According to the business of fashion and McKinsey's recent "fashion situation in 2022", the global fashion industry may recover in 2022, and fashion sales will exceed the level of 2019 by 3-8%. In addition, the strongest recovery will occur in China and the United States, followed by Europe. The following are some noteworthy highlights of the latest report: the main problem of the industry will be the supply chain, which will slow down the recovery. It is expected that 67% of enterprises will raise prices next year. Sustainable development will remain the top priority in the fashion industry. 60% of companies have increased their investment in closed-loop recycling solutions to reduce their impact on the environment; 32% of industry executives believe that digitization is the most promising development potential, followed by Sustainability (12%).
Based on an exclusive interview with senior executives in the industry and a poll of more than 220 fashion executives and experts around the world, the study provides an authoritative perspective on the future prospects of the industry.
Main research areas:
Due to the excellent performance of countries with strong medical system and economic elasticity, the recovery of consumer markets and purchasing areas from the economic shock related to covid-19 will be uneven. In this uneven environment, fashion companies with an international footprint need to accurately look at investment decisions, regularly reassess local conditions, and reduce market-specific risks.
The fashion industry relies on complex global supply chain networks, which are facing unprecedented pressure and destruction. As logistics deadlock, rising transportation costs and multiple shortages add new complexity, companies must reconsider their procurement strategy, implement cutting-edge supply chain management and establish greater flexibility to align products with customer needs in the coming year. 49% of fashion executives said that supply chain disruption was the primary theme affecting their business in 2022.
Traditionally, tourism has been the main driving force of luxury consumption, but it is expected that international tourism will not fully recover until 2023-2024. In order to grasp the change of shopping mode in the coming year, luxury enterprises should interact more deeply with domestic consumers, rebalance their global retail footprint and duty-free network, and invest in customer service through local e-commerce channels.
After focusing on home clothes and sportswear for nearly two years, consumers redistribute their wallet share to other categories because the repressive demand for freshness coincides with more social freedom outside the family. In order to predict these subtle and sometimes contradictory preferences, brands should rely more on data-driven product development and adjust their inventory portfolio accordingly to ensure that product categories resonate with consumers who adapt to new lifestyles.
As consumers spend more and more time online, the hype around the virtual world continues to spread to virtual goods, and fashion leaders will open new ways to interact with high-value young groups. To capture untapped value streams, players should explore the potential of irreplaceable tokens, games and virtual fashion - all of which provide new ways for creativity, community building and business.
Social commerce is experiencing a surge in the participation of brands, consumers and investors, as new features and users' increased comfort with channels provide opportunities for a seamless shopping experience from discovery to checkout. Although the use cases in the global market are different, the brand should redouble its investment in customized in app purchase, and test technologies such as live broadcasting and augmented reality fitting.
One of the most important levers that the fashion industry can pull to reduce its environmental impact is closed-loop recycling, which is now being promoted on a large scale, promising to limit the mining and production of raw materials and reduce textile waste As these technologies mature, companies need to embed them into the design phase of product development and adopt large-scale collection and sorting processes.
To improve certification, transparency and sustainability, brands are using a range of technologies to store and share product information with consumers and partners. In order to make full use of these digital "product passports", help brands deal with counterfeiting and differentiation, and build loyalty by enhancing consumer trust, enterprises must unite around common standards and participate in pilot projects on a large scale. About two fifths of fashion executives plan to adopt product passports in 2022, or have already done so.
As the digitization of fashion business reaches a new level, companies are facing more threats of cyber attacks and increasing risks related to improper data processing. With the increasing complexity of cybercrime and the increasing pressure from consumers and regulators, brands need to take urgent action to strengthen defense and increase investment to make digital security a strategic priority.
Companies that rely on brand appeal or fashion charm to attract and retain talents will need to improve their competitiveness, because the competition from inside and outside the industry is becoming more and more intense, resulting in more job vacancies next year. As people from senior management to the retail front reconsider their priorities, companies must update their talent strategies to build an increasingly flexible, diverse and digital workplace. 45% of fashion employees listed "sense of mission" as one of the most important factors in choosing to stay with their employer.
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