example is that it takes 700 gallons of water to produce enough cotton for