Macro trends in fashion PDF

Preview

Summary

how societal trends affect the fashion industry...

Description

THE MACRO ENVIRONMENT- broader context view of what is happening in the world which enables a development for a strong, informative reasoning. https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/Its%20 time%20to%20rewire%20the%20fashion%20system%20State%20of%20Fashion%20coro navirus%20update/The-State-of-Fashion-2020-Coronavirus-Update-final.ashx Achim, B., Antonio, G., Hanna, G. 2020. A Perfect Storm for Fashion Market Places. [Online]. [Date accessed 14 September 2020]. Available from: https://www.mckinsey.com/industries/retail/our-insights/a-perfect-storm-for-fashionmarketplaces# -Panelists agree that corona has increased used of digital media and that companies will have to engage with consumers in a different way. Consumption is changing because customers are beginning to care about sustainability. -Sales began to change for Vesitaire Collective in January as they have business in Hong Kong. Sales began to accelerate in February, 15-20% above February level and experienced record day. -Clear shift to online shopping, instagram usage increased as well as demand for digital insight. -Sustainability is becoming a bigger part of decision making process, -growth in homewear, sportswear and casual clothes -Businesses will recover depending on how quickly they can adapt with the use of apps etc -Companies have big inventory pile ups -Now is the time to invest in e-commerce marketing, from April to September 35%-40% sales will take place online. Digital is here to stay

Filippo, B., Pierre, D., Krueger,. F. 2020. Fashion’s Big Reset. 2020. [Online]. [Date accessed 14 September 2020]. Available from: https://www.bcg.com/engb/publications/2020/fashion-industry-reset-covid -Industry revenue could drop by 1/3 which could be up to $640 bill lost in sales

-drop in sales will lead to new shape of profit&loss, shift to digital and omnichannel distribution (multichannel sales approach integration different methods of shopping such as online and in store) -pandemic will cause recession, people have lest disposable income to spend on fashion -pandemic has caused first time e-commerce shoppers 14% usa and 17% in china bought items online for first time because of covid. -spending will decline but casual wear, active, beauty etc interest will increase at the expense of handbags etc. -digital and social media sales will increase, particularly due to the use of mobiles. Brands need to strengthen online presence -retail stores are more likely to be smaller due to people shopping online -midrange brands at risk due to people shopping at low price or premium -brands must reset distribution footprint. Increase in online shopping while department stores are closing. -brands need to reduce supplier cost and increase flexibility. Brands with stronger supply chain will recover quicker. They need an agile in-season inventory management -consumer tastes moving towards casual and home categories...