SWOT Analysis of Garment Manufacturing Industry
SWOT Analysis of the Clothing Industry:
A huge number of not standardized fashion products, not harmonized sizes, and quality of production are a danger for gaining access to the global market. SWOT analysis can be of special importance in the apparel manufacturing industry when used for designing a new article of clothing, i.e. collection. This article has presented a detailed discussion of the SWOT analysis of the apparel industry.
SWOT Analysis in Apparel Manufacturing Sector:
During the manufacturing of basic SWOT analysis, different problems may appear and they can be solved with more critical POWER SWOT tool:
P = Personal experience
It provides the SWOT analysis to be based on the experience, knowledge, skills, attitudes, and beliefs because all the observations and personal feelings have an impact on the SWOT.
O = Order
Marketing managers often confuse features and advantages or disadvantages and risks, because the line between them is sometimes invisible.
W = Weighting
Certain key elements of the SWOT analysis are often so difficult to estimate. Because some points are slower than others. Therefore, it is necessary to use percentage participation.
1 = weakness of 20%,
Weakness -2 = 70% and weakness-3 = 10% (total 100%).
E = Emphasize Detail
Many details, reasons, and justification have been omitted in the SWOT analysis. For example, the technology itself is often both the weakness and the advantage.
R = Rank and Prioritize
All the facts presented in the SWOT analysis have an impact on the strategy and that is why it is necessary to classify (rank) them from the highest to the lowest impact and thus determine the priorities.
For example, if possibilities of a manufacturer for a new collection of clothing:
- The desire of customers for new creations = 25%
- Creating a “showroom” facilities = 60%
- Launching new products to market = 20%
Then the marketing plan must be identified according to the following priorities (the opening of “showroom”, new creations, placing new products on the market, etc.). For ranking and setting priorities a Gap Analysis can be used, a simple and effective analysis that enables marketing managers to decide upon the appropriate strategy and tactics.
The suggestions for the use of SWOT analysis when designing a new article of clothing in the readymade apparel industry have discussed below:
- Futuristic design,
- Good image,
- Reaction to a new fashion trend,
- Quality of textile fabric and production,
- The new ergonomic form of a model,
- A short period of development of a model and a short period of duration,
- Automation of production processes,
- Industrial training conducted by specialist,
- Ecological requirements.
- Very high price because of fast changes,
- Small series with a large number of models (three to five articles in work order),
- Manufacturing of only three sizes,
- The bad covering of foreign market,
- The high price of energy,
- Condition and price rise of raw material because of introducing VAT,
- Short time for optimization of products.
- Consumers’ wish for new designs,
- Marketing of products into a new market,
- Market – Establishing “showroom” objects,
- Making e-mail catalog – Value of labor,
- Production of garments Made-to-Measure.
- Import of similar articles of clothing at low prices,
- Competitors have a lower price,
- Competitors have better distribution network with more sales places,
- Quick obsolesce of technology.