Today I read a book recommended by the learning room, which I think has helped me a lot, as it has taught me to face the risks and challenges of the fashion industry after 2024 from the perspective of a fashion leader. This magazine tells some of the current state of the fashion industry in 2024 and how to capture the opportunities and challenges of the fashion industry in the coming year from the perspective of a fashion leader.
In 2024, the fashion industry is uncertain, and many luxury brands' cost-saving strategies have mostly been exhausted due to the slowdown in the growth trend of luxury sales，fashion industry has already seen widespread cost cutting, suggesting the focus should be on stricter controls rather than cuts。As a result, many fashion leaders are expected to focus on new product pricing and promotional strategies, rather than just increasing sales.
Looking to 2024, fashion leaders are anticipating further headwinds and are uncertain about prospects for the year ahead. As the pace of climate change continues to accelerate, fashion executives remain focused on building more sustainable businesses.
As sustainability regulations become more prominent in 2024, the sustainable fashion advocacy lead at the UN Environment Programme, Rachel Arthur, breaks down why marketers should have a bigger role in efforts to improve the way the fashion industry operates, including adjusting communication to help break the cycle of overproduction and overconsumption.
Fashion supply chains could be under increased scrutiny amid incoming regulations on several fronts. This includes new sustainability rules in the European Union and the US, which will require brands and manufacturers to double down on initiatives aimed at cutting greenhouse gas emissions and waste, while building business models that protect and preserve natural resources.
From my point of view, I also think that in the fashion industry, sustainability is an enduring topic, and the management needs to find a balance between economic and environmental effects, and cannot blindly pursue brand development, but ignore the negative environmental effects brought by the industry. As a fashion student, I have only recently noticed the impact of my designs on the environment, and I was impressed by a course on zero waste last semester, in which I learned how to achieve zero waste on a piece of fabric and complete three-dimensional tailoring at the same time.
The magazine argues that there is a lot of uncertainty in macroeconomic developments, so fashion executives should have a keen grasp of opportunities to seize future growth. For example，fashion companies may need to revamp how they engage with consumers who are shopping abroad.
In the aftermath of the pandemic, consumers' desire for both brand experiences and traditional shopping trips is growing. I'm more interested in the magazine's focus on the changes that have taken place in the Chinese market after the pandemic, and the impact of these changes on the development of the fashion industry.
In 2023, in Asia Pacific, the shopping spend of mainland Chinese tourists is already 109 percent of 2019 levels. Because I am a Chinese, I also know more clearly that Chinese tourists after the epidemic have resumed their enthusiasm for tourism before the epidemic, which has brought great impetus to the global economic market.
I also learned from the magazine that Chinese travelers they now look for elevated in-store experiences, full assortments, deep product education and immersive interactions. So how should brands and retailers respond? First, creating shopping spaces that offer elevated comfort and convenience, Second, retailers awaiting the Chinese consumer could rethink their digital playbooks to link with the latest Chinese ecosystems, integrating a personal touch and tailored offerings into Chinese apps such as WeChat, and they should consider revamping their assortments to reflect the updated tastes of the Chinese consumer, meanwhile they must not lose sight of other key demographics like American and Middle Eastern shoppers who play a large role in the market.
The magazine cites the example of Gsteed Guy to illustrate how influential fashion influencers can have a very large impact on consumers' mindsets, and this influence can quickly drive product sales. That's why I think as a fashion leader and fashion influencer should be more authentic and relatable, to bring consumers closer to the brand.
As people become more focused on their health after the pandemic is over, people are spending more time outdoors to drive consumer demand for outdoor clothing, and fashion leaders are aiming to further blur the lines between function and style.
With the trend that apparel in the sports and outdoor categories is beginning to be loved by consumers, many brands have launched sports-style related products to cater to consumer choices. This made me more deeply aware that the products provided by clothing brands should always change according to the changing needs of consumers.
After generative AI’s breakout year in 2023, use cases are emerging across creative industries, including fashion. Capturing the value of this transformative technology in 2024 will require fashion players to look beyond automation and explore its potential to augment the work of human creatives. According to McKinsey analysis, as much as one-fourth of generative AI’s potential value in fashion may be driven by use cases in design and product development. 73 percent of fashion executives said generative AI will be a priority for their businesses in 2024, but just 28 percent have tried using it in creative processes for design and product development.
Artificial intelligence will have a transformative impact on the fashion industry, bringing a huge driver to the product development stage, which has also attracted the attention of many fashion leaders, artificial intelligence has introduced technology into the programming of many fashion websites, and its versatility is also attracting capital injection，Equity funding for generative AI-focused start-ups skyrocketed in 2023, reaching $14.1 billion in the first half of the year alone.
Luxury label Casablanca created a campaign for its Spring/Summer 2023 collection by partnering with an AI artist and using image generator Midjourney.
At the same time, I also learned about the other meaning of artificial intelligence, which can be used correctly to free designers from manual tasks and focus on creative work, which can make designers more focused.
In fashion, human skill and creativity often hold the key to brand differentiation. So more than half of fashion executives say their companies are using gen AI.
The rise of the third generation of fast fashion giants, Fast-fashion competition will likely become even fiercer in the year ahead. Challengers, led by Shein and Temu, are changing tactics around price, customer experience and speed. Success for disruptors and incumbents will likely hinge on their ability to adapt to evolving consumer preferences, while navigating regulations that may impact the industry.
The third generation of players is transforming the customer experience through gamification, micro-incentives, because customer loyalty is built on more than solely price or speed.
These companies, with their ultra-low prices and rapid turnover of trendy styles, have captured the attention of consumers in western markets.
In a proprietary survey of consumers in the UK and US, we find that shoppers from all age groups are increasingly turning to third generation fast- fashion retailers such as Shein and Temu. I think what this trend brings to designers and fashion leaders is a complete shift in mindset, and when traditional models are iterated, new models will emerge.
Brand marketing is likely to be back in the spotlight in the coming year, as the fashion industry faces a changing landscape in which performance marketing no longer dominates. Consumers' emotional connection to a brand can be crucial, as fashion marketers repurpose their playbook to emphasize long-term brand-building strategies. Brands should establish a good connection with consumers and convey high-quality brand image and brand story to consumers, which tells us that the pattern of brand marketing is changing, and continuous and holistic brand marketing can change brand image.
CMOs and their teams will need to have a strong focus on customer perception and cross-channel strategy, working with creatives and brand experts, as well as data, finance, and strategy leaders to form a cohesive brand story，amplifying the brand's clear, coherent personality. The rise of digital media has opened our eyes to new brand marketing opportunities, which means we must produce more content than in the past.
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