The Contribution of the Luxury Fashion Industry in Economic Development of the World

Introduction From time in memorial the fashion industry has made significant impacts to the politics, economy, education and art of various cultures. Today, as illustrated by Brun et al. (2008 p. 558), it marks as a significant element of increasing globalisation.Advertising We will write a custom research paper sample on The Contribution of the Luxury Fashion Industry in Economic Development of the World specifically for you for only $16.05 $11/page Learn More Furthermore, Brun et al. (2008 p. 548) brings out the significance of the industry with a meaning of luxury as opposed to asserting that the products and services are exclusive to the wealthy and powerful in the society. Luxury is a ‘soft or extravagant living, sumptuousness, opulence’’. In the ancient times, the colours and features of the clothes worn indicated the social and political classes of the people and expressed the power vested in people who adorned certain clothes or apparel. In 21st Century, it is essential to note that not much has changed in this regard. The luxury fashion industry is marked by willingness to spend to get the best outfit that builds expression, perception and recognition. In essence, from an economic point of view where costs are minimized to get higher profits, developing and managing the luxury fashion brand is a difficult and long process. Notwithstanding, getting their contribution to economic development and growth requires a consistent, integrated, innovative and rigours strategy. With such controls, obtaining feedback auditing and other relevant information is significant in this endeavour. Various authors and researchers have tried to estimate the fashion industry growth and its significance. For instance, Datamonitor (2009) have put down that the global luxury fashion sector is estimated to be worth about US $ 130 billion with an annual growth rate of approximately 20%. The global fashion industry significance to the national economies is fundamental in their consumers. As such, their growth is inevitable. However, the gap exists, other than the industry growth and development, but the contribution to economic development and growth of the world is missing. The industry is dominant in countries like the United States of America, Spain, France, China and Italy.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This fact does not disqualify its presence and active contribution to the GDP of other countries. However, enough data, justification, input and CPIs with regard to its contribution in economic growth and economic development of the world pushes the researcher to this determination. This information will have a fundamental impact in the level of reliance to the luxury fashion industry sector. Again, it will open the market for more countries to channel or withdraw their resources to or f rom the industry. Hypothesis Null Hypothesis The fashion industry has very little contribution to the economic development of the world. In essence, the luxury fashion industry has no significant contribution to the economic development of the world or the economic growth. Alternative Hypothesis The fashion industry contributes significantly to the economic development of the world economy. This means that the luxury fashion industry has a major impact in the economic development of the world as well as the economic growth. It is therefore critical that we determine, through scientific methods and approaches, the level of contribution of the luxury fashion industry to economic development of the world. This indicates the critical quest for an effective study as a secondary invention to go through the world national economies as well as its commercial industry. Methodology The study will involve use of qualitative and quantitative research. Thus, assume the research design on data us ed. According to Sounders, Lewis Thornhill (2003), the deductive approach will be used to determine the quantitative data. On the other hand, the inductive approach will be applied in measuring and ascertaining the qualitative data. As such, the literature review will involve evaluation of secondary data in an effort to rely on empirical evidence and utilise the necessary concepts. Subsequently, analysis of the field research data shall be undertaken to focus on the objective of the study (Sounders, Lewis Thornhill 2003).Advertising We will write a custom research paper sample on The Contribution of the Luxury Fashion Industry in Economic Development of the World specifically for you for only $16.05 $11/page Learn More Presuppositions of the ethical neutrality shall be considered while collecting data with adequate and correct placement of statement on the population objects being the MOschino following the probabilistic predictions. The field data wil l be from MOschino Fashion Company since it is the most dominant company in the international scale. Again, its products are used all over the countries. As such, reviewing of its data on sales, imports, exports and exchange of goods will have a sense of input or output from over 80% of the world nations (Sounders, Lewis Thornhill 2003). Results It is quite evident that the luxury fashion industry is dominant from the international scale marked with cross border international business. The development from the general scale is influenced by the frequency of the luxury fashion industry. It revealed that during the year 2009 to 2012, the global luxury fashion sector (on MOSchino statistics, and financial statements) is estimated to have transacted a turnover of about US $ 100 billion with an annual growth rate of approximately 12%. Discussion and conclusion A turnover of about US $ 100 billion with an annual growth rate of approximately 12% within three years is a big figure. This ind icates a significant contribution of the fashion industry sector to the economic development and growth. As such, the researcher is left to refute the null hypothesis that the luxury fashion industry has not contribution to world economic development. Rather, the researchers agrees to the alternative hypothesis that the fashion industry contributes significantly to the economic development of the world economy. References Brun, A, Caniato, F, Caridi, M, Castelli, C, Miragliotta, G, Ronchi, G, Sianesi, A, Spina, G (2008). Logistics and supply chain management in luxury fashion retail: Empirical investigation of Italian firms. International Journal of Production Economics. Volume 114. Issue 2 pp. 554-570.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Sounders, M, Lewis, P, Thornhill, A (2003). Research Methods for business students, 3rd ed. Prentice Hall, Pearson education limited: Italy. Datamonitor (2009). Clothing and footwear-Italy. Web. This research paper on The Contribution of the Luxury Fashion Industry in Economic Development of the World was written and submitted by user Desiree Holder to help you with your own studies. 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