The Economy Is Heating Up
It’s almost summer, and you know what that means new swimsuits! Every year the top swimsuit brands innovate new swimwear to attract buyers. For most Americans it’s a summer ritual: walk into a clothing store, pick a new brightly colored swimsuit from the rack, and purchase it without even thinking of the countless other swimsuits stranded in their closet. In the summertime there's a greater demand for swimsuits because people want to stay with the trend of new swimsuits, so every year the swimsuit industry grows even more than the last.
During the summertime more people are spending time outside having barbeques, pool parties, spending time on the beach, and swimming. Increasing preference for swimming as a leisure and recreational activity, are propelling the growth of the swimwear market because more people are in need of new swimsuits. According to sparkpeople.com, “The average American owns 6-7 swimsuits and buys 2-3 new swimsuits at a time”(Various Authors). As the summer season approaches Americans can’t help themselves and splurge into new trending swimsuits. Established brands within the industry, are driving a higher level of innovation with design, materials, and craftsmanship into various swimwear options. This makes it harder for Americans to resist the urge to buy the new trend of swimwear. This will cause a shift to the right in the supply curve because more Americans are going to demand new swimsuits, so brands within this industry are going to need to increase the supply to keep up with the demand. This results in an increase in the quantity of swimsuits provided.
The graph above shows the swimsuit industry with the total revenue on the y-axis and the months of past years on the x-axis. Shown on the graph above, the peaks of each year sales were between April through August, while the lowest sales in the year were between September through March. This shows that every summer the demand increases and so does the total revenue. Additionally according to the graph each year has grown more than the last. The first years total revenue was about 80 million, the second years total revenue was about 100 million, and finally the third years total revenue was greater than 120 million. During the summer more people are demanding swimsuits, so that is going to drive up the total revenue for all businesses in the swimsuit industry. These potential sales makes swimsuit companies want to keep innovating new swimsuits because they know there is a huge profit to be made. In conclusion swimsuits are in high demand during the summer because people like to keep up with the trends that businesses create to sell new swimsuits.
"How Many Swimsuits Do You Own?" SparkPeople. N.p., n.d. Web. 16 May 2017.
Bradstreet, Kailee. "The 2015 Swimwear Market Trend Report." GrindTV.com. GrindTV, 03 Nov. 2016. Web. 16 May 2017.
Reportlinker. "Global Swimwear Market 2016-2020." PR Newswire: News Distribution, Targeting and Monitoring. N.p., 03 Oct. 2016. Web. 16 May 2017.
Swimsuit Industry. Digital image. N.p., n.d. Web.