Often when we encounter a new year in fashion, our fashionista brains will automatically think trends – new and old, sequins or sparkles, pops of color, luxury drops, and so much more. Although these details are most eye-catching, fashion is so much more integral then the list above. Believe it or not, fashion is largely interwoven into global, political, economic, and social factors around the world.
The 10 themes that will be listed and discussed within this article are not just ‘trends’ that will determine the agenda of fashion, rather they have a bit more substance than that. So, let’s get into it.
- Unstable Global Economy: It is no secret that the economy has reached record high inflation rates, and with no end in sight, fashion houses may have to adapt their roadmaps to that of a more frugal-minded consumer.
- Regional Realities: With geopolitical issues rising in addition to inflation rates, deciding which markets fashion brands should invest in is a tough call to make, more now than ever. Brands are able to re-evaluate regional growth priorities and adapt their strategies to different markets in which they operate, but there is a chance the outcome will not be as successful as before with inflation looming overhead.
- 2-Track Spending: as mentioned above, inflation changes the consumer mindset. This coming year, the inflation rates are predicted to only increase. Depending on different factors of consumers such as disposable incomes levels, some will postpone larger purchases, or seek out bargains, which will increase resale demand.
- Fluid Fashion: Brands and retailers are taking an open-minded approach towards gender fluid fashion. With this new adaptation, brands will need to reevaluate their product design, marketing efforts, and in-store and online shopping displays and experience.
- Formalwear Reinvented: With COVID keeping everyone at home in 2020, people’s work attire became laid back and comfortable. 3 years later and those attitudes are still being designed into modern day fashion with formal attire becoming more casual.
- DTC Model in Question: Digital marketing and e-commerce efforts have put the direct-to-consumer model into question. In order for brands to grow, they will need to pivot by diversifying their channel mix to include wholesale and third-party marketplaces in addition to the DTC.
- Greenwashing: We have covered the negative effects of greenwashing in the fashion industry before on our blog. As concern rises for the environment, more brands pivot to show they are being conscious about how their products affect the environment, whether it is a factual claim or not. Make sure to do your research before purchasing!
- Supply Chain Disruption: With constant supply chain interruptions, textile manufacturers can create new models based on vertical integration rather than the horizontal approach they are currently using. A vertical integration within the supply chain will allow companies to focus on in-house product development rather than outsourcing to an external supplier. This might help the company produce smaller batches and allow some breathing room and digestion for the company to adapt to supply chain issues.
- Digital Marketing Reloaded: Customer targeting is becoming less effective and more costly. Brands will embrace creative campaigns and new channels, such as retail media networks and the metaverse, with the hopes of achieving a greater ROI on marketing spend.
- Strategic Alliance: If a fashion company can stay aligned with its goals and pivot when needed, it will have a successful year despite any economic downturn.
With the uncertainty of the economy and an ever changing society, the fashion industry is in for a difficult year ahead, but if adaptive and strategic, it should be able to weather the storm.
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