Despite swimming against the rising tide of high costs of raw materials, complicated shipping and transportation logistics, increased inflation and higher cost of living in post-pandemic years, a reasonably good growth in global fashion sales is expected in 2023 by most fashion retailers.

Global fashion companies are now focussing on strong sourcing diversification, supply chain agility, and sustainable operations to circumvent the current crunch and effectively sail through 2023 with their head above waters.

Despite the growth slowdown in the second half of 2022, which is likely to continue through 2023, the appeal industry has earmarked some clear area-wise global winners and high-performance sectors such as the luxury segment within the fashion apparel sector. According to a recent McKinsey report titled ‘The State of Fashion 2023’, the expectation is global fashion sales growth will be 5 to per cent for luxury and a negative 2 per cent to a positive 3 per cent for the rest of the industry in 2023, as sluggish sales growth slowly tries to return to pre-pandemic times.

Global region-wise alterations in performance

Clear area-wise alterations in performance are expected within the sector with Europe witnessing lean growth in 2023 although China and the US markets are likely to fare better, increasing between 2 and 7 per cent and 1 and 6 per cent, respectively. The McKinsey report also points out that the Middle East fashion market along with parts of Asia Pacific will be quickly developing this year with many fashion brands and apparel companies planning to re-direct their operations to these areas soon as their higher precedence territories.

Brands now need to carefully plan trademark protection in new areas such as the Middle East to make the most of their 2023 expansion. The rising geopolitical uncertainty and uneven economic recoveries post pandemic will make re-direction of markets even more challenging. Fashion brands need to update their operating models, fine-tune their strategies for their supply chain, sales channels, and digital marketing as well as create an all-new portfolio for the coming few seasons.

In dealing with inflation and geopolitical concerns, the McKinsey report points out fashion companies that can adjust to the growing complexity by updating their operating models and fine-tune their strategies for supply chain, sales channels, and digital marketing will be best positioned to weather the upcoming storm.

Rapid change in modern fashion trends

Gender-fluid fashion is now on-trend as consumer attitudes toward gender identity and expression are rapidly changing with lines blurring between menswear and womenswear which will require brands to rethink their product design, marketing, and in-store and digital shopping experiences. The formal wear dress code is now also changing as office events become more casual and special occasions like weddings requiring statement-making outfits that are rented or bought to stand out.

Anything that is considered fashionable will stand out this season, be it trendy Polo T-shirts or casual fashionable shirts, with the top-wear segment sales figures far higher than bottom-wear. Two-track spending is expected as different income level consumers will be affected differently by the economic turbulence in 2023, which will increase demand for resale, rental, and off-price products.

Rental products will be trending with dedicated platforms, brands, retailers and even media groups offering rental over buying in a post-pandemic party surge that will make this sector worth over $2 billion globally by 2025. Throughout 2022, new rental offerings were introduced across the price spectrum by brands such as H&M, Marks & Spencer in the middle range and Matches Fashion Rental at the luxury end along with the launch of US-based ModLuxRent by Modern Luxury Media among others. With a finger on the pulse of changed consumer demands with tighter purse strings, fashion brands can still keep their profits soaring, if they play the cards right.

By Fashionating World
https://www.fashionatingworld.com/new1-2/global-fashion-sales-optimistic-about-2023-despite-impediments