SWOT Analysis For A Clothing Business: Threading Your Way Into Fashion

PESTLEanalysis Team
PESTLEanalysis Team
SWOT Analysis For A Clothing Business: Threading Your Way Into Fashion
Table of Contents
Table of Contents

We conduct a SWOT Analysis for a clothing business that wants to establish itself in the US market, revealing the opportunities and threats it will face.

What is that one industry that keeps on thriving despite all the economic and political challenges? Clothing industry.

Clothing is a necessity, and people earn to fulfill this basic human need. Hence, despite all the challenges, the clothing industry continues to flourish globally.

As the global population increases, the demand in the clothing industry increases, which is why new entrants keep on entering the clothing industry.

Today, we will conduct a SWOT Analysis for a clothing business that wants to establish itself in the US markets. This SWOT analysis will discuss the strengths that the business should have to compete in a highly competitive US market.

Moreover, we will analyze the business's weaknesses that could hinder its growth. After that, we will look at the growth opportunities the new entrant would have and, finally, the threats it would face from the market.

So, if you are interested in establishing your clothing business in the US, this article would be beneficial for you. Before proceeding further and conducting the SWOT analysis, let's look at the history of the clothing industry in the US.


During the days of colonisation, fabrics were made in households. The clothes were sewn and stitched by the family members. The clothes people used to wear then were relatively simple.

However, the Industrial Revolution brought significant changes in the 19th century. As a result of the Industrial Revolution, textile mills were established across the US, which laid the foundation of the clothing industry in the US.

Soon after the establishment of textile mills, ready-made clothing became available. In 1818, a clothing company named Brook Brothers was established. It was the first company that introduced ready-to-wear clothes.

The establishment of fashion magazines such as Vogue in 1892 also shaped consumer preferences and developed consumer taste in fashion. Fashion magazines caused the demand for the latest style to increase.

In the 20th century, modern assembly line production techniques were developed. These techniques made the manufacturing of clothing more efficient. Moreover, it made the manufacturing cost fall. 

After World War II, the demand for the clothing industry increased significantly since the disposable income of people in the US increased.

Furthermore, globalization after World War II helped the US clothing industry. Huge clothing businesses started outsourcing the raw materials from various parts of the world, which made their costs fall and increased their quality. 

Over the years, a lot of clothing brands were established. Some of them introduced expensive clothing lines, while others sold inexpensive, easy-to-wear clothes.

The US clothing industry has always been a trendsetter. Any style that prevails in the US is copied in different parts of the world. Currently, the US clothing Industry is worth $351.40 billion.

There are thousands of clothing brands currently operating in the US clothing industry, so the competition is very high. Any new player who wants to establish themselves in the US clothing industry should be able to compete with top-class brands to stay in the market.

Now that we have discussed the history of the US clothing industry let's proceed and discuss what a SWOT analysis is.

SWOT analysis is a technique that different businesses use to assess what internal and external factors impact a company's operations. SWOT analysis highlights a company's strengths, weaknesses, opportunities, and threats.

Today's SWOT analysis will discuss a business's strengths to enter the US clothing industry. Moreover, we will discuss some of the weaknesses a business shouldn't possess.

Besides that, we will also shed light on the opportunities that could be present for a new entrant and the threats it would face from the external environment. So, without further adieu, let's discuss the strengths a business should have to establish itself in the US clothing industry.


Strengths are the strong areas of a business that help it compete in a competitive market. There are several strengths that a business must possess to establish itself in the US clothing industry. Some of the strengths are mentioned below.

High Quality of Products

The competition in the US clothing industry is very high since thousands of clothing brands are present in the clothing industry. A business that plans to enter the US clothing industry must offer high-quality products to differentiate its products from others.

The provision of high-quality products will increase the customer base of the new entrant and bring brand recognition. Moreover, it will attract a loyal customer base that will buy the brand's products due to their high quality.

Skilled labor

One of the reasons why brands like Nike and Gucci are considered the top brands is because they have skilled labor. Any business that wants to compete in the US clothing industry must hire skilled labor because unskilled labor will cause the quality of the products to fall.

Moreover, skilled labor also increases the efficiency of the business since it utilizes the available resources in the best way possible. Hence, hiring skilled labor can strengthen a business entering the clothing industry.

Effective Marketing

Marketing is a factor that determines the success or failure of a business. If a business can effectively market itself, it succeeds. A clothing business needs to develop an effective marketing strategy to promote itself on different platforms.

For example, the clothing business could use social media platforms like Instagram, Facebook, and YouTube to promote itself. Marketing on these social media platforms can help the brand attract customers and increase its online presence.

Efficient Supply Chain

A business must have an efficient supply chain to succeed in a competitive market. Delays in production and delivery cause the customer base to shrink. Hence, in order to attract more customers, a business must ensure that it delivers its products timely.



The weaknesses section in the SWOT analysis refers to a business's shortcomings that hinder its growth. In this section, we will look at some of the weaknesses the new entrant might possess.

A successful brand can quickly adapt to new trends and predict the upcoming trends. Suppose the new entrant relies heavily on the current trends and can't anticipate the shift in the trends. In that case, it will struggle in the US clothing industry.

To operate in the industry, it is essential for the new entrant to capitalize on the existing trends and quickly adapt to new trends.

Lack of Identity

Every successful brand in the US clothing industry has its own identity. For example, Puma is famous for manufacturing sportswear clothing, while Prada is recognized for selling luxury attire. Similarly, any business that wants to operate in the US clothing industry must have its own identity.

Limited Brand Recognition

Brand recognition is significant in attracting customers and building the brand's image. The new entrant must develop a strategy for building its brand awareness. Suppose the business has limited brand recognition. In that case, it won't be able to attract more customers, and the business will struggle.

Limited Market Research

Businesses operating in the US clothing industry must focus on market research to stay aware of new market trends and consumer tastes. Suppose a newly established business in the clothing industry has limited market research. In that case, it won't be able to anticipate consumer tastes and market trends.

As a result, the brand won't meet the consumers' demand, forcing the brand out of the clothing industry.



Every business gets opportunities to grow. However, businesses often fail to grab these opportunities because they cannot recognize them. This section will highlight some opportunities a newly established business in the US clothing industry might have to grow.

Global Expansion

Expanding the operations in international markets helps businesses to increase their customer base. Moreover, it helps businesses increase their presence in different parts of the world.

A business looking to establish itself in the US clothing industry has the opportunity to expand its operations beyond domestic borders. Global expansion will help the new business capture market share in international markets and reduce its reliance on the domestic market.

E-Commerce Growth

As e-commerce grows daily, a newly established clothing brand can use different e-commerce platforms to increase its online presence. The business can develop different marketing strategies to increase reach and capture a larger audience.

The clothing business can establish an online store to cater to customers who prefer to order online.

Collaborations And Partnerships

Clothing brands often focus on collaborations and partnerships to attract more customers and enhance brand visibility. The newly established clothing business can also collaborate with existing brands to increase its customer base.

Moreover, the business can also collaborate with social media influencers to promote itself. Furthermore, the business can partner with well-established brands to release limited-edition products.

Subscription Models

In the US clothing industry, clothing brands offer memberships and curated clothing boxes to attract more customers. The newly established clothing business can also focus on providing memberships to existing customers. Memberships will help the brand in forming a loyal customer base.


Threats are the dangers that businesses feel from the external environment. In this section of the SWOT analysis, we will discuss some of the threats a newly established clothing business will face in the US clothing industry.

Intense Competition

The competition in the US clothing industry is very high. Thousands of clothing brands offer different types of clothing products. A newly established clothing business will feel threatened by the cut-throat competition in the clothing industry.

The new entrant must gain an edge over its competitors to operate in the market. Moreover, it needs to form strategies to capture the market share to have a steady revenue stream.

Economic Downturns

Economic downturns impact the demand in the clothing industry significantly. Whenever there is an economic crisis, people's buying power falls. As a result, customer demand also falls.

A newly established clothing business will feel threatened by the economic downturns since it will cause the disposal income of the customers to fall. Hence, their demand will fall as well.

Rising Labor And Material Costs

Businesses try to minimize their costs so that they can maximize their profits. Whenever the costs of a business rise, the business raises the prices of its products to retain its profits.

The new entrant will feel threatened by the rising labor and material costs since they would cause the business's profit to fall.

Online Security Risks

Businesses face the threat of data breaches from hackers. Since businesses' reliance on online platforms has increased for marketing purposes, the threat of data breaches has increased.

A new entrant in the clothing industry will feel threatened by data breaches since data breaches can damage a business's reputation.


SWOT Analysis For A Clothing Business: Conclusion

The US clothing industry is one of the biggest. Currently, the US clothing industry is worth $351.40 billion, and it is expected to grow further in the future.

Initially, the clothes used to be stitched at home without any machines. However, after the Industrial Revolution, the use of machines became common to manufacture clothes.

Globalization further helped the US clothing industry grow, and more businesses started to enter the clothing industry. In today's article, we conducted a SWOT analysis for a business that wants to enter the US clothing industry.

In this SWOT analysis, we discussed the strengths a business requires to operate in the clothing industry. Moreover, we shed light on the weaknesses that the business needs to overcome.

Besides that, we also discussed what are the opportunities and threats present for the new entrant. This SWOT analysis can also be presented as a SWOT Matrix.

After reading this article, we assume you know how to conduct a SWOT analysis. If you enjoyed reading this article and want to know more about SWOT analysis, take a look at some of the examples of SWOT analysis.

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