Firstly, the Covid-19 crisis has decimated the global fashion industry and its supply chains – and its impact is likely to weigh on the sector until at least 2024, according to a new report with recovery set to take time and different paths in all regions, here are ten themes that will shape priorities for the year ahead.
The crisis has also intensified key consumer trends that were already reshaping the fashion industry, especially the acceleration in online sales, which has seen six years of growth in just eight months. There has also been growth in the athleisure and casualization as well as heightened interest in sustainability concerns.
As such, the 4 themes for the state of fashion 2023 each highlight a major disruption sparked by Covid-19 offering insights that will shape priorities for the year ahead.
Below are 4 Trends Set to Shape The 2023 Fashion Industry
Fashion Industry – Living With the Virus
The Covid-19 crisis has impacted the lives and livelihoods of millions of people, while disrupting international trade, travel, the economy and consumer behavior.
To continue to manage unprecedented levels of uncertainty in the year ahead, companies should rewire their operating models to enable flexibility and faster decision-making and balance speed against discipline in the pursuit of innovation.
Fashion Industry – Opportunistic investment
Performance polarization in the fashion industry accelerated during the pandemic as the gap widened between the best-performing companies and the rest. With some players already bankrupt and others kept afloat by government subsidies, M&A activity is expected to increase as companies manoeuvre to take market share, unlock new opportunities and expand capabilities.
Fashion Industry – Work Revolution
Prompted by fundamental changes in the way companies worked during Covid-19 and the need to drive performance in the years to come, an enduring new model for work is likely to emerge, companies should therefore refine their blends of remote and on-premises work, invest in reskilling talent and instil a greater sense of shared purpose and belonging for employees.
Fashion Industry – Retail ROI
Physical retail has been in a downward spiral for years and the number of permanent store closures will continue to rise in the post Covid-19 period, compelling fashion players to rethink their retail footprints. Amplified by a potential power shift from landlords to retailers and the need to seamlessly embed digital, companies will need to make tough choices to improve ROI at store level.
