Taylor Rouse
AP Economics
Mrs. Straub
5/16/17
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.
Work Cited
"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.
It's interesting to see the impact seasonal goods have on the economy. While swimsuits aren't the only goods that have an increase in demand during the summertime, they definitely are a top necessity for many consumers. An interesting addition to your argument could be how much more popular swimsuit sales are to consumers than other summertime goods!
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It is true that different goods are in greater demand depending on the time of year. One reason the revenue for swimsuits is so high could be that swimsuits are often really expensive. Because it is summer, and people need swimsuits to swim, it makes the demand curve more inelastic, and a drive up in price will not decrease the demand that much.
ReplyDeleteWhile in Wisconsin I would consider swimsuits a seasonal good, it would be interesting to see the demand for swimsuits in places like Florida where it is generally swimming weather all year long. In places like this, the demand for swimsuits would probably be much more elastic/affected by price increases.
ReplyDeleteSummer represents swimsuits, they also become the necessary good for females of all ages. This is practical because everyone will go for swimming at least once during summer. I would consider swimsuits as a normal good because consumers will buy them when their disposable income increases, but that's not the case during summer, everyone buys swimsuits in order to keep up with the latest trend. Also, swimsuit companies might create seasonal employment and unemployment in certain branches as they know that they can make high profits only in summer. Altogether, it is interesting on how swimsuit companies are increasing their revenue each year.
ReplyDeleteConsumerism is definitely big in America, and I think it plays a role in the increased in demand for swimsuits and how much revenue clothing companies who sell swimsuits make. The American public is always looking for the newest style and the newest brand, and they're always looking to purchase new things. So when summer rolls around and new swimsuits and swimwear is being released, consumers want the newest trend so they buy new swimsuits when they have other swimsuits at home. I definitely agree with your blog post; people buy new swimsuits every summer, regardless of what they already have. I think the biggest reason for this is consumerism, and it definitely benefits the clothing companies and brings in lots of revenue for them.
ReplyDeleteThe market in Wisconsin is quite interesting around this time of year, as the demand for swimsuits for both females and males increases drastically. Despite girls and guys having swimsuits that probably already fit them, they are desired to find the newest trend and fashion, as it is always changing (look at the trend in guys swimsuits becoming shorter than the previous board shorts trend). This economic boom, however, does not necessarily affect employment probably, as many swimsuit companies sell world wide and there is always a demand for this clothing item. Overall, your argument is interesting and takes a perspective on the positive of swimsuit sales.
ReplyDeleteIt is clear why the demand and supply for swimsuits would increase during the summer months, as they are put into more use. However, in places with more warm weather year round, the demand and supply for swimsuits might remain steady, as they are in use year round. The quantity demanded of swimsuits for each consumer also might differ depending on travel, location, etc. of each person. In total, this is an interesting topic that relates to the beginning of the summer season.
ReplyDeleteFashion retailers increase perceived need, and thereby demand, for swimsuits by manipulating trends each season. For example, during the 90's, high-leg cut bikinis were popular, but the introduction of low-rise everything in the early 2000's forced any trend-chasing shopper to buy something that reflected the new silhouette. Recent years have seen a resurgence of one-piece swimsuits, again convincing consumers that they need to invest in another piece. Social media has also played a major part in increased swimwear demand with brands like Triangl creating an account solely to promote their brand. Most recently, a brand called Sunny Co Clothing experienced meteoric brand recognition with their now infamous red swimsuit depicted in a pool-side picture posted by thousands of Instagram users with the promise of a free swimsuit. Social media marketing and strategic trends are able to manipulate demand beyond need-based consumption.
ReplyDeleteI completely agree! Although I already have multiple swimsuits, I can't help but buy new ones at the beginning of every summer. Especially at this point in fashion trends, the designs of swimsuits are becoming more broad and unique. While two-piece bikinis are still in style, so are 1-piece suits and high waisted ones. In order to stay in style, consumers may buy multiple of every style of suit because although they all serve the same purpose, in our heads each one is "entirely different". I'm eager to see how this trend will continue in the coming years!
ReplyDeleteThis trend in consumer buying has clearly already begun, probably as early as March for spring break. While we also tend to buy new clothes each year, it’s definitely a more gradual process. Swimsuit styles tend to change each year, at the start of the season. I agree with some of the other comments though, that I’d like to see the overall supply and demand graphs in places where their seasons aren’t so separated, and they have a use for swimsuits year round.
ReplyDeleteTrends of seasonal goods such as swimsuits are interesting to follow because every year, they come back with more and more elaborate designs and fashions. The companies that make swimsuits market them in such a way that makes it seem absolutely necessary to be on the front edge of a trend, and of course everyone loves to hop on a bandwagon when they see one. What's interesting is that the functionality of the swimsuits has not changed; a suit from this year would work just as well as one from 1995. What has changed is the way they are advertised - social media makes it easier for companies to let the world know about their new products, which helps to increase their demand. Increased demand means these same companies can drive up their prices because they know people will still buy the swimsuits. It'll be interesting to see how this evolves in the future.
ReplyDeleteIn the past swimsuits seemed to be just a tool necessary to go for a swim, now swimsuits take on a whole other corner of the fashion industry. As swimsuits companies build brand names they start trends of owning the most fashion forward swimsuit instead of most dependable. Now that the demand for these swimsuits has increased these companies can also jack up the pricing and shipping for the product. Obviously people need to start shopping for their next years swimsuits after summer, because this is when the prices will be the lowest.
ReplyDeleteAs swimsuits are usable only during the summer for most of the US (minus Cali and the gulf of mexico) it makes sense that Americans are buying a new swimsuit for the new season. With an increasing population, demand for clothing increases with each passing year. Current trends can increase or decrease demand depending on the year, but overall the sales should rise from year to year.
ReplyDeleteSummer is approaching and that means swimsuit season. That means that the demand for that product is increasing drastically. The demand for swim wear i guess can relate to outside conditions because you most likely won't buy one during the winter unless it's cheaper. It makes sense to buy a new one when needed when it's actually warm. They create new trends for swim wear to keep increasing the current 80 million revenue.
ReplyDeleteThis is a interesting topic. I do agree with that people want to stay in the trend of swimwear but something to think about is that people also grow out of swimsuits and swim sutes can wear out. So that adds to the demand of them
ReplyDeleteEven though I know many people buy new swimsuits at the start of summer, but I didn't realize how often and how many swimsuits people were buying. I haven't bought one in two years, so it shocked to find on the craziness and frequency of swimsuit sales. Due to this, I've been rethinking buying a new swimsuit as well.
ReplyDeleteThis is a very good point. I think that even before spring break people, including me, start to buy swimsuits. As they cannot wait for summer to finally be here and many people go to tropical places. It would be interesting to hear if the sales of swimsuits in places like Florida or California where it's warm all year still increase over the summer.
ReplyDeleteVery interesting point! While each summer, new styles and patterns of swimsuits are produced to influence buyers that "Hey, you don't want to wear last season's swimsuit. You want to be in style by rocking this year's swimsuits". Also with the constant use of the swimsuit to take pictures in, wear to the beach, swim in and get a tan, people wear theirs out only to buy a new one as the summer progresses. Even though I am not on this band wagon, I can understand how the swimsuit industry is successful during spring and summer!
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