This report explores how fashion players can redefine their value beyond price to attract shoppers, as budgeting among consumers has normalised. In the current context of geopolitical tensions, economic uncertainty and climate change, industry players need to continue diversifying and expanding in new growth markets, better segment consumer groups, and embed AI and tech in their business to improve customer engagement and efficiency, in order to build resilience in a fast-moving world.
This report comes in PPT.
Global inflation continues to moderate, but it is slowing unevenly across markets. Moreover, the current context of geopolitical tensions, economic challenges and climate change is heightening uncertainty, impacting business and consumer confidence negatively.
Elevated prices in the past years have led to the normalisation of budgeting among consumers. Consumers are not only seeking bargains to save money, they are also adopting more creative approaches to make their money go further, often using social media to find out about the best deals. Economic pressures are, paradoxically, also leading to more mindful consumption.
The share of e-commerce has stabilised since 2022, but the wider range of channels and digitalisation of the path to purchase have widened consumer choices and increased competition among brands and retailers. A crowded marketplace and fragmented consumer attention spans now call for clear communication and distinctive experiences from brands and companies.
With the stabilisation of e-commerce, the focus of e-commerce development has shifted towards improving services to retain customers. Companies are not only investing to enhance digital engagement, delivery and fulfilment but are also delivering personalised experiences, using various AI tools and distinctive in-store experiences to drive customer retention.
As attention shifts to more pressing geopolitical risks, there is a risk of fashion companies deprioritising sustainability. This shift, however, comes at a time when new sustainability-related laws, especially in the EU, are about to become effective. In this context, fashion players need to rethink their business models, as volume sales are under threat.
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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