What Is Garment Industry Analysis?

Mary McMahon

A garment industry analysis looks specifically at clothing manufacturers, wholesalers, and other associated businesses to provide information about the current state of the business climate and projections for the future. This data can be useful for companies considering branching into garments or expanding their garment offerings, as well as garment companies preparing annual reports and other shareholder statements. Government agencies and policy makers may also incorporate such analyses in their work, to make sure they understand conditions accurately.

Overviews of an internal garment industry analysis in annual reports provide information for investors.
Overviews of an internal garment industry analysis in annual reports provide information for investors.

The scope of analysis can be quite variable. It may look at the garment industry in a specific country or geographic region, or could focus on particular sectors, like ready to wear clothing or clothing for children. Analysis can include suppliers, manufacturers, distributors, wholesalers, and retailers, covering different steps of the supply chain. Issues like environmental responsibility and working conditions could be considered in a garment industry analysis with a focus on ethical concerns.

Analysis may start with a definition of the industry and a specific discussion of what will be covered, for the benefit of the reader. Some context in the form of a brief history may be provided, including hard numbers on sales, production numbers, and related matters. This can be important for comparison purposes, allowing people to understand what is meant by growth charts and other information discussed in the document. The history of relevant regulations can also be discussed to add further context to data; an apparent jump in sales, for example, could be the result of a treaty or fair trade agreement.

Next, the garment industry analysis can move into a discussion of current conditions. These include sales numbers, the regulatory climate, and trends. This can set the stage for a final discussion of projections looking at the future direction of the industry. Information on where growth is likely to occur may benefit investors and producers making decisions about where and how to operate. A garment industry analysis projecting growth in the plus size sector, for instance, might be an argument to expand offerings in this line.

Some documents are available to members of the public, or can be obtained by purchasing trade publications. Others may be confidential or restricted because they contain internal information. Clothing manufacturers, for example, don’t want other similar companies to know about the trends they have identified through careful research. They may offer abbreviated overviews of an internal garment industry analysis in annual reports to provide information for investors, but this doesn’t include specific details that might interfere with business plans.

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