Olten, 01. February 2017. According to the trade association Textil, the number of fashion shops in Germany has fallen by more than 3,500 stores between the years of 2010 to 2014. Furthermore, more and more small chains and shops had to be closed because they could not compete with the mass competition. As stated by Nick Robertson, former chief executive officer of ASOS, the major reasons for this decline is the lack of time available due to people’s busy life style. This, coupled with ridiculously cheap price tags, brings more and more consumers to prefer to shop online.
Another reason is that well-known luxury labels such as Louis Vuitton, Gucci and Chanel have long weathered the counterfeiting of their products that flooded the market and lead to serious losses. Many of the brands are trying to weather the storm. However, even high fines show little deterrence, as the black market continues to flourish.
Although German women buy on average of about 30 kilos of clothing a year, according to Robertson around 40 percent of this amount is bought online which remains to be a clear growth for the future of the fashion industry, but sadly a blow to the conventional vendors. Due to the huge price difference and other absent benefits in conventional German stores, the decline has been a huge blow to the overall German fashion industry. Robertson believes that the companies have to adopt and invent new exclusive sales and store experience to keep afloat and compete with the e-commerce industry which has gained a considerable momentum in the recent past. He also pointed out the importance of the change in the fashion Industry to stay competitive and profitable.