The Business of Fashion and McKinsey & Company says the fashion industry is all set to flourish in the coming years
Recently, The Business of Fashion and McKinsey & Company released insights from their State of Fashion 2022 report that carries opinions by over 220 international fashion experts. According to the report, the future of fashion looks bright with the digital boom, domestic luxuries and product passports as the way forward.
Now, let us explore the areas where the fashion industry is set to rule:-
- The Digital Arena
With the increase in the Digital Environment, the multi-dimensional virtual world has become a prime channel for fashion brands looking to tap the younger slew of customers.
Frankly speaking, the world of Metaverse and NFTs shall soon set in. Metaverse is the virtual reality space where users can interact with others and NFTs are digital assets that can be bought & sold using blockchain technology with a computer-generated environment. The Metaverse shall thus increase the opportunities for both audience growth and income generation for fashion brands and can monetize their digital products. The global gaming industry can see rapid growth worth $219 billion by 2024.
- The Sustainable Style
closed-loop recycling, a trend that will increase the business in 2022. Closed-loop recycling is the process by which a product or material can be used and then turned into a new product without losing its properties during the recycling process.
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According to the textile exchange, this technology could help a business reduce its impact on the environment. Therefore, about 60% of the fashion executives have either invested or plan to invest in closed-loop recycling by next year and expect a significant change.
Here are some of the anticipated changes:
- Domestic Luxuries:- International Tourism won’t fully recover until at least 2023. To compensate for the loss of international shoppers, the luxury brands should engage further with the domestic consumers and capture a bigger share of the domestic market.
- The Wardrobe reboot:- As the social restrictions ease post the covid-19 pandemic, the consumers would start spending on other products as they adjust to new lifestyles.
- Metaverse Mindset:- Fashion brands looking to engage with young consumers should explore NFTs, gaming and virtual fashion as the new routes to connect.
- Product Passports:- Brands are using product passports to share information with consumers and partners to increase transparency, authentication and sustainability.
- Cyber Resilience:- Businesses face more threats of cyber attacks and risks of improper data handling than ever before. Fashion players must urgently improve their defences and make digital security a strategic imperative.
- Talent Crunch:- In order to attract and retain the best talent, companies must create flexible, diverse and fully digitised workplaces.
In short, after almost two years of disruption, the global fashion industry is on the way towards recovery; and this should provide some comfort and relief to the industry. Businesses should be careful with the supply chain so that the rising costs and logistics won’t hamper the consumers. Safe Business leads to a happy business.
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