Consumer confidence refers to the ability of the consumer to control the market due the effect of economic ups and downs on him. According to a survey that has been conducted by Conference Board since 1967, consumer confidence is responsible for the rise and fall in demand of product. The consumers are willing to use more when they have more and willing to purchases less when they have less (Yurchisin & Johnson, 56). The change in demand on its part affects the rate of purchases made by the retailers which in turn affects rate of production by the manufacturers. The cycle goes down to the producer of low materials who may have demand for materials increased or decreased according to the rise and fall in consumer confidence respectively (Yurchisin & Johnson, 89).
Consumer confidence in fashion industry
Fashion operates like a wave. Due to the effects of information technology, a new design can have a demand from all over the world in very limited time. However, the determinant on the sales that are made on a certain design at different countries or regions is highly determined by consumer confidence. For example, a new design of a dress may be introduced in American and British economy at the same time (Yurchisin & Johnson, 87). While the taste of the new design remains the same in both economies, the economy with high inflation will record low sales. This is because, high inflation causes low consumer confidence.
The level of consumer confidence is indeed a factor to consider in production of fashion products and services. While the consumer remains unpredictable, it is always advisable for producers of fashion product and services to check out for the trend before making production. This will always help the producers in avoiding losses that are related to overproduction and underproduction (Yurchisin & Johnson, 80).
Works cited
Yurchisin, Jennifer & Johnson, Kim. Fashion and the Consumer. New York: Berg (2010)
