Fashion companies have routed the S&P 500 during the time period of 2009 to 2013; during this period, one company experienced over 2400% growth (blue line) compared to the S&P 500's 72% growth (red line). The average fashion company has routed the S%P 500 by 313%, according to Y Research Partners.
Those following my advice regarding selling products to single female Echo Boomers have made some serious cash:
Fashion stocks have surged in the past year. Italy’s Prada SpA is up 67 percent and New York-based Michael Kors Holdings Ltd. shares have risen 47 percent. Germany’s Hugo Boss AG is up 23 percent.
“What is interesting is every single year women’s continues to grow as a percentage of the company,” he said. ’’If the product is so terrible and they are growing faster than the base business, just think if they actually get the product right?’’
Under Armour’s female apparel has actually improved its fit and look, Brown said. Now it’s a matter of getting the brand in front of more women. That’s where the new store, and a second location later this year, may help. The overwhelming majority of Under Armour’s products are sold at such big boxes as Dick’s Sporting Goods Inc. and The Sports Authority Inc. Those aren’t common destinations for women and neither are Under Armour’s 100 outlet locations and five full-price stores.
As I wrote:
One of the common jokes about living in West Texas (ie: Midland) was that you never knew who were the wealthy men of the area. You could be talking to a man in worn-out jeans, a dirt-covered jean jacket, and old boots, but the man had 9-digit wealth. Not with women. You knew which women had money because of one word: fashion.
Females of all generations tend to spend large amounts on fashion. And since the fashion world constantly changes, any fashion business you build will have a never-ending crop of customers who constantly need something "new." Could you ask for a better business?
Think about it: fashion never goes out of style (pun intended). Customers, in this case mostly female, will voluntarily spit out more cash for the latest trends and companies can set these trends. If a company brings in several billion in one year, they can shift the style the next year and have customers whipping out more cash (note: customers are well aware that fashion companies do this, so this doesn't qualify as preying on consumers).
While my article received some push back at the time related to gender stereotypes, the global bull run on fashion has women primarily behind it. Gender ideology aside, let's simply ask, what works and what do consumers want? Do we want to try and force something on our customers that they don't want? For female Echo Boomers, bet on fashion being in large demand. And remember, they have more money (on average) than Millennial men.