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Clothing Industry Franchise & Business Opportunities

Clothing Industry

General Clothing Industry

The clothing industry includes the mens, womens, and children fashion sectors, and ranges from affordable to luxury brands. As clothing becomes cheaper to manufacture, consumers are able to buy more of it, accelerating the cycle of buying new clothing on a seasonal basis rather than investing in a few staple pieces. In the women’s clothing industry, the company holding the largest market share is Ascena Retail Group Inc, which owns brands such as Ann Taylor and Loft. As for the men’s clothing industry, Tailored Brands Inc dominates the industry, which owns popular mens clothing brands such as Men’s Wearhouse. The trajectory of the clothing industry is heavily reliant on what is trending at the time — currently, the prevalence of casual clothing and “athleisure” has led some brands who primarily advertised formal wear to shift their model.

Retail Products and Services Industry Trends

The landscape of the retail industry has changed dramatically over the past decade, with the decline of brick and mortar establishments and the rise of e-commerce and online shopping. The closure of major department stores has only accelerated this major transformation of the retail industry, which has increased even more with the shutdown brought on by the COVID-19 pandemic. Operators in this industry will have to revamp their business model in order to attract a steady stream of customers, therefore competing with the convenience of online models.

Key Retail Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 9 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 71,503

Clothing Industry Trends

In response to the controversy of fast fashion in recent years, the trend of sustainable fashion and buying clothes second-hand has recently emerged. “Thrifting”, or buying clothing from consignment shops has been popularized by social media influences. Some brands have sought to revamp their image by promoting or incorporating social issues into their marketing, prominent examples including American Eagle Outfitters. Others have taken on the approach of being more inclusive, capitalizing on promoting models of all different body types. Like many other subsets of the retail industry, e-commerce has had a transformative impact, and many new forces in the industry have primarily relied on online platforms to launch their brand. The few established brands that have retained a presence in brick and mortar stores still rely on online shopping platforms to generate revenue.

Average Retail Franchise Industry Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Retail Franchise Industry Investment

$ 0 K

This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 217 franchise concept investment breakdowns in order to calculate this figure.

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 9 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.

*SBA Loan Data from 2010-2019

*Franchise Businesses taken into account: 6,829

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