In recent years, technology and the global economy have been steadily altering buying behaviors. According to the McKinsey and Company State of Fashion Report in 2018, players in the fashion industry will see and feel more of these changes in service, marketing and sales in the coming years.
These are the business trends that you, as an entrepreneur, should take into account:
The Rise of the East
According to the report, the majority of the sales in the clothing, accessories and footwear industry will be generated outside of North America and Europe. The International Monetary Fund (IMF) predicts a 5.4% growth in the Asian Economy in 2018.
What does this mean for fashion businesses? The growing Asian market must not be left out, particularly in terms of marketing and branding.
Competitiveness of Start-ups
The Internet has given startups a less expensive, very effective platform to reach out to their target consumers. The change in the way businesses market products also frees up resources so that you can invest more in quality.
McKinsey and Company reports that brand loyalty is no longer a strong driving force in purchase decisions. Fortunately, this customer mindset of being open to new brands also opens up clothing store franchises opportunities. Small companies can now compete with big ones.
More Online Purchases
Online sellers are now able to deliver excellent customer experience consistently. Searching for exactly what you want is convenient, delivery of the items is reliable, and payment platforms are secure. Gone are the days when the photo looks different from the actual product that lands on the customer’s doorstep.
This integrity has made shopping online more exciting than it is scary. It is important to note though that the surge in online shopping does not necessarily imply that the brick-and-mortar store is a thing of the past.
Not at all. You can expect offline sales to grow at 4.5% because many customers still prefer the in-store experience.
The customers of the fashion industry are becoming increasingly complex. All the same, you can expect the industry as a whole to grow at 3.5%-4%.