1. Data for this industry
When looking at the fashion industry, on a global level, it is expected to decline by nearly $45 billion in revenue. Part of the reason has to do with the negative compound annual growth rate which has been caused by the COVID-19 pandemic that is permeating the world. However, on the bright side, recovery is in the near future, with the industry growing to nearly $700 billion in the next few years.
Looking at the United States, the fashion industry accounts for nearly 1/3 of all sales. This is a large amount, and on a global scale, it may reach $100 billion soon. If you have ever wondered what is a thick body type then see here.
There are five reasons this is happening:
- Markets are expanding dramatically, especially in the West
- Smartphones are making it easier to get online access to these products
- The middle class has more disposable income
- There are many new technologies that make e-commerce much easier
- Influencers are affecting the market
There are certain threats that are affecting brands that have long been established:
- People are no longer loyal to one particular brand over another causing fragmentation:
- Online return rates are accelerating
- Creating new styles is becoming more difficult
- Consumers are looking for green-based products
- Although there are many strategies to fix these problems, let’s look at them later. Right now, let’s look at sub-verticals in this industry.
2. The COVID impact
As most people know, e-commerce predictions were greatly affected by the pandemic. Lockdowns caused many US consumers to change their spending habits, and they did so dramatically.
Although this is true, the sale of fashionable items increased. In some cases, there was significant growth, as high as 34% as reported by some experts. A 45% increase, for example, was what Boohoo experienced in the UK for all of their online sales.
What the problem seems to be is that adjustments have not been made in regard to e-commerce, as a result of the pandemic, when looking at over half of the fashion retailers on a global basis.
Athleisure is a type of garment that is worn and is for sale through many different companies. This market was well over $150 billion and is thought to be on the rise. The CAGR for these products is thought to be moving upward, reaching over $250 billion in the near future.
When you look at how many schools and stores were shut down during the pandemic, despite this, stimulus money was often spent on these items.
So what was the result of all of this? Athleisure grew significantly, and this was reported by companies like Nike, who saw the pandemic as beneficial for these products.
3. Clothing and apparel
Digital barriers, which are now much lower, have contributed to many opportunities for companies to sell products not only domestically but worldwide. This has increased the amount of revenue that they have been able to earn, and this is only projected to grow to higher levels.
Take Europe for example. According to statistics, people will spend almost $1000 on fashionable items every year.
Although these are not absolute numbers, you can see on a general basis that the growth rate, which was once rising significantly, is now beginning to slow down: for example, in 2022, this rate has slowed by nearly 8%. When looking at the fashion sector, in regard to e-commerce, the projected growth is just over 3% over the course of seven years.
The saturation of the Western market is likely the reason for this. When looking at the United States, China, and Europe, it becomes an even more bleak topic. For more information please check this กระเป๋าสะพายข้างผู้หญิง.
CAGR, in between the years of 2017 and 2022, is thought to be heading for:
- 8.7% in Europe
- 8.8% in the US
- 14.1% in China
4. Shoe segment
This particular segment of the fashion industry has also seen a rise in sales. Looking specifically at the global market, footwear is thought to be on an upward trend, going from over $350 billion to nearly $530 billion in the next few years.
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