Fashion Designers in the US Industry Market Research Report from IBISWorld has Been Updated

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This industry will continue to grow in the midst of a recovering economy, with the globalization of the fashion industry supporting growth in demand for specialist designers. Furthermore, the increasing accessibility of fashion to younger budget-conscious shoppers through diffusion lines and low-cost collaborations will strengthen demand over the next five years. For these reasons, industry research firm IBISWorld has updated a report on the Fashion Designers industry in its growing industry report collection.

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The increased visibility and accessibility of fashion will bolster industry growth

Although the recession ravaged the Fashion Designers industry in 2009, it has found new avenues to pursue in light of decreased consumer spending. “Fashion designers have found new ways to market and sell their creations,” says industry analyst Nikoleta Panteva. Collaborations with mass merchants like Target and H&M have been at the forefront of the market's expansion. These retailers carry specially designed, lower-priced pieces for a limited time, capturing a younger and less wealthy demographic. Similarly, designers have introduced diffusion lines, which aim to make high-end designs more accessible to the public. Diffusion lines are created by the original designer or design house (a group of designers working under the same brand) and are priced more moderately than the original line. As a result, industry revenue is expected to increase 3.6% in 2012.

Still, weak downstream demand from manufacturers, retailers and consumers severely hurt the industry over the five-year period. Revenue dropped in each of 2008, 2009 and 2010. As such, the industry is anticipated to decline at an average annual rate of 4.4% to $1.1 billion between 2007 and 2012. According to Panteva, “While designers' low price point strategies have helped keep them in the public's eye, the practices have also cut into profit margins.” In 2009, profit (i.e. earnings before interest and tax) fell to a low of 3.2% of revenue, from a prerecessionary level of 6.9% due to consumers opting for lower-priced apparel and accessories. However, as demand returns, profitability will climb to a stronger 13.4% of revenue in 2012.

Market share concentration within the Fashion Designers industry is very low, with the top four participants accounting for no more than 10.0% of total revenue. Industry concentration has decreased over the past five years. In 2007, the average fashion design firm generated $94,543; in 2012, this average has declined to $92,702. Revenue has declined faster than the number of enterprises, leading to a dilution of market share concentration. As the industry continues to mount in competition, IBISWorld anticipates that the average fashion design company will generate only $83,447 in revenue by 2017.

Over the five years to 2017, revenue is anticipated to grow steadily. The increasing visibility and accessibility of fashion will bode well for industry participants, as consumers' budgetary constraints diminish. Additionally, collaborations with fast fashion outlets are expected to remain a mainstay of the industry, attracting a growing proportion of the population and allowing for steadier revenue streams.

For more information, visit IBISWorld’s Fashion Designers in the US industry report page.

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IBISWorld industry Report Key Topics

This industry provides design services for fashion, clothing, shoes, textile, jewelry, costumes and floats. These services sometimes represent the design arm of a large retail chain, but they more often represent smaller design houses that provide fashion products to a number of different sellers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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