Unpredictability is becoming the norm
Economic uncertainty and general market unpredictability have become the norm for the global fashion industry. Stores are closing, malls are empty, online shopping is becoming more popular – all this is pushing companies to be flexible and adapt to market changes, focusing on their resources and customer service.
Brands are also
expected to use more technology, including artificial intelligence, to help them stay agile in netherlands phone number data the face of political tensions and economic upheavals – such as Brexit and other international trade issues that could worsen this year.
Resetting globalization
In 2017, the US saw a nationalist idea rear its head, withdrawing from the Trans-Pacific Partnership to focus on its domestic market. And while this has changed the dynamics of trade, globalization as a whole is not in danger.
“We are entering a new phase of globalization, driven by digital communication and the flow of data. Since 2005, cross-border bandwidth has grown by about 80 times, and over the course of a decade, data flows have increased global GDP by more than 10%. Data flows now have a greater impact on GDP than global trade in goods.”
From a report by McKinsey & Company and Business of Fashion
Moreover, the report estimates that consumers will spend $1 trillion on cross-border e-commerce by 2020. Today, more than 900 million people have international social media connections, giving fashion moguls the potential to expand their customer base and increase revenue on global digital platforms.
Asia is gaining influence in the fashion market
This year, Western companies may face more competition from Asia: among e-commerce giants, it already accounts for 60%, more than half of global online retail sales and many technological innovations.
According to McKinsey Fashion Scope, Asia will account for 40% of global apparel and footwear sales by 2018, and the fashion market will reach $1.4 trillion in two years.
While Europe continues to meet the needs of a digitally savvy audience, Asian companies can capricious google reverse the historical expansion of Western companies to the East – and enter other global markets, including America, Africa and Europe.
Personalization
Global fashion companies are focused on consumers – they use personalization to increase data on loyalty and sales. According to the report, 41% of shoppers want personalization. Key areas of action for brands in the near future are expected to be the use of data to personalize the user experience in online stores.