Trends and news in fashion industry
Last year, the fashion business, like other sectors, suffered severe hurdles as a result of the epidemic. However, there were other elements at play in addition to the epidemic. With the use of data and insights from our most recent fashion study, let's see what else is contributing to define the industry's future.
The coming year is expected to be difficult. The fashion sector is undergoing a transformation, and many areas are expected to have slower growth and weaker consumer confidence. Brands are being pushed to embrace digital, increase profits, and address sustainability. Leaders must demonstrate their resilience and ability to be strategic in exploiting the industry's main trends in an unpredictable world.
The economic forecast for 2020 appears to be more modest, with both developed and emerging markets set for a period of retrenchment after a protracted era of reasonably strong growth. It's no wonder, then, that 55% of respondents to the BoF–McKinsey annual executive survey expect things to get worse in the coming year, up from 42% in 2019.
In this context, the fashion sector faces a slew of difficulties ranging from sustainability to generational transitions, all of which necessitate investment at a time when top-line growth is threatened. The tension is beginning to show. Vacancies in US retail malls are at an all-time high, and a growing number of brick-and-mortar businesses have declared bankruptcy as a result of digital competition.
Given the scenario, we see fashion companies taking initiatives in 2020 to become more resilient. This entails devoting more resources to identifying hazards and developing remedies. This could include efforts to improve efficiency, operational flexibility, digital optimization, and financial flexibility. Companies that can take the lead on these issues and focus on implementing their strategic plans will likely emerge ahead of the pack from the present downturn.
1. The struggle against 'toxic masculinity' and gender stereotypes in fashion
Last year, there was a lot of online debate about men’s fashion in the luxury fashion business, and some of the biggest conversation starters were the same societal movement — shattering gender stereotypes and combating toxic masculinity. Last year, a number of firms and celebrities joined the cause, spreading their impact through fashion and pop culture.
2. Social media power
The power of the major social media sites is undeniable. Facebook is used by roughly half of the world's population, while Instagram and WeChat are not far behind. Social media platforms have grown into advertising behemoths as a result of their popularity, attracting tens of billions of dollars in advertising every year. However, there is a disadvantage: in some markets, engagement with digital advertising and social media platforms looks to be declining. On several huge platforms, average daily minutes are decreasing, and individuals don't spend much time looking at ads in mobile feeds. As a result, brand material frequently fails to engage target audiences. The study implies that firms should reconsider their social media strategies and consider how to better utilize platforms.
3. Consumers are turning toward pragmatism in fast fashion.
When compared to the previous year, the fast fashion market’s volume share increased by 84.6 percent in 2020.What were people talking about when it came to fast fashion?It turns out that practicality was a common theme in online discussions on quick fashion: "looked both couture and sporty," "hands-on sensibility and ready-to-wear," "streetwear," "street style," and "easy to wear around the house" were all common phrases used to characterize fast fashion items. While fashion isn’t usually associated with practicality, it appears that there has been a trend in consumer attitudes toward garments that serve several functions rather than outfits that are only worn once. The fashion industry consumes large amounts of energy and has a well-documented record on pollution and waste. Fashion accounts for 20 to 35 percent of microplastic flows into the oceans and outweighs the carbon footprint of international flights and shopping combined. Consumers have demanded a cleanup, and 2020 will see the industry accelerate its engagement.
Sustainability awareness is increasingly impacting purchasing behaviors, although there remains a big gap between what people say and what they do. Still, fashion can no longer afford to ignore its customers’ preferences, even amid confusion over what sustainability really means.
4. Luxury shops are embracing streetwear.
While the streetwear fashion segment has been steadily developing in recent years, the epidemic has hastened the trend toward more casual clothing. Many luxury labels, such as Louis Vuitton, have incorporated streetwear trends into their collections in order to appeal to fashion-conscious millennials with greater discretionary cash. Fashion partnerships with influencers became popular in 2020. For example, LV teamed up with BTS, a big global influencer and the world's number one K-Pop band.
5. Cultural diversity
Fashion is a natural advocate for diversity, inclusion, and liberal principles because it is a creative sector. For years, though, diversity has meant little more than throwing in a black model on the catwalk or on the cover of a magazine. All of that is beginning to change, and we expect large corporations to take significant measures in the next year to create a truly inclusive culture from top to bottom.
