Predictions for the apparel industry for 2022
It’s been two years now of global disruption due to the COVID-19 pandemic and the fashion and apparel industries have been affected just like everyone else.
According to the McKinsey Global Fashion Index, around 7% of all companies have left the market entirely, either because they collapsed financially or were bought out by rivals.
As we head into 2022, the effects of the pandemic are, and will, be felt for a long time to come, but what can we expect over the next 12 months?
Here are our predictions for the apparel industry in 2022.
Prices will go up across the board
The supply chain crisis has seen old fashioned train robberies in the United States this month, and things don’t seem to be getting any easier.
The lack of drivers, collapse of airlines and waiting times at ports mean the demand is outstripping the supply. Prices are expected to go up 3% on average in the industry, with one-in-seven executives saying they will raise prices by over 10%.
This rise in costs comes from a combination of material shortages, transportation bottlenecks, and rising shipping costs.
The metaverse is coming
The metaverse and NFTs are all the rage at the moment, but whether it’s just a flash in the pan or the beginning of the next stage of the internet waits to be seen.
What is clear though is that over the past couple of years, nearly everyone has been working from home, and as a result has spent more time shopping online.
Virtual shopping is already a thing and is only going to grow. For the fashion industry, that means new communities and influencers that will have a say in which direction brands take. The rise of the digital market is expected to become a permanent shift going forward due to the impact of the pandemic.
The circular economy will grow
Sustainability and social justice are hot topic buttons with consumers and brands are taking note.
Pressure from customers to practice eco-friendly policies means real change within a company, with business models and products changing to meet expectations.
Recycled clothes make up 10% but that’s expected to grow in the coming year, along with buying second-hand or renting clothes.
All of this leads to greater uptake of the circular economy, a framework for an economy that is restorative and regenerative by design.
To put it simply, a circular economy wants people to create less waste, use things more, and recycle them when finished.
Back in July we talked about “passports” for clothing, and now it looks like the idea is gaining traction in 2022.
Digital passports are a very clever way of keeping track of garments, what they’re made of and where they are in the supply chain.
Brands are now using them to share product information with both consumers and partners to authenticate their brands and protect sales, all adding to their supply chain transparency.
Consumers can simply scan the label with their phone, and track the item throughout its lifetime, including information like what it’s made of, which brand originally sold it, and if it has even been recycled.
Plus-size clothing will become more available
Unfortunately, the world is getting fatter as obesity rates shoot through the roof. According to Euromonitor, 42% of American teenagers are obese, and this is not a problem localised to the US. Two-thirds of women in the UK wear size 18 or above, yet the vast majority of clothes are designed for the minority.
In the past, plus sizes were relegated to specialised stores or one rack in a shop, but the demand for plus-sized fashion has gone through the roof recently, causing a shift in marketing.
2022 will be the year that brands move towards “size-inclusive” fashion, welcoming a huge part of the market and the profits that come with it.
Join us in 2022
We’ve been helping business in the fashion and apparel industry for over 50 years, from small independent boutiques to internationally recognised brand names.
Our unique hands-on approach to our clients gives them the support they need in any situation, whether it’s sustainability advice or supply chain issues.
If this pandemic has taught us anything, it’s that life can change without warning. It’s hard to say where the world will be a year from now, but one thing we can be sure about is that we will always be supporting our clients whichever path they take.
Our speed and our agility allow us to understand the change in your business and respond quickly, while our global connections and infrastructure support you every step of the way, giving you the very best chance of staying afloat even in the worst of times.
If you would like to know more about how we can help you and your business, especially in this post-COVID world, contact us today and speak to one of our friendly and professional staff members.