As a new phase of the virus is upon us, the opportunities in the world of business opens multiple doors by introducing new job opportunities to new business ventures. As the pandemic arose fashion retails encouraged the customers to shop online while in reality, the consumer was facing difficulties as they were forced to stay at home and while many lost jobs worldwide.
The global apparel sector is once again finding its path after two years of disruption. Fashion brands are focusing digitally while embracing new consumer priorities. As for this year, growth will be the key focus within many fashion brands as they struggle in finding profit.
According to McKinsey & Company Global Fashion Index (MGFI), the fashion industry posted a 20 percent decline in revenues in 2019–20 and A record 69 percent of companies were value destroyers in 2020. 7% of the companies left the market for financial distress or because they were bought by their rival companies.
In 2021 one of the most successful standouts was China when looked at from a geomagnetic perspective as its recovery rate was much faster than any other country. As many European countries will need the return of international tourism to recover it is assumed that in 2022 China and the United States will be the two major counties that will be driven by industrial growth. While domestic markets are set to continue their recent strong performance.
Global fashion revenues are expected to increase in 2022 as consumers start to refresh their wardrobe and social life begins to resume post pandemic. Full recovery was expected in the luxury fashion sector by the end of 2021 and as for the wider fashion sector isn’t expected to return until early 2022 as this is expected much quicker to the predictions made six months ago.
As per survey done by BoF-McKinsey State of Fashion 2022 the top three key words to describe business conditions in 2022 was, “recovery” (cited by 59 percent of fashion executives), “challenging” (50 percent) and “changing” (42 percent)
In US 2021 and beyond it is predicted that Gen-Z and wealthier consumers from middle-income groups and upward are the ones most demonstrating a large amount of spending when it comes to fashion, dining out, travel, entertainment, electronics.
The performance shown the growth of fashion Market will be uneven across geographies depending on the ability to recovery from the ongoing pandemic. From luxury and non-luxury segments China has already recovered to pre-covid sales in the fashion industry. According to McKinsey US isn’t far behind as the predicted recovery was +5 to +10 percent by the end of 2021.
The state of the global fashion industry in 2022, defined by the 10 themes,
Read more on my next post on global economy in the world of fashion.