Let me start of by defining what fashion is to me. Fashion is something, which is uncommon. People crave to have products, which are not easily available in the market. Owning such products gives them a feeling of being unique in the world. Most of the clothing products are “fads” which are easily accepted by consumers who always want change. Fads enter the market quickly, achieve peak sales and die quickly. They last only a short time and tend to attract only a limited following. People are ready to pay high prices at the start, as these products tend to be unique. As the products become common in the market, the demand for these products comes down. In order to keep the demand for such products at a constant pace, the manufactures reduce the price, sell products at throwaway prices and attract consumers with less buying power. These consumers with less buying power as a result of discounts always like to be associated with branded and fashionable products even when the products are at the end of the season.

Every product goes through a lifecycle – it is born, goes through several phases, and eventually dies as newer products come along in the face of changing tastes, technologies, and competition. Technological innovations or improvements introduced in car industry have made it easier to develop sophisticated cars with different size and shape of a car’s body. These innovations have increased the fixed costs dramatically and the net result an increase in total costs