Uncertainty reigns across the fashion landscape as the industry continues to feel pressure on discretionary spending while grappling with geopolitical risks. However, rising demand from emerging markets, new technologies, intergenerational shifts and consumers’ growing preferences for experiences and lifestyle will provide opportunities for growth to businesses able to evolve quickly in a fast-paced 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 recent years have led to the normalisation of budgeting among consumers. Consumers are not only seeking bargains to save money but 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.
Value-seeking shoppers are more discerning in their fashion spending, but still willing to spend on experiences, lifestyle and brands aligned with their values. Hence repairs, quality and durability become value-driven propositions, while transforming into a lifestyle brand allows market players to diversify their offerings and elevate their positioning among their customers.
With the stabilisation of e-commerce, the focus of e-commerce development has shifted towards improving services to retain customers. Companies are investing not only to enhance digital engagement but also to deliver personalised experiences and optimise operations from design to fulfilment and transition towards a more sustainable future.
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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