12/21/2023 0 Comments Monopoly examplesAccording to the Merriam-Webster dictionary, fast fashion is defined as “an approach to the design, creation, and marketing of clothing fashions that emphasizes making fashion trends quickly and cheaply available to consumers.” In the 1990s, the New York Times coined the term to describe the brand Zara (Rauturier). In the world of fashion, fast fashion is a fairly new term. The goal of each brand is to sell the best product- the product that is the most differentiated and unique compared to the others. In the fashion industry, new brands emerge, whether they or big or small, all the time. This is the point at which the fast fashion industry and monopolistic competition intersect. Another point in monopolistic competition is that consumers will often compare the price and quality of each close substitute in the market and make a decision based on the price and quality combined. Therefore, these factors are very important in consumer decision-making, specifically price, because if one brand prices rise and go beyond a consumer’s willingness to pay, then the consumers would choose to buy from a different brand offering a similar product. ![]() The purpose of product differentiation is to market a product and make it more desirable than others being offered in the market. Clothing items are differentiated through price, quality, reliability, design, and uniqueness. While clothing items may look similar, as stated before, each product varies in quality and the materials used to make the clothing item. Production differentiation is what sets different firms and brands apart from one another and is what makes a consumer want to buy a product. Monopolistic competition consists of many firms in the same industry competing for and targeting the same costumers to buy their products. To understand the fashion industry, it is first important to understand how monopolistic competition works. In this essay, I will explain the correlation between fast fashion and monopolistic competition- as well as how this causes copyrighting problems within the industry. Although the products are very similar, each product varies in quality and the materials used to make the clothing item. The fashion industry is one of the biggest industries in the world with hundreds of thousands of different brands, both big and small, comprising of it. The perfect example of monopolistic competition is the retail and fashion industry- specifically fast fashion. In monopolistic competition, there are not many barriers to exit or enter- making it easy for many firms to sweep into the market and offer similar products. ![]() Monopolistic competition, by definition, is when an industry has many firms that offer similar products and services but not completely identical or the perfect substitute.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |