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The eighth annual State of Fashion Report, produced by The Business of Fashion and McKinsey & Company, reveals that the industry is full of deep uncertainty and opportunity.
The sector has more than doubled its economic profitability in the last 10 years, except for one year. Looking ahead to 2023, the European and US markets experienced slow growth throughout the year, while China's initially strong performance slowed down in the second half. If we look at it in terms of luxury consumption, it increased positively in the first half of 2023, but demands decreased in the second half.
From a 2024 perspective, the most frequently mentioned word in executive surveys is "Uncertainty". Although this uncertainty is related to economic, climatic, political and regulations, when looked at as a whole, an annual increase of 2% to 4% is predicted for the retail sector.
In addition to economic difficulties, the biggest threat is seen as the climate crisis. It is now a necessity for fashion brands to have various action plans regarding climate. Extreme climate events can endanger the lives and livelihoods of employees and disrupt supply chains.
Demand fluctuations experienced in the last few years are expected in 2024. This will require brands to invest in developing more transparent and collaborative relationships with their suppliers.
Additionally, supply chains will be under greater scrutiny with various regulations coming to the fore, and initiatives that protect natural resources and reduce greenhouse gas and waste emissions will need to increase.
Data shows that it is a fact that consumers are more demanding as long as brands can present a story to the consumer and create originality. In addition, it is seen that travel levels will exceed 2019 for the first time after the Covid-19 epidemic. This will increase the time spent outdoors and therefore the demand for outerwear.
10 Fashion Themes That Will Set The Agenda For 2024;
1- Unstable Global Economy
2- Climate Urgency
3- Intensive Travel Year
4- The New Face of Marketing with Influencers
5- The Rise of Outdoor Collections
6- The Creativity Potential of Artificial Intelligence
7- Adaptation Skills of Fast Fashion
8- Marketing: Creating Emotional Bonds with Brands
9- Sustainability Rules
10- Sudden Changes in Consumer Demand
