After moderate growth in 2022, global sales of personal accessories grew more strongly in 2023; however, geopolitical issues ,the cost of living crisis and China’s slow recovery suggest a challenging macro environment, pushing personal accessories brands to navigate into uncharted waters once again in 2024. Stricter regulations on sustainability, changing consumer habits, channel shifts and the continued digital transformation are expected to shape the industry over the next five years.
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Inflation and interest rates rises are set to ease, but the cost of living crisis, slow recovery in China and increasing geopolitical issues will push personal accessories brands to navigate in uncharted waters once again. Tensions in the Red Sea in early 2024 will test supply chains once more, further pressuring fashion players to develop strategies that allow them to respond quickly to changing scenarios.
After years of loud debate around sustainable fashion, but little concrete action aside from pacts and voluntary initiatives and agreements, we are now starting to see governments seeking to change business models and consumers’ habits in the years to come. Europe and the US lead these initiatives, and companies operating in these regions must make the needed changes across their value chains.
After a robust rise during the pandemic, the growth of personal accessories sales through e-commerce has been slowing down. The main reasons for selecting one channel over the other are becoming less relevant for consumers around the globe, highlighting the importance of developing unique and seamless experiences in both channels allowing consumers to discover, compare, purchase and engage with their brands wherever they want.
2023 was a breakout year for generative AI, and brands are keen to embrace this technology. Opportunities lie in understanding consumer behaviour, design, improved marketing strategies and inventory management, and enhanced customer services. Personal accessories have started to incorporate this technology, mainly focusing on their interaction with consumers, but the impact of generative AI has only started to be seen.
With Gen Z’s purchasing power and influence set to increase, adapting to their demands will be key to maintain growth. The industry also needs to understand trends shaping the consumer of the future. These consumers are value hackers, and fight against greenwashing, while favouring circularity. Technology influences their purchasing decisions, and they value brands that fit into their lifestyles and help them with their overall wellbeing.
Personal Accessories refers to a diversified group of personal products including Bags & Luggage, Jewellery, Watches and Writing instruments.
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