A finished fabric.
The textile industry describes all companies involved in the production, distribution, sale and marketing of fibers and fabrics. This includes sheep farmers who produce wool, manufacturers who create products from fabric, and retailers who sell these products. Professionals who practice textile industry analysis may record and analyze data related to fabric production levels and market trends. Some core functions of textile industry analysis may include market research, tracking technological developments, and creating industry insights.
A closeup of satin fabric.
Market research is carried out by analysts who want to determine demand. In other words, a market researcher can distribute surveys to members of various demographic groups to find out what types of products and prices customers want or need. Companies can use this information to plan prices, production rates, and inventory.
These factors may also be determined by the behavior of competing companies. For example, if a textile manufacturer discovers that a competitor is selling similar products for a similar price, he may lower prices to attract more customers. Industry analysis can often include tracking the competition.
Silk, a type of fabric.
Tracking technological progress is an important aspect of analyzing the textile industry. As in many industries, technological developments can change the way companies in the textile industry operate. New tools and machines can increase the efficiency of manufacturers and help companies keep up with modern demands.
When an expert in the analysis of the textile industry creates an outlook, they are speculating on how certain aspects of the industry will behave in the future. An outlook can be determined by analyzing the behavior of consumers and investors. It may also require analysts to look at the history of the textile industry to see how companies fared in the past, when similar economic indicators existed.
Polyester fabric.
Textile industry analysis professionals often consult relevant organizations that are developing business plans. Factors such as when to buy stock, what types of textiles to produce, and the quantities to be kept in stock can be determined using information gathered from industry analyses. Some companies may retain analysts as part of their team, while others may hire consultants for certain projects.
A folded square of linen.
Analysis of the textile industry can also take place in an academic setting. Economists often study various markets and sectors to get a reading on the performance of global or national economies. These analysts usually publish studies in newspapers and magazines, whose information can be used by professionals in the sector specialized in consulting textile companies.