This paper will analyze the challenges currently facing the global fashion industries as consumers change their shopping habits. During these tumultuous times, retailers should re-evaluate their organizational structures. According to the Forbes Global 2000, apparel companies make up 29 of those top businesses. For instance, a corporate structure helps businesses like TJX Companies (headquartered in Framingham, Massachusetts) – which owns TJ Maxx, Marshalls, HomeGoods and Sierra Trading Post – to operate efficiently and maintain over 1000 stores in the U.S., Canada, U.K., Ireland, Germany, Poland, Austria, The Netherlands and Australia. It sells apparel and home fashions (sheets, pillows, picture frames, etc.). Online retailer Amazon now has brick and mortar bookstores and has just bought Whole Food stores. On the other hand, upscale retailers are facing an uphill battle. Lord and Taylor’s parent, Hudson’s Bay, is selling its landmark store in New York City to WeWork, an office-sharing business. Lord and Taylor will rent a quarter of the building for themselves to continue to operate as a smaller version of their flagship store. The Nordstrom family’s high-end Department store has decided not to go forward with a plan to go private due to economic concerns.
In addition, this paper will examine corporate conglomerates in the fashion industry, such as LVMH (Moet Hennessy Louis Vuitton SE) which is a multinational luxury goods conglomerate based in Paris, France. In 1971, Moet & Chandon, a champagne producer, merged with Hennessy, a cognac manufacturer. In 1987, Louis Vuitton, the high end fashion brand, merged with Moet and Hennessy. Today, the company holds approximately 60 subsidiaries, including Dior, Fendi and Sephora, and is a component of the Euro Stoxx 50 stock market index. By including diversified goods, this Societas Europaea (“SE”), a European (Public) Limited Company is succeeding in its quest for stability.
Joyce Boland-DeVito Esq.,
Creating Stability in the International Fashion Industry by Using Corporate Structures and Conglomerates,
DePaul Bus. & Com. L.J.
Available at: http://via.library.depaul.edu/bclj/vol16/iss2/1