State of fashion 2022

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The COVID-19 pandemic occurring in late 2019 turned all our lives topsy-turvy. Many industries felt its brunt and suffered from a lack of growth and profits. Though there was a growth spike in late 2020, not much has changed from the point of view of sales outputs.

The fashion industry is no different. It is only going ahead into 2022 that we can see some growth in fashion. Primarily, the digital medium and sustainable fashion will boost this growth.

In FY 2019-20, the fashion industry saw a 20% decline in sales and income. The EBITA (earnings before interest, taxes, and amortization) came down to 6.8%, a 3.4% reduction overall. Additionally, a fraction of fashion and apparel companies could not sustain themselves at all. It left the market or was bought out by larger competitors.

Since 2021, there has been a change in this scenario. Today, the global fashion industry has gradually started finding its bearings in a universal marketplace that saw a shift in consumer priorities and new opportunities in the digital world.

Two significant elements are pushing such growth. One is a change in consumer priorities and how fashion houses learn to adapt to these. The second is the opening up of several new opportunities for growth via the digital medium — online shopping, apps of fashion houses, etc.

As far as consumer priorities are concerned, 2020 saw higher demand for sportswear. This was because most people were paying more attention to their health than ever before, and athleisure was and is still definitely in.

Another point to consider is that the work-from-home norm followed around the world led to time on the individuals' hands and the need for some movement, at least if they were not commuting. This development of trending sportswear and athleisure is still underway, and the year 2022 is going to see it continue.

Sustainable Fashion Approach

Sustainable fashion is another key area to which the fashion industry must embrace and adapt. People are more environmentally conscious than ever before. They want clothes and accessories made with minimal damage to our planet and its resources. Upcycling and recycling are words that hold a lot of importance today. So, the fashion industry needs to create products designed thoughtfully and can be easily recycled.

Digital shopping

With a majority of the malls and shopping complexes being closed for a relatively long time, online shopping opened up newer avenues for fashion houses to generate sales and money.

Though people are still traveling less to work, the desire to impress with clothes is still there. People today have more time on their hands, and online shopping is a great way to relieve stress. The digital platforms, apps, and online media for shopping are all expected to provide the much-needed boost to the fashion industry as we advance in 2022. A large part of this industry's positive turnaround and recovery can be attributed to digital fashion.

Key factors that will influence the fashion industry in 2022

The recovery from the last two years was uneven across different countries as marketplaces and areas where goods are sourced from. Nations with a more robust healthcare system and fewer COVID-related casualties are expected to receive higher yields from the fashion industry too.

This industry will still have to battle the challenges of a disrupted supply-chain system and hits snags in places. This could partially be due to a lockdown-like scenario and a shortage of human resources.

It is also expected to suffer from a talent crunch, with a lack of supply of sound professionals. Hence, significant brands and fashion houses need to attract and sustain talent within the industry.

2022 will also see a shift in demand for domestic luxuries and a wardrobe reboot. There will also be an increasing focus of shoppers on digital platforms for shopping. Lastly, being aware of cyber threats, being cyber resilient, and introducing product passports (sharing authenticated product information with consumers using technology) are some steps that will open up markets for fashion in 2022 and help this industry grow more.

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