10 trends to define the fashion agenda in 2018

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10 trends to define the fashion agenda in 2018

In the New Year, the new model will shape the global fashion industry, from the voices of asians to the reboot of globalisation, revealing the depth of the BoF and McKinsey companies’ “fashion states of 2018”.

London, UK – a difficult but improved 2017 will continue to recover in 2018. The McKinsey global fashion index predicts that global fashion sales will grow 3.5% to 4.5% in 2018. But this growth does not balance all regions or segments. In the asia-pacific region, officials from emerging European countries and Latin America have been more optimistic about the overall business prospects of emerging markets in response to the bof-mckinsey global fashion survey.

The insights from our survey, as well as the study of executives and experts in the fashion industry throughout the year, have identified ten trends that we expect to shape the fashion industry in 2018. These ten trends fall into three broad categories: the global economy, consumer shifts, and the changing fashion system. To sum up, for fashion players in 2018 will be another challenging year, but for those who are willing to help the new functions of the system of modern fashion design and trendsetter, 2018 will also provide a lot of excitement.

Gone are the days when western markets were global economic powers. Economic growth is shifting from mature western regions to emerging markets in the south and east. By 2018, more than half of sales of clothing and footwear will come from outside Europe and North America, according to McKinsey’s FashionScope. Fast-growing cities in emerging markets are particularly important growth hubs for the fashion industry. Many established companies in the developed world face a stagnant sales outlook and profitability, and new growth areas must be sought.

In addition, the use of advanced robot, mobile Internet, advanced analysis, virtual and augmented reality and are accelerating disruptive technologies such as artificial intelligence, is likely to destroy the entire industry, including fashion. With the rise of digital cross-border trade, the “local heroes” with average value proposition are increasingly struggling to compete in the face of a theoretical global champion.

The global fashion industry is entering a decisive phase in the digital adoption of mainstream consumers, and online sales of clothing and footwear are expected to grow rapidly in emerging markets. On average, consumers in southeast Asia spend about eight hours a day online; From social media to video streaming and shopping, and so on. Modern shoppers’ comfort with digital channels and content has transformed the journey of consumer purchases from a traditional linear model to a complex journey between online and offline contact points. But whatever the point of contact, consumers want a consistent brand experience.

The number one e-commerce company from amazon to Zappos, and alibaba to net-a-porter, are constantly raising standards, especially for fashion companies eager to offer a more premium experience. Many consumers today expect perfect functionality and direct support. As players constantly speed up the product competition, they are used to fast delivery, as our partnership through Farfetch and Gucci, or a shorter period of time, on 90 minutes in selected cities provide delivery to the customer’s home from the store. Customers are also looking at new channels of communication. Social media users in the Philippines, Brazil and the united Arab emirates report that they now spend an average of more than three hours a day on these platforms. This has had a profound impact on fashion because purchasing decisions are influenced by social media, peer reviews and influencers.

As consumer information and easy to compare, the brand loyalty of consumer is more and more low: in the millennial generation, two-thirds of consumers said they would like to swap brands for a discount of 30% or more. But while they are very price-sensitive, they will also make more purchasing decisions based on the company’s practices and values. This is a generation that should be able to offer higher expectations: convenience, quality, value orientation, novelty and price.

With the development of online movement, the physical traffic volume of many fashion companies has declined sharply. They are looking for ways to reduce store operating costs, re-evaluate store networks and innovate in-store experiences to attract customers. Digital transformation is harder than others. In recent years, for example, sales of department stores in the United States have fallen sharply and mall closures are expected to increase. Weak sales of department stores, combined with improved margins and control of brand image, price cuts and customer data, are leading brands to shift to direct sales to consumers. While many fashion players are trying to provide seamless shopping travel with cross-contact points, the hurdles remain high, the technology is complex, and operations, logistics, organization and management headaches. Moreover, the efforts of the whole channel are often difficult to deliver. Meanwhile, the fashion world is being disrupted by innovative business models. For example, from data-driven subscription services such as Stitch Fix to sharing economy startups (such as VillageLuxe) and peer-to-peer sales on Grailed.

The proliferation of data and exponential growth in technical performance have opened the door to the use of big data. Use rich data and detailed customer insight to provide information for decision making, providing business opportunities from the fashion value chain, from dynamic pricing to optimizing product replenishment. While the benefits of using data may be large, new challenges arise, such as protecting customer data and privacy.

The fast pace of the industry is shaking the fashion system. Sales of the traditional fast fashion industry have grown more than 20% in the past three years, and the new Internet fast fashion industry is growing. To stay ahead of the game, leading fashion players are accelerating their time from design to shelf life, including the recent announcement that Gucci will focus on supply chain optimization and response (chart 5). This “speed demand” segment has been driven in part by social media, bringing fashion trends to consumers more quickly than ever before. Industry leaders are also pushing standards because analysis and customer insights enable industry leaders to better meet customer needs and improve responsiveness. But speed and flexibility pose new challenges. To shorten the delivery time need to have major changes the traditional business model and setting up the supply chain, and will shift the focus to customer as the center of mode – is a design, production and sales of the main driving force. Fashion companies make a big difference today. If the company is still in accordance with the old rules to operate, and extended the end-to-end product development processes, but if you can’t meet customer demand, will face more risk and fashion of excess inventory. But other companies are building flexible supply chains to get higher quality consumer insights. On the speed of the leading fashion players are pushing the limits of its creative process, and is performing acrobatics of supply chain, close to the border by the “test and learn” and provide real-time supply chain data analysis. And shift the focus to customer-centric pattern-customers are the main drivers of design, production and sales. Fashion companies make a big difference today. If the company is still in accordance with the old rules to operate, and extended the end-to-end product development processes, but if you can’t meet customer demand, will face more risk and fashion of excess inventory. But other companies are building flexible supply chains to get higher quality consumer insights. On the speed of the leading fashion players are pushing the limits of its creative process, and is performing acrobatics of supply chain, close to the border by the “test and learn” and provide real-time supply chain data analysis. And shift the focus to customer-centric pattern-customers are the main drivers of design, production and sales. Fashion companies make a big difference today. If the company is still in accordance with the old rules to operate, and extended the end-to-end product development processes, but if you can’t meet customer demand, will face more risk and fashion of excess inventory. But other companies are building flexible supply chains to get higher quality consumer insights. On the speed of the leading fashion players are pushing the limits of its creative process, and is performing acrobatics of supply chain, close to the border by the “test and learn” and provide real-time supply chain data analysis. If the company is still in accordance with the old rules to operate, and extended the end-to-end product development processes, but if you can’t meet customer demand, will face more risk and fashion of excess inventory. But other companies are building flexible supply chains to get higher quality consumer insights. On the speed of the leading fashion players are pushing the limits of its creative process, and is performing acrobatics of supply chain, close to the border by the “test and learn” and provide real-time supply chain data analysis. If the company is still in accordance with the old rules to operate, and extended the end-to-end product development processes, but if you can’t meet customer demand, will face more risk and fashion of excess inventory. But other companies are building flexible supply chains to get higher quality consumer insights. On the speed of the leading fashion players are pushing the limits of its creative process, and is performing acrobatics of supply chain, close to the border by the “test and learn” and provide real-time supply chain data analysis.

Will be the top 10 trends in the global fashion industry agenda in 2018

Geopolitics, economic uncertainty and unpredictability are the new normal. Fashion companies and executives must be vigilant and flexible to adapt to changing circumstances, but they will increasingly focus on what they have.

Despite the rise of nationalism, isolationist rhetoric and regression, globalisation will not stagnate. The new phase of globalization, characterized by exponential growth of connectivity and digital data flows with cross-border bandwidth, will transform the global competitive landscape and give some competitive advantages.

With two-thirds of the world’s e-business unicorns, more than half of global online retail sales and countless Numbers and technological innovations, Asia is no longer waiting for the development of western companies. Asian companies will be more committed to their own power and leadership through innovation and global investment and expansion.

Consumers will increasingly be attracted to the online platform as the first search point and to their convenience, relevance and breadth. Whether popular, professional or high-end, we will continue to grow, attract more fashion brands, and find more effective sales channels. The question of fashion brands is no longer “if” but “how” to work with large online platforms.

As consumers become obsessed with mobile phones, end-of-service deals will shift. With a growing number of mobile payment solutions worldwide, consumers want fashion companies to cater to increasingly convenient mobile transactions.

Leading innovators will reveal the possibility of artificial intelligence in all parts of the fashion value chain, exploring new ways to create value in the fashion industry. The improvement of artificial intelligence will go beyond the traditional realm of machine tasks, into the process of creativity and customer interaction, blurring the boundary between technology and creation.

Sustainable development will evolve from the menu of marketing focused corporate social responsibility programs into the components of the system of planning throughout the value chain. More fashion brands will be taken from the supply chain of fiber phase can be recycled, and many fashion brands will through technical innovation to achieve sustainable development, thereby releasing efficiency, transparency, mission-driven and true moral upgrade.

Price falls industry growth continues to be such a concept, namely, it provides the resolution of excess stock and solutions to the problems of the slow growth, but the market is saturated and possible sales ban warned. As Europe and Asia become obsessed with the myth of the “panacea”, the fashion industry risks falling margins unless companies carefully consider their low-cost channel strategies.

With the industry desperately in need of innovation, more and more fashion companies will try to mimic the characteristics of start-ups such as agility, collaboration and openness. Traditional and traditional businesses will continue to be forced to open new talent, new ways of working, new partnerships and new investment models.

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