Global inflation continues impacting the apparel and footwear industries. Rising production costs, driven by increased prices of raw materials and transportation, have led to higher retail prices. This inflationary pressure is straining purchasing power leading to reduced discretionary spending on clothing and footwear. Balancing profitability with consumer affordability is prompting brands to reassess pricing strategies and adapt to the changing economic and consumer landscape.
This report comes in PPT.
Global inflation is significantly impacting the apparel and footwear industries. Rising production costs, driven by increased prices of raw materials and transportation, have led to higher retail prices. This inflationary pressure puts a strain on consumers' purchasing power, influencing buying decisions and potentially leading to reduced discretionary spending on clothing and footwear.
Emerging markets in apparel and footwear globally are becoming focal points for industry expansion, driven by growing consumer populations and increasing disposable incomes. Brands are strategically targeting these markets to tap into new consumer bases, adapt products to diverse cultural preferences and capitalise on the untapped potential for significant growth in regions such as Asia, Africa and South America.
Hyper localisation, achieved through tailored product mixes and nearshoring, is reshaping the value chain in fashion businesses. By aligning products with regional preferences and shortening supply chains, brands enhance flexibility, reduce lead times and better respond to evolving consumer demands, creating a more agile and sustainable value chain.
The rise of second-hand retail is impacting primary market growth in apparel and footwear by diverting consumer spending towards pre-owned items. As more consumers embrace sustainability and seek unique, affordable options, the secondary market is reshaping the industry landscape, challenging traditional retail models and prompting brands to adopt circular economy strategies.
Generative AI is reshaping the value chain in apparel and footwear by optimising design processes and enhancing creativity. From creating virtual prototypes to predicting consumer preferences, this technology streamlines production, reducing time-to-market and fostering innovation throughout the entire product development cycle.
Apparel is the aggregation of clothing and footwear. This dataset covers retail sales of apparel through both store-based retailers and non-store retailers. Excludes black market sales (i.e. untaxed, generated within informal retailing)and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded.
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