globalEDGE Blog - By Tag: fashion

During the mid-1970s, wide-leg pants gained popularity among both men and women in Europe and North America. 50 years later, they're coming back in style.

While the words "accessible luxury" may first appear to be an oxymoron, the concept has grown vastly in the past few years. The definition is pretty broad, but typically, accessible fashion includes better quality material and craftsmanship; however, their products are not quite as expensive as the stereotypical luxury companies such as Gucci or Louis Vuitton. Some popular accessible luxury companies include Calvin Klien, Coach, J Crew, William Sonoma, and MAC.

The influence sustainability has on the global market is rapidly increasing. As more and more people value the environmental impacts of their purchases, demand for sustainable fashion is quickly increasing. Companies that incorporate sustainable initiatives into their products have the potential to grow significantly in the near future. As of 2022, 78% of consumers in the Netherlands incorporate sustainability into their purchasing decisions. Additionally, younger generations value sustainable products more than earlier generations, with Generation Z valuing them the highest. 75% of Generation Z value buying sustainable products over purchasing name-brand products.

The fashion industry is a renowned industry with a deep history. The market took a deep plunge in 2020 but is recovering to levels not even before the 2020 drop. However, the market shift towards sustainability surprises companies as many push to adapt.

Many countries are focusing on sustainability and how they can work to prevent global warming. Sustainable fashion is one option that can make a substantial impact. In 2018, the fashion industry accounted for 2.1 billion metric tons of greenhouse gas (GHG) emissions, which is equivalent to the entire economies of France, Germany, and the United Kingdom combined. The responsibility for change is falling on manufacturers, brands, consumers, and policymakers. As the apparel retail market continues to grow, the need for sustainable fashion and sustainable shopping behaviors becomes more essential to reach the 1.5-degree pathway. Japan, Singapore, and the United Kingdom are just a few countries trying to lead the way for sustainability in the fashion industry.

As the TikTok app gains popularity among multiple age groups across the globe, information is spreading quickly and videos are going viral almost instantaneously. Growing like no other app, TikTok has been the world’s most downloaded app since early 2020, providing another platform for businesses both big and small to influence users. One recent sensation is Shein, a Chinese online retailer focused on clothing, accessories, shoes, bags, and other fashion items for all ages. Shein is known for cheap prices that appeal to the teenage eyes, which tend to be the most active on TikTok.

Fashion has been an age-old expression of culture, style, and art. For two weeks, cities hold fashion shows where they display an array of styles to spread awareness about new arrivals in trends. The primary fashion weeks worldwide are Paris Fashion Week, New York Fashion Week, London Fashion Week, and Milan Fashion Week. Most of these have wrapped up this past week, and Paris Fashion week has just started. To the public it is flashy lights, supermodels, and an influx of new trends, but what does it look like behind the scenes? How does this affect the economy and the environment? Is it worth it?

Luxury brands have always been a huge player in the economy. According to a market report, the luxury fashion market is estimated to be around $110.64 billion in 2020 with continued growth. However, since the arrival of Coronavirus in 2019, the world has been changing in unimaginable ways. It has affected all aspects of our lives from lifestyles to buying patterns. The luxury fashion market was also a victim, contracting for the first time since 2009. In addition to its market size and revenue, this industry is going through some other changes.

At the beginning of the COVID-19 pandemic, the economic outlook for retail stores did not look promising; as countries put “stay at home” orders in place, it looked like online shopping was going to become the future of retail. Yet, recent research shows that retail stores might be more popular than we thought, and they are expected to make a big comeback.

In recent years, the fashion industry has faced significant changes in the designing, manufacturing, and selling of apparel.  The transition is from a more traditional “seasonal” fashion cycle to the “fast fashion” method of producing clothing items.  Fast fashion offers consumers clothing at a quicker pace and fast fashion companies such as Sweden-based H&M and Spain-based Zara are organized differently than higher-end fashion brands that have been operating on the seasonal fashion cycle for years.

A health-and-wellness storm has been sweeping through countries around the world. It has affected and shaped numerous industries, from food to technology. Of course, the ever-changing fashion industry is hopping on the bandwagon as well. This time, it has partnered with the sports industry to create apparel that can be worn not only during workouts. Athleisure wear gave exercise attire a stylish twist in addition to innovative fabrics that are designed for people to have a laid-back, yet stylish lifestyle.

Indian apparel exporters have got some things to worry about on their hands: the flat growth of apparel demand in the United States for the last eight months and the severe demand slowdown in the European Union (E.U.). Retail sales in the U.S. have remained flat during 2019, following growth of approximately 4.6 percent during 2018. What might follow this is an undoubted effect on order flow but could also result in a renegotiation of trade regulations and the receivable cycle for Indian exporters.

E-commerce sales have been growing over the past decade at a rapid rate and the online retail economy is booming. According to the US Census Bureau, 9.6% of all retail sales were from e-commerce sales during the second quarter of 2018. This percentage was only 4.4% in the second quarter of 2010. This post will discuss the reasons behind the shift from brick-and-mortar businesses to online retail stores.

One of the major trends in the fashion industry for 2018 will be the rise of vegan fashion, according to The Future 100 report from J. Walter Thompson Intelligence.  As social media use has risen throughout recent years, it has become easier for individuals to share opinions on various social and environmental issues with others all over the globe.  One issue that has attracted media attention is the treatment of animals in the fashion industry.  According to People for Ethical Treatment of Animals, more than a billion animals are killed every year in the leather industry.  Also, many of the chemicals used in the tanning process have a harmful effect on the environment and on the workers that handle them.  As millennials gain buying power, it is important for companies to reflect the same values as their customers, and 66% of Millennials all over the world reported that they are willing to spend more on fashion brands that provide sustainable and eco-friendly products.

A collaboration between Supreme, a top-tier streetwear brand, and Louis Vuitton, a high-end fashion company, has produced a hoodie that costs upwards of $7 thousand.  Another collaboration between Supreme and The North Face, a winter outerwear company, gave way to a $600 backpack.  So what’s causing this uptick in prices for everyday items?  Streetwear—the casual clothing of a style worn especially by members of various urban youth subcultures—is one of the world’s fastest growing industries, with an estimated value of $309 billion.

As political season in China begins between the National People’s Congress and the Chinese People’s Political Consultative Conference, there have been concerns with the consumption of luxury goods. China has gone to extremes measures to prevent the issue of inequality by banning politicians to speak publicly about spending on luxury goods. With increases in social media, people have been able to show how wealthy they are by posting to websites such as Tumbler, Instagram, Twitter, and Facebook. Recently, there was an online argument between a Chinese socialite and a member of a sports car club over who has more money. As Asian countries begin to crack down on the over the top display of wealth, could luxury goods retailers be affected?

Retailers around the world are beginning to test new strategies that are designed to strengthen their brand and increase their relevance to customers. One strategy that is gaining increasing popularity around the world is Fast Fashion – read more about it in February's Newsletter.  Another strategy being used by clothing manufacturers is producing their products using Fair Trade principles.

What is the first thing that comes to mind when you think fashion? Glamorous shows? A plethora of famous names? How about an international business?

The fashion industry is hard to get into and just as hard to keep up with. Trends are constantly changing which creates the need for extensive research which in the fashion industry is known as fashion forecasting. It is the process of analyzing past buying patterns and using them to make projections about the future. This is what defines the new trend for the season. It is presented to critics and customers in what is the most significant event in the industry - fashion week.

The fashion industry makes up a major portion of the retail around the world. Fashion retailers are found in every country, each one trying to have the latest trends at the best price. However, this is much more difficult than it may sound. There are people working ‘round the clock to ensure that fashion retailers know what is going to sell next.