The fashion industry is challenging due to the dynamism nature of the industry. The public and fashionista would want to keep up the trend and businesses will strive to get customers flowing into their shops.
The market analysts have to be on toes to grasp any new ideas and preferences for the customers. The designers are put to task to bring the big ideas into reality and the end game is to maintain the loyalty of the customers as well as meet their levels of satisfaction. Designers make it easy for the choice of fashion and trends.
According to the 2016 global survey, the fashion industry can be said to be changing and uncertain. Amidst all the challenges, consumers have become more demanding and discerning and the fashionists cannot predict their behaviors. This has shaped the direction that technology in the globe is taking. To remain competitive in the market, the fashion industry has to embrace technology and its dynamism.
Recovery for fashion industry in 2017 seems to be glim. This is due to the influence of macroeconomic factors like GDP growth forecasts which is expected to rise in 2017 compared to the growth experienced in 2016. Political shifts in United States are known to affect world economies and consequently the fashion industry.
It is expected that investment community and fashion brands will improve in 2017. The fashion industry players have witnessed major cost cutting measures being executed and restructuring of firms to enable them to focus on the core business which is fashion and maximize shareholders value.
Performance of fashion industry is expected to vary depending on the market categories and market segments. Luxurious items with value and are affordable may take the largest share other segments will experience small but significant growth based on previous years performances.
The major players are following the trends and so as to take the opportunity to stabilize ready for the year 2017 and its developments.
Intensifying volatility is a wide concern among fashion executives- terrorism and domestic conflicts are the order of the day and this can heavily disrupt the fashion industry. Uncertainties due to Brexit departure from EU is also worrying fashion executives. This is expected to flow over to 2017 in form of low consumer demand, tourism, and exchange rate arbitrage among others.
Companies in fashion industry have options of making adjustments to counter this by;
Adapting to changes in consumer needs.
Establish strong supply chains promise stability of supplies throughout 2017.
Diversify and differentiate brands and categories and geographical portfolios.
Managing costs to manage cash flows.
Chinese entry into the fashion industry in a major comeback in 2017- China has increased wealth in middle class, has experienced growth in mobile shopping and personal consumption. It’s expected to stimulate investment and consumption in the fashion industry in 2017.
Expected urban growth in 2017- will be a major boost for fashion industry as the cities will provide shopping hubs for consumers especially in China and India which have very high populations.
Organic growth- in 2017 focus will be on growth of value rather than volume especially through branding and developing clientele.