Fashion industry regards Christmas as a significant financial savior annually
In the face of challenging economic conditions, major fashion distribution groups such as Mango, H&M, and Cortefiel are turning to promotions and discounts as a means to boost sales this holiday season. This sales formula, which was first introduced during the 2008 campaign, marks the onset of a so-called fashion price war.
According to the Christmas Consumer Study by Deloitte, consumers are expected to increase their holiday budget by 1.98%, spending 668 euros compared to 655 euros in 2010. This is a positive sign for the industry, as sales have been down around 3% compared to 2010.
However, the economic situation, reduced consumption, increased unemployment, lack of consumer credit, and low consumer confidence have negatively impacted the fashion industry in 2011. In 2010, the Spanish textile trade registered a turnover of 17,373 million euros, 3.08% less than the previous year.
Eduardo Vega-Penichet, the general director of Acotex, believes that Christmas could save the bad year they've had so far. He explains that in times of crisis, consumers tend to opt for more practical and useful gifts like clothing and accessories. Vega-Penichet hopes that in December sales will recover and end the year with a maximum drop of 1%.
Small businesses have also joined in the sales formula of promotions and discounts. This Christmas, fashion stores expect to make between 16% and 22% of their annual sales. However, the months of September, October, and November have not helped brands due to unfavorable weather conditions.
Acotex has revised its forecasts for the sector, predicting an evolution of between 0% and 1.8% for the whole of 2011. The Christmas campaign of 2011 is expected to be very different from last year's. Sarah García is mentioned in the context of the Christmas season, but no information about her role is available.
The fashion distribution sector is looking to Christmas as a potential lifesaver for a tough year. Vega-Penichet hopes that consumers will continue to increase their holiday budgets, ensuring a positive end to the year. It remains to be seen whether the industry will be able to recover from the challenges faced in 2011.
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