Demand Analysis of Clothing and Footwear: The Effects of Price, Total Consumption Expenditures and Economic Crisis

Abstract

This study investigates the effects of changes in price, total consumption expenditures and economic sitations on Korean household demands for clothing and footwear using time-series data. The clothing and footwear category was reclassified as clothing, footwear and clothing services items for the demand analysis. This study utilized the Linearized Almost Ideal Demand System (LAIDS) model to analyze household demand. The results indicate that price and total consumption expenditures are significantly related to Korean household consumption expenditure allocations for clothing and footwear items. The effects of the IMF bailout crisis in 1997 and the global financial crisis in 2008 on household expenditure shares for clothing and footwear items were very weak and statistically insignificant. All the demand elasticities were estimated with respect to total consumption expenditures and prices. Clothing was expenditure elastic (greater than one) and other items were classified as inelastic. All the own price elasticities of demands were negative (other than clothing). Through the estimations of cross price elasticity the relationships between the demands for items and other item prices were evaluated (i.e., substitutes and complements).

Factors Affecting Demand Planning in the South African Clothing Industry

“…Since 2004, when the South African government lowered tax duties which are paid when goods/services are imported into the country, the South African clothing industry has been declining (Nattrass & Seekings, 2012:10). This decline had a negative effect on the level of sales, employment, gross domestic product (GDP), as well as on the accuracy of demand planning (Kim, 2012(Kim, :1285Rotunno, Vѐzina & Wang, 2013:2). In SA the fashion industry is one of the fifth major employment segments in the country.…”

Consumer expenditures on clothing and footwear: a mixed methods study

“…These sources primarily generate demographic data. Past studies in this area have found that several factors have a significant association with household expenditures on clothing and footwear: household income (Dardis et al , 1981; Kim, 2012; Park and Widdows, 2001; Zhang and Norton, 1995), the family life cycle (Dardis et al , 1981; Zhang and Norton, 1995), the characteristics of the heads of family (DeWeese and Norton, 1991; Park and Widdows, 2001), and the size of the family (Park and Widdows, 2001). As the research on the predictors of household clothing and footwear expenditures accumulated, some authors (e.g.…”

“…In family-centered studies, the dominant predictors have been demographic variables (e.g. Dardis et al , 1981; Kim, 2012; Zhang and Norton, 1995). However, studies of related topics, such as predictors of consumer fashion shopping proneness (e.g.…”

“…With a few exceptions (e.g. Kim, 2012; Park and Widdows, 2001), previous studies on predictors of clothing and footwear expenditures have focused on developed western societies (e.g. the USA and Great Britain).…”

A Study of Urban Household Demand for Clothing Items by Income

“…최근 우리나라가계의 의류에 관한 수요분석연구 의 결과에서 보여주듯이, 전통적으로 가계의 중요한 소 비재 중 하나인 의류품목은 그 수요에 있어 총 소비지출 의 변화에 민감하게 영향(의류수요에 대한 총 소비지출 탄력성이 1보다 큼)을 받는 것으로 나타났다 (Kim, 2012). 또한 가격변화도 중요한 영향요인으로 작용하는데 가 격에 대한 의류품목별 탄력성을 보면 의복은 가격 탄력 적이며 신발과 그밖에 의복/신발 관련 서비스 품목들은 비탄력적인 것으로 나타났다 (Kim, 2012) …”