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Fundamentals of Strategizing in the Fashion Industry

Abstract

This study examines one of the industries of the creative economy-the fashion industry. Aim. This study systematizes the fundamentals of the strategizing process in the fashion industry. Tasks. This study describes the main stages of the industrial strategizing process; identifies a feature specific to strategizing in the fashion industry and types of applied investment strategies; determines specific principles of segmentation; systematizes basic economic models in the fashion industry as part of segmentation projection; and examines strategic risks in the fashion industry. Methods. This study employs general methods of scientific cognition to examine the strategizing process in the fashion industry in various aspects. Moreover, it determines the features specific to the modern state of the industry and conditions required to develop a successful investment strategy. Results. The fashion industry is a vivid example of the development of creative industries in the economy. In the fashion industry, innovative strategies determine the existence of a brand and its further development in the domestic and global markets. Segmentation in the fashion industry is a system for the classification of fashion brands according to various parameters. The most widespread segmentation classifies brands according to price (high, moderate, and low). Similar to any other industry, the fashion industry faces certain economic, political, and social risks. Economic risks can be categorized into production, financial, and currency risk. These risks are strategically important and specific to the fashion industry. Conclusion. Examination of the fundamentals of strategizing in the fashion industry, considering the features specific for this industry, enables the advancement of a successful strategy for brand development.

About the Authors

Anna S. Khvorostyanaya
Moscow State University’s Moscow School of Economics
Russian Federation


Karine V. Kuznetsova
Moscow State University’s Moscow School of Economics
Russian Federation


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Review

For citations:


Khvorostyanaya A.S., Kuznetsova K.V. Fundamentals of Strategizing in the Fashion Industry. Economics and Management. 2016;(4):33-38. (In Russ.)

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ISSN 1998-1627 (Print)