The fashion industry is significantly affected by the national and global economy. Factors such as population, unemployment, exporting of goods, inflation rate, and retail sales all play a major role in the success and failures of the industry. After research, it was clear that there are many correlations between the economy and the above listed factors.
As a team, we decided to include the population increase and decrease (if any) on our graph. When there is an increase our economy benefits because there are more consumers to invest in markets (and vice versa). Whereas, it can be consequential because there are more people needing jobs, therefore unemployment rates would rise. Furthermore, unemployment can drastically affect the economy because this reflects the lack of success within the markets, simply because businesses aren’t making enough money to employ as many people.
We also decided to include the amount of goods exported from the U.S. to show the activity of our global economy. When the U.S. economy is profitable and successful, then the amount of exported goods would be high. This means that businesses are doing well, our economy is booming, and there is less unemployment (vice versa). Exports can also be influenced by the rate of inflation; when a country is experiencing inflation their currency is worth less, meaning it is more expensive to make and export goods.
Finally, retail sales play a significant role in our research and have a direct correlation with the factors mentioned above. With the economy in a recession, retail sales are significantly down. Clearly retail sales can affect the fashion industry in many ways and is crucial when forecasting.
