Business Model Makes a Difference? Impacts of the Financial Crisis on Luxury and Mass Apparel Companies from 2008-2011

The world financial crisis that started in 2008 had a profound impact on the global apparel industry (Newbury, 2010). However, at the firm level, impact of the financial crisis seemed to be unevenly distributed, with several luxury apparel companies (LA) such as Louis Vuitton achieving stable net sales and quite a few mass apparel companies (MA) such as GAP experiencing significant drop of sales and profits (Hoover’s, 2012). But it remains a question whether such apparent different financial performances is a random phenomenon among several companies or reflects a more general pattern between LA and MA because of their respective business models and specific effect of the financial crisis since 2008

Graduate School

Graduate school should come with a warning label, “Not for the faint of heart.” Here, students should expect late nights consisting of numerous papers, endless research and wishing to receive coffee intravenously. Although graduate school involves having a very demanding schedule, the outcome in the end will be beneficial for a professional career. The two types of degrees a person can graduate with are a Masters, in a certain field of study, and a Doctor of Philosophy. Two current graduate students lent their time to the class, speaking of the steps they took to get into graduate school as well as the type of work they are doing currently

Mapping Fashion in the \u27City by the Sea\u27: Shopping Districts in Newport, Rhode Island

Newport, Rhode Island is internationally recognized for both its prime location on Narragansett Bay and its storied history. Nicknamed the ‘City by the Sea,’ it is famous for its world-class sailing, colonial New England architecture, Gilded Age mansions, trendy restaurants and bars, and nearby beaches. Cultural tourism is a multi-million dollar business for Rhode Island, especially for Newport, where shopping is fourth on the list of revenue generators. The relationship of an American resort city’s geographical setting, built environment, and cultural heritage to its fashion retail sector has not been explored. Acknowledging that fashion contributes to a city’s image, the authors review Newport’s history, provide a profile of Newport today, map Newport’s nine shopping districts, and analyze Newport’s fashion retail sector on the various streets, squares, wharves, and piers. Such an analysis may prove useful to retailers in other resort cities—both small independent boutique owners and national chain stores—as well as city planners and tourism boards

Impacts of the financial crisis on luxury apparel and mass apparel companies from 2008 to 2011

The world financial crisis that started in 2007 had a profound impact on the global apparel industry, but at the firm level, the impact of the financial crisis seemed to be unevenly distributed. Several luxury apparel companies, such as Louis Vuitton, achieved stable net sales whereas quite a few mass apparel companies, such as GAP, experienced significant drop of sales and profits. The study intends to systematically compare the financial performance of luxury apparel companies with mass apparel companies from 2008 to 2011 to see whether a general pattern of differentiated performance exists between these two types of companies as a result of their respective business models and the specific impact of the 2008 financial crisis. MANOVA test was conducted based on six indices developed under the Dupont Strategic Profit Model (including annual growth rate of net sales, annual growth rate of cost of goods sold, gross margin percentage, net profit margin, asset turnover, and return on assets). Eight luxury apparel and eight mass apparel companies were selected for the purpose of the study. The results showed that first, the overall financial performance between luxury apparel and mass apparel companies was statistically different from 2008 to 2011. Second, luxury apparel and mass apparel companies had different gross margin and asset turnover from 2008 to 2011. Third, there was no evidence showing that luxury apparel and mass apparel companies achieved different growth of net sales, growth of cost of goods sold and return on assets (ROA) from 2008 to 2011. Fourth, luxury apparel companies outperformed mass apparel companies starting in 2010 in terms of net profit margin, indicating more robust post-crisis recovery. The results of the study confirmed the differentiated performance of selected luxury apparel and mass apparel companies' business models. The findings also suggested that luxury apparel companies achieved a more robust post-crisis recovery. Additionally, the results suggested that mass apparel companies should not enter the luxury apparel market because ROA of luxury apparel companies did not appear to be better than mass apparel companies

Business Model Makes a Difference? Impacts of the Financial Crisis on Luxury and Mass Apparel Companies from 2008-2011

The world financial crisis that started in 2008 had a profound impact on the global apparel industry (Newbury, 2010). However, at the firm level, impact of the financial crisis seemed to be unevenly distributed, with several luxury apparel companies (LA) such as Louis Vuitton achieving stable net sales and quite a few mass apparel companies (MA) such as GAP experiencing significant drop of sales and profits (Hoover’s, 2012). But it remains a question whether such apparent different financial performances is a random phenomenon among several companies or reflects a more general pattern between LA and MA because of their respective business models and specific effect of the financial crisis since 2008.</p