The two biggest challenges for 2022 according to “The State of Fashion”: The repeatedly interrupted supply chain and the resulting extra costs as well as the high logistics costs associated with it. Point 2 (and that’s great): sustainability. Businesses need to rethink their procurement strategies to meet consumer demand. Let’s keep our fingers crossed that honest strategies are being developed here instead of supposedly satisfying needs with greenwashing. Good to know: The biggest winners in 2021 were sportswear brands, luxury companies and Chinese companies.
Knowledge Snippits by “The State of Fashion”: McKinsey expects this for 2022
👉🏻 Even if total sales are expected to recover next year, the development will differ from region to region. As in this year, the greatest growth will take place in the USA and China. Europe remains behind.
👉🏻 The reduced international tourism continues to have an impact on the form of consumption. In other words: Domestic spending will increasingly come into focus. This is why the issue of retail presence will have to be on the agenda for fashion companies. Even if it is uncertain whether these changes in behavior caused by the pandemic will be permanent.
👉🏻 Discount and luxury fashion will also perform above average in 2022.
👉🏻 The challenges that have to be overcome are logistical bottlenecks, delays in production, high shipping costs and material shortages. The predicted result: higher prices for customers.
👉🏻 Industry leaders have taken bold steps in the digital realm and will continue to do so.
👉🏻 Many brands will increasingly rely on circular business models, more environmentally friendly materials and more sustainable technologies. An important topic in this context is the blockchain.
👉🏻 Online business models and in-app trading will play an increasingly important role in sales and marketing.
Conclusion: Even if sales recover or even increase – the challenges for the industry remain great. Fashion companies have to be agile in order to be able to react to constantly changing conditions. This includes improving crisis management as well as balancing the needs of various stakeholders in order to create value for their customers, their shareholders and society in general.