“Representatives of the luxury segment felt the crisis” – Kommersant FM
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Kommersant FM columnist Anna Minakova talks about what strategy business in the fashion industry will follow.
Business of Fashion together with McKinsey have released their eighth annual report on the state of the fashion market and forecast for 2024. What do experts predict? Sales growth by 2-4% compared to the previous year. But macroeconomic and geopolitical factors, as well as climate problems, will slow down the development of the market. More than 50% of top companies surveyed plan to increase prices to support their business.
As experts note, after a successful 2022 for the fashion industry, which became the best year since 2010, 2023 became a year of challenges, and 2024 does not promise to be easy. Even representatives of the luxury segment, albeit later than others, felt the crisis. “Uncertainty” and “ambiguity” generally became the most frequently used words among interviewees who described their vision for business in 2024.
How can companies prepare for a turbulent year? Cut costs, develop new pricing and promotion strategies? Experts associate the potential for the development of fashion business with the use of artificial intelligence, sustainable development and travel.
Moreover, action in many areas will have to be voluntary or compulsory. Thus, new EU and US rules will force manufacturers, especially in the fast fashion segment, to think more about the environment. As for travel, the point is that customers will travel a lot, and brands need to take special care of the strategy for working with customers who make purchases abroad.
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