5 Apparel industry predictions for 2021
It’s fair to say no one could have predicted what 2020 was going to be like.
While we were expecting new and exciting fashions, improvements in Artificial Intelligence, and incredible breakthroughs in sustainability, instead we got a collapse of the global economy.
The apparel industry was hit hard, so looking ahead to the coming year, things can only get better.
New businesses will develop
The pandemic has had a devastating effect on the fashion industry.
And we mean devastating; the industry’s global profit is expected to fall by a staggering 93% in 2020.
That means a lot of small businesses have closed their doors, and, heartbreakingly, most of them for good.
But as the world begins to wake up again, so too will business opportunities.
Many of those who lost their business will want to get back on the horse as soon as possible, maybe starting from scratch.
We should see record numbers of new businesses opening in the coming year, both from previous owners and those from other industries who lost their jobs and want to try something new.
Not all will succeed of course, but for those who want to try, 2021 is the perfect time.
Big brands will change their business model
The survivors of the pandemic are those bigger names who can afford to take the hit, but 2020 has shown that even their business practices need to change.
At the start of the pandemic, China and then Asia were the first to go into lockdown. This meant that the factories where most of the world’s clothing comes from stopped producing.
The biggest brands in the business were suddenly without products to sell, and the realisation of just how dependent the West is on the Asian manufacturing market suddenly came to light.
Looking ahead, don’t be surprised to see many changes in how companies do business, especially when it comes to transporting goods across the world.
For many, items made closer to home, while more expensive, are less of a risk.
Online retail will grow even more
Even once shops open up again, the virus is still out there.
How we think about crowds, washing our hands, and even leaving the house have been fundamentally changed by the pandemic.
While many people will be the first in line to try on clothes in the shop, many others will stick to online retail.
Around one-in-seven people shopped online for the first time because of COVID-19, boosting an already increasing marketing trend.
Looking ahead, that number will increase with almost 5 trillion dollars being spent online by the end of 2021.
Apparel industry predictions suggest shoppers will spend less
More people will avoid physical shops and buy online, no doubt, but that doesn’t mean people will spend more.
In fact, although interest will increase in casualwear due to working from home, overall spending on clothes will decline.
Countries around the world are now entering second and third lockdowns, and with a new strain of the virus being reported in the UK, there’s no guarantee we won’t be in the same situation this time next year.
A large part of this is the simple fact that people have less money in a post-COVID world.
Millions of people have lost their jobs and must tighten belts in order to survive. When that happens, luxury items, like fashionable clothes, are the first to go.
Social and environmental justice will be prominent
The drive for more sustainable practices from big brands was already gaining momentum, but the pandemic has also highlighted the vulnerability of workers in the third-world.
Consumers will be more aware of how a company treats its employees, where materials are sourced, and what environmental impact items might have.
Moving ahead, brands will need to ensure dignity, better working conditions, and a fair wage throughout the supply chain, as well as have sound sustainability policies in place.
Difficult times for everyone
There’s no question it has been a tough year, but we’ve faced worse.
The COVID-19 pandemic is a watershed moment in history, changing everything.
How we interact with each other, how countries deal with their economies, and how global business needs to change.
Things are changing so rapidly it’s hard to say where we will all be a year from now, but here at immago, we’ve been around long enough to weather the storm.
We’ve talked before about how we handled coronavirus and came through better than most.
Our promise to our clients is to keep supporting you, no matter what 2021 holds in store.
If you would like to be a part of our family, then please don’t hesitate to contact us today, and let’s make 2021 your year!