We at THE FASHION BLUEPRINT always encourage you to stay ahead of the curve and be in the know of what's happening in the economy in general. Running a fashion business means you have to compete in a volatile market and whereas we know you may already have what it takes to succeed, we also need you to know what you're up against.
McKingsey & Co have released the annual State of Fashion report, highlighting the 10 key themes that will define the industry in the year ahead and discussing how to navigate the currents they create.
McKingsey & Co
Here is a summary of the10 key themes in the report:
1. Not every country is recovering equally from the effects of Covid
It's one thing to operate in the UK but if you produce/ship abroad then you have to do a risk assessment and stay updated with the latest global news to see how delays, shortages, lockdowns, etc. could affect your business.
2. Get over your supply chain issues
We all design in one place, order fabric from another, produce somewhere else and then ship worldwide. Flexibility and effective supply chain management will be key if you want to survive in these current conditions and continue to meet your customers' expectations.
3. Think local
Travelling won't be the same until 2023-2024 so whatever product categories you sell, think local and establish a stronger presence where you are. This may be a good time to invest in a physical retail space or do a pop-up for example.
4. Be more data-driven
Study your customers, understand what they like, their motivations and their shopping behaviour - then target them via social media ads, personalised newsletters and affiliate programmes for example.
5. Explore the metaverse
As the real world becomes increasingly chaotic, more and more people are finding escapism online. If you sell to younger audiences, explore the 'metaverse' concept and start experimenting with it - this may be the way to consume fashion in the near future.
UNXD / Dolce and Gabbana
6. Improve your social media purchase-journey
In-app purchases in social media platforms are becoming the norm. Customers are no longer showing a resistance to this feature (since Instagram changed its layout and put the 'Shop' option where the 'Likes' used to be...smart)
7. Reduce, reuse, recycle
There is no need to destroy the planet just so people can have nice things. To reduce our environmental impact, we have to tap into the circular economy. We need to reduce the levels of production, extraction of new raw materials and chemical usage - and instead start repurposing textiles and recycling more.
8. Use microchips and digital passports...on your clothes
To make supply chains more transparent, increase traceability and promote product authenticity, there are a number of technologies available to store and share product information with consumers and partners. This is a game-changer for brands which claim to be sustainable.
9. Invest in cybersecurity
As the fashion industry becomes more digitised, there is a higher chance your brand may be hacked or you could face legal action for handling customer data improperly. See how you can protect yourself against potential cyberattacks and get more acquainted with international data protection laws.
10. Be a good employer
Gone are the days when you could just get a few interns and pay them in clothes and good vibes. You need to put proper budgets in place to hire a reliable, diverse workforce and provide them with flexible working + competitive employee benefits.
Click to download the full report
Written by Giovanna Vieira Co, 2021