Spike in consumer travel sparks new opportunities for fashion sector
25-1-2024
SPIKE IN CONSUMER TRAVEL SPARKS NEW OPPORTUNITIES FOR FASHION SECTOR
Just Style reveals three key growth opportunities for the fashion sector given 2024 is set to be the biggest year of travel since before the pandemic.
Fashion brands and retailers are being urged to refresh distribution and category strategies to meet travellers wherever they are in 2024.
According to McKinsey’s State of Fashion 2023 report, 80% of consumers surveyed in the US, UK and China expect to shop for fashion while embarking on travel in 2024, with 28% planning to spend more than the previous year.
Plus, global travel is projected to exceed pre-pandemic flows for the
first time in 2024, reaching up to 110% of 2019 levels.
McKinsey‘s report highlights the growth in hybrid working models and working from home since the pandemic as well as ‘workcations’ where employees choose to extend work trips abroad as some of the reasons why travel is expected to grow in 2024.
For many consumers, travelling and shopping go hand in hand. Luxury fashion conglomerates such as LVMH and Kering have cited tourists, specifically Americans
in Europe, as a key driver for increased sales in the first half of 2023, which grew 47% and 53% respectively. Moreover, the BoF-McKinsey State of Fashion 2024 Consumer Survey found 80% of global respondents expect to shop for clothes, footwear and accessories while travelling in the year ahead, with 28% expecting to spend more than the previous year while travelling.
McKinsey adds that for fashion brands and retailers, these travelling consumers will
provide new growth opportunities.
Travel’s new growth opportunities for fashion sector
1. Tapping into new travel destinations
More than half of the respondents to the BoF-McKinsey consumer survey said they are seeking destinations they haven’t visited before in the year ahead. Smaller cities including Edinburgh in Scotland; Lisbon in Portugal; and Osaka in Japan witnessed surging popularity in 2023.
Some fashion brands are already adjusting where and how they connect with shoppers. In some cases, this has meant expanding store networks into second-tier
cities. Japanese fashion brand Uniqlo has accelerated its new openings and has plans for a store in Scotland, on Edinburgh’s Princes Street this year, alongside plans to increase its presence in North America. French luxury fashion brand Chanel also opened its first Scottish pop-up in the city last summer.
In other cases, it has meant capitalising on trending locations from popular culture. This is what LVMH’s luxury fashion brand Louis Vuitton did in Taormina, Sicily, where it opened a branded café and boutique in 2023 after the hilltop town served as the backdrop of TV series, The White Lotus.
2. Tapping into new category preferences
The BoF-McKinsey consumer survey found nearly 40% of consumers purchase new clothing to wear on holiday and resort fashion is a key beneficiary of travel’s
growth, with luxury etailers such as MyTheresa seeing vacation category sales in 2022 being triple that of 2019 levels.
In the mass fashion market, Spanish fashion brand Mango launched a designer collaboration in 2023 with California-based lifestyle brand Simon Miller to create a colourful capsule beachwear collection.
3. Adapting to where and when fashion consumers want to shop
McKinsey’s report suggests travel’s rebound creates an opportunity for fashion executives to view their global growth maps with a new lens.
As customers seek out more unique, off-the-beaten-path experiences, fashion players should consider proactively identify emerging hotspots, while innovating marketing initiatives and piloting activations that resonate with 2024’s travel
zeitgeist.
Partnerships with adjacent industries, such as travel adventure, hotels, spas and restaurants, can enable brands and retailers to create compelling blended experiences no matter where customers find themselves.
Overall, McKinsey says the key will be to keep pace with global customers, adapting to when, where and how they want to shop when on the road.
By Just Style
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