Post by account_disabled on Mar 4, 2024 23:18:22 GMT -5
Over the last few decades, the fashion industry and especially “fast fashion” have grown substantially, but they have also found themselves in the eye of activists and environmentalists. This is due to the negative environmental and social impact they have brought with them.
However, such growth took a radical turn during 2020. As the health crisis continued, the industry suffered its worst year on record: almost three-quarters of publicly traded companies lost money.
Consumer behavior changed, supply chains were disrupted and the year drew to a close with many regions in the grips of a second wave of infections.
State of Fashion Report 2021
Given this, BoF and McKinsey & Company produced a 2021 State of Fashion Report on the global fashion industry in 2021, which focuses on the issues, problems and opportunities affecting the sector.
State of Fashion Report 2021
According to this report and the analysis Chile Mobile Number List carried out, fashion companies will record a decrease of approximately 90% in economic profits in 2020, after an increase of 4% in 2019. Due to this and the current uncertainty, the report concludes two possible scenarios for 2021 in the performance of the industry:
Early recovery
The first, more optimistic “early recovery” scenario sees global fashion sales declining by 0-5% in 2021 compared to 2019. This would be based on successful containment of the virus in multiple geographies and a relatively rapid transition to economic recovery.
In this scenario, the industry would return to 2019 activity levels by the third quarter of 2022.
State of Fashion Report 2021
Late recovery
The second scenario is that of "late recovery." Sales growth would be seen to decline by 10-15% over the next year compared to 2019.
In this case, the virus would continue to wreak havoc despite widespread containment measures and fashion sales would only return to 2019 levels in the fourth quarter of 2023.
However, according to the report, in any scenario, they expect difficult business conditions to persist throughout 2021, at least in some geographies, and for high levels of bankruptcies, store closures and job cuts to persist.
At the same time, the pandemic will accelerate trends that were in motion before the crisis, as shopping goes digital and consumers continue to advocate for equity and social justice.
State of Fashion Report 2021 .
The change in consumer behavior
It is a fact that consumer behavior has changed over the last year. The confinement, travel restriction and massive closure of stores must have had consequences throughout the world.
However, according to the report, as digital consumption continues to dominate and grow in 2021, companies must develop more engaging social experiences to encourage consumers to connect.
It is necessary to note that as consumers become more aware of worker welfare issues and the human impact of factory closures, company leaders must uphold the highest ethical business practices and review business models. commercials that exploit people and the planet.
State of Fashion Report 2021 .
The 2021 State of Fashion Report forecasts the state of consumer changes in the global economy, which are divided into three specific areas:
Global economy.
Consumer shifts.
Fashion set.
As well as the 10 topics of the fashion industry that will mark the Agenda in 2021. We share them with you below.
10 topics in the fashion industry that will mark the Agenda in 2021
Global economy
1. Living with the virus
The COVID-19 crisis has affected the lives and livelihoods of millions of people, while disrupting international trade, travel, the economy and consumer behavior.
To continue managing unprecedented levels of uncertainty in the coming year, companies must reconfigure their operating models to enable flexibility and faster decision-making, and balance speed with discipline in the pursuit of innovation.
2. Decreased demand
Following the deepest recession in decades, the global economy is expected to partially recover next year, but economic growth will continue to decline relative to pre-pandemic levels.
State of Fashion Report 2021
With fashion demand also unlikely to recover due to restricted purchasing power amid unemployment and rising inequality, companies should take advantage of new opportunities and double down on top-performing categories, channels and territories.
Consumer shifts
3. Sprint digital
Digital adoption has skyrocketed during the pandemic, with many brands finally online and enthusiasts embracing digital innovations like live streaming, customer service video chat, and social shopping.
As online penetration accelerates and shoppers demand increasingly sophisticated digital interactions, fashion players must optimize the online experience and channel mix while finding persuasive ways to integrate the human touch.
4. Seeking justice
With garment workers, sales assistants and other lower-paid workers operating at the end of the crisis, consumers have become more aware of the plight of vulnerable employees in the fashion value chain.
State of Fashion Report 2021
As momentum for change grows alongside campaigns to end exploitation, consumers will expect companies to deliver more dignity, security and fairness to workers across the global industry.
5. Trip interrupted
The travel retail sector remains severely impacted and destination shopping suffered throughout 2020. With international tourism expected to remain subdued next year and shoppers experiencing further travel disruptions, Companies will need to better engage with local consumers, make strategic investments in markets experiencing stronger recovery, and unlock new opportunities for customers to continue shopping.
fashion set
6. Less is more
After demonstrating that more products and collections do not necessarily produce better financial results, COVID-19 highlighted the need for a change in profitability mindset.
Companies must reduce complexity and find ways to increase full-price direct selling to reduce inventory levels by adopting a demand-centric approach to their assortment strategy, while increasing flexible in-season reactivity for both new products. as for replenishment.
7. Opportunistic investment
Performance polarization in the fashion industry accelerated during the pandemic as the gap between the best-performing companies and the rest widened.
With some players already bankrupt and others kept afloat by government subsidies, M&A activity is expected to increase as companies maneuver to take market share, unlock new opportunities and expand capabilities.
However, such growth took a radical turn during 2020. As the health crisis continued, the industry suffered its worst year on record: almost three-quarters of publicly traded companies lost money.
Consumer behavior changed, supply chains were disrupted and the year drew to a close with many regions in the grips of a second wave of infections.
State of Fashion Report 2021
Given this, BoF and McKinsey & Company produced a 2021 State of Fashion Report on the global fashion industry in 2021, which focuses on the issues, problems and opportunities affecting the sector.
State of Fashion Report 2021
According to this report and the analysis Chile Mobile Number List carried out, fashion companies will record a decrease of approximately 90% in economic profits in 2020, after an increase of 4% in 2019. Due to this and the current uncertainty, the report concludes two possible scenarios for 2021 in the performance of the industry:
Early recovery
The first, more optimistic “early recovery” scenario sees global fashion sales declining by 0-5% in 2021 compared to 2019. This would be based on successful containment of the virus in multiple geographies and a relatively rapid transition to economic recovery.
In this scenario, the industry would return to 2019 activity levels by the third quarter of 2022.
State of Fashion Report 2021
Late recovery
The second scenario is that of "late recovery." Sales growth would be seen to decline by 10-15% over the next year compared to 2019.
In this case, the virus would continue to wreak havoc despite widespread containment measures and fashion sales would only return to 2019 levels in the fourth quarter of 2023.
However, according to the report, in any scenario, they expect difficult business conditions to persist throughout 2021, at least in some geographies, and for high levels of bankruptcies, store closures and job cuts to persist.
At the same time, the pandemic will accelerate trends that were in motion before the crisis, as shopping goes digital and consumers continue to advocate for equity and social justice.
State of Fashion Report 2021 .
The change in consumer behavior
It is a fact that consumer behavior has changed over the last year. The confinement, travel restriction and massive closure of stores must have had consequences throughout the world.
However, according to the report, as digital consumption continues to dominate and grow in 2021, companies must develop more engaging social experiences to encourage consumers to connect.
It is necessary to note that as consumers become more aware of worker welfare issues and the human impact of factory closures, company leaders must uphold the highest ethical business practices and review business models. commercials that exploit people and the planet.
State of Fashion Report 2021 .
The 2021 State of Fashion Report forecasts the state of consumer changes in the global economy, which are divided into three specific areas:
Global economy.
Consumer shifts.
Fashion set.
As well as the 10 topics of the fashion industry that will mark the Agenda in 2021. We share them with you below.
10 topics in the fashion industry that will mark the Agenda in 2021
Global economy
1. Living with the virus
The COVID-19 crisis has affected the lives and livelihoods of millions of people, while disrupting international trade, travel, the economy and consumer behavior.
To continue managing unprecedented levels of uncertainty in the coming year, companies must reconfigure their operating models to enable flexibility and faster decision-making, and balance speed with discipline in the pursuit of innovation.
2. Decreased demand
Following the deepest recession in decades, the global economy is expected to partially recover next year, but economic growth will continue to decline relative to pre-pandemic levels.
State of Fashion Report 2021
With fashion demand also unlikely to recover due to restricted purchasing power amid unemployment and rising inequality, companies should take advantage of new opportunities and double down on top-performing categories, channels and territories.
Consumer shifts
3. Sprint digital
Digital adoption has skyrocketed during the pandemic, with many brands finally online and enthusiasts embracing digital innovations like live streaming, customer service video chat, and social shopping.
As online penetration accelerates and shoppers demand increasingly sophisticated digital interactions, fashion players must optimize the online experience and channel mix while finding persuasive ways to integrate the human touch.
4. Seeking justice
With garment workers, sales assistants and other lower-paid workers operating at the end of the crisis, consumers have become more aware of the plight of vulnerable employees in the fashion value chain.
State of Fashion Report 2021
As momentum for change grows alongside campaigns to end exploitation, consumers will expect companies to deliver more dignity, security and fairness to workers across the global industry.
5. Trip interrupted
The travel retail sector remains severely impacted and destination shopping suffered throughout 2020. With international tourism expected to remain subdued next year and shoppers experiencing further travel disruptions, Companies will need to better engage with local consumers, make strategic investments in markets experiencing stronger recovery, and unlock new opportunities for customers to continue shopping.
fashion set
6. Less is more
After demonstrating that more products and collections do not necessarily produce better financial results, COVID-19 highlighted the need for a change in profitability mindset.
Companies must reduce complexity and find ways to increase full-price direct selling to reduce inventory levels by adopting a demand-centric approach to their assortment strategy, while increasing flexible in-season reactivity for both new products. as for replenishment.
7. Opportunistic investment
Performance polarization in the fashion industry accelerated during the pandemic as the gap between the best-performing companies and the rest widened.
With some players already bankrupt and others kept afloat by government subsidies, M&A activity is expected to increase as companies maneuver to take market share, unlock new opportunities and expand capabilities.