7 Market Levels in the Fashion Industry • Seams
The global fashion industry is worth over $2.5 trillion. Africa’s makes up less than 1% of that total. According to Euromonitor, Nigeria makes up 15%, approximately $4.7 billion of the Sub-Saharan fashion market, which is worth $31 billion.
To help you better understand the fashion industry here’s an interesting resource about the 7 market levels it has:
1. Haute Couture
Haute Couture originated in Paris and dates back to the nineteenth century. It comprises of a very concise list including Versace, Christian Dior, Chanel and other big names in the fashion industry.
It consists of garments made from expensive, high quality and rare fabrics that are made entirely by hand from start to finish by the most experienced sewers. There are less than 2000 women that purchase Haute Couture globally with the highest number from Russia, China and the Middle East.
You can get the best of haute couture designs from the best tailors on SEAMS. Click here to book their services.
2. Luxury Fashion
This market is led by the three main designer conglomerate: LVMH, Kering and Richemont.
The Luxury Fashion Market is led by Louis Vuitton, the French Fashion House and the most valuable luxury brand. Other brands include Hermes, Gucci, Prada.
Luxury fashion garments are not handmade but are produced. However, they are not mass-produced, hence making them limited in availability and accessibility.
3. Bridge Line
These are brands in-between luxury and high street; they bridge the gap between the two. They are quality clothing offered at affordable prices.
Example include Jaeger, etc.
This is also similar to Bridge Line, as one that is in between Luxury and High Street Fashion.
However, the difference is that Diffusion Line is actually created by Luxury brands as a more budget-friendly or secondary line that can easily be accessible by persons (especially the younger population) who are not able to afford the original luxury brand. Diffusion lines are usually between ⅓ & ¼ of the original brand cost.
Some of the best Diffusion lines and their original companies are: SEE by Chloe, RED by Valentino, DKNY by Donna Karen, CK by Calvin Klein, Mui Mui by Prada and Versus by Versace.
Some Luxury brands have up to 3 – 4 diffusion lines, notably among them is Armani which has four different diffusion lines under their label and they cater for a variety of ages and a variety of budgets too.
5. High Street Fashion
High Street Fashion originated from the 1900s. It was created to excite, and interest women who predominantly stayed at home to cater to children around that era and it led to the creation of Department stores. These are stores that offer high quality, yet accessible and affordable fashion to women and men. They are mass-produced and this is what helps to keep the price low.
Some examples include Marks & Spencers, House of Fraser, John Lewis, Debenhams and Harvey Nichols etc.
Recently, it is becoming evident that the High Street trend is dying as most of them have shifted into fast fashion
6. Fast Fashion
This is where you’ll find large conglomerates like Inditex, H&M and the likes of Zara, Top Shop, Rhode Island et al.
Fast fashion is a term in the fashion industry used to represent a large mass of production that is done as cheap and in the shortest time as possible, in order to get the latest trend out in the market for consumers.
They are stylish and trendy yet very cheap/budget-friendly.
7. Economy Fashion
This is at the bottom of the pyramid. It represents those clothes that are very cheaply made with low budgets that it becomes obvious in the low quality that the fashion item possesses. Economy items mostly come as regular items that fulfi basic needs for consumers such as leggings, vests and tops, as they are more advantageous – likely to sell most, for these economy brands.
To be able to sell items in this categories at such a low price as between $2 – $50 max, they are produced in huge mass and in sweatshops, which allows them to spend very less in production and labour cost.
Examples include Most of the items produced in China and import