2024面对时尚的未来报告

Five Key Structural Trends Shaping the Fashion & Apparel Industry

Introduction

Fashion and apparel is one of the fastest-paced industries, with trends constantly evolving, making it challenging to succeed. To thrive in the long term, brands need to adapt to both short-term and long-term trends. The Brazilian and British offices of OC&C have collaborated to understand the transformation in Latin America, the US, and Europe, with the UK serving as a reference due to its historical significance in the textile industry.

Short-Term Trends

Short-term trends vary by region:

• Brazil: Strong economic growth, higher consumer confidence, and lower inflation compared to long-term averages.
• UK: High inflation (almost double the long-term average) and sluggish GDP growth (around 0.5%), restricting consumer confidence and spending.
• US: Low consumer confidence masked by relatively strong GDP growth (2-3%).

Long-Term Trends

Five key structural trends are reshaping the industry globally:

1. Price & Value for Money

   • Consumers prioritize value for money over other factors.
   • Luxury and premium segments are growing faster than mass market.
   • Examples: Shein and Primark focus on low prices, while Reiss focuses on high-quality, durable items.
   • Data: 94% of UK consumers prioritize value for money when buying apparel.

2. Digital Capability

   • Online platforms play a significant role in discovery, research, and acquisition.
   • 60% of consumers start their apparel purchase journey online.
   • Influencer marketing and social media are crucial.
   • Example: FARM Rio leverages influencers in Brazil and uses AI for targeted sales in the US.

3. Omnichannel Experience

   • Shopping has become a hybrid experience with multiple touch points.
   • Ecosystem and experience consistency across channels are essential.
   • Example: Nike integrates physical and digital experiences, using apps for product scanning and exclusive content.

4. ESG & Sustainability

   • Reducing wastage is a priority.
   • Innovative operating models and supply chain innovations are needed.
   • Examples: Osklen uses sustainable materials like pirarucu fish leather and wood from demolished buildings.
   • Firebird sells sustainable childrenswear and has a second-hand platform for reduced environmental impact.

5. AI & Tech Enabled Operating Model & Supply Chain

   • AI and technology are critical for efficiency and cost reduction.
   • Examples: Using AI for demand forecasting, pre-order models, and resale/rental models.

Case Study: Lululemon

Lululemon exemplifies success by leveraging both short-term and long-term trends, driving revenue growth of over 25% in 2022-23.

Conclusion

By investing in these long-term trends and being disciplined in the short term, brands can drive successful growth. Successful examples include brands like Reiss, FARM Rio, Nike, Osklen, Firebird, and Lululemon.