Macroenvironmental factors affecting the clothing industry are those which lie outside small companies and their competitors. Business owners have less control of these external factors, and their impact in changing them is minimal. Instead, small companies must adapt to these macroenvironmental factors, which include consumer characteristics, technology, government influence and the economy. The way small companies adapt to macroenvironmental factors determines both their ability to differentiate themselves from key competitors and overall success.
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Consumer microenvironmental factors include cultures, norms, lifestyle, demographics and population changes. These factors affect the clothing industry in different ways. For example, a small clothing manufacturer needs to create styles that appeal to those of different cultures, especially if those cultural groups represent large enough segments of its market. Contrarily, clothing manufacturers, wholesalers and retailers avoid creating too many clothing items that fall outside the norms of society, such as styles worn 100 years ago. An aging population may increase the demand for larger jeans and pants sizes, such as relaxed or looser-fitting styles. Generally, many people become more sedentary when they get into their 40s and 50s. Consumers' waistlines expand so they need larger sizes and more room for comfort. Also, decreases in birth rates in some areas will lower the demand for baby clothes.
Technological Factors
Technological microenvironmental factors affecting the clothing industry include availability of resources, demand and production. For example, the scarcity of certain materials, such as leather, may force retail and wholesale clothing companies to sell more faux or substitute leather products. Retailers may increase the prices of cotton clothing if they encounter shortages of this raw material, as they must pay their manufacturers more. The introduction of new clothing styles by a competitor can shift demand away from older fashions. Hence, a small clothing manufacturer may need to discontinue certain clothing lines and produce new ones that meet the needs of consumers. Moreover, clothing companies may add more advanced equipment in their plants like robots, which may force companies to fire some workers.
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