Fashion retailing is a dynamic and fluid business and strategy needs to reflect this: creating a competitive advantage in a market sector is an essential part of maintaining the necessary level of interest.Identifying market position enables a
company to determine its strategy and
direction in order to present and maintain a
strong recognizable brand image and
identity to customers. Analysis of market
position involves a lot of detail, such as cost
control, infrastructure, cost of materials,
economies of scale, management skills,
availability of personnel and compatibility
of manufacturing resources. A fashion
retailing strategy should highlight the way
in which the business may construct entry
barriers to the competition. These can
include high switching costs, gaining
substantial benefit from economies of scale
via sourcing policies; creating exclusive
access to distribution channels to prevent
others from using them; and the ability to
clearly differentiate products. This is linked
to the retailer’s ability to buy in bulk and
volume and to work with suppliers effectively
to create advantages.