Lauren Sherman looked into the business of prom:

• Families that earn more than $50,000 a year will spend around $800 on prom.
• Oddly families that earn less spend more. Those that earn less than $25,000 will spend almost 1.5 times that amount.
• Most of that money will go into the prom dress, which can cost anywhere between $200 and $800 in one major store.
• To ensure that no two girls are wearing the same dress to a prom, stores will keep lists of the girls that have bought each of the dresses.
• This means that big stores with a lot of inventory have an advantage. One company, rent the runway, spotted a market opportunity and offers a Netflix like service for dress rentals. The company rents $800 million of clothes a year.
• Prom dress makers need to be agile. The dresses in demand will be those that Beyoncé and Taylor Swift were wearing in the weeks leading up to the event.
• They also need to know the social landscape. If the prom queen buys a dress from a certain store, then they can advertise this and see a boost in sales.
• They may also offer discounts if buyers post about their prom dress purchases on social media.

Read more about the business, the fashion shows, and broader trends for the future over here.

Source: Racked