FASHION INDUSTRY (fashion industry) - the sector of the service sector, engaged in the formation of the image of "fashionable" products among buyers, their production and sale. Fashion is a social phenomenon. The main purpose of fashion items is to satisfy aesthetic needs and signal the social status of their owner. A scientific explanation of fashion as a social phenomenon was first given in the late 19th and early 20th centuries. American economist Thorstein Veblen and German sociologist Georg Simmel, creators of the "trickle-down" theory. In their opinion, fashion is created in elite social groups to emphasize their difference from ordinary people. In an effort to imitate the elite, the middle and lower strata are gradually adopting fashionable “novelties”. When fashion "seeps" down, it loses its novelty, and becomes mass and "vulgar". In order not to lose social distance, the elite reinvents something new and original. This cycle of prestigious consumption is repeated over and over again. In the 20th century, with the erasure of class polarization, fashion still serves to emphasize social differences, but not so much "higher" and "lower", but simply different social groups. For example, youth fashion emphasizes the differences between people of different ages. In addition, the personal selection of fashionable goods is a means of self-expression, emphasizing one's individuality. Thus, goods of purely industrial consumption (turbines, machine tools, etc.) certainly cannot be fashionable products. For personal consumption goods, as a rule, they do not include those that cannot be conspicuously consumed (men's underwear, etc.)

1. FASHION INDUSTRY
FASHION INDUSTRY (fashion industry) - the sector of the service sector , engaged in the
formation of the image of "fashionable" products among buyers, its production and sale.
FASHION INDUSTRY OBJECTS.
Fashion is a social phenomenon. The main purpose of fashion items is to satisfy aesthetic
needs and signal the social status of their owner.
A scientific explanation of fashion as a social phenomenon was first given in the late 19th
and early 20th centuries. American economist Thorstein Veblen and German sociologist
Georg Simmel, creators of the "trickle-down" theory. In their opinion, fashion is created in
elite social groups to emphasize their difference from ordinary people. In an effort to imitate
the elite, the middle and lower strata are gradually adopting fashionable “novelties”. When
fashion "seeps" down, it loses its novelty, becomes mass and "vulgar". In order not to lose
social distance, the elite reinvent something new and original. This cycle of prestigious
consumption is repeated over and over again.
Fashion is a social phenomenon. The main purpose of fashion items is to satisfy aesthetic
needs and signal the social status of their owner.
A scientific explanation of fashion as a social phenomenon was first given in the late 19th
and early 20th centuries. American economist Thorstein Veblen and German sociologist
Georg Simmel, creators of the "trickle-down" theory. In their opinion, fashion is created in
elite social groups to emphasize their difference from ordinary people. In an effort to imitate
the elite, the middle and lower strata are gradually adopting fashionable “novelties”. When

2. fashion "seeps" down, it loses its novelty, becomes mass and "vulgar". In order not to lose
social distance, the elite reinvent something new and original. This cycle of prestigious
consumption is repeated over and over again.
Thus, goods of purely industrial consumption (turbines, machine tools, etc.) certainly cannot
be fashionable products. From personal consumption goods, as a rule, they do not include
those that cannot be conspicuously consumed (men's underwear, etc.).
Fashion products in the narrow sense of the word include some groups of light industry
products that satisfy the personal needs of citizens:
Clothes;
personal accessories (stockings, gloves, bags, belts, hats, scarves, watches, jewelry, etc.);
perfumery and cosmetics (perfume, lipstick, hairspray, etc.);
home accessories (bedding, dishes, carpets, etc.).
The main industries included in the process of the fashion industry (fashion economy) in the
narrow sense of the word are the textile, perfume and hairdressing industries, and the
modeling business.
The range of fashion products tends to expand.
Initially, fashion goods included almost exclusively goods for women: it was believed that
only the “beautiful half of humanity” was decent and necessary to constantly take care of
external attractiveness. In the 20th century, however, this gender stereotype was no longer
considered - a fashion for men appeared.
At the same time, there was an expansion of the range of fashion products associated with
an increase in the publicity of lifestyle. For example, if earlier eating and washing clothes
were purely private processes, now people eat food and use washing powders bought in the
store. Therefore, in today's society, fashion products in the broad sense of the word include
almost all consumer goods (including cars, furniture, pens, soft drinks, etc.).
THE MAIN STAGES IN THE DEVELOPMENT OF THE FASHION
INDUSTRY.
The formation of the fashion industry is associated with the parallel development of
prestigious consumption and the "mass consumption society".
Until the end of the 19th century. the fashion industry was absent, although fashion itself as
a social phenomenon has been known since ancient times. The fact is that while the
standard of living of the bulk of the population remained low, its consumption was limited to
basic necessities with purely functional properties. Fashionable goods (jewelry, fine clothes)

3. were bought by a few aristocrats and the rich. Mass production of fashionable clothes could
not come about until a massive middle class began to take shape .
The stages of development of the fashion industry are best seen in
the production of fashionable clothes.
Between about the 1890s and the 1960s, the production of fashionable clothing and
accessories gradually evolved from a small business to mass production and became an
industry. Back in the middle of the 19th century. special fashion magazines appeared that
talked about the trends of the current season and the range of fashion stores (what they
“wear in Paris”).
In the 1950s and 1960s, during the formation of a mass consumer society in developed
countries, a fashion forecasting system developed. The emergence of fashion trend analysis
firms is due to the fact that mass production of ready-to-wear clothes required "large" and
long-term decisions about production and purchases. Therefore, the manufacturer of
mass-produced ready-to-wear clothes began to depend not only on the "designer's whims",
but on what fabrics their manufacturer offers. He, in turn, could only offer what made it
possible to produce raw materials and threads that were available on the market at the
moment. In order for a dress of fashionable color, actual texture and original style to appear
on the counter, 3 years before that, it was necessary to make changes in the technology of
growing cotton and at the same time create a formula for the production of a dye for the
future linen. Therefore, a forecasting system arose that predicted a change in the dominant
trend.
Since this period, the fashion economy has split into two tiers - haute couture (custom orders
for the elite) and ready-to-wear (mass production for the middle class). It was the
1960s-1980s that became the era of famous Parisian couturiers - Coco Chanel, Christian
Dior, Yves Saint Laurent, Hubert Givenchy and others.
Since the 1990s, the fashion industry has been dominated by "pluralism", in which it is
difficult to talk about any single dominant style, trends are divided into many trends. At the
same time, the pace of change is accelerating as information about new styles spreads
rapidly through new means of communication. If earlier the fashion industry focused on
adults and wealthy buyers, then by the end of the century, fashion has noticeably
“rejuvenated”. Finally, the role of talented stylists has declined - now fashion is set not so
much by talented designers and not so much by fashion capitals (like Paris, London and
New York), but by manufacturing firms promoting recognizable brands.
Similar trends - the transition from a dominant standard to a
plurality of fashion standards - can be noted in the
development of other fashion markets.
The fashion industry was formed as a phenomenon of Western European civilization, and
until the end of the 20th century. it was not affected by foreign cultural influences.
Globalization of the 20th century led not only to the broadcast of European fashion around

4. the world, but also to the penetration of Eastern influences into this industry. In Japan,
manufacturers of fashionable goods of international level have appeared (Isshi Miyake,
Yoshi Yamamoto, etc.), the world-famous Parisian couturier Japanese Kenzo Tokada. Since
it is expected that in the 21st century. the influence of oriental culture will grow, and a certain
“orientalization” of the fashion industry should also be expected.
FUNCTIONING OF THE FASHION INDUSTRY.
Fashion manufacturing, sales and service companies are a gigantic multi-billion dollar
industry that requires very large investments. According to some estimates, since the early
2000s, the fashion industry has been ranked 5th among the most capital-intensive sectors of
the modern economy.
The goal of the fashion industry is usually considered to be the satisfaction of the demand of
the final consumers of a fashion product. However, it should be emphasized that in the
modern world, the formation and dissemination of ideas about what is considered
fashionable has long ceased to be spontaneous and has become an important branch of the
economy (part of marketing - advertising and PR )

5. 1. The functioning of the fashion industry.
The modern fashion industry is not based on “adjusting” to already existing needs, but on
forecasting and planning. Changes in clothing styles become known six months before they
appear in stores, when, based on the results of special demonstrations of new designs,
journalists-analysts report on new products and main trends for the upcoming season. At the
same time, during the "showrooms" (premier demonstrations), representatives of trading
companies place orders for collections for stores. And only after collecting the entire
package of orders, manufacturers of ready-made clothes begin to produce collections in
mass circulation.
Manufacturers of fashion products are divided into two groups
- direct manufacturers and contractors.
Direct manufacturers are companies (like Levi Strauss and Co. in the USA) that create their
own brands, design models, collections and then manufacture them in their own factories.
There are very few large companies of this type. Most often, companies that themselves
"invent" and produce the entire collection themselves are engaged in small-scale production
with products of a limited assortment and small circulation.
Most of the major manufacturers of clothing and accessories prefer to invest only in the
formation of models. The production of actually finished products is carried out by performing
enterprises, contractors . If the development of clothing models is mainly carried out by
specialists from the USA and Western Europe, then their production is often carried out in

6. third world countries with cheap labor. Even in Russia, most well-known clothing
manufacturers outsource about 80% of orders to foreign contractors (mainly from Southeast
Asia).
In addition to income from the invention of new models and their production, profits are
received from the sale of licenses - the rights to use the logo of a "fashionable" company on
non-competitive products of other companies. Pierre Cardin is considered the pioneer of the
licensed business in the fashion industry.
The fashion business is characterized by the highest independence of the price of goods
from their objective consumer value. The value of a brand exists only in the minds of
consumers, and with a competent organization of an advertising company, you can make a
fashionable thing with ordinary consumer properties. Therefore, the lion's share of the cost of
fashion products falls on advertising and PR, and not on the actual production costs.
Since the utilitarian functions of fashion products are not of paramount importance to the
consumer, ambiguities are often used in the organization of advertising campaigns. Calvin
Klein, the creator of jeans, showed a young actress in an advertisement for a new type of
clothing under the slogan "There is nothing between me and my Calvin`s." What could be
understood as a hint at the lack of underwear on the girl. Since the "sexual revolution" was
under way in the US, the commercial caused an explosion in the popularity of denim
clothing, although the advertisement did not give any information about the quality of the
goods. This kind of "imaging" is typical of advertising for all kinds of fashion products, such
as trying to advertise beers as an attribute of "independence" and a special way of life.
CLASSIFICATION OF FASHION GOODS.
Fashion goods are divided, depending on the categories of consumers, into two classes -
goods for the elite (for "snobs") and goods for mass buyers (middle class). This polarization
is seen most clearly in the fashion industry.
The concept of "fashion" is often associated with the expression "haute couture", which
comes from the French haute couture ("high sewing"). Couture products are exclusive
products created by a designer in a single copy from high-quality fabrics and accessories,
often on a personal order of a client.
The market for such products is small, since the democratization of lifestyle has sharply
reduced the number of "snobs". If in the middle of the 20th century. the number of clients
ordering unique models at ultra-high prices around the world was about 15 thousand, then at
the beginning of our millennium their number dropped to 2 thousand. purely for brand image.
Fashion house couture (Chanel Haute Couture, Christian Dior Haute Couture, etc.) has
evolved into a form of advertising for more utilitarian designs, showcasing twice a year
(spring/summer in January and autumn/winter in July).
The main profit manufacturers of fashionable clothes receive from products of the
pret-a-porter class (“ready-made clothes”) - moderately expensive products that are
produced in sufficient quantities for sale in stores. Clothing in this class is divided into two
categories.

7. The pret-a-porter de lux group of products is more expensive. The goods of this group are
named after the designer, the company must have its own mono-boutiques (Gucci, Prada,
Armani, Versace, Christian Dior, Cavalli, etc.).
Group of goods actually Pret-a-porter. These product brands do not necessarily use the
designer's name in the name and sell most of their products through multi-brand boutiques.
PROSPECTS FOR THE DEVELOPMENT OF THE FASHION ECONOMY.
According to estimates, in Western Europe, the population spends on the purchase of
fashion industry goods (in the narrow interpretation of this concept) about 10% of their
income, in the USA - 5%. If we include in the fashion economy all types of goods that satisfy
primarily aesthetic and socially prestigious, rather than narrowly utilitarian needs, then,
according to experts, their purchase accounts for about 40% of the expenses of the family
budgets of citizens of developed countries.
The fashion economy is growing at a rapid pace, overtaking other sectors of the economy.
This trend is sustainable, reflecting rising living standards and increased freedom of
expression.
The development of science-intensive technologies leads to the emergence of new branches
of the fashion economy. For example, some professionals include cosmetic surgery in the
modern fashion economy because it serves the same purpose as traditional cosmetics.
In Russia, the fashion industry began to develop only in the 1990s. Its development has
been greatly hampered by the need to make large initial investments in advertising new
styles, which can only pay off after a long period of time. Therefore, the Russian fashion
market, even in the 2000s, is dominated by goods from foreign firms. Thus, more than 80%
of expensive clothes are supplied to Russia from Western Europe, incl. half of the imported
clothes are from Italy. At the same time, domestic production of fashionable goods began to
develop, creating its own popular brands (Paninter, Partizan, Tom Kline). The strong
Western influence on the Russian fashion market is evidenced, for example, by the fact that
some of the domestic brands are “disguised” by anglicized names (such as Gloria Jeans).
Fashion Industry