Start-up thinking
Given the industry’s urgent need for innovation, a growing number of fashion companies will aim to emulate the qualities of start-ups such as agility, collaboration, and openness. Traditional and heritage players will continue to be compelled to open their minds up to new talent, ways of working, partnerships, and investment models.
Off-price deception
Off-price sector growth remains driven by the notion that it solves challenges like excess stock and slow growth, but the US market serves as a warning about saturation and possible sales cannibalization. As Asia and Europe get hooked on the myth, companies must consider their off-price strategies carefully to avoid margin erosion.
Sustainability credibility
Sustainability will become an integral part of the planning system, with circular-economy principles embedded in the value chain. More fashion brands will plan for recyclability from the fiber stage of the supply chain; many will harness sustainability via tech innovation to unlock efficiency, transparency, and genuine ethical upgrades.
AI gets real
Innovators will reveal the possibilities of artificial intelligence (AI) in all parts of the fashion value chain, exploring new ways to create value and redefine employees’ work–life outlook. AI enhancements will go beyond machine tasks into customer-interaction and other processes, blurring the line between technology and creativity.
Mobile obsessed
As consumers’ obsession with mobile grows and they integrate digital touchpoints into their shopping experience, the end-to-end transaction will also move to mobile. With an abundance of mobile-payment solutions available globally, consumers will expect fashion companies to cater to increasingly convenient mobile transactions.
Platforms first
Consumers will look to online platforms as the first point of search, attracted by their convenience, relevance, and broad offering. Platforms will grow in scale and reach fashion brands to find ways of engaging with these powerful sales channels. The question for brands is no longer if they should collaborate but how to do it.
Getting personal
Personalization and curation will become more important to the customer. As consumer values coalesce around authenticity and individuality, brands will value data even more to tailor recommendations, engage influencers, and personalize experiences. The fashion companies that flourish will refocus on their strengths.
Asian trailblazers
With two-thirds of the world’s e-commerce “unicorns,” over half of global online retail sales, and myriad digital innovations, Asia isn’t waiting for Western companies to step up. Asian players will assert their power and leadership even more through pioneering innovations and global-scale investment and expansion.
Globalization reboot
Despite the rise of nationalism, isolationist rhetoric, and reshoring, globalization will not stall. A new phase of globalization characterized by the exponential growth of cross-border bandwidth, connectivity, and digital data flows will alter the global playing field and give certain players a competitive edge.
Predictably unpredictable
Geopolitical turmoil, economic uncertainty, and unpredictability are the new normal. Fashion companies and executives must continue to be vigilant and nimble in order to adapt to an ever-changing environment, but they will increasingly focus on directing their energies toward what is within their control.
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Ten trends that will define the fashion agenda in 2018
Source: McKinsey analysis