TRENDS IN FASHION RETAIL - GLOBAL EXPANSION AND CENTRALIZATION OF THE MOST COMPETITIVE PLAYERS
TRENDS IN FASHION RETAIL - GLOBAL EXPANSION AND CENTRALIZATION OF THE MOST COMPETITIVE PLAYERS

Summary/Abstract: This paper focuses on the situation of fashion retail sector in the Central and Eastern European countries and examines the changes in the sector after the transition from central plan to market economic system. In addition to providing an overview of the strong concentration processes in Western European fashion trade, our results show that in the Central and Eastern European countries these processes have been completed much faster. The domestic fashion retail companies have been facing strong competition arising from both the Western and Asian countries which has brought a structural change in the sector in the past two decades. In this paper we show a snapshot of the current situation of the brands’ occupation in the Hungarian premium retail locations. We find that the majority of the leading, top 20 global fashion networks are present and dominate the market in Hungary. We have identified the integration of the whole supply chain, the rapid reaction to customer demand changes and innovation as major competitive factors. The conclusion drawn from the study is that in this highly competitive area where the new international comers are dominated only those retail stores can survive, which have long experience in this business area, has own production background and are open to innovative solutions.

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