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McKinsey releases global apparel industry trends in 2019, and the top 10 trends are worthy of attention

From production, procurement, sales to platform roles, brand positioning and industry environment, read the 2019 clothing industry.

Recently, management consulting firm McKinsey and fashion media company BoF (Business of Fashion) jointly released the 2019 clothing retail trend report. The report covers the optimistic trend of the US luxury market, the European mid-market troubles, automation, AI innovation, consumer trust and other key points. These key trends will be explained one by one below.

1. Industry risk

First of all, it must be acknowledged that the problems of global trade, tariff warfare and other related issues will bring uncertainty to the global economic development in 2019, and the clothing industry is also exposed to the risks radiated by the global economy. Since the financial crisis, the annual growth rate of the global economy has averaged more than 2.5%. However, the rise in US financial industry interest rates has increased the turnover costs of retail and consumers, and the tightening of European monetary policy has also led to a slowdown in economic growth.

Executives surveyed by the State of Fashion report (42% of respondents) believe that the industry situation in 2019 will deteriorate further. McKinsey said that the potential changes in the economic cycle are causing industry concerns. As industry costs rise, the strategic focus of the industry in the future may be more focused on flexible and efficient productivity.

2. The rise of the Indian market

As India's market share continues to expand, McKinsey points out that India will become the center of the apparel retail industry in 2019. India's economic growth rate is expected to be 8% between 2018 and 2022, and the middle class's economic growth rate is 19.4%, surpassing China, Mexico and Brazil.

The report pointed out that the fast-growing middle class and increasingly strong manufacturing industries have gradually made India the center of the apparel retail industry. Whether it is shopping demand or supply, the Indian market will become an industry center worthy of attention.

3. Trade 2.0

The report pointed out that the impact of the Sino-US trade war on the supply chain and clothing trade may reshape the clothing retail industry. For most clothing sellers and manufacturers in China, how to maintain their own market competitiveness under tariff barriers has become a market problem in the future.

But at the same time, McKinsey pointed out that market growth in developing countries in the southern hemisphere may also bring new opportunities to the industry. It is understood that the trade volume of these southern hemisphere countries will increase from 25% of the world to 30% (to 2030).

Some experts said that with the surge in trade between emerging economies in the south of the world, the axis of apparel trade will undergo subtle changes, which will lead sellers or manufacturers in the apparel industry to rethink pricing strategies and procurement channels.

4, exclusive sales are no longer "exclusive"

In 2019, global consumer demand for fashion goods will be further upgraded to be fun, readily available, sustainable and affordable, so more and more consumers are turning to clothing rental and second-hand clothing. Experts pointed out that with the continuous development of second-hand, leasing and other business models, exclusive brand sales may no longer be a shopping path for consumers.

5, the younger generation has become the main force of shopping

The report highlights that the younger generation, including Generation Z and Millennials, will be the main force in the purchase of apparel retail. Take the US market data as an example. Millennials and Generation Z represent the $350 billion consumer market. Therefore, the shopping perspective of this group is very important.

It is understood that 90% of younger generations consider brand awareness of social responsibility and the environmentally friendly nature of goods. In addition, this shopping force is increasingly relying on its own shopping habits, and value goods, brands and their values ​​are different.


So for the brand, this is a great opportunity. Brands can generate more public events, convey brand values ​​and voices, and drive consumer sentiment and identity, thereby increasing sales. The report suggests that brands can prioritize and focus on hot topics related to brands.

In addition, brands and merchants should pay attention to the fact that not all brand values ​​advocated are generally welcomed or supported, and some value orientations may cause certain risks. Therefore, brands must ensure the unification of business behavior and brand value and avoid being labeled as hypocritical.

6, fast shopping

Fast has gradually become an industry standard, especially for online retail. In addition to e-commerce giant Amazon launching one-stop services such as fast shipping and distribution, more and more platforms are trying to speed up the shopping process, such as integrating shopping functions on social media ports and visually identifying shopping. From technology to service, a timely and fast shopping experience is becoming a new consumer indicator.

7. Transparency of the value chain

As consumers begin to seek greater transparency, the ongoing data breaches of apparel companies exacerbate distrust of apparel brands and retailers, and brands and retailers will need to deal with this distrust.

In 2019, consumers will have greater demand for transparency in goods, and consumer trust has become an important proposition. To do this, the seller must improve the transparency of the goods, disclose basic information such as materials, transportation, taxes and fees. In the report, McKinsey bluntly stated that the clothing retail industry must accept this fact, and the current consumer value chain needs full transparency.

Given the need to regain this trust, fashion industry players cannot but review their long-term practices across the industry.

8, self-subversion

Many experts believe that subversion will become the focus of the industry in 2019, and 79% of the executives surveyed listed it as one of the five major trends affecting the industry. From the outside, social media momentum and technological development have spawned a large number of emerging brands and business models that are challenging the status quo of traditional industries. In this area, existing competitors have been comfortable with the status quo. At the same time, in order to compete and maintain relevance among young consumers with strong demand, more and more traditional brands are undergoing self-subversion to respond to new trends, trying to build their own new brands, products and business models.

9, online retail diversification

McKinsey believes that as the online retail industry continues to grow, single sales can no longer meet fierce competition, and brands and businesses need to work in emotion, trust, and curing. In the future, the online retail industry will need to achieve new revenue generation through value-added services and technological innovation. This is especially important for platforms, whether through mergers and acquisitions or in-house R&D, companies that diversify their ecosystems will increase their lead for pure companies that rely solely on retail profitability and existing products.

McKinsey pointed out that as the market matures and competition intensifies, user profit growth has gradually become saturated, and expanding the new direction will become an important issue for the retail platform. The next phase of online retail platform development is the clearance of patented technology and knowledge to diversify business models to enrich products for consumers and brands.

10, the trend update speeds up

In 2019, clothing style design and trend change is no longer a long process, brands and businesses need to use technology to speed up the frequency of product line changes. This trend also has higher requirements for order production cycles and shipments.

However, McKinsey pointed out in the report that automated data tools will help companies adopt flexible order production cycles and respond more quickly to market trends and consumer demand. The result of this trend may be an increase in responsive production, a reduction in inventory backlog, and an increase in the importance of small batch production cycles.

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