In 2023 the industry got to see a fuller picture of how the pandemic has shaped consumer behavior, and rubber has hit the road of the outcome of the ideas and idealisms formed during the downtime. The impacts of overconsumption of fashion on climate got traction towards government regulation, Artificial Intelligence was introduced as an impactful tool, and people’s aversion to going back to the office persisted while their interest in travel-experience enhanced. In the consumer marketplace, luxury brands elevated their consumer experience in the major capitals of both developed and developing countries, while retail sales showed signs of deflation after the post-pandemic bump. This year we will see the real-world implementation and impact of such understandings and intelligence.
1. Legislature for sustainability will continue to get more traction: 2023 started in the hills of hopefulness about legislative actions in the US and Europe to control the environmental impact run amok through the pandemic era compounded by the meteoric rise of ultra-fast fashion in the likes of Shein. At last, it got some legislative action – while Europe led the way, it made some progress in the US. Environmental impact being so on-our face, fashion industry can’t ignored it anymore. 2024 will see the momentum going further in seeing government legislation both in the US and Europe.
But the harsh truth is, the earlier the world can recognize that we can’t get out of this without reducing consumption, the earlier it can influence social perception to encourage longer use and re-use of fashion. Fashion must establish an emotional connection between the makers and the consumers for them to consider it less disposable and willing to pay a fair price reflecting the cost to wage and environmental impact. Initiatives around it need to be much stronger for it to reverse the culture which is only increasing the consumption.
2. Struggle to involve brands in workers’ wages will remain: The call for higher wages from garment workers in Bangladesh was heard loud and clear around the world. While it has been increased, it largely fell short. The good ‘ol dollars and sense continued to trump as the brands recognized that they could get away with decoupling themselves from the garment ownership regarding the worker’s wage, as they know that the consumers’ psyche towards workers’ living conditions is still shielded enough for them to prioritize the cost of clothing.
It can be anyone’s guess at what point the wage’s social impact will be acute enough to influence the global consumers’ psyche, but in my view for it to happen greater humanization of workers needs to take place to a broader segment of Western consumers through social initiatives much wider than workers’ and environmental rights activism.
3. AI and AR will be the most disruptive technologies: 2023 was the breakout year for Artificial Intelligence. This year brands will be using technology for their actual business purposes, quite often magnifying the implementation of Artificial Intelligence and Machine Learning to improve the efficacy in reducing human dependence which is already in short supply post-pandemic. Dealing with the copyright lndmines will be bumps in the road for design and creative departments but the upside of AI will be too high for them to not not maximize its potential. Augmented Reality and Augmentged/Virtual Reality will be enhanced in retail experience of bigger fashion forward companies (Ref: Vogue Business).
4. Travel in office out: 2023 started with an expectation that workers would get back to the office and their clothing demand would follow suit. But the year ended with the CEOs’ and decision-makers’ initiatives to bring back workers to work to be lot less effective than anticipated. On the other hand, in 2024 global travel is anticipated to be surpassing 2019 for the first time. This means the need for items required for travel, resorts and outdoors will increase.
5. Hyper experiential retail back with vengeance in global capitals but retail outlook is uncertain: As shoppers have found their path back to physical retail stores, 2023 has seen a major upgrade in creating customized experiences from luxury brands with craftspeople on site, VIP floors, carefully chosen art on displays, and special exotics rooms.
The biggest luxury brands Gucci in NYC moved to 15000 sq ft in a five floor space. Top clients accommodates overnight stay in Dior’s Paris flagship store. In December YSL opened its palace like store in Avenue des Champs-Élysées, brand’s largest store yet i Paris (source WWD). This trend that will continue in 2024, tho showing some sign of softness.
Geopolitical events will keep the retail uncertain. Though the picture for luxury was more positive than the rest of the market in the first half of 2023, consumers’ appetite to shop for fashion was diminishing across the board by the second half, leading to slowing sales and uneven performance. Looking to 2024, fashion leaders are anticipating further headwinds and are uncertain about prospects for the year ahead as predicted by executives in the Business of Fashion-McKinsey State of Fashion 2024 Executive Survey. As a whole, the fashion industry is predicted to achieve year-on-year retail sales growth of between 2 percent and 4 percent in 2024.
6. Brands will continue to woo Chinese consumers: WWD (Women’s Wear Daily) observed that mega-global events, where Chinese shoppers are treated with the highest priority with a nod to local culture and customs, are seen driving sales and boosting brand awareness significantly amid China’s economic slowdown. Louis Vuitton’s new Men’s Creative Director Pharrel Williams embarked on a whirlwind trip to Chengdu, Shanghai, and Beijing last December to interact with local VIPs after bidding farewell to Hong Kong, where the brand hosted its first pre-fall fashion show. It’s said that only the biggest spenders in these cities were invited to meet with the creative director.
A similar spending frenzy could be observed on Chinese social media before and after Chanel reprised its cruise 2024 show in Shenzhen; Miuccia Prada and Raf Simons inaugurated Prada’s Second Pradasphere in Shanghai last month, and Cartier entertained its guests on the Great Wall to celebrate its Le Voyage Recommencé exhibition at Beijing’s Prince Jun’s Mansion. WWD predicts that this formula will be carried well into 2024.
7. India elevates its position as a global luxury market: India is gradually moving up in the ranks as the luxury market with some distinct achievements in 2023, which will continue to grow in 2024. The opening ceremony of Nita Ambani Center saw one of the biggest gatherings of global fashion and entertainment celebrities in Mumbai with the likes of Gigi Hadid and Zendaya in Indian designers’ fashion captivating the global press.
Dior’s Mumbai show celebrated India’s artisans’ relationship with the haute couture under the global spotlight, and it’s in the likes of similar celebration in China while it was on its way of economic ascendancy in the years past. Indian designer Gaurav Gupta premiering in Paris Couture Week followed by Niki Menaj wearing him at the Grammy shows the marking of Indian designers going beyond Sabyasachi in garnering A-listing spotlight. Tim Cook himself opening India’s first Apple store marks a distinctive milestone for recognizing Indian consumers’ buying power of the global luxury.
8. Brand marketing to elevate and be more authentic: Business of Fashion-Mckinsey 2024 fashion report predicts that brands will re-prioritize marketing and create emotional connection with consumers over the recent’ years of performance-wear marketing, but will do that in a more authentic connection. This will make them to work with a new type of influencers. That would increase the importance of Tik-Tok which has elevated its positioning as a organic platform for GenZ over the last year.
9. Commercial districts’ struggle means higher presence of smaller brands: Western workers’ higher-than-predicted resistance to going back to the office is keeping the office-space marketplace deflated in the foreseeable future. With mortgage payment looming along with lessening desirability of the areas with increased For Lease signs, desperate owners of retail spaces will be more likely to fill up the spaces with lower lease terms, likely with short-term leases. This will bring back more local brands in the high commercial-value districts. Fashion, lifestyle, and unique-item brands will be at the top amongst such lessors. This will also be a unique opportunity for smaller international brands to try a Western market with less financial risk.
10. Independent designers’ focusing on personalized experience to thrive: What do all these mean for small independent fashion brands for 2024? In the past, broader economic downturns where both the real estate and the luxury market were impacted equally. In this downturn affluent customers remained in the luxury goods market. Independent designers in all the cities, small and large, can triage this to their benefit by taking on more desirable retail locations while upping their power of proximity in offering personalized services both in design and fitting as well as customer experience to the local affluent customers.
(Author Credit: Prasenjit Tito Chowdhury is a global fashion industry consultant and founder/CEO of FashioNXT, a US-based Marketing and Consulting agency offering services for fashion experience, education, supply chain, brand collaboration, and media launches for fashion and lifestyle technology. Its flagship event FashioNXT Week launches fashion and technology brands worldwide that Forbes Magazine listed as #1 in the US city fashion weeks for its commitment to emerging designers, fashion-technology, and sustainability. www.FashioNXT.com/Agency )
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